They say that time is money, but when it comes to transporting cargo this is not always true. In fact, the golden rule in the freight forwarding industry is the more time taken the less expensive transportation is – speed costs more. So, when urgency is not a factor, what are the choices available?
Actually, there are only two types of transport options when it comes to importing (or exporting) cargo anywhere. This helps to keep things relatively simple, but at International Cargo Express, we tell our clients to consider a few factors before deciding between them.
The choice of transport lies between using Primary Carriers and Deferred Carriers, which effectively translates to direct and non-direct delivery. The difference in time is obvious, but the difference in cost can also be significant.
Primary Carriers: What You Need To Know
Primary Carriers can deliver in the shortest period of time because they transport directly to where the importer wants the cargo delivered. For example, if you want to import 5,000 t-shirts from Vietnam for a specific rock concert just 3 days away, then a direct flight from Vietnam is essential (a direct sea voyage may be cutting time very short).
The cost, however, is much higher. This is partly because the amount of space on a flight is limited, and therefore a premium rate applies anyway, but it is mainly due to the convenience of having your cargo arrive so quickly. Remember, speed costs more.
Expedited freight services are favoured by certain importers – for example, organisations that need equipment transported for an exhibition and don’t want to leave that equipment onboard over a prolonged period of time and increase the risks involved while in transit.
Deferred Carriers: What You Need To Know
When time is not so important then Deferred Carriers are the best choice all-round. By deferred we mean that the cargo goes through more than one port, with the overall journey often taking more than a week. In fact, depending on the specific time-frame given, it can take anything up to 15 days before arriving at its destination.
This is generally because the cargo is trans-shipped, or is unloaded from one vessel and loaded onto another. For example, if the rock concert t-shirts leave Ho Chi Minh City on a Tuesday, it may not arrive in Melbourne until Wednesday the next week, after stops in Singapore and Jakarta.
Freight forwarders often have to be creative in their shipping decisions to secure the lowest combined rates, but the cost of transporting cargo through deferred carriers is always much less than the cost of transporting through a primary or direct carrier.
Part of the reason that importing via Deferred Carriers is such an economical option is that the number of lines that can carry your cargo is much higher than the number of direct flights for air freight. This means there is more competition amongst the companies to fill space – the opposite situation to when seeking a direct flight.
Contact Your ICE Team
As with all decisions, there are pros and cons to choosing primary or deferred carriers. Of course, the final decision is always our client’s, but at International Cargo Express we know that no decision can be made without knowing the facts. We have a range of international air and sea freight service options and have the know-how and experience to advise you accurately on the best transport option for your needs.
If you’re interested in finding out more about what options suit you best, just call your nearest ICE team. We’re confident you’ll see we are the freight forwarders for you!
