5 INTERNATIONAL LOGISTICS SYSTEM THAT HAVE BEEN DRIVING THAI ECONOMY

Online shopping or sending items to your friends or relatives overseas emphasises how important international shipment is. This is a channel where we can conveniently send items internationally through service providers. Not only that, it also plays a crucial role for many businesses importing or exporting goods.
 
International Logistics Services is a system where a process of goods transportation from one country to another is planned and managed according to client’s needs or agreement while also respecting agreed rules and laws. These services help generate income, profit and stimulate country’s economy resulting in an increase in national GDP. Due to these benefits, the government sector has been supporting the development of its national logistics system to ensure that the private sector are capable of completely managing the processes that are related to their products such as export and import. This also increases a country’s capability and competitiveness in competition in an international market as well.

Nowadays, international shipment services include route management and simple tasks such as booking a freight allocation for goods owner to a complete transportation and distribution management to different locations.

In a case where transportation of goods to a neighbouring country to Thailand is needed, cross-border road transportation has been a growing in its popularity. For businesses who are looking for a cross-border transportation but are uncertain of what factors are to be considered, continue to read the section below to ensure that you will receive the most valuable and responsive service. A good cross-border transportation service provider should include;

1. Safety. There must always be preventive measures and system to prevent any losses that can happen to your shipment.
2. Punctuality, responsiveness to needs and real-time tracking system. Some products may have limitation in regards of time such as; fruits, flowers or animals. Any delay in transportation can adversely affect your business.
3. Cost effectiveness. As transportation is one of the costs in business, it is important for a business to choose a proper and cost-effective method of transportation.
4. Convenient and reliability. There is a number of differences between the country where the shipment originates and the country of destination. This includes; laws, rules, customs formalities, types of shipment, processing time, and so on. Cross-border transportation service provider must be an expert and have a great understanding of rules and laws in order to provide a smooth, punctual and convenient service that complies with any related laws.

Prior to choosing a cross-border transportation service provider, there are other factors that should be put into consideration. For instance; the product itself whether it is in a solid or liquid state, its value, routes used for transportation, speed, freight charge or service provider trustworthiness.

Types of international transportation

1. Seaborne Transportation
   This is the most cost-effective method of transportation. It matches well with shipment that is in large volume, non-fragile, non-urgent and travels over a long distance. It, however, requires great planning as it is quite difficult in estimating time of arrival due to many factors such as storm or uncertain sea winds. Raw materials, components and machinery are goods that are mainly transported by container ships.
2. Air Transportation
   Transportation by air is popular despite being costly as it is the fastest channel of international transportation. This method is perfect for goods that require a swift transportation, fragile and shipped in a small quantity. Goods that are commonly shipped via this method are spare parts of a machine, machine, fashion product, agricultural produce and jewellery.
3. Transportation by Truck
   This type of transportation fits well with shorter distance transportation as it is convenient, timely, fast and can be delivered directly to a buyer. This type of transportation is perfect for delivering of goods to neighbouring countries such as Myanmar, Laos, Cambodia and Malaysia.
4. Rail Transportation
   Rail transportation is commonly used to transport heavy goods in a large quantity to neighbouring countries. It is a cost-effective method of shipment, has a fixed departure and arrival timetable and is generally safe from damage. Petrol and cement are the main materials that are transported by rail.
5. Pipeline transportation
   Pipeline is a unique type of transportation as transported product must be in liquid form such as crude oil, petroleum products and natural gas. It fits well with a transportation to a nearby country where the areas that the pipeline goes through are not too steep to ensure that the flow of transported liquid is uninterrupted. It is also an only one-way transportation.

After getting to know the international logistics system, you should now be able to utilise the international transportation service with more awareness of its pros and cons and limitations of each type of international transportation.