Choosing the best transportation system in the EXIM business

Transportation is one of the most essential factors when it comes to the import-export industry. Whether you are planning to export your goods or import products from another country, it is just not possible without proper transportation facilities. The transportation system for the import-export business has a lot of different modes. All the modes come with their own operational and commercial characteristics to help the business owner with imports and exports. 

 

But, how do you choose the best transportation system for your import-export business? It completely depends upon the products that you require to ship. If you are in the business of exporting goods from India, and the goods that you export to foreign markets are perishable, then you need to choose the fastest mode of transport. You must ensure that goods are transported in the speediest mode to the port, where the goods are going to be shipped to the targeted market. Likewise, when you are importing goods from any country, you will have to decide the mode of international transportation keeping in mind the nature of the goods. 

How to choose the best transport system for import and export business 

When it comes to the import-export business, startup owners must understand what type of transportation system will be the best suitable, efficient, and cost-effective for their business. The four major methods of transportation for any business are road, rail, air, and sea. 

Your selection of the mode of transport would depend on: 

• Lower logistics cost 

• Perfect inventory levels 

• Great customer services 

• Time-to-time delivery schedule 

Modes of transport 

The selection of methods of transport for import-export businesses evaluates various factors that affect the final quality of acknowledged transports.

Road transport 

Road transport is considered to be the best mode of transport for transporting goods within the country. If you use this mode of transportation for your import-export business, it would become easy to track shipments, the consignments can be secure and private, schedule transport, and pay the relevant fees. Road transportation can deliver cargo from door to door with high flexibility and does not require any further shipment. 

 

Even the way motor vehicles network and cross national borders are pretty fast and efficient. However, this mode of transportation also comes with its risks such as long-distance cargo delivery taking more time due to traffic delays and breakdowns. Also, it includes a risk of goods getting damaged and even toll charges are high in some areas. 

Railway transport 

It is the most cost-effective way of transporting various goods. The railway plays a crucial role in the regional trading activities of a country. The bonus point of using a railway is that it can carry a huge number of goods from short to long distances. There are also various other additional benefits such as low transportation cost, eco-friendly, and it covers higher reliability compared to road transportation. Most of the cargo that is transported by railways includes bulk orders. 

Sea transport 

This is the oldest and most traditional way of exporting and importing goods from one place to another. A ship has the ability to hold both heavy and large quantities of goods. It is very suitable for exporting goods to long distances when there is no specific delivery time or deadline. But, using this method for transporting important goods on an international level might not be a good idea because there are possibilities of getting delayed because of slower speed, inflexible sea routes, and schedules. 

 

The sea route charges port taxes to the importer/exporter as per the agreement. But, sea transport is likely to have a limited network of routes and costs a good amount of money for loading, unloading, and shipping the exported goods. Moreover, to reach the final destination from the seaports, you will also have to plan for further transportation by road and there will be additional costs included. 

Airways 

Air transport is the best transportation mode in EXIM business when it comes to quick delivery of goods. It is also considered to be the safest mode of transport and a lot of different products can be imported or exported through this mode of transportation. Import-export on the international level has seen rapid growth since the airlines have been involved in the quick delivery of goods from one country to another. This mode of transportation also provides high-level security to the products than all the other modes of transport used in the EXIM business. 

 

The only back draw that air transport involves is that it costs more than all the other modes and is not suitable for all items. You might also be required to pay taxes at each airport. It is the most expensive mode of transporting goods but still, trade business owners use it on a large scale. However, even with this mode of transportation, you will need to again invest in road transportation to make the goods reach their destination from the airport.

Conclusion

As per the requirement and nature of the final goods, you can easily finalize the mode of transportation to export your products to the targeted markets. Nevertheless, seeking guidance from DGFT consultants is always the best choice if you need help to come up with the best mode of international transportation along with other things related to import-export businesses.