The organization of international logistics these days

In the broader context of international logistics, it must be noted that the organization of international logistics plays a key role. To date, almost no country in the world is able to fully meet the needs of citizens, based only on its own resources. That is why this area is developing so rapidly, and to overestimate its importance is difficult.

 

What is the organization of international logistics

The organization of goods exchange between countries is a complex process, which affects many factors. Thus, the organization of international logistics involves the following:

 

  • In almost all areas of entrepreneurship, production increases competition. Many companies understand how important it is to go international.
  • It is impossible not to notice the desire of representatives of small, medium and large businesses to increase profits
  • Emphasis on international activities also means less dependence on local markets, dependence on climatic conditions and other factors

 

Proper organization of international logistics means following certain factors. State-of-the-art technologies are used and outsourcing systems are actively implemented. Industrialization, the introduction of advanced control systems, information technology, and improvements in infrastructure also play an important role.

As a rule, the organization of international logistics are engaged in professional companies that employ a sufficient number of specialists. This can be universal logistics specialists, freight forwarders, specialists in certain operations, such as those associated with foreign trade activities, and others.

 

How are organized international cargo transportation

Conventionally, this area is divided into three categories: transport by air, water, that is, sea and river and ground. In the latter case we are talking about road and rail modes. It is impossible to say unequivocally how best to organize international shipping, because much depends on the complexity of the route, the specific cargo, urgency, the need to observe special conditions for transportation. An important role played by the financial capacity of the customer.

In any case, international shipping means reliability, efficiency, safety. The following table will help to understand specificity:

 

European Union countries, USA, Japan.About 80% of all international freight turnover occurs in these countries.
Road transport40% of all freight is transported by road. Railroad trains carry 25% of freight, and 35% is carried by the remaining types of transport

 

Routes for international cargo shipments are assembled in advance, cost is calculated, and location of customs points is taken into account. This is why this industry employs specialists who speak foreign languages and have legal knowledge of international logistics standards.

 

What are the challenges of international logistics

 

Export and import operations have their own specific characteristics. The important task of international logistics is to optimize processes, i.e. to increase profits and reduce costs. This is the core task of many businesses. It lies in the proper organization of material and information flows.

In addition, experts note the following tasks of international logistics:

 

  • To make the company more competitive, to bring it to a new level of development
  • To improve the quality of service in logistics. This also includes the manipulation of transportation and forwarding services
  • Beneficial impact on the national economy as a whole through integration processes

 

Yes, there are some circumstances that hinder the operational performance of the tasks of international logistics, and this must be borne in mind. The ups and downs of commodity prices have their impact. Moreover, such changes can be quite unexpected and not always predictable. Unstable energy and labor prices and changes in the specifics of the sales market also have their impact. Some adjustments are made by climatic conditions, global pandemics, economic crises.

 

How should international transport logistics be organized

 

Yes, it is impossible to foresee all the risks, the influence of climatic and human factors. There are certain risks of man-made disasters. That is why international transport logistics means, for example, forming not only the main route, but also an alternate one. In fact, from the very beginning of planning, specialists take into account that a particular section of road, rail, water or air space may not be available. Many people have heard about the fact that some states quite unexpectedly close air borders on their territory. The same surprises are encountered when organizing a chain that involves moving a shipment by waterways or by land.

Also international transport logistics means a joint decision on freight transportation, involving owners of warehouses and storage facilities, manufacturers, suppliers of goods. It is important to choose the right means of transport to optimize costs.

Not always in the organization of international transport logistics have to deal with long and complex routes. Practice shows that trade is mainly concentrated in the European Union countries. The Asian region is also actively developing. Today China is steadily becoming one of the leaders, producing relatively inexpensive goods of various categories.

 

How cooperation schemes are designed in the organization of international logistics

There are major and minor factors, but all of them must be taken into account. First of all, specialists decide on the following points:

 

  • Congestion of the highway at a particular time of the year or at a particular time of day
  • Speed limits when traveling. Speed limits must be respected, which in many ways is paramount
  • Take into account climatic conditions in the whole region and in some parts of the area

 

It is interesting that if you add up the length of all the roads in the world, we get an impressive figure of 23 million kilometers. 30% of all railroads are in the United States and Canada, and 25% are in Western Europe. In addition, the infrastructure is actively developing in China and other countries of the Asian region. It is known that the better the indicators in terms of infrastructure development, the more active international trade is. It is no coincidence that the logistics organization is primarily focused on cooperation with these countries. As the infrastructure in other parts of the world improves, so do the trade figures, and so does the economy.

 

Which international shipments are the most flexible

 

The concept of flexibility is actively used in logistics. It means the ability to choose not just one, but several potential routes, focusing on the situation directly in the movement of transport. Air and road transport are very flexible. Specialists in international logistics are capable of creating combined traffic routes, in which more than one mode of transport is involved. Often several countries must be crossed at once.

 

What you need to know about the cost of international freight carriage

 

The price depends not only on distance, but also on other factors. Traditionally, the cheapest are considered special trucks, refrigerators or sea transport. Also help to understand the situation the following table:

Organization of international logisticsMeans taking into account the size and properties of the cargo, its value, the length of the route, the cost of escort services by freight forwarders, insurance
Organization of storage in the warehouseTaking into consideration the need to comply with storage conditions, size, and volume of cargo.

Often it is multimodal ways of organizing logistics are the most profitable. Thus, the cargo is part of the way in special containers on water transport to the port. Then it moves by rail trains. And then it is transported by special trucks, isothermal wagons, refrigerators. If we are talking about storage of lots of goods in warehouses and harbors, it is important to maintain the temperature and humidity parameters, to ensure adequate security.

 

Prospects for international logistics

 

Undoubtedly, this field remains one of the most attractive for entrepreneurs. It can be stated that in the near future there will be a tendency to tighten legislation. This applies to many areas:

 

  • Sanitary and epidemiological
  • Fire-fighting
  • Ecological

 

Particular care should be taken when organizing international cargo shipments of perishable goods or items requiring special storage. These include cosmetics, medicines and other pharmaceuticals, vaccines, injections, fry fish and other aquatic life, large and small agricultural livestock, meat and dairy products, and more. Veterinary and phytosanitary certificates are often required in addition to the standard list of documents.

 

Specialized educational institutions that train specialists in the field of logistics in general and cargo transportation in particular know that the program must be organized in such a way that the future freight forwarder, logistician has a good knowledge in international law, computer science and technology, foreign languages. Often professionals have to promptly respond to lawsuits or draw up claims, provide documents, negotiate in English and other languages that are considered international.

 

How is the choice of transport in international transportation made?

As mentioned above, the main task is optimization. We take into account the size of the objects, the need to use equipment, to ensure reliable fixation. Difficulties of declaration, delivery time, financial capabilities of the customer are taken into account. As a rule, if we are not talking about a really long route and limited time, it is advisable to choose the cheapest mode of transport. Air transport is considered the most expensive for a reason, but it is also the fastest. The difference in speed of movement of objects differs by dozens of times. Obligatory and marking, packaging, insurance of shipments during the organization of international logistics. Sometimes insurance fully covers the cost of the party, or partially, which in any case is agreed in advance with the customer and written in an official contract specifying the amount, timing, guarantees, liability.

You can not consider this complex process solely as a movement of an object from one point to another. Much depends on proper selection of packaging and labeling, compliance with numerous conditions on the way. Also, it is required to fill in waybills, declarations, prepare certificates, check the correctness of the information provided by the supplier, the customer. If the customer wishes, the company working in logistics, and conduct customs clearance of goods completely independently.

The cost of services is calculated in advance. Obligatory tracking of the consignment in transit. Clients receive a full accounting. If in the course of transportation, loading/unloading, marking, storage, customs cordons passing unforeseen difficulties arise, the client is informed about them in advance. Yes, it is impossible to foresee and predict all risks in any case, so the only sensible option would be to resort to companies that are engaged in the organization of international logistics at the professional level and operate in this segment of the market for at least three years.

Людмила Логистик УКР

Эксперт в сфере транспорта и логистических процессов НАН Украины. Участница экспертной рады при министерстве транспорта и инфраструктуры