A One-Stop Guide to International Logistics
The Concept of International Logistics
International logistics refers to the transportation of goods between different countries or regions. With the development of economic globalization, trade exchanges between nations have become increasingly frequent. As a crucial component of global trade, international logistics continues to expand in scale and accelerate in development. Compared to domestic logistics, international logistics imposes higher entry barriers and demands greater expertise within the logistics industry.
Basic Knowledge of International Logistics
1. International Trade Terms
International trade terms are a set of international conventions in global commerce, and they are generally followed when conducting international trade. Understanding these terms helps in daily operations by enabling us to arrange shipments according to the established rules. The latest version of international trade terms is the INCOTERMS 2020, which includes 11 trade terms: 7 for all modes of transport and 4 specifically for sea or inland waterway transport. These terms are divided into four groups: Group E, Group F, Group C, and Group D. Different terms allocate varying costs and risks between the buyer and the seller. Under EXW, the buyer bears the freight costs and risks, while under DDP, the seller assumes all freight costs and risks.
2. International Transport
As the world's largest manufacturing nation, China has seen a steady rise in the proportion of export trade, making overseas markets an inevitable choice for an increasing number of Chinese enterprises to go global. A large number of Chinese companies, represented by Huawei and ZTE, have been deeply rooted in overseas markets for many years, firmly establishing their foothold and securing a place. No matter how severe the external environment becomes, I believe the determination of Chinese enterprises to go global will remain unwavering.
From the perspectives of geographical location, population density, and production endowments, China will continue to hold the position of the world's leading manufacturing powerhouse. Currently, no other country has the capability to undertake an industrial chain as extensive and comprehensive as China's.
International trade cannot be separated from international transportation, which is divided into six main modes: international express delivery, international maritime shipping, international air transport, international land transport, international rail transport, and international pipeline transport. Among these, international maritime shipping accounts for over two-thirds. Maritime transportation offers advantages such as large cargo capacity, low freight costs, and no restrictions from roads or railways.
