What is Global Trade? What is Global Trade? In other words, called International Trade, Global Trade is the exchange of goods and services between countries and continents (at the macro level) when in need. According to the Global Trade Statistics 2021, total international exports stand at 20.5 thousand billion USD approximately. In comparison, the global import data stands at 18.4 thousand billion USD approximately. Leaving the total international trade data with a negative balance of 2 thousand billion USD. Now, it is noteworthy to mention that such hardcore import-export data does not come alone from the value of goods & services exchanged plus taxes. But, Freight, Transportation, and logistics play a significant role in the calculation of total global trade statistics. How? Let’s take a glance:
Role of Freight in Global Trade What is freight? By definition, Freight is anything (goods) that are transported to another city, state, country, or location in bulk. It is also called Freight transport. In the context of International Trading, Freight Forwarding is the mainstream term used to craft the expression. Indeed, when it comes to global trading, international freight forwarding service-providing companies play a crucial role. International Freight Forward is a professional activity undertaken by respective companies to transport goods from one country to another country (passing international borders) through different modes of transportation such as railway, Airline, Marine, etc. Without proper Freight Arrangement, transportation of sensitive goods remains at the risk of damage or midway abduction. Following are the top roles of Freight manager in the Global Trade Industry:
Maintaining consistency in the supply chain of goods for clientele. Consult export cost, freight cost, port-based expenses, and other additional charges to get profitable rates. Choosing an accurate mode of transportation based on the Goods’ nature, purpose, condition, etc. Pass on significant documents related to the transportation of goods in time so that freight forwarding takes place in time. Make certain that the freight gets custom clearance.
Role of Transportation & Logistics in Global Trade Although, Transportation & Logistics are two different terms. However, in the global trade industry, they are interdependent. Both Transportation and Logistics craft an edge for the exporting country to expand the growth of its local economy. Without Logistics, it becomes difficult for a country to interconnect itself with the international economy. In comparison, without transportation of raw material at the local level, companies cannot carry out the production and distribution of goods (to be exported). Therefore, if the transportation sector doesn’t contemplate the urgent requirements of Global Trade, it will be difficult for any country to fulfill its consumers’ needs in time.