Guest Post: Cross-border and International Logistics [Definition, Trends, Opportunities]

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The e-commerce industry has grown rapidly in recent years, and this has led to a significant increase in international trade. The evolution of cross-border e-commerce has triggered a surge in the movement of goods between countries, and this has led to an increase in demand for international freight delivery services. Advancing technologies, climate issues, and shifts in customer behavior are trends that have reshaped the logistics industry. With all of this in mind, what does the future of cross-border and international look like, and how can you profit from it?

What is Cross-border logistics?

Cross-border transportation has greatly facilitated the trade between countries and the development of their respective economies, thus developing the potential for internationalization of commerce worldwide within the shortest time and in the best conditions. 

Due to the massive increase in the number of eCommerce deliveries worldwide, global e-commerce growth won't stop anytime soon. Juniper Research, a U.K.-based research firm, predicts the value of global cross-border e-commerce will reach $2.1 trillion in 2023.

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Cross-border logistics is a transport connection between various countries of the world; it helps with supply chain management and essentially focuses on border management and operations; control and compliance requirements(tax and international legal). But cross-border logistics it's not only about transporting goods from one country to another; in addition, there are several aspects to this term like shipment hours, transport documentation, and track records.

In January 2016, an article titled "Cross-border Delivery" was published in the Trade Journal. This article provides information on the methods of cross-border delivery used by a company. In addition, the article discusses that some delivery companies use slow methods, which delays the transport time.

However, there have been developments in recent years to make delivery more efficient. One such improvement was the introduction of customs information in 2013, which eliminates pre-delivery inspection and removes paperwork authority from agents. In addition, some carriers have accomplished greater control over their vehicles by installing their telematics systems into trucks and real-time tracking devices.

What is International Logistics?

International logistics is a broad term that refers to the activities which are involved in getting cargo from one country to another. International logistics is a booming business sector, as the growth of online shopping results in more and more finished goods being shipped abroad. The 3PL (Third-party logistics) market has been growing at 10 percent annually, with the US market alone worth $5 billion USD.

It is estimated that the global international transportation market will reach $7.8 Trillion by 2027. For example, the amount of freight between the U.S. and China totaled an estimated $615.2 billion in 2020. Understanding this growth potential will help you understand the design considerations for shipping and delivery stations for the future, particularly as it relates to e-commerce.

Compliance regulations, the supply chain design process, and the importance of using an experienced logistics provider are all factors to be considered when assessing an international logistics strategy. International logistics services can help companies manage global supply chains more effectively, reduce operating costs, and reach new markets effortlessly.

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But if you want to ship your goods without the need for a freight forwarding company you need to know that the international logistics process is never as simple as it seems. There are various elements you need to take into consideration before creating an effective plan. The most vital element to consider is the fact that there are different types of logistic methods and solutions available depending on your needs.

You need to determine which one will work best for you and your product's specific shipping needs. Once you have found a feasible solution, you can proceed with the planning phase. You might want to start by segmenting your route according to its geographical location and production volume, then create a list of your ideal hubs where goods could be stored or rerouted in case of a problem.

What’s the difference between them?

There is no significant difference between international logistics and cross-border logistics; international logistics consist of the physical movement of goods from one or more international regions, while cross-border logistics are almost the same but also contain the needed regulations for moving goods (compliance requirements, transport documentation etc…)

If you need to make a smooth delivery of your items, you will have to choose cross-border logistics. International shipping is usually cheaper, but most of the time it is slower and has other limitations as well. Most transport companies are better at operating within the country, therefore cross-border shipping might be better for you in most cases.

Does my company really needs to rely on a logistic partner?

As the size of companies grows and becomes more global in nature, so does the need for a logistics partner who can help with cross-border shipping. Traditionally, many firms would try to handle this part of their business operations in-house. However, as regulations vary from country to country when it comes to cross-border shipping, it is extremely beneficial for companies to partner with a company that understands how to maneuver through these hurdles. 

By working with an experienced international logistics partner, companies can logistically make sure that goods are classified properly and customs values set accurately by providing the right information. It is also critical that a well-established logistics partner has a strong understanding of local import regulations. This knowledge will be crucial as goods move between countries as it pertains to handling transportation clearances and knowing which regulations must be met at each step in the process. 

It is imperative that all export procedures for importing goods into another country are handled accurately by having all documentation necessary for accurate customs valuation set before the goods land in their final destination. What's more, logistics partners can help provide insight into how best to handle distribution within the final destination country

International logistics for example calls for special planning both in terms of devices used to transfer goods and the transportation services you hire to get your products from one point to another. In this way, make sure that you know everything about the company you use for importing and exporting, including where they will deliver your goods, how long it takes to have them delivered, and other terms that are important for you. You can save yourself a lot of trouble by doing all your homework before you trust the international shipping process to an unknown service provider.

To wrap up

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Looking ahead, the growth in online shopping is unlikely to slow down, which will have a notable impact on logistics operations. As package volumes increase, so will the need for timely delivery, but it might become challenging to meet that demand. 

Some companies have begun using drone delivery, and it may be an increasingly feasible option for companies in various industries. In addition, as a natural progression of online shopping, consumers will begin to view most goods as a service instead of products. 

It's impossible to exactly predict what the future will bring, or how the changes of today will affect the logistics industry tomorrow. What we can do is attempt to correctly identify the trends shaping logistics and estimate what they may mean for 2023, and we hope that this report provided some insight into some issues that you didn't realize were important today and might cause headaches in logistics operations later on.

About the Author

Raouf is a writer who enjoys making technical issues more relatable in order to better educate his readers. Currently, he is the Content Manager of the logistics startup DocShipper and produces comprehensive texts to help professionals in their logistics and supply chain operations.

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