Page 203 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes 9.3 Different Modes of Shipment

Table 9.1: Three Types of Shipping Method

1. Door to International courier service providers deliver the goods at the customers door
door step. For this the buyer can create an account with them on there own or they can
courier use the Seller account.
Freight Charges:
Best Suit for: Small Shipments (up to 90 kg)
Goods travel time: Within 4 to 5 working days (Courier)
2. At Shipping can be organized through various airlines. The goods has to be picked
senders by sender only from their nearest airport and they themselves has to handle the
nearest custom procedures.
Airport
Freight Charges: The freight charges are subjected to the airlines itself
and they changes it depending on the petrol prices and
the space available with them on that particular day.
Best Suit for: Medium Sized Shipments (90 kg to 250 kg)
Goods travel time: Within 5 to 9 working days (Air line carriers)
3. At Shipping can be organized through various shipping companies. The goods has to
senders be picked by them only from their nearest Seaport and they themselves has to
nearest handle the custom procedures.
Sea Port
Freight Charges: The freight charges are subjected to the airlines itself
and they changes it depending on the petrol prices and
the space available with them on that particular day.
Best Suit for: Big Sized Shipments (more than 250 kg)
Goods travel time: Within 20 to 30 working days (Shipping carriers)

9.3.1 Modes of Shipping based on Medium

Air transport: This method is by far the fastest and much safer, unless you are offering some
electronic product or service online which can be downloaded in real time. Despite of being safe
and fast, suppliers (specially the small ones) are often reluctant to use this mode, mainly because
of high cost associated with it. This should be helpful when delivering some valuable goods or
when a quick delivery is needed.
Water Transport: Most probably the oldest method used in trade for overseas supplies. In
ancient times traders travelled by means of water, carrying several goods and products to sell in
foreign countries. Inexpensive but relatively slow, certainly not a good choice when quick
delivery is needed. However, when the time is not an issue and shipment is quite large, maritime
transportation becomes an automatic choice.
Road Transport: This is the most widely used method, especially in domestic trade. Even when
air or water transport is the prime source of shipment, road transportation is still needed to
carry the goods from the ports to the buyer. Although limited to domestic trade, this method is
both time saving and cost effective.
Additional Methods: There are some other rarely used methods like rail cars, or a combination
of two or more of these. Another form of shipment rising out of the internet growth is
electronic shipment which takes place on the internet in no time after the customer has made
the payment.

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