How To Choose The Right Shipping Method for Your Business

Among various modes of transportation, how to choose an appropriate mode of transportation is an important issue in logistics rationalization. Generally speaking, it should be determined from the service level required by the logistics system and the allowable logistics cost. Either one shipping method or an intermodal shipping method can be used.

 

When deciding the mode of transportation, the following five specific items can be carefully studied and considered on the basis of considering the specific conditions:

(1) the variety of goods;

(2) the transportation period;

(3) the transportation cost;

(4) the transportation distance;

(5) ) to ship in bulk.

Regarding the variety, nature, and shape of the goods, it should be explained in the packaging item, and the transportation method suitable for the characteristics and shape of the goods should be selected, and the affordability of the goods should also be carefully considered.

The shipping period must be linked to the delivery date, and the shipping time limit should be guaranteed. The transportation time required by various transportation means must be investigated, and the transportation means should be selected according to the transportation time. The order of transportation time is generally air transportation, automobile transportation, railway transportation, and ship transportation. Each means of transport can be grouped according to its speed to arrange the schedule, plus the operation time of its two ends and transit, the required transportation time can be calculated. In commodity circulation, it is a basic requirement to study the status quo of these transportation methods, carry out planned transportation, and hope to have an accurate delivery date.

The transportation cost varies with the type, weight, volume and distance of the goods. Moreover, the transportation cost will vary depending on the means of transportation. When considering the transportation cost, it must be noted that there is a mutually beneficial relationship between the freight and other logistics subsystems. The transportation method cannot be determined only by considering the transportation cost, but the total cost.

From the perspective of transportation distance, in general, the following principles can be followed: within 300 kilometers, transport by car; within 300 to 500 kilometers, by rail; more than 500 kilometers, by ship. Generally, this option is more economical and reasonable.

Let’s look at the impact of transportation batches. Because the transportation cost of large batches is low, the goods should be concentrated as close as possible to the final consumers. Selecting appropriate transportation means for transportation is a good strategy to reduce costs. Generally speaking, commodities under 15 to 20 tons are transported by automobile; commodities over 15 to 20 tons are transported by rail; commodities such as raw materials over hundreds of tons should be transported by ships.

Pay attention:

  1. Due to the imbalance of development between countries, the logistics method that can be selected in one country may not be adopted in another country due to the lack of the necessary infrastructure to adopt this method. In the selection, if this problem is not considered, it is impossible to form an effective logistics system.
  2. In international freight, I hope that through the above introduction, I can choose the appropriate freight method according to the actual situation of my goods. To save the cost of international freight, improve the timeliness of international freight, and ensure the safety of international freight.
  3. Generally speaking, the shipping time is long and the cost is low. If it is a cargo with a large volume or weight and a low value, it is more suitable for shipping by sea. On the other hand, for goods with smaller volume or weight and higher value, air freight can be considered. Although air freight is higher, the transit time is also shorter, and the business can be completed more efficiently and profitably.For example, if you have a valuable shipment of jewelry that needs to be shipping from China to USA, the best way to do this at this time is by air.