International Transportation

Study Notes

Definition: Air freight is the transportation of goods by air, typically used for high-value, time-sensitive, or perishable cargo.
Advantages:
- Fastest mode of transportation
- Higher security and tracking capabilities
- Reduced transit times
- Ability to reach remote or hard-to-access areas
Disadvantages:
- High costs
- Limited capacity
- Weather and air traffic control restrictions
Types of air freight:
- Passenger aircraft cargo
- Dedicated cargo aircraft
- Express courier services

Definition: Ocean shipping is the transportation of goods by sea, typically used for bulk, heavy, or low-value cargo.
Advantages:
- Lower costs compared to air freight
- Higher capacity and ability to handle large volumes
- Flexibility in route planning and scheduling
- Environmentally friendly
Disadvantages:
- Longer transit times
- Higher risk of damage or loss
- Weather and sea conditions can impact schedules
- Bureaucratic and documentation requirements
Types of ocean shipping:
- Full container load (FCL)
- Less than container load (LCL)
- Breakbulk cargo
- Reefer containers for perishable goods

Definition: Logistics management is the coordination and administration of goods, information, and resources from the point of origin to the point of consumption.
Key activities:
- Supply chain management
- Inventory management
- Warehousing and storage
- Order fulfillment and tracking
- Freight forwarding and customs clearance
Goals:
- Reduce costs and increase efficiency
- Improve customer satisfaction and loyalty
- Enhance supply chain visibility and transparency
- Ensure compliance with regulations and laws

Definition: Customs clearance is the process of complying with customs regulations, duties, and taxes to import or export goods across international borders.
Key steps:
- Classification of goods under Harmonized System (HS) codes
- Determination of duties, taxes, and fees
- Preparation and submission of customs declarations and documentation
- Payment of duties and taxes
- Inspection and release of goods
Importance:
- Compliance with regulations and laws
- Avoidance of penalties and fines
- Minimization of delays and demurrage
- Facilitation of international trade and commerce

Air freight is ideal for high-value, time-sensitive, or perishable cargo.
It offers fast transportation, high security, and tracking capabilities, but is costly and has limited capacity.
Weather and air traffic control restrictions can impact air freight operations.
Types of air freight include passenger aircraft cargo, dedicated cargo aircraft, and express courier services.

Ocean shipping is suitable for bulk, heavy, or low-value cargo.
It offers lower costs, higher capacity, and flexibility in route planning, but has longer transit times and higher risk of damage or loss.
Weather and sea conditions can impact ocean shipping schedules, and bureaucratic requirements are a challenge.
Types of ocean shipping include full container load (FCL), less than container load (LCL), breakbulk cargo, and reefer containers for perishable goods.

Logistics management involves coordinating goods, information, and resources from origin to consumption point.
Key activities include supply chain management, inventory management, warehousing, order fulfillment, and freight forwarding.
The goal of logistics management is to reduce costs, increase efficiency, and improve customer satisfaction, while ensuring compliance with regulations.

Customs clearance involves complying with customs regulations, duties, and taxes for international trade.
Key steps include classifying goods under HS codes, determining duties and taxes, preparing customs declarations, and paying duties and taxes.
Customs clearance ensures compliance with regulations, avoids penalties and fines, minimizes delays, and facilitates international trade.