Notes

What is the most profitable mode of transportation?
Transport prices & other costs of international goods transportation
Taking your business global is the way to expand further, but after selling there is still delivery. Customers will be more satisfied if you get your goods to them fast, and your financial results will be improved if they arrive inexpensively. Choosing the right mode of transport is the key to an efficient, cost-effective international deal.

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The cost of your goods is influenced by their size and weight. You also need to consider the quickest shipping option, distance, and destination of the goods. High-value small-scale goods can be handled differently from high-volume low-value products.

Type of goods and international transport costs
Your choice of transport is heavily influenced by your type of goods and the needs of your business enterprise. Choosing the right mode of transport for your products will balance service, quality, cost, organization, and time.

Transporting fresh goods (e.g. Fruits, vegetables, and fresh meat) will require speed and time. When transporting these products, refrigeration should also be considered.

Animal transportation requires you to adhere to specific rules and regulations. Transporting animals safely and successfully is guided by guidelines and clearances. Whenever moving dangerous goods, you need to adhere to the rigid procedures associated with them.

Modes of transport in international trade
Four main modes of international transport exist: road, sea, rail, and air. Each mode has its advantages, drawbacks, and conditions related to the types of goods being exported or imported. If you require logistics assistance, you might need to use more than one mode of transport.

Cost of road transport
Compared to the other three modes of transport, road transport is the most flexible. You can track your goods, secure consignments, schedule transportation and pay the fees relatively easily. Alternatively, long distances are not time-efficient, especially if traffic is involved. It is possible to get your goods damaged in some countries due to high toll fees.

Transporting large quantities by road costs 3 to 7 US dollars per ton per kilometer. In the event you decide to own your own trucks, you may have to pay around 1300 to 1900 USD per day, excluding driver. It costs about 200 USD to send a package of 50 kg over a distance of 300 km in the US.

Cost of sea container transport
By shipping by sea, you can move large volumes at a lower cost than by any of the other three modes. Similarly, shipping containers can be used when transporting goods over land. Nevertheless, international travel could be delayed owing to slow speeds, weather changes and rigid routes and schedules. Shipping containers by sea typically costs:

Route20 ft container40 ft container
USA-Canada600-800 USD900-1100 USD
USA-China1600-1800 USD2400-2700 USD
UK-Spain700-900 USD1100-1300 USD
UK-Australia2500-2800 USD4000-4500 USD
The following are the costs from port to port. It may be necessary to pay extra for land transportation. It is likely that rates for destinations that have been involved in civil wars are much higher.

Cost of rail transport
Environmentally friendly, this mode of transport is often used on prosperous continents like Europe. There are few options for flexibility in rail transport, and mechanical malfunctions may delay trains. Remote regions do not have a great rail network, which is a significant disadvantage.

The cost of rail transportation varies from 2 to 6 US cents per ton per kilometer. When access to a railway is available, rail becomes the most cost-effective alternative to road transportation.

Cost of air transport
When distributing and delivering products internationally, air transport is the fastest method. You could also export or import a variety of goods via this mode of transportation because it is the safest way to move goods.


Air transportation costs are mostly determined by weight and partly by distance. Taking rates of Fedex and UPS, a package of 1 kg will cost 30 to 50 USD to ship, a package of 10 kg will cost 70 to 90 USD and a package of 100 kg will cost over 400 USD. Volumes may increase and especially if you can ensure a steady stream of packages daily so that these carriers' aircraft are occupied, then prices may drop considerably.

Customs regulations
A proper labeling and documentation is also necessary for legal purposes. You must classify your products with the right HS code. This determines how customs will handle your product and also the import tariffs. For Singapore, four documents will do, while in Thailand, you will need ten.

To ensure smooth business operations, it can be essential to have a local agent or distributor who also takes care of the import.

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