How is Transit Time Calculated?
Calculation of transit time is done through various methods, depending on the mode and route of shipment. The most direct way would be to refer to carrier schedules, which offer the estimated date and time of departure and arrival. Still, businesses should also account for delay possibilities due to customs checks, congestion in ports, or bad weather conditions.
Many logistics companies use transit time calculators to approximate the time needed by accounting for variables such as distance, mode of transport, and anticipated traffic. These can be very useful in the context of international shipments but, once again, these are general estimates and might not accurately depict real-world factors that may easily impact transit times.
Why is Knowing Transit Time Important?
Understanding transit time helps businesses optimise logistics. It ensures that goods arrive when expected, reducing downtime. Efficient transit also translates into better customer service, as clients receive their orders on time.
It helps companies avoid paying penalties on missed deadlines for transits, especially on contracts with strict delivery terms. It also aids in better logistics planning, allowing the companies to avoid costly expedited shipping or storage fees due to misaligned schedules.
How Does Mode of Transport Affect Transit Time?
The mode of transport utilised greatly affects the transit time and, to some extent, the overall shipping cost. Air transport is the fastest mode of transportation, though usually very expensive.
On the other hand, sea freight is relatively slow but cheap, particularly for large volumes of shipments. Road transportation is flexible and suitable for short to medium distances, while rail transportation provides a reliable solution over longer distances for bulk goods.
