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Detailed Explanation | What is International Logistics?


What is international logistics?

International logistics refers to logistics activities that cross national borders and involve a series of links such as cargo transportation, warehousing, packaging, insurance, customs declaration, etc. It is an important component of global trade and commercial exchanges, providing necessary support and guarantees for international trade. The development and operation of international logistics involve various complex factors and elements, including supply chain management, transportation modes, tariff policies, international trade rules, etc.

The main goal of international logistics is to achieve efficient transportation and delivery of goods globally. In order to achieve this goal, international logistics needs to consider various factors, such as the choice of transportation mode, packaging and labeling of goods, control of transportation time, layout of transportation network, and so on. Different international logistics activities also need to comply with different international trade rules and standards, such as the International Chamber of Commerce's International Freight Transport Rules (Incoterms) and relevant regulations of the World Trade Organization.

Supply chain management is crucial in international logistics. Supply chain management includes the whole process management from raw material procurement to product delivery. In international logistics, supply chain management needs to consider the differences between different countries and regions, such as language, culture, law, and currency differences. In order to ensure the smooth operation of the supply chain, international logistics enterprises need to establish a sound supply chain management system, including supplier selection and evaluation, inventory management, order processing, transportation arrangements, etc.

Another key factor is the choice of transportation mode. The commonly used transportation methods in international logistics include sea freight, air transportation, railway transportation, and road transportation. Choosing an appropriate transportation method can effectively reduce costs, improve transportation efficiency, and ensure the safety and timely delivery of goods. Different transportation methods are suitable for different types of goods and different transportation distances. For example, sea transportation is usually used for bulk cargo and long-distance transportation, while air transportation is more suitable for goods with high transportation time requirements.

In addition, packaging is also an important link in international logistics. The packaging of goods is not only to protect them from damage, but also to improve their identification and transportation efficiency. In international logistics, the packaging of goods should comply with international standards and corresponding regulations, such as the International Maritime Cargo Packaging Standards (IMO) and the International Air Transport Association (IATA). The selection of packaging materials and the design of packaging methods both need to consider the nature of the goods, transportation methods, and destination requirements. Reasonable packaging can reduce the loss and waste of goods during transportation, while also improving overall logistics efficiency.

Insurance is also an essential part of international logistics. Due to the involvement of international logistics in the transportation of goods across national borders, there are certain risks, such as loss, damage, or delay of goods. In order to ensure the safety of goods and the sharing of risks, international logistics companies usually purchase cargo transportation insurance. Cargo transportation insurance can provide compensation for cargo losses and risks, providing a certain level of protection and security for shippers and logistics enterprises.

Customs declaration is another important link in international logistics. When goods cross countries