Exporting - The Basics Part 1

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Exporting - The Basics - Part 1 Distance + Accessibility + Urgency + Transit Time + Cost You wouldn’t set off on a journey half way around the globe without planning your route, having some idea how you are going to get to your destination and how much it’s going to cost. So, before sending goods worth thousands of Pounds off on their travels, it’s worth spending some time considering the main factors which will help you decide the best way of shipping your goods.

DISTANCE & ACCESSIBILITY

As you might expect, sending goods to America is different to sending them to France, not just because it’s further, but because there are different obstacles, namely the Atlantic Ocean and the English Channel. For example, only sea freight and air freight can be used to get goods across the water to the USA, whereas goods for France can go by air, sea, road or rail.

URGENCY & TRANSIT TIME

Only you know how urgently the goods are required by your customer. The overall distance to destination is important especially when promising lead times. Taking into consideration where it is going, how far it is, and which method of transport can be used, it’s possible to get an idea of the transit time. Typical transit times for sea and road freight services from the UK are: Destination

Transit Time

EUROPE – by road

1 – 5 DAYS (Door to Door)

MIDDLE EAST – by sea

21 - 28 DAYS (Port to Port)

NORTH AMERICA – by sea

10 - 28 DAYS (Port to Port)

FAR EAST – by sea

28 – 40 DAYS (Port to Port)

AUSTRALIA – by sea

35 – 45 DAYS (Port to Port)

AIR FRIEGHT

Naturally, goods can be delivered anywhere in the world very quickly by air freight, but services are between major airports and there are significant cost implications.


Delivering Service Tel: Web:

+44(0)121 713 7250 www.westhavenww.co.uk

| Fax: +44(0)121 713 7250 | Email: info@westhavenww.co.uk

Westhaven Worldwide Logistics. Delivering Service Westhaven Worldwide Logistics

Cost

Once you have been able to get an idea of the likely transit time by different methods of transport, you need to give some thought to freight costs. Each mode of transport has pros and cons, depending on what you are trying to achieve. The area of the world that you are sending goods to, the urgency and the size / weight of the consignment will dictate what kind of services are available to you, as below: Mode of Transport SEA

ROAD

AIR

Speed / Cost

Most appropriate for

Slow and inexpensive

Large or heavy, non-urgent shipments over long distances, e.g. between continents.

Quite quick, moderately expensive

Large or heavy, and / or more time sensitive shipments overland and via short ferry routes.

Very quick, but much more expensive

Urgent consignments of all sizes over all distances.

Transport costs are based on either the weight of the goods or the space they take up and each mode of transport has a different approach to weight and volume cargo. Weight is usually measured in kilograms and volume is usually measured in cubic metres. To work out the volume of a shipment, you need to multiply the length, width and height of the packages together. Ideally the dimensions need to be expressed in metres, centimetres or millimetres. For example: 5 Pallets each 120 cm long, 100 cm wide, 150 cm high, each pallet weighing 250 kg is calculated as follows : 5 x 1.20 metres x 1.00 metres x 1.50 metres = 9 cubic metres total volume Sea freight prices are based on 1000 kg = 1 cubic metre - Generally speaking, this means that lighter, bulker goods can be more expensive to ship than heavier products. So, in the example above, the shipment would be rated as 9000 kg., based on the volume, although the actual weight is only 1250 kg. Road freight prices are based on 1000 kg = 3 cubic metres - This is more of a balanced arrangement and road freight prices don’t favour light or heavy goods. So, in the example above, the shipment would be rated as 3000 kg., based on the volume, although the actual weight is only 1250 kg. Air freight prices are based on 1000 kg = 6 cubic metres - In comparison with sea and road freight prices, air freight favours lighter, bulkier goods rather than heavy ones. So, in the example above, the shipment would be rated as 1500kg, based on the volume, although the actual weight is only 1250 kg


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