exporting - the basics part 1

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Wes Delivering Service Tel: +44(0)121 713 7250 | Fax: +44(0)121 713 7250 Web: www.westhavenww.co.uk | Email: [email protected] 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 AUSTRALIA – by sea FAR EAST – by sea NORTH AMERICA – by sea MIDDLE EAST – by sea 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. 35 – 45 DAYS (Port to Port) 28 – 40 DAYS (Port to Port) 10 - 28 DAYS (Port to Port) 21 - 28 DAYS (Port to Port) 1 – 5 DAYS (Door to Door)

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Exporting The Basic Part 1

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Page 1: Exporting - The Basics Part 1

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)

Page 2: Exporting - The Basics Part 1

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