The World of Logistics and Freight Forwarding within the Perspective
Oriental-Western Trade Links
Did you know that the Orient was participating in trade relations with the Western world as early as the 1500s? However, the trade links established at that time can’t be compared to the modern business models within the same settings. Over time, international trading activities have evolved from a more basic level to incorporate technology, knowledge, skills, versatile products, and higher volumes. For instance, logistics and freight forwarding have emerged to gain a fundamental position in international trade settings. The trading activities between East Asia and the Western parts of the world are extensive. But, this article will focus on detailing business relations, especially at the level of logistics and freight forwarding, between Taiwan and China and the US and EU. First, you need to understand what is meant by logistics and freight forwarding within this article. Logistics is the procedure of planning, managing, and executing effective procurement, storage, and transportation of products from their original location to the final destination. Freight forwarding, on the other hand, deals with logistics at an international level that might engage single or multiple carriers.
Logistics and Freight Forwarding from Taiwan to the US
In any business setting, service delivery time and financial costs are important factors in achieving high sales volume and customer satisfaction. Thus, the questions most probably running through your mind right now are how much and how fast?
If you want to ship goods expressly, you can do so in less than 4 days. But, for normal freight forwarding and logistics, you can expect to ship products in 6-28 days depending on the transportation mode used. For example, when using air freight, you can deliver resources from Taiwan to their final destination in the US in 6-13 days. Conversely, using sea freight can take you anywhere between 24 and 28 days.
From the viewpoint of financial costs, as you might have guessed, the quicker you need that delivery done the more expensive it’s going to be. Hence, you should expect to pay higher for express shipping and incur cost-effective expenses when using sea freight shipping.
However, the costs of shipping from Taiwan to the US are not entirely dependent on the time factor since the distance between the point of origin and the final destination is also vital. But you can rest assured that the final financial cost will range anywhere between 1500-3500 USD.
Logistics and Freight Forwarding from Taiwan to the EU
Ranking in the fourth position behind China, the US, and Japan, the EU is said to be one of its major trade partners in Taiwan. Taiwan, on the other hand, is the seventh-highest business partner of the EU within the Asian continent. The trade relations between Taiwan and the EU are majorly dominated by products like chemicals, transportation machinery, and telecommunication equipment.
In order for you to facilitate freight forwarding and logistics from Taiwan to international destinations within the EU, you need to process some documents. For instance, a multinational shipper might be required to present a duplicated commercial invoice, single administrative document, and import license at the port so as to clear goods for transportation. Also, at the request of the receiver or consumer in the final destination of the product, a shipper might be prompted to produce a certificate of origin.
Logistics and Freight Forwarding from China to the US
The time required for shipping goods from China to the US is greatly determined by the means of transport used. But, it is essential to note that the complexity of the shipping process, which is determined by the quantity of the shipment, also impacts delivery time. For instance, when a shipment is small, express shipping via air freight takes around 3 days. Standard air freight takes 8 to 10 days whereas ocean freight is delivered in 30 to 40 days.
Standard air freight between the US and China takes longer than express because the freight processes tend to be relatively complicated. However, standard air freight is considered the cheaper option for shipments weighing between 150 and 500 kilograms, as it charges $3 per kilogram. Lighter shipments may be charged according to their dimensional weight. Sea freight, on the other hand, has the longest shipment period due to slower movement compared to planes.
Logistics and Freight Forwarding from China to the EU
China produces a variety of products, such as forklifts and microelectronics, which have their market in the EU. This implies that logistic and freight forwarding services offered from China to the EU are in high demand. To facilitate freight forwarding and logistics from China to international destinations within the EU, you need to first verify the company you want to purchase from, sign a contract, and process certain documents. For example, you will be required to present an original invoice to clear your products through customs, a certificate of origin, documents of conformity, and your Economic Operator Registration Identification Number (EORI).
Chart and Future Vision of Logistics and Freight Forwarding from East Asia to the West
An analysis of statistical data related to the trading activities upheld between Oriental nations and the Western world reveals some interesting data. For example, the chart above implies that Taiwan’s exports to the US and the EU have steadily declined for the past 3 decades. Contrarily, the same chart suggests that Taiwan’s exports to the Republic of China and The Association of Southeast Asian Nations (ASEAN) have been increasing significantly within the same period.
The data implies that Taiwan, as a nation, is reevaluating its trading policies and practices and shifting its interests from Western business partners to its Asian-based counterparts. Thus, one can reasonably conclude that in the near future, logistic and freight forwarding services offered from Taiwan to the EU and the US might experience a reduction in product volume and market access.