exporting - the basics part 1
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Exporting The Basic Part 1TRANSCRIPT
Westhaven Worldwide Logistics
Westhaven Worldwide Logistics. Delivering Service
Delivering ServiceTel: +44(0)1217137250 |Fax: +44(0)1217137250Web: www.westhavenww.co.uk |Email: [email protected]
Exporting - The Basics -Part1
Distance + Accessibility + Urgency + Transit Time + Cost
Youwouldn’tsetoffonajourneyhalfwayaroundtheglobewithoutplanningyourroute,havingsomeideahowyouaregoingtogettoyourdestinationandhowmuchit’sgoingtocost.So,beforesendinggoodsworththousandsofPoundsoffontheirtravels,it’sworthspendingsometimeconsideringthemainfactorswhichwillhelpyoudecidethebestwayofshippingyourgoods.
DISTANCE & ACCESSIBILITYAsyoumightexpect,sendinggoodstoAmericaisdifferenttosendingthemtoFrance,notjustbecauseit’sfurther,butbecausetherearedifferentobstacles,namelytheAtlanticOceanandtheEnglishChannel.Forexample,onlyseafreightandairfreightcanbeusedtogetgoodsacrossthewatertotheUSA,whereasgoodsforFrancecangobyair,sea,roadorrail.
URGENCY & TRANSIT TIMEOnlyyouknowhowurgentlythegoodsarerequiredbyyourcustomer.Theoveralldistancetodestinationisimportantespeciallywhenpromisingleadtimes.Takingintoconsiderationwhereitisgoing,howfaritis,andwhichmethodoftransportcanbeused,it’spossibletogetanideaofthetransittime.
TypicaltransittimesforseaandroadfreightservicesfromtheUKare:
Destination TransitTime
EUROPE–byroad
AUSTRALIA–bysea
FAREAST–bysea
NORTHAMERICA–bysea
MIDDLEEAST–bysea
AIRFRIEGHT
Naturally,goodscanbedeliveredanywhereintheworldveryquicklybyairfreight,butservicesarebetweenmajorairportsandtherearesignificantcostimplications.
35–45DAYS(PorttoPort)
28–40DAYS(PorttoPort)
10-28DAYS(PorttoPort)
21-28DAYS(PorttoPort)
1–5DAYS(DoortoDoor)
Westhaven Worldwide Logistics
Westhaven Worldwide Logistics. Delivering Service
Delivering ServiceTel: +44(0)1217137250 |Fax: +44(0)1217137250Web: www.westhavenww.co.uk |Email: [email protected]
Cost
Onceyouhavebeenabletogetanideaofthelikelytransittimebydifferentmethodsoftransport,youneedtogivesomethoughttofreightcosts.Eachmodeoftransporthasprosandcons,dependingonwhatyouaretryingtoachieve.
Theareaoftheworldthatyouaresendinggoodsto,theurgencyandthesize/weightoftheconsignmentwilldictatewhatkindofservicesareavailabletoyou,asbelow:
Speed/Cost MostappropriateforModeofTransport
SlowandinexpensiveLargeorheavy,non-urgentshipmentsoverlongdistances,e.g.betweencontinents.
SEA
Quitequick,moderatelyexpensiveROAD
Largeorheavy,and/ormoretimesensitiveshipmentsoverlandandviashortferryroutes.
Veryquick,butmuchmoreexpensiveAIR Urgentconsignmentsof
allsizesoveralldistances.
Transportcostsarebasedoneithertheweightofthegoodsorthespacetheytakeupandeachmodeoftransporthasadifferentapproachtoweightandvolumecargo.
Weightisusuallymeasuredinkilogramsandvolumeisusuallymeasuredincubicmetres.Toworkoutthevolumeofashipment,youneedtomultiplythelength,widthandheightofthepackagestogether.Ideallythedimensionsneedtobeexpressedinmetres,centimetresormillimetres.
For example:5Palletseach120cmlong,100cmwide,150cmhigh,eachpalletweighing250kgiscalculatedasfollows:
5x1.20metresx1.00metresx1.50metres=9cubicmetrestotalvolume
Sea freightpricesarebasedon1000 kg = 1 cubic metre -Generallyspeaking,thismeansthatlighter,bulkergoodscanbemoreexpensivetoship thanheavierproducts.So,intheexampleabove,theshipmentwouldberatedas9000 kg.,basedonthevolume,althoughtheactualweightisonly1250kg.
Road freightpricesarebasedon1000 kg = 3 cubic metres -Thisismoreofabalancedarrangementandroadfreightpricesdon’tfavourlightor heavygoods.So,intheexampleabove,theshipmentwouldberatedas3000kg.,based onthevolume,althoughtheactualweightisonly1250kg.
Air freight pricesarebasedon1000 kg = 6 cubic metres -Incomparisonwithseaandroadfreightprices,airfreightfavourslighter,bulkiergoods ratherthanheavyones.So,intheexampleabove,theshipmentwouldberatedas1500kg, basedonthevolume,althoughtheactualweightisonly1250kg