The most common international logistics channels and billing methods

Some shipping partners are often confused by the logistics terms of international logistics companies, such as air freight, air delivery, air freight, express delivery, postal parcels, sea freight bulk cargo, sea freight full container load, sea freight (sea express, sea freight), dedicated logistics, etc. Let’s talk about common logistics channels and cost calculation methods, especially for beginners who find logistics. They can arrange logistics transportation and estimate logistics costs reasonably.International logistics channelsAir freightA transportation method that uses airplanes as a means of transportation for cross-border transportation of goods.The commonly mentioned air transportation refers to the transportation of goods by plane from a certain airport to a designated airport in the destination country, and then arranging customs clearance and delivery.Mainly divided into:Air freight (transportation from airport to airport, destination port customers arrange customs clearance and pick up goods at the airport)Air delivery (air to door delivery)1 empty card: first leg air freight+last leg truck delivery2 air delivery: first leg air freight+last leg express deliveryBoth are assisted by destination port freight forwarders for customs clearance, pick-up and delivery.International air freight billingThe cost is calculated by taking the larger of the volumetric weight and actual weight. Goods with larger volumes are called discarded goods, also known as soaked goods. For example, cotton. The minimum chargeable weight is usually 45 kilograms, and if it is less than 45 kilograms, it is calculated as 45 kilograms. For goods weighing less than 45 kilograms, some airlines may have an N price, which means that there is no need to bill based on 45 kilograms, and the actual kilograms can be charged.Volume weight (kg)=length * width * height (cm) ÷ 6000 (unit: cm)Volume weight (kg)=length * width * height (m) * 167 (unit: m)One cubic meter=167KGThe advantages of international air transportationThe safest, shortest transportation time, able to verify and refund foreign exchange taxes, suitable for goods with high value, requirements for transit time, and the need for export tax refunds.Disadvantages of International Air TransportThe shipping cost is expensive, the transportation capacity is small, and there are strict requirements for the weight and packaging size provided. The procedures are complicated, and some regions have fewer routes.International express deliveryIt refers to express delivery and logistics activities carried out between two or more countries (or regions).The main transportation entities of international express delivery are major courier companies, such as China Post EMS Express, DHL, TNT, UPS United Parcel, FedEx, and other major international courier companies.After the international parcel arrives in the destination country, it needs to be delivered in the destination country in order to deliver the parcel to the final destination. International express packages have fast delivery speed and excellent service, but their prices are also relatively highThe calculation of the volume and weight of the four major international express delivery companies DHL, UPS, TNT, and FedEX (using the same value as the actual weight and volume of the goods)Volume weight (kg)=length * width * height (cm) ÷ 5000 (unit: cm)Volume weight (kg)=length * width * height (m) * 200 (unit: m)One cubic meter=200KGE-Express:Billed based on actual weight, the maximum weight of a single ticket cannot exceed 30KG, the longest side does not exceed 1.5 meters, and the total length of the longest side and perimeter does not exceed 3 meters (twice the sum of the longest side and the shortest side)EMS:According to the actual weight, if the longest side exceeds 60CM, it needs to be counted as a bubble, divided by 6000 for calculation. The maximum weight of a single ticket shall not exceed 30KG, the longest side shall not exceed 1.5 meters, and the total length of the longest side and perimeter shall not exceed 3 meters (twice the sum of the longest side and two short sides)Volume weight (kg)=length * width * height (cm) ÷ 6000 (unit: cm)Postal small packageChina Post Air Mail, also known as China Post Air Mail, is a type of postal service package. It refers to a small postal package with a weight of less than 2kg, the sum of the length, width, and height of the outer packaging less than 90 centimeters, and the longest side less than 60 centimeters, sent abroad through postal air mail services. It includes two types of services: registered mail and surface mail. It can be sent to various postal outlets around the world. The registration service fee is slightly higher and online tracking and inquiry services can be provided. China Post’s air parcel does not incur tariffs or clearance fees for customs clearance, but may incur import tariffs when imported into the destination country, depending on the customs laws and regulations of each country (compared to other commercial express deliveries, air parcel can avoid tariffs to the greatest extent possible).There are many channels for small packages, and currently common ones on the market include: China Post, Hong Kong Post, Singapore Post, Sweden Post, Switzerland Post, Malaysia Post, Germany Post, Netherlands Post, etc.Small packages can be divided into two categories1. Charged and unchargeableChina Post small bags and HK small bags are regular channels and cannot use any electrified products, while small bags from Sweden, Switzerland, Singapore, the Netherlands, and Malaysia can use electrified products.2 Registered and surface mailRegistered mail refers to having a tracking number that can be checked and tracked throughout the process, while regular mail does not have a tracking number. Goods can only be traced after they arrive in the destination country and the recipient confirms receipt.If regular mail is lost, compensation will not be available.If the registered small package is confirmed lost, compensation will be based on the declared value and shipping cost. If the package is confiscated by local customs due to its own factors (such as counterfeit or prohibited items), compensation will not be available.Various restrictions1. Weight within 2KGThe sum of the length, width, and height of the outer packaging is less than 90 centimeters, and the longest side is less than 60 centimeters.3. Roll shaped goods: The sum of twice the diameter and the length is 17-104cm, and the length on one side is 10-90cm4. Square cargo: The surface size should not be less than 9cm × 14cm5. According to international aviation regulations, all goods that cannot be mailed or restricted for mailing, such as pure battery products, counterfeit products, liquids, powders, pastes, drugs, weapons, etc.Sea freightSea transportation plays a crucial role in international trade and transportation, accounting for more than two-thirds of the total transportation volume. The vast majority of exported and imported goods are completed through sea transportation.Sea transportation is a method of transporting goods between ports in different countries and regions using ships through sea routes, including FCL and LCL shipping.Full Container Load (FCL), also known as Full Container Load (FCL) by sea freight. Refers to the shipment of a full box of goods with only one shipper, who is responsible for packing, counting, stacking, and sealing the goods. The common sizes of internationally standardized containers are 20 ` GP, 40 ` GP, 40 ` HQ, and 45 ` HQ. (One ticket, one cabinet or one ticket, multiple cabinets)LCL (Less Container Load), also known as LCL (Less Container Load) for sea freight consolidation. The consignor consigns goods that are small bills of lading that are less than a full box, and classifies and organizes the goods through an agent (or carrier), consolidating a certain number of goods sent to the same destination into boxes. (Multiple shipments consolidated into one container)Haipai (sea freight delivery to door)Haika: First leg sea freight+last leg truck deliveryHaikuai: First leg sea freight+last leg express deliveryAttention: How to choose full container or LCL?It depends on the volume of goods that need to be checked in. The minimum container size for sea freight standard containers is 20 feet, and if the volume of the consigned goods is less than 20m ³, Suggest using LCL transportation; If it is greater than 20m ³, Use full container transportation.Bulk cargo in sea transportation generally refers to general cargo, which requires LCL (such as books, clothes, daily necessities, etc.) for less than one box. So there is a big difference between bulk cargo and LCL sea freight, and the concepts of bulk cargo and LCL sea freight are different. Bulk cargo in LCL shipping cannot be confused with bulk cargo. The actual loose cargo in Shanghai freight consolidation refers to a small amount of goods that cannot be filled alone in a full box, which are packed together with the goods of other shippers and arrive at the destination.LCL (Less than Container Load) refers to the classification and organization of goods based on their nature and destination. Combine the goods to the same destination into a full container and ship them together. So a container will have goods from different shippers, so let’s share this cost. Therefore, bulk cargo also has port of origin and destination fees; The transportation terms can also be CIF/CNF/FOB/DDU/DDP, etc.A 20GP small cabinet can normally hold 28 cubic meters, so if it is much smaller than this number, such as a few cubic meters or more, many people may choose to use LCL (Less than Container Load). The starting point for bulk cargo is one cubic meter, which means that if it is less than one cubic meter, it should be calculated as one cubic meter.So, is it possible for a square to be any size regardless of its weight?Generally, most coastal ports or direct shipping ports have a 1CBM of 1000KG, which means that the maximum weight per square meter is 1000KG, and as long as it does not exceed 1000KG, it is considered a square meter. If it exceeds 1000KG, such as 2000KG, even if your volume is one square, it should be calculated as two squares. (However, generally involving inland point transportation and delivery, it is 1CBM: 500KGS, 1CBM: 363KGS)The weight is also divided into actual weight and volumetric weight, taking the larger value of the twoVolume weight (kg)=length * width * height (m) * 1000 (unit: m)That is, 1 cubic meter=1000KG (this conversion is only applicable to pure sea transportation and does not apply to sea freight billing. The conversion ratio for truck delivery is 1CBM=300KG; for express delivery, the conversion ratio is 1CBM=167KG. The specific conversion ratio needs to be confirmed with the logistics provider)The advantages of international shippingThe cost is the lowest, the transportation capacity is large, and the weight requirements are not strict. Each container has a floating weight of 200kg, which can be used for foreign exchange verification and tax refund. The restrictions on dangerous goods are not very strict.Disadvantages of International ShippingLong transportation time, high environmental impact, maximum risk, complicated procedures, unstable shipping schedules and prices, long transit time, and high probability of cargo damage.Cross border dedicated logisticsGenerally, it is transported abroad through air cargo package and then delivered to the destination country through a cooperating company. The advantage of dedicated logistics lies in its ability to concentrate large quantities of goods to a specific country or region, reducing costs through economies of scale. Therefore, its price is generally lower than commercial express delivery. In terms of delivery time, dedicated line logistics are slightly slower than international express delivery, but much faster than postal parcels. The most common dedicated logistics products on the market are dedicated lines to the United States, Europe, Australia, Russia, etc. Many logistics companies have also launched dedicated lines to the Middle East, South America, South Africa, etc.International dedicated lines are international logistics services specifically opened for certain individual countries; The delivery time is slightly slower; The customs clearance for regular goods is similar to international express delivery, but sensitive goods may be slightly worse; Has a certain price advantage; There are restrictions on the delivery area; The transportation speed of large quantities of goods is relatively low with many restrictions, and the customs clearance ability is slightly poor; Easy to generate tariffs.Land transportation (not detailed here)Mainly referring to railway and container transportation, the cargo mode is similar to sea transportation, including railway FCL, railway LCL, truck FCL, and truck LCL. There are both tax inclusive and non tax inclusive options, depending on the specific services provided by the freight forwarding channel.Applicable countries: Europe, Russia, Southeast Asian countries.How should we choose the transportation method?1. Timeliness. If it is urgent, priority should be given to air transportation (referring to transportation by plane). Generally speaking, during normal times, air freight routes can arrive within 3-6 working days after boarding. The transportation time by sea is relatively longer, usually around 35-50 days. Because sea transportation has a longer cycle, if you have a need for timely delivery of goods, you must choose air transportation, after all, it has high timeliness and simple procedures. (Of course, it depends on the actual transportation route and situation of the country.)2. Price, as we commonly refer to air freight and international express delivery, they are both transported by plane. However, whether to use international express delivery or air freight needs to be calculated based on the weight and volume of the goods (less than 45KG, choosing international express delivery has an advantage in price and can directly deliver to customers). Goods that are greater than or approximately equal to one square and weigh a lot can be considered for sea transportation.3. Restrictions, whether it is international express air freight or international sea freight, have certain restrictions on the items transported due to the policies and routes of various countries. Generally speaking, maritime transportation has greater freedom and relatively fewer restrictions. But as long as it is a non prohibited item, it can be shipped by air or sea. Of course, specific items and unclear items still need to be consulted in advance.

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