The modern global community is more connected than it has ever been in the past, and with such interconnectedness, the need for massive amounts of goods to be transported from one geographical location to the other has risen manifold as well. Cross border logistics has facilitated effective international transport of commodities from one part of the world to the other. According to the PIB, India’s merchandise exports stood at 211.40 billion USD for the period of April to September 2023, while merchandise imports stood at 326.98 billion USD.
A major portion of such international merchandise trade takes place through overseas logistics, and for businesses that are engaged in such operations, being able to avail of efficient and cost-effective cross-border logistics is paramount. According to FreightMango, the cost of shipping a 40ft container from Chennai to Houston roughly ranges between 3000 USD to 6000 USD, and keeping these costs low can help businesses improve their bottom lines, so the following are some of the tips that can help achieve just that.
Using the most effective mode of transportation
Contrary to popular belief, a lot of international shipping takes place through air and rail links as well, and while ships are widely preferred, knowing what to use is crucial to saving costs as well. When it comes to goods that are bulky or non-perishable in nature, using a ship makes much more sense, while air transport is usually availed of when it comes to high-value or perishable items.
Overseas logistics through ships is by far the most economical method there is, but when the need arises, the freight forwarding agent would opt for the air or rail routes, and that’s where we move to the next point.
Work with a Third-Party Logistics company:
Cross border logistics is an extensive process that involves several entities to make it work as desired, and if one’s looking to shrink the costs involved, working with a third-party logistics company might just prove to be the right measure to be taken. These companies are well-equipped to make the overall process as efficient as possible, thereby reducing the overall costs involved as well.
An asset-light logistics company would execute the several steps involved in overseas logistics, including freight forwarding, warehousing, securing clearances, etc. Moreover, since these companies are heavily invested in integrating sustainable practices, the businesses availing of their services can align themselves similarly as well.
Increased use of automation and technology:
When it comes to reducing the overall costs involved in cross border logistics, effective integration of automation and technology can prove to be the key. There are several steps in the overall process that can be hastened, or the costs needed to run those functions can be eliminated, all through the effective use of technology and automation functions.
By working with a logistics company, something that can be ensured is the fact that they would possess the best when it comes to efficient technology integration across several processes and domains. When working as a well-oiled unit, the costs can be effectively saved.
Conclusion
For businesses that rely on cross border logistics to run their operations, working with a third-party logistics provider would certainly be one of the best ways in which the overall costs involved can be saved. In India, more than 10% of costs are expended on the logistics of a product, and any savings here would help improve the bottom lines. Experience the future of overseas logistics with a top third-party logistics company today.
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