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Author: TEU Global Editorial Team
HomeArticles Posted by TEU Global Editorial Team
Untitled design (1)
LogisticsCargoDelivery
June 24, 2025 By TEU Global Editorial Team

What is a Purchase Order in Logistics? Simple Explanation for Everyone

Introduction: Why Purchase Orders Matter in Logistics

In the logistics world, clear instructions are everything. You’re moving goods across cities, countries, and even continents, so you better have paperwork that tells exactly what needs to go where, when, and how much of it.

That’s where a purchase order (PO) comes in.

If you’re running a warehouse, managing shipping, or working with suppliers, understanding how a purchase order works can save you from a lot of mistakes and confusion.

What is a Purchase Order? (In Simple Words)

A purchase order, or PO for short, is a document a buyer sends to a seller to order goods.

It’s like placing an official request that says:

“Hey, I want to buy this stuff from you, in this quantity, for this price. Please send it to this location.”

Once the seller agrees to it, this document becomes a legal agreement. That means both sides must follow what’s written.

Why Are Purchase Orders Important in Logistics?

Let’s say you’re a logistics manager. You order 100 boxes of electronics from a supplier in another country. Without a purchase order:

  • The wrong products might arrive
  • You won’t know when the shipment is coming
  • The warehouse might not be ready to receive it
  • You might be charged the wrong amount

But with a PO, everything is written down clearly. No guessing. No confusion.

What’s Included in a Purchase Order?

A good PO includes all the important info so nothing goes wrong. Here’s what it usually has:

  • PO Number – Like an order ID to track it
  • Date – When you placed the order
  • Supplier Info – Who you’re buying from
  • Buyer Info – Your company’s details
  • Item List – What you’re ordering, with quantity and description
  • Prices – Cost of each item and the total
  • Shipping Info – Where and when to deliver
  • Payment Terms – When and how the seller will get paid

How the PO Process Works (Step by Step)

Here’s how it typically goes in logistics:

  1. You need something – Like 500 cartons of shoes.
  2. You create a PO – It lists the items, quantity, price, and delivery details.
  3. Send the PO to the supplier – They confirm it.
  4. Supplier sends the goods – Following what the PO says.
  5. Warehouse receives it – They check if everything matches the PO.
  6. Payment is made – Only after everything checks out.

Types of Purchase Orders in Logistics

There are different kinds of POs depending on how you do business:

  • Standard PO – One-time order with exact details.
  • Blanket PO – Used when you buy the same thing many times over a period.
  • Planned PO – You know what you’re ordering, but not exactly when.
  • Contract PO – You agree on prices and terms but decide later on quantity and delivery.

How POs Help in Logistics

Using POs in logistics can help you:

  • 🧾 Keep track of what’s being ordered
  • 📦 Make sure the right items are shipped
  • 🚚 Coordinate with your freight company or transport team
  • 💰 Avoid overpaying
  • 📊 Stay organized during audits or inventory checks

POs are like a control system—without them, things can get messy fast.

Big Mistakes to Avoid with POs

Even though POs help a lot, you’ve got to use them right. Avoid these mistakes:

  • Leaving out shipping info
  • Ordering the wrong item code
  • Not confirming the PO with your supplier
  • Not matching the PO to what’s delivered
  • Using different formats every time (use templates or software)

PO vs Other Logistics Documents

It’s easy to confuse a PO with other paperwork. Let’s clear it up:

DocumentWhat It DoesWho Creates It
Purchase OrderStarts the orderBuyer
InvoiceAsks for paymentSeller
Bill of Lading (BOL)Confirms shipment and deliveryShipping company
Packing ListLists what’s inside the boxSeller or warehouse

All are important, but the PO comes first. It kicks off the whole supply chain.

purchase order lifecycle

How to Make a Purchase Order (Easy Way)

You don’t need to be a big company to make a PO. Here’s a simple way:

  1. Use a template in Excel or Google Sheets
  2. Fill in the supplier info, items, quantities, prices
  3. Add delivery address and terms
  4. Give it a unique number
  5. Email it to the supplier
  6. Save a copy for your records

Or you can use purchase order software if you want to make it even easier and faster.

Going Digital: Electronic POs (e-POs)

Today, many companies use digital or electronic purchase orders instead of paper.

Why?

  • Faster to send and receive
  • Less chance of losing documents
  • Easier to track in real time
  • Can be connected to your shipping and inventory systems

Some popular tools include QuickBooks, Zoho, SAP, and NetSuite.

Who Uses POs in Logistics?

Just about everyone:

  • Warehouses – To prepare for incoming shipments
  • Freight Forwarding Companies – To arrange the right transport
  • Import/Export Agents – To handle customs and compliance
  • Suppliers – To prepare and ship goods as requested
  • Finance Teams – To pay vendors on time and accurately

Real-Life Example

Let’s say your logistics company is arranging delivery of 1,000 cartons of clothing from a factory in Beijing to a warehouse in New York.

You send a PO with:

  • Product list
  • Quantity
  • Packing requirements
  • Shipping method (like ocean freight)
  • Port of delivery
  • Expected delivery date

Once the factory accepts, they start packing and booking transport — and your operations are all set.

Best Practices for Using POs in Logistics

Here are some simple rules to follow:

  • Use one format for all POs
  • Always give each PO a unique number
  • Double-check item names and delivery addresses
  • Save all POs in one folder or system
  • Match your POs with invoices and shipping docs before payment

The Future of POs in Logistics

Things are getting smarter. Here’s what’s coming:

  • AI that checks for errors
  • Blockchain for security and trust
  • Mobile apps to approve POs on the go
  • Cloud systems that link POs to inventory and shipping data

Conclusion: Why Purchase Orders Make Logistics Easier

If you’re involved in moving goods — across towns or across oceans — purchase orders make your job easier.

They help everyone know what’s being ordered, where it’s going, and when it should get there. POs save time, reduce mistakes, and keep your logistics business running smoothly.

Whether you’re a small freight business or a large warehouse operator, using purchase orders the right way will bring more control, more trust, and fewer problems.

FAQs:

1. Does TEU offers Purchase Order Management Services?

Yes, TEU Global offers Purchase Order Management Services from supplier coordination to order tracking.

2. Can a PO delay my shipment?

Yes — if it’s not sent or confirmed in time. Always get the PO approved early.

3. Is a PO legally binding?

Yes, once accepted by the supplier, it becomes a legal agreement.

4. What if the shipment doesn’t match the PO?

You can raise a dispute, hold payment, or ask the supplier to correct it.

5. Can I make a PO without software?

Yes! You can use a free template in Excel or Google Sheets.

READ MORE
Infographic – Freight Types (3)
LogisticsCargoInformational
June 19, 2025 By TEU Global Editorial Team

What does FOB mean in Shipping. Is it Beneficial?

FOB (Free on Board) is one of the most common terms used in freight shipping. PO between buyers and sellers establish FOB terms and assist identify ownership, risk, and transportation expenses.

FOB Origin and FOB Destination help companies to evaluate when and where to bear the cost during shipment. Now the question arises what’s the difference between them. Let’s understand the difference between both:

FOB Origin:

Buyer takes complete responsibility from the time when the seller has loaded the shipment. Also, once the seller has shipped the shipment buyer will be held responsible in case of damage, theft or loss.

FOB Destination:

Seller takes complete responsibility for the goods until they have reached its final origin. Seller tolerates the cost till the time buyer receives the shipment.

When Should You Use FOB?

FOB is a great choice when:

  • You want more control over the shipping process.
  • You have experience managing freight.
  • You’re working with large orders or full container loads.
  • But if you’re a beginner or prefer simplicity, CIF or DDP might suit you better.

How Free on Board Compares to Other Shipping Terms

In international trade, Free on Board isn’t your only option. Here’s how it stacks up against a few others:

  • CIF (Cost, Insurance, and Freight) Seller pays for the freight and insurance up to the destination port.
  • EXW (Ex Works) Buyer takes on responsibility right from the seller’s premises.
  • DDP (Delivered Duty Paid) – Seller handles everything until the goods arrives at the buyer’s location, including duties and taxes.
FOB

FOB offers a middle-ground—it gives buyers control over shipping, without making the seller do too much.

Essential Documents in Free on Board Shipments

To ensure a successful FOB transaction, you’ll need these documents:

  • Bill of Lading – Confirms goods were loaded onto the ship and transferred to the buyer.
  • Commercial Invoice – Describes the transaction and value of goods.
  • Packing List – Lists every item in the shipment for customs and warehouse purposes.

Accuracy here isn’t optional. A typo can delay customs clearance or cause compliance issues.

What FOB Covers—and What It Doesn’t

Let’s clarify: FOB does not mean the seller pays for everything. In fact, “Free on Board” simply means the seller gets the product onto the vessel. That’s it.

From there, the buyer typically covers:

  • Ocean freight
  • Import Customs
  • Cargo Insurance
  • Inland transport at the destination

Benefits of Using Free on Board

  • More control: Buyers can negotiate better freight rates and choose their logistics partners.
  • Transparent costs: Since shipping is handled by the buyer, pricing is clearer.
  • Defined responsibility: Both parties know exactly where their duties start and stop.

Challenges That Come With Free on Board

  • Risk shifts early: Buyers take on liability once goods are on the ship.
  • No insurance included: Unless arranged separately.
  • Paperwork complexity: Buyers must manage their own freight, documentation, and customs clearance.

When Should You Use Free on Board?

It is a great choice when:

  • You want more control over the shipping process
  • You have experience managing freight
  • You’re working with large orders or full container loads

But if you’re a beginner or prefer simplicity, CIF or DDP might suit you better.

Mistakes to Watch Out For

  1. Assuming FOB means full shipping included: It doesn’t.
  2. Leaving out the port name: Always specify (e.g., FOB Ningbo, not just FOB).
  3. Skipping insurance: This is a must, especially for high-value shipments.

Why does FOB in Shipping Matter?

For importers, Free on Board Destination often provides a smoother experience. With this arrangement, the seller manages the shipping process, including freight charges and customs clearance, until the goods arrive at the buyer’s location. This reduces the buyer’s involvement in logistics and minimizes risk.

On the flip side, exporters may benefit more from Free on Board Shipping Point, where their responsibility ends once the goods are handed over to the carrier. This allows them to recognize revenue sooner and transfer liability to the buyer early in the process.

Ultimately, the choice of Free on Board shipping terms depends on the specific needs and requirements of the business. It’s crucial to carefully review the sales contract and understand the terms and conditions of the FOB shipping agreement before deciding. By doing so, businesses can ensure they select the most suitable shipping terms to manage their costs and risks effectively.

Conclusion:

Understanding the difference between FOB (Origin and Destination) is essential for managing shipping responsibilities and risk. Free on Board Origin favors sellers by transferring responsibility early, while FOB Destination benefits buyers by shifting responsibility after delivery. Choosing the right term ensures smoother transactions and better control over logistics and costs.

FAQs

1. Is FOB better for buyers or sellers?

It depends on your priorities. Buyers who want more control prefer FOB. Sellers might choose it to limit their responsibility once goods are shipped.

2. Does Free on Board include shipping insurance?

No, it doesn’t. The buyer must arrange insurance once the goods are on the vessel.

3. Can I customize Free on Board terms in my contract?

Absolutely. Just make sure everything is clearly defined in writing, especially the port of origin.

4. What’s the main difference between FOB and CIF?

Free on Board makes the buyer responsible for freight and insurance. With CIF, the seller handles both until the port of arrival.

5. Is Free on Board used globally?

Yes, especially in sea freight transactions between Asia, Europe, and North America. It’s one of the most widely accepted Incoterms.

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In transit process
LogisticsCargoDeliveryPackage
June 11, 2025 By TEU Global Editorial Team

4 Important Stages to Know About ‘In Transit’ Status in Shipping and Logistics

When you check your package status you may see the status of your Package is “In Transit”. Now the question arises what the meaning of In Transit is? In short, if we answer this question it means between origin and destination. This blog will help you understand the most used word “Transit” in logistics.

What does “in transit” mean?

If your package is in transit it means your order has been packed and it is sent for delivery but hasn’t reached its destination.
Are you unsure about shipping processes? Learn about our Freight Forwarding Services.

Important Stages of In Transit:

  1. Picked Up (The package is collected from Origin).
  2. Sorted and Routed (The package is processed at the distribution center).
  3. Long-Haul Transport (The items are travelled by ship, rail, air or truck).
  4. Final Delivery (The package arrives at the last mile facility before getting delivered).

How the Shipment Travels:

When you send or receive a package, it travels through the postal system. Starting with the sender, it travels to sorting facilities and may pass through several transit hubs before arriving at the recipient’s local post office. Each stage in this process helps to ensure that delivery is on schedule. Understanding these steps allows you to better appreciate the difficulties involved and why occasional delays occur.

The Journey of a Shipment: Key Stages

To better understand what “in transit” covers, it’s helpful to break down the typical journey of a shipment:

Order Received / Processing

This is when the order has been placed and is being prepared for shipment. It may involve picking, packing, and labeling.

Dispatched / Shipped

The package is handed over to a carrier (postal service, courier, or freight company).

In Transit

This stage begins once the carrier has accepted the shipment and is physically moving it through the network toward the destination. It can include:

  • Local or regional sorting centers.
  • Transfers between warehouses or hubs.
  • International border crossings or customs inspections.
  • Loading and unloading onto trucks, planes, or ships.

Out for Delivery

The package is on a vehicle and is expected to be delivered that day.

Delivered

The final stage—when the shipment has arrived at the recipient’s location.

in transit process

How Long Does a Package Stay “In Transit”?

The amount of time a package stays in transit depends on the following factors.

  • Depends on the type of delivery express or economy.
  • Distance and Route.
  • Carrier Operation (Air, Road or Sea)
  • Custom Clearance in case of International Shipments.

Why Does it take longer than usual for items that are In Transit?

Common Reasons Include:

  • Anomaly in weather.
  • High Volume of Shipments.
  • Weekend or Public Holidays.
  • Custom Inspections.

What to do if Shipment is stuck?

  • Wait at least 48 hours.
  • Check your mail or SMS you might have received update from the carrier service provider.
  • Contact the shipping Provider.
  • Contact the sender for assistance.

Can I Receive a Package While It’s In Transit?

No, not yet. The item must finish transit before delivery. You can’t pick it up unless the carrier offers rerouting or pickup options. Some services allow this via customer request.

Common Shipping Statuses Explained

Understanding shipping lingo can help ease anxiety and help you make smarter decisions. Here are a few terms and what they mean:

StatusMeaning
In TransitItem is on the way, between origin and destination
Out for DeliveryLast-mile delivery is underway
DeliveredPackage has been dropped off
ExceptionSomething disrupted the process (weather, customs, etc.)
PendingWaiting to be shipped or picked up

What is the difference between In Transit and Out for Delivery?

In Transit:

In Transit means that the package is being delivered within the carriers network or maybe at carriers sorting center.

Out for Delivery:

The package is at a nearby destination and is on vehicle to be delivered to the final recipient’s address.

Tips to Avoid Future Transit Confusion

  • Always choose reliable logistics providers with end-to-end tracking.
  • For valuable goods, use services with insurance and signature confirmation.
  • Ask for a detailed shipping timeline before dispatching important cargo.

“In Transit” in Different Shipping Methods

Courier and Postal Services

  • When shipping, “in transit” typically refers to the time when the item is moving between processing centers. Depending on the distance, this may take hours or days.

Trucking and Road Freight

  • For road transport, the “in transit” status may mean the cargo is on a long-haul truck moving from one city or state to another. It might stay “in transit” for several days if the route is long.

Air Freight

  • For air cargo, “in transit” often includes the movement to the airport, time in the air, and transfers at international hubs.

Ocean Freight

  • In international sea freight, “in transit” can mean the container is on a cargo ship and might stay in this status for weeks, depending on the route.
freight types

FAQ’s

  • Do shipping companies also play an important role in reducing transit time?

Yes, the better the shipping company is, it is less likely to cause delays.

  • What is the role of tracking number in shipping?

Tracking number provides transparency to the customer, and it also helps to keep the customer updated about the shipment.

  • Does destination also play an important role in transit time?

Yes, the destination plays a crucial role, for instance if the destination is international custom clearance and route can cause delay in transit time.

  • How to ensure that package arrives on schedule?

Make sure to choose the right shipping option according to your need such as express delivery.

  • How to prevent your package from being damaged during transit?

Use services like cargo insurance to save your goods against damage, theft or loss during transit.

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20 ft container
Informational
June 4, 2025 By TEU Global Editorial Team

How Much Does a 20 ft Container Weigh?

Whether you’re planning a major shipping operation, setting up a mobile office, or just need extra storage space, the 20 ft shipping container is likely one of the first options you’ll consider. It’s one of the most popular container sizes in the world and for good reason. It’s practical, compact, and versatile.

One of the most common questions people ask before buying or renting one is:
“How much does a 20 ft container weigh?”
Let’s break it down.

20 ft container

What Exactly Is a 20 ft Container?

A 20 ft container also called a 20 ft storage container or a TEU (Twenty-foot Equivalent Unit) is a standard size used globally in freight shipping and logistics. It’s ideal for transporting goods across long distances and also widely used in industries for storage and custom builds.

Basic Dimensions:

  • External Length: 20 feet (6.06 meters)
  • Width: 8 feet (2.44 meters)
  • Height: 8 feet 6 inches (2.59 meters)
  • Internal Capacity: Around 33 cubic meters (1,170 cubic feet)

If you’re trying to visualize it, think of it as about the size of a single-car garage.

visual representation of 20 ft container

So, How Much Does It Weigh?

A standard 20 ft shipping container has three key weight figures:

  • Tare Weight (empty): Approximately 2,050 kg or 4,520 lbs
  • Payload Capacity (cargo weight it can carry): Up to 28,230 kg or 62,170 lbs
  • Maximum Gross Weight (tare + max payload): Around 30,480 kg or 67,200 lbs

That empty weight—or tare weight—is what most people are referring to when they ask, “How much does a 20 ft container weigh?”

Source: Maersk Container Specifications


What Can Affect the Weight?

While the numbers above are standard, real-world weights can vary slightly. Here’s what can influence the weight of a 20 ft container:

  • Material: Most containers are built from corten steel, but some may use lighter materials like aluminum.
  • Condition: A brand-new or “one-trip” container will likely match the standard spec. A used one, especially if modified, could weigh more.
  • Add-ons: Extra features like insulation, shelving, or reinforced floors will add to the tare weight.
  • Type of Flooring: Containers with steel floors may weigh more than those with wood or bamboo flooring.

Why Does the Weight Matter?

Understanding a container’s weight is essential for:

  • Transportation Planning

Whether you’re moving it across town or across borders, you need to account for the total load weight (container + cargo) to avoid overloading your truck or trailer.

  • Site Placement

Planning to put your 20 ft storage container on soft ground, a rooftop, or a concrete pad? Knowing the weight helps ensure structural safety.

  • Legal Compliance

Many states and countries have strict weight regulations. Going over the limit can result in fines or delivery delays.


Booking a 20 ft Container?

If you’re planning to book a 20 ft container to ship your goods. Our Freight Forwarding Services include both FCL (Full Container Load) and LCL (Less than Container Load).

Difference between FCL and LCL

Full Container LoadLess than Container Load
Direct RouteCost Savings
Secure HandlingReduced Inventory Cost
Optimized Costs for high volume shipmentsFlexibility for Smaller Shipments
Get Free Quote

Common Uses of 20 ft Containers Other than Logistics

uses of container

These containers aren’t just for Ocean Freight Shipping or Logistics. Their solid construction and mobility make them useful in all sorts of industries:

  • Construction sites (for tool and equipment storage)
  • Retail pop-ups (custom-modified mobile shops)
  • Offices or living spaces
  • Emergency housing
  • Farms and agricultural storage

Creative Uses: Discover Container Home Ideas

Pros and Cons of 20 ft Containers

Pros:

  • Readily Available
  • Multipurpose Usage
  • Easy to Move
  • Affordable

Cons:

  • Smaller Size
  • Limited Storage
  • Weight Limitations
  • Unstable During Transport

FAQs About 20 ft Containers

  • How much space is inside a 20 ft container?

You get around 1,170 cubic feet (or 33 cubic meters) of internal storage space.

  • Can I move it with a forklift?

Not a standard one. You’ll need a heavy-duty container handler or crane for that.

  • How many pallets fit in a 20 ft container?

Typically, 10 standard pallets (48″x40″) or 11–12 Euro pallets can fit inside.

  • Do containers need maintenance?

Yes! Regular checks for rust, door seals, and flooring can extend their lifespan by years.

  • How long do 20 ft containers last?

A new container can last 20–25 years if well-maintained. Used ones typically last 10–15 years.

  • Are standard 20 ft containers insulated?

No, but insulation can be added if you’re converting it into a storage space or living unit.


Final Thoughts

So, what’s the bottom line?

A standard 20 ft shipping container weighs about 2,050 kg (4,520 lbs) when empty.

It’s a compact, versatile unit with huge potential—whether you need it for transport, storage, or construction. Just make sure to factor in weight when planning your logistics or building project. And if you’re buying, always verify the specs and history before sealing the deal.

READ MORE
cpsc e-filling system for compliance certificates
Compliance & Regulations
January 1, 2025 By TEU Global Editorial Team

CPSC to Roll Out Mandatory e-filing System for Compliance Certificates by 2025

The U.S. Consumer Product Safety Commission (CPSC) has announced the introduction of a new Electronic Filing (eFiling) system to enhance consumer safety across the United States. This new certification system is a step from paper to pixel, making it easier for the importers in numerous ways.

Is Your Business Ready For The eFiling System?

Washington, D.C. has made a significant move in the trading world. For consumer safety, CPSC has announced that US importers have to electronically submit crucial details at the time of import instead of current paper-based certifications. The initiative aims to modernize safety checks and reduce risks associated with unsafe imports. 

This move aims to ensure a fast process with minimum risks of unsafe products in the market. Businesses must adapt to this change to remain compliant. So, if you’re prepared to meet these requirements, your business will be set for success.

The Final Rule

December 18, 2024, marks the day when the final rule was approved which includes updates based on the feedback given: 

  • Extended preparation time for businesses. 
  • Elimination of duplicative testing requirements and automation bulk certificate attestations.
  • Clarified definitions for terms like “finished product” and “importer.” 
  • Exemptions for certain product categories outside CPSC jurisdiction. 
  • Alignment of certification processes with modern trade practices. 

Details Required For eFiling

The new system will have certain requirements from importers end. This includes submission of data or comprehensive information about every product via the e-filing system. The details of products include:

  • Product identification (e.g., GTIN). 
  • Safety rules applicable to the product. 
  • Date and location of manufacturing. 
  • Date and location of compliance testing. 
  • Contact details of the testing entity. 
  • Confirmation of an existing compliance certificate.

Which Products are Included? Who Can Participate?

The initiatives that are being aimed to minimize the risks that come along this process as this system will initially cover up to 300 products based on Harmonized Tariff Schedule (HTS) codes. The categories coming under this umbrella are:

  • Toys 
  • Rugs and mattresses 
  • Baby carriages and cribs 
  • Children’s furniture 
  • Bicycle helmets 
  • School supplies 

These products come under the existing CPSC standards, such as the Children’s Product Certificate (CPC) and General Certificate of Conformity (GCC). There is a chance that the new system might replace these paper-based certifications.

Implementation And Potential Outcome

Alex Hoehn-Saric, the chair of CPSC considers the eFiling system an important step ensuring imported products meet safety standards. According to him,

“This rule strengthens our ability to prevent unsafe goods from reaching consumers’ homes while rewarding compliant businesses with faster clearance,”

CPSC has invited up to 2,000 additional importers to participate in the voluntary testing phase. This system is a game changer yet flexible as an extended implementation period is being given to businesses to adjust beforehand.18 months after final rule approval, whereas 24 months are given to Foreign Trade Zones. Not only this but warehouses will be given a longer timeline to adjust accordingly.

Preparation For Importers

Importers can prepare themselves for the eFiling system by collecting the required data in advance and participating in CPSC’s voluntary phase to refine processes. Moreover, they can train their team for any unpredictable future events and collaborate with various logistics partners to get a better perspective of the whole scenario. Working with trusted logistics providers like TEU Global can make complex transitions like these easier and smoother for your business.

The Next Chapter in Global Trade

The e-filing system is expected to revolutionize the import process, making it stronger and faster. It also strengthens the CPSC’s ability to identify unsafe products, ensuring greater consumer protection. Importers are expected to act promptly before the system is implemented by CPSC or hire a company that handles these operations by teams of experts for less risk of loss like TEU Global.

Talk to one of the experts in the team to ensure a smooth Global journey.

Contact Us
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high tariffs for US importers
Trade & Tariffs
January 1, 2025 By TEU Global Editorial Team

How U.S. Importers Can Prepare For Potential Higher Tariffs in 2025?

Businesses should prepare as higher tariffs are coming!

2024 was unexpected all around the world, and the coming year seems to be way more evolving. The global supply chain seems to have hit a drastic change in the United States.

Not only this the political and economic shift has affected the whole trading industry. Higher tariffs on imports from key trading partners are bracing global trade for the impact.

Rising costs, disrupted supply chains, and changes in freight costs are some of the changes that might occur. But what exactly are tariffs, and how can they affect the supply chain? 

Let’s discuss these drastic changes coming your way if you’re in this market.

What Are Tariffs? How Do They Shape Global Trade?

Tariffs are indirect taxes also known as custom duties. A tariff is a tax placed on goods when they cross national borders. There are two types of tariffs: import tariffs are the taxes on goods that a country imports and export tariffs are those taxes on goods that a country exports.

Tariffs are imposed either for protection or revenue purposes. They have been used for centuries; in 1789, the first tariff was passed.

These taxes are:

  • Calculated based on the tariff classification or commodity code under the HS.
  • Harmonized System (HS) is a 10-digit code that determines the duty rate

The Importance of Tariffs? Why They Matter

Tariffs are a crucial key in the world of global trade. In the United States, the Harmonized Tariff Schedule sets over 17,000 tariff codes, each with specific duty rates.

Tariffs increase the price of imported goods, making domestic goods cheaper. The duties are applied by calculating the percentage of the declared value of the goods. Governments impose tariffs to raise revenue and protect domestic industries.

Governments can use tariffs to benefit particular industries, they are also used as an extension of foreign policy to exert economic leverage

A Look Back at the History of Tariff Policies

Tariff policies have always influenced U.S. trade relationships. Among the first acts signed into law by the first Congress was The Tariff Act of 1789. These tariff were abandoned in the mid-20th Century

The 2019 Tariff announcement proposed tariff ranging from 5% to 25% on Mexican goods, where as in 2020, The United States-Mexico-Canada Agreement (USMCA) announced no tariff on goods between these three countries.

Warnings Given by Economists to U.S. Government

Economists have warned that the rise in tariff policies could push duty rates to levels not seen since the 1930s, stoking inflation, disrupting U.S.-China trade, and forcing businesses to rethink global supply chains. The tariffs risk increasing inflation and can also lead to a slowdown in global economic growth. Companies are hesitating to expand due to the unpredictable logistics environment. There is a risk that the higher costs of imported goods might affect businesses on every level, so keeping this in mind is crucial.

Rising Freight Rates: How Tariffs Influence Supply Chain Expenses

There was a potential impact of higher tariffs on the ocean freight rates for Shanghai to LA and Shanghai to NY over the timeline. Freight rates have always been influenced by several factors which include:

  • Global economic trends
  • Demand-supply imbalances
  • Shifts in trade routes

Not only this, but between December 2023 and July 2024, rates of container shipping between Asia and North America doubled, which resulted in a 1%-2.5% cost increase in imports. Understanding these dynamics is very important for businesses that aim to minimize costs.

Quick Tips for U.S. Importers to Navigate Higher Tariffs

Here are some quick short tips for businesses looking for immediate guidance:

  • Build contingency plans.
  • Stay informed about trade agreements and tariff changes.
  • Work closely with trusted logistics providers.
  • Evaluate supply chain costs closely.
  • Reduce reliance on one region, instead chose partners from tariff-free countries.
  • Use data analytics to forecast risks, costs, and adaptable strategies.
  • Utilize Trade programs for cost reductions.

What Strategies Can Be Used to Mitigate Tariff Risks?

The challenges that US Importers have to face this coming time are numerous. To face them proactively you can use these strategies:

  1. The first strategy is to diversify suppliers and change the sourcing location. Businesses can do Onshoring, which means moving operations closer to home, it can reduce tariff hikes. Partnering with suppliers of countries that are tariff-friendly can help businesses mitigate supply chain disruptions with less cost.
  2. The second strategy is to explore Tariff Mitigation Programs that will decrease the financial impact of tariffs, such as Free Trade Agreements (FTAs) that lower or eliminate tariffs on certain imports, Duty Drawback Programs that help to recover duties paid on imported goods, or by adjusting products classification. 
  3. One of the most important and effective strategies is building strong partnerships with suppliers as it helps in cost-saving opportunities, gives flexibility in contracts to adapt new rates, and focuses on suppliers who maintain one-time delivery despite higher rates. Partnering with reliable logistics providers such as TEU Global can make a significant difference, whether it’s the reduction of supply chain risks or the enhancement of agility.
  4. You can invest in Data-Driven decisions as it is important when it comes to sudden policy changes. Staying updated about tariff changes, using various tools to identify perfect cost-effective solutions, and planning proactively can help you make informed decisions without things getting out of your hands.

Be Proactive: Take Action as Soon as Possible

Taking action earlier will have many advantages. Higher tariffs need to be dealt with strategies discussed above. These strategies will help the importers protect their supply chain, control the increasing costs, and make operational resilience strong enough in this disrupted market.

For expert guidance, partnering with TEU Global can ensure that all your logistics operations remain competitive.

Contact Us

The Next Step for Importers Against Tariff-Driven Disruptions

Every step in the Global trade system is unpredictable, but you should always be prepared to face any changes that might occur during your transit. Businesses all around the world can survive in this challenging environment by working on multiple strategies, building strong partnerships, and investing in analytics.

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Freight Forwarding vs Logistics
Logistics
December 19, 2024 By TEU Global Editorial Team

Freight Forwarding vs Logistics: What’s the Difference?

Are you confused about freight forwarding vs logistics? Or wondering when you need one service over the other? You’re in the right place! In this article, we’ll break down these two terms and explore their key differences, along with the pros and cons of each.

The shipping industry is essential to global trade, and as demand for transportation continues to grow, understanding freight forwarding vs logistics is more important than ever. Let’s dive in and make these concepts easy to understand.

What is Logistics?

Logistics refers to the movement of goods from one place to another. It is a broad term that encompasses the entire process of managing and transporting goods on a global scale.

One specific type of logistics service is Third-Party Logistics (3PL), which involves outsourcing logistics tasks to external providers. These companies support businesses by offering services like storage, supply chain management, packing, shipping, and order fulfillment.

3PL providers help organizations transport inventories efficiently. They also play a crucial role in military operations, transporting equipment and supplies on the battlefield.

What is Freight Forwarding?

Freight forwarding is the process of transporting goods by air, sea, rail, or road. It involves companies that manage the logistics of sending goods from one location to another using various carriers.

Freight forwarding companies coordinate shipments across different transportation modes, ensuring efficient delivery. These companies handle the complexities of international shipping, making sure that goods are transported on time and in compliance with regulations.

The role of freight forwarders has evolved over time, as they now work closely with logistics providers to ensure cost-effective and reliable solutions. By partnering with national and international companies, freight forwarders can offer better pricing and more efficient shipping options.

Freight Forwarding vs Logistics

Key Differences Between Freight Forwarding and Logistics

While logistics covers the entire supply chain, freight forwarding focuses on the transport coordination. To understand how shipping speed plays a crucial role in your business, take a look at our article on how fast is freight shipping?

The main distinction between the two is that logistics covers the entire transportation process, managing all aspects of the movement of goods. This includes planning, storage, inventory management, and shipping. On the other hand, freight forwarding focuses specifically on coordinating the transport of goods from one location to another, working with various carriers to ensure efficient delivery.

Although both are essential parts of the shipping process, their differences are significant. The choice between logistics and freight forwarding often depends on the specific needs of the customer, such as the complexity of the shipment and the type of service required.

To better understand how the difference between logistics and freight forwarding might impact your business, take a look at the following Freight Forwarding vs Logistics table:

LogisticsFreight Forwarding
Manages entire supply chain.Focuses on arranging transportation.  
Includes warehousing, inventory, and transportation.Acts as a middleman between shipper and carriers.
Owns assets like warehouses and trucks.Does not own transport assets.
Provides end-to-end solutions.Handles customs, documentation, and regulations.
Ensures smooth order fulfillment and delivery.Specializes in international shipments.
Involves inventory control and tracking.Offers flexible routing options.
Optimizes supply chain efficiency.Manages risk and compliance in shipping.

Advantages & Disadvantages of Freight Forwarding and Logistics

Let’s take a closer look at the advantages and disadvantages of both freight forwarding and logistics services to help you understand which one might be more suitable for your business.

1. Logistics: Pros and Cons

Pros:

  • Cost-Effective: Outsourcing to third-party providers (3PL) reduces costs with services like tracking, warehousing, and inventory management.
  • Efficient Management: Handles all aspects of the supply chain, streamlining operations.

Cons:

  • Loss of Control: Outsourcing logistics may lead to less control over the process.
  • Not Ideal for High-Value Goods: Logistics services may not be best for delicate or high-value items.
  • Limited Support: Some 3PLs may struggle to offer dedicated support due to high order volumes.

2. Freight Forwarding: Pros and Cons

Pros:

  • Extensive Network: Leverages a wide logistics network to manage customs, documents, and intermodal shipping.
  • High Success Rates: Ensures accurate labeling and documentation for reliable deliveries.

Cons:

  • Lack of Regulation: Some companies may not be regulated in certain regions, affecting service consistency.
  • Limited Scope: Focuses mainly on transportation coordination; may require additional logistics support.
  • Higher Costs: Can be expensive, with rates increasing for certain services.

Key Responsibilities in Logistics & Freight

Key Responsibilities in Logistics & Freight

Logistics and freight management involve different aspects of the shipping and supply chain process, each focusing on specific tasks to ensure smooth and efficient operations from order placement to delivery. Here’s an overview of the key responsibilities involved in both logistics and freight management.

1. Logistics Management

  1. Oversees the entire supply chain to ensure smooth movement and storage of goods.
  2. Manages order fulfillment to meet customer needs in terms of quantity, quality, and location.
  3. Ensures proper storage of products in warehouses according to specific requirements.
  4. Plans and executes efficient delivery of goods, including packaging for different materials.
  5. Manages transportation to ensure safe handling of delicate and fragile items.

2. Freight Management

  1. Negotiates rates, terms, and conditions to secure deals that meet company needs.
  2. Handles required documentation to avoid complications during transportation.
  3. Ensures timely collection and delivery of goods.
  4. Builds strong relationships with customs teams to ensure compliance.
  5. Optimizes use of transport facilities and maintains connectivity for smooth shipping operations.

Get Expert Freight Forwarding and Logistics Solutions with TEU Global

Ready to streamline your shipping process? Whether you’re looking for efficient freight forwarding or comprehensive logistics management, TEU Global has the expertise to help. Contact us today to learn how we can optimize your supply chain and ensure timely, cost-effective deliveries worldwide.

Conclusion

In Freight Forwarding vs Logistics Both logistics and freight forwarding have their unique roles in shipping. To protect your goods during transportation, make sure to check out how shipping insurance shields your goods, which explains the importance of insurance in safeguarding shipments.

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How Freight Shipping Works
Logistics
December 18, 2024 By TEU Global Editorial Team

How Freight Shipping Works? A Step By Step Guideline

Freight shipping can seem complicated, especially if you’re new to the process. But once you understand the basics, it becomes much easier to manage.

It’s a vital part of global trade, helping businesses move large amounts of goods quickly and affordably. Whether you’re shipping within your country or internationally, knowing how freight works can save you time and money.

In this article, we’ll explain everything from preparing your shipments to ensuring they reach their destination on time. We’ll break down the steps to make the process clear and easy to follow.

What is Freight Shipping?

Freight shipping is the process of moving large quantities of goods from one place to another, either within a country or internationally, using air, land, or sea transport. These goods are called cargo or freight, depending on how they are transported.

The journey of freight often starts with a truck, then may switch to trains, large cargo ships, or even planes to reach its final destination. This flexible approach ensures goods are delivered efficiently across various transport methods.

How Does Freight Shipping Work

How Does Freight Shipping Work

The freight shipping process involves several key steps, which are essential to understand when shipping goods. Here’s a breakdown of the six main steps:

Step 1: Pickup and Transport

The process begins with transferring goods from the shipper’s location to the forwarder’s facility. This is typically done by truck, rail, or a combination of both. If the shipper is responsible for this part, they will arrange for local couriers to handle the export haulage.

Step 2: Customs Clearance

Before goods leave the country, they must be cleared by customs. The necessary documents are sent to customs officials to ensure compliance with regulations. This step is often managed by a service provider with a valid customs brokerage license, ensuring smooth processing and avoiding penalties for incomplete or inaccurate paperwork.

Step 3: Inspection and Loading

Once cleared, goods are inspected and documented. They are then transferred to loading points such as airports, shipping terminals, or train stations. If needed, shipments are consolidated with other cargo, loaded into containers, and prepared for collection by the consignee.

Step 4: Arrival and Inspection at Destination

Upon arrival at the destination, goods undergo another inspection process. They are then transferred to a warehouse or port and prepared for pickup by the shipping company for the next step in the delivery process.

Step 5: Import Customs Procedures

Before the cargo can leave the customs bonded area, it must go through import customs procedures. This step ensures that all the necessary documents are submitted and verified by officials, clearing the goods for delivery.

Step 6: Last-Mile Delivery

The final step is the delivery to the consignee. Often, this involves less-than-truckload (LTL) shipping, where the cargo is transported to the recipient’s specified address. This step ensures that the goods reach their final destination safely and on time.

How To Arrange Freight Shipping

How To Arrange Freight Shipping

Arranging freight shipping depends on the type of service that best fits your shipment needs. Here’s a simple, step-by-step process to guide you:

Step 1: Gather Shipment Details

Start by measuring the weight, dimensions, and quantity of the goods you’re shipping. This information is crucial for getting an accurate shipping quote. Freight is usually classified under the National Motor Freight Classification (NMFC) system, which categorizes goods based on factors like density, cost, and liability. Understanding the right freight shipping solution for your business is key to selecting the right service.

Step 2: Contact a Freight Carrier or 3PL

You can either reach out to a freight carrier directly or use a third-party logistics (3PL) provider. 3PL companies can gather quotes from multiple carriers and offer additional services, such as insurance and customs clearance.

Step 3: Get a Shipping Quote

Provide your shipment details (size, weight, origin, and destination) to receive a quote. The quote will include the shipping costs, potential fuel surcharges, and any additional fees for special handling.

Step 4: Proper Packaging

Packaging is key to ensuring the safety of your goods. This may involve palletizing items, using shrink film, or packing them into crates. Be sure that all shipments are correctly labeled with accurate destination details.

Step 5: Create Documentation

Prepare the Bill of Lading (BOL) and shipping labels. If shipping internationally, you’ll also need to complete customs forms and commercial invoices.

Step 6: Schedule Pickup

Once everything is ready, schedule a pickup with the shipping service provider. They will provide tracking options so you can monitor the shipment’s progress until delivery.

This step-by-step process ensures your shipment is well-prepared and ready for transport, allowing for a smooth and efficient shipping experience.

How To Do Freight Shipping On eBay

This section explains the general process for arranging freight shipping on eBay. Whether you’re a seller handling large or bulky items, it’s important to understand these basic steps:

  1. Select Shipping Options: when listing an item on eBay, sellers must choose the appropriate shipping options. Provide the size and weight of the item to help buyers understand potential shipping costs. You can either use a flat shipping fee or ask buyers to contact you for a customized quote.
  2. Arrange Shipping with Carriers: once the buyer shows interest, arrange shipping either through eBay’s preferred shipping partners or independent freight carriers. eBay partners with trusted carriers to make the process easier for sellers. For sellers looking for a better understanding of timeframes and delivery expectations, be sure to read how fast is freight shipping?
  3. Prepare the Goods for Shipment: ensure the items are safely packed, often involving palletizing or crating. After the buyer completes the purchase, schedule the pickup with the chosen carrier.
  4. Provide Tracking Information: once the carrier picks up the item, provide the buyer with tracking information through eBay. This allows both the seller and the buyer to monitor the shipment’s progress.

How Does Freight Shipping Work On eBay

Freight shipping on eBay is used for large, heavy, or bulky items that can’t be shipped through standard methods. Sellers who offer freight shipping work directly with freight carriers or use eBay’s shipping partners to manage the shipment.

When a buyer requests shipping costs, the seller provides a quote or suggests that the buyer contact the shipping company for a rate. The seller is responsible for arranging the pickup and delivery of the goods, which may involve palletizing or crating items for added protection during transport.

Once the carrier picks up the goods, they are sent to the buyer’s specified address. Buyers can track their shipments through eBay or the carrier’s website. To avoid misunderstandings regarding delivery timelines and additional fees, eBay recommends that both sellers and buyers maintain clear communication throughout the shipping process.

How To Add Freight Shipping On eBay

Freight shipping is an efficient process that involves several key steps. First, the goods are collected and transported from the sender to the shipping hub. They then go to customs for customs clearance before being loaded onto air, sea, or land transport. Once the package reaches its destination there will be one more customs inspection and handling before transfer to the final destination. From beginning to end Freight transport is a coordinated effort between shippers, transportation service providers, and customs authorities to ensure the goods arrive safely and on time.

Simplify Your Freight Shipping with TEU Global

Looking to improve your freight shipping process? TEU Global offers reliable, cost-effective solutions for businesses of all sizes. Contact us today to streamline your logistics and ensure timely deliveries!

Conclusion

Freight shipping is an effective solution for transporting large or bulky items, whether domestically or internationally. Understanding the process, especially on platforms like eBay, helps sellers optimize costs and improve customer satisfaction. By managing and tracking shipping costs, businesses can streamline logistics and stay competitive in a rapidly evolving industry.

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How Shipping Insurance Shields Your Goods
Logistics
December 18, 2024 By TEU Global Editorial Team

How Shipping Insurance Shields Your Goods

Shipping insurance is crucial for businesses and individuals looking to protect their goods during transit. Whether you’re sending a small package or large freight, risks like damage, loss, or theft can occur, especially when shipping over long distances or across international borders. Shipping insurance offers peace of mind by providing financial compensation if something goes wrong, ensuring that your investment is safeguarded.

Freight insurance, a key type of shipping insurance, is particularly important for larger shipments. It covers potential risks during transport, such as accidents, weather-related damage, or theft. With global trade growing, having reliable shipping insurance is essential to protect your goods and avoid costly losses.

What Is Shipping Insurance?

Shipping insurance protects the value of goods during transportation, covering potential risks like loss, theft, or damage. Whether shipping domestically or internationally, it ensures that your products are covered if they don’t arrive in good condition. The cost of shipping insurance is typically a small percentage of the shipment’s declared value.

This service is essential for high-value shipments or those traveling long distances, as the risk of damage or loss increases on complex transport routes. By opting for shipping insurance, businesses and individuals gain peace of mind, knowing they will be compensated if things go wrong. To fully understand how freight costs impact your shipment’s value, it’s important to know how freight shipping costs and pricing are calculated, including how factors like weight, distance, and delivery times can influence the total cost.

What Is Freight Insurance?

Freight insurance is a specialized type of shipping insurance designed for large cargo. It covers goods transported in bulk, on pallets, in containers, or other large-quantity shipments by land, air, or sea. Unlike standard package insurance, freight insurance is tailored to protect businesses dealing with larger shipments.

This insurance provides financial security for companies that frequently transport high-value goods across international borders. If a shipment is damaged, lost, or stolen during transit, freight insurance ensures that businesses are compensated, minimizing potential financial losses. Understanding the suitable freight shipping solutions for your business needs will help you determine how much protection you need. This involves considering factors like your shipment’s nature and destination, which may affect the type of insurance coverage required.

Types of Freight Insurance Based on Needs

Types of Freight Insurance Based on Needs

Freight insurance comes in different types to suit specific shipping needs. Here are the most common options:

1. Cargo Insurance

Cargo insurance is the most widely used type of freight insurance. It protects against physical damage or loss of goods during transit. This type of insurance can be arranged by the seller, buyer, or a third party, and is especially important for international shipments to safeguard goods in transit.

2. Liability Insurance

Liability insurance protects against third-party claims for bodily injury or property damage. This is particularly useful for shippers, logistics companies, and carriers who handle goods for multiple customers. It helps cover the costs if something goes wrong and another party is affected.

3. All-Risk Coverage

All-risk coverage offers the broadest protection, covering a wide range of risks such as theft, damage, or loss. While it provides extensive coverage, it is often more expensive compared to other types of freight insurance. This option is ideal for businesses looking for comprehensive protection against nearly all potential shipping risks.

What is the Freight Insurance Cost?

What is the Freight Insurance Cost

Freight insurance premiums usually range from 0.3% to 0.5% of the total value of the items listed on the commercial invoice. However, several factors influence the exact cost of insurance.

1. Type and Price of Goods

The type and value of the goods being shipped play a key role in determining the premium. More expensive or fragile items often come with higher insurance costs because they carry a greater risk of damage or loss.

2. Mode of Transport

The mode of transport—whether air, sea, road, or rail—can also affect the cost. Some transport methods are considered riskier than others, which can lead to higher premiums. For example, air freight is often more expensive to insure than sea freight.

3. Destination and Route

The destination and transportation route are also important factors. If goods are being shipped to high-risk areas or along longer, more complicated routes, the insurance premium may increase.

4. Level of Coverage

Finally, the level of coverage you choose will impact the cost. All-risk coverage, which provides the most protection, typically results in higher premiums compared to basic coverage options.

By understanding these factors, you can better estimate the cost of freight insurance based on your specific shipping needs.

Reduce Freight Insurance Cost

Shippers can reduce cargo insurance costs by taking steps to minimize risks during transit. Properly packaging and labeling merchandise helps prevent damage, lowering the likelihood of claims. Additionally, providing accurate and complete documentation can avoid disputes and potential penalties, further reducing insurance costs.

Choosing a reliable carrier with a strong safety record can also help lower premiums. Experienced carriers are less likely to face issues during transit, which reduces the risk for insurers. Lastly, selecting the right level of coverage ensures the cargo is protected without paying for unnecessary add-ons, helping keep insurance costs within a reasonable range. Understanding the broader challenges in the logistics industry can also provide insight into managing shipping risks and improving cost efficiency.

What Does Shipping Insurance Cover?

Shipping insurance typically covers the full value of the item if it is lost, stolen, or damaged during transit. This protection applies to various shipping methods, including postal services, courier services, and freight transport. It can include coverage against damage caused by accidents, mishandling, or environmental factors like floods or fires.

However, the exact coverage depends on the carrier’s policy and the terms of the insurance. Some policies may offer additional protection, such as coverage for late deliveries or items that arrive in poor condition. Always check the insurance terms to understand the full extent of coverage for your shipment.

Importance of Shipping Insurance in International Trade

In today’s global market, businesses frequently engage in international trade by shipping goods across borders to meet customer demands. Shipping insurance is crucial in protecting against various risks associated with long-distance shipping, such as theft, damage, or accidents.

For businesses operating internationally, unforeseen events like accidents, misfortunes, or port delays can lead to significant financial losses if products aren’t properly insured. Shipping insurance ensures that even if goods are compromised during transit, businesses can recover their financial investments, minimizing supply chain disruptions and helping them maintain smooth operations. Understanding the global shipping timeframes will help businesses anticipate the challenges of shipping and ensure timely delivery of goods.

Choosing the Right Shipping Insurance Provider

Selecting the right shipping insurance provider is essential for ensuring comprehensive protection for your cargo. When evaluating providers, businesses should consider factors like the provider’s reputation, the range of coverage options, and their experience with specific types of freight or transportation methods.

While comparing insurance rates is important, it’s equally crucial to assess the quality of customer service and the efficiency of the claims process. Carriers that offer customized coverage tailored to your freight needs are often the most reliable choice, helping businesses reduce risks while staying within budget.

Get in touch with TEU Global today to find the best shipping insurance solutions for your business. Our tailored coverage options and expert support ensure that your cargo is always protected, no matter the size or destination.

Conclusion

Shipping insurance is essential for protecting goods from loss, theft, or damage, ensuring peace of mind for businesses. As global trade expands, having the right coverage is crucial to safeguarding investments and reducing risks. Whether shipping domestically or internationally, investing in reliable shipping insurance is a smart business decision.

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How Fast is Freight Shipping
Logistics
October 31, 2024 By TEU Global Editorial Team

How Fast is Freight Shipping? Global Timeframes Explained

Freight shipping has become a common and crucial component of global trade in today’s world. This process has connected businesses across the globe. But, a question that arises commonly among consumers is how long does freight shipping take? Now this process varies according to the mode of transport and the destination. Let’s explore different freight shipping timeframes to make it easier for you to understand what to expect and what to know when it comes to shipping your goods.

The time it takes for a logistics company or organization to ship the goods of their consumers to their final destination is also known as Transit time. From the pickup point to the destination, the amount of time required to move goods can vary widely. So understanding the transit time for freight shipping is important.

How Long does Freight Shipping Take?

Freight shipping, the process of transporting goods in bulk via air, sea, or land, has become a cornerstone of global trade. The timeframes for this process vary depending on the shipping method and the distance between the pickup location and the destination. For instance, domestic shipments via ground freight typically take 1 to 7 days, while international shipments by ocean freight can range from 20 to 45 days. Air freight offers a faster alternative, delivering goods internationally within 1 to 5 days. Additionally, customs clearance procedures can impact the overall shipping time, making it essential to choose the right freight shipping method for your needs.

Common Freight Types And Their Typical Shipping Timeframes

Common Freight Types And Their Typical Shipping Timeframes

1. Air Freight

Air freight is the fastest shipping method which is ideally used for time sensitive or high value goods. This shipping method is best for urgent shipments and high value goods.

Average Timeframe

  • Domestic: 1-2 days
  • International: 1-5 days

2. Ground Freight (Truck/Rail)

This type of shipment process is ideal for shipping goods over land within the same country or region. It includes LTL (Less Than Truckload) and FTL (Full Truckload). This type of shipping is suitable for domestic shipments in which, for large and heavy goods, you have to use FTL, and for smaller goods, you can use LTL.

Average Timeframe

  • Domestic (short distances): 1-3 days
  • Domestic (long distances): 3-7 days

3. Sea Freight (Ocean Freight)

Sea Freight

Sea Freight Shipping, also known as Ocean Freight Shipping, is the most economical method. It is widely used for large and bulky shipments. It is also best used for international trade, non-urgent shipments, or when cost is a priority over speed.

Average Timeframe

  • International (short distances): 10-20 days
  • International (long distances): 20-45 days

4. Rail Freight

Rail freight is mostly used for shipping large quantities of goods over long distances on land. It is a process which is known to be more fuel-efficient and eco-friendly compared to truck shipping. It is best used for bulk goods which are heavy or raw material.

Average Timeframe

  • Domestic (short distances): 2-3 days
  • Domestic (long distances): 7-14 days

5. Intermodal Freight

Intermodal freight shipping is basically a combination of different shipping methods (e.g., truck + rail, truck + ship) to transport goods more efficiently across multiple regions. This mode is ideal for shipping across the borders, when various modes of transport are required.

Average Timeframe

  • Varies depending on the distance and modes used. Generally, it could take 5-30 days based on the complexity of the route.

How Fast is Freight Shipping?

How Fast is Freight Shipping

Have you ever wondered how long does freight shipping takes? Well, shipping timelines can be affected by a number of factors. Including distance mode of transport and the complexity of shipping routes.

  • Deliveries within the same country usually take 1 to 7 days
  • International sea freight can take 20 to 45 days.
  • The time frame is greatly reduced if air freight is used. Delivery can take place in less than a week.

The speed of freight shipping depends on the mode of transport, so understanding how to determine the right freight shipping solution for your business needs is essential.

  • Air freight is considered the fastest option. It delivers goods to international destinations within 1-3 days.
  • Express land shipping can take 1-3 days.
  • Standard land shipping can take 3-7 days.
  • Sea shipping, although cost-effective, fee but it’s the slowest. It often takes several weeks or more than a month for long-distance international shipping.

Shipping Timeframes: US-Based Logistics Companies vs. Other Countries

We have discussed how the method, the distance, and so much more can affect our timeframes for freight shipping. Not only this but the timeframes can also vary based on the country where the logistics company is based. For instance, a US-based logistics company may offer more optimized and faster shipping services compared to an Asian-based logistics company due to advanced infrastructure, a large number of domestic shipping routes, and a wide network of international partners.

1. US-Based Logistics Companies

Logistics companies are very efficient because of the facilities they have. Having well-developed roads, rail tracks, and air networks gives them a plus point for domestic shipments within the US.

  • Most domestic ground freight shipments can reach their destination in 1-5 days
  • Air freight is even faster, often arriving within 1-2 days.
  • Due to the robust infrastructure, international air freight can also be expedited, typically taking 2-5 days, depending on the destination.

For international sea freight, US-based companies often utilize major ports like Los Angeles or New York.

  • Shipping to nearby countries like Canada or Mexico may take 5-10 days
  • Longer international routes to Asia or Europe generally range from 20-40 days depending on customs clearance and distance.

2. Freight Shipping from Other Countries

Logistics firms situated in different countries might have different rates of shipping depending on the present infrastructure and global reach. For example, within Europe, freight shipping within the countries of the European Union is quite efficient and takes about 1-4 days for road shipping. Europe, however, struggles with air and sea shipping, especially from the European region, even though most shipping is done via sea which generally takes a span of 20 to 45 days.

Moving towards Asia, countries like China, Pakistan, or India, the time taken to ship goods internationally using ocean freight is grossly affected by geography. Sea freight to the United States would take an approximate time range of 25-50 days by sea because of the vast distance. While air freight would take 5-7 days as it is way faster. In many developing countries, the state of logistics infrastructure is still poor and not as efficient as in the US.

Thus, when shipping freight through the sea, which incorporates ports, often there are delays caused by less efficient systems. Knowing these differences allows many businesses to make good decisions about selecting a good and reliable partner. Selecting a performance-based partner in the world of logistics can be very helpful.

Final Thoughts

Freight shipment timeframes depend on a mixture of factors including the transport technique, distance, and any customs procedures involved. While air freight is the fastest choice, sea freight offers a more economical solution for larger shipments.

From skyline to shoreline, TEU Global provides a complete guidance regarding these modes. By understanding all these modes of shipment process and the costs for each one, you can plan your logistics more efficiently and ensure your items arrive on time. Whether you want quick delivery or a price-efficient one, there’s a freight choice to suit your business needs.

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TEU Global

TEU Global is a 3PL company, with a top reliable global agent network. From freight forwarding and customs clearance to warehousing and purchase order management, we provide the best services with extra personal care.

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