Why can't entrepot trade be transported by air? Come and discuss together!
Solved#Freight forwarding#
Recently, when researching entrepot trade, I found that most of it is carried out by sea transportation, and I seldom hear about air transportation. I would like to ask everyone, why can't entrepot trade be transported by air? Is it a cost issue or are there other special reasons? Isn't air transportation faster? In some entrepot trade scenarios with high time requirements, can't air transportation be chosen? I hope friends who know the business can help answer this question so that I can have a deeper understanding of the logic of choosing the mode of transportation for entrepot trade.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade is not absolutely impossible to be transported by air, but compared with sea transportation, there are many limitations. First of all, cost is a key factor. Entrepot trade involves the transshipment of goods at a third-party port, which increases the costs of handling, warehousing, etc. The unit price of air transportation itself is high, and the cost rises significantly after transshipment, which is difficult for ordinary enterprises to bear. Secondly, cargo adaptability. The types of goods in entrepot trade are diverse and in large batches. For example, large mechanical equipment, a large amount of raw materials, etc., are large in volume and weight. Sea transportation can carry them, while air transportation is limited by the cargo hold space and load capacity., process complexity. Entrepot trade requires the handling of complex documents and procedures. Air transportation has a strong timeliness. Handling these procedures at the transshipment place may cause the goods to be detained due to the cumbersome process, missing the best transportation time and affecting the entire trade chain. Sea transportation is more flexible in terms of time arrangement.
Of course, for goods that are extremely time-sensitive, high in value and small in volume, air transportation can be used if the cost can be borne.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In entrepot trade, the value of many goods themselves is not high. If air transportation is used, the proportion of freight to the value of the goods is too large, which is not cost-effective from an economic perspective. For example, for the entrepot of some bulk daily necessities, the sea freight is much lower, which can ensure the profit margin.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The routes and flight schedules of air transportation are relatively fixed, unlike sea transportation which has more port choices and flexible sailing schedules. Entrepot trade often needs to select an appropriate transshipment port based on various factors. Air transportation is more restricted and is not conducive to the development of trade.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In entrepot trade, the procedures for inspection and quarantine of goods are complex. Sea transportation takes a long time, providing more time to handle these procedures. The rhythm of air transportation is fast, and it may not be possible to complete the complex procedures at the transshipment place in time, resulting in the inability of the goods to be transshipped on time.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Sea transportation has advantages in terms of transportation safety and stability. Goods in entrepot trade may go through long-time transportation, and sea transportation can better ensure the integrity of the goods. During the flight, air transportation may be affected by sudden factors such as weather, causing damage to the goods.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The storage of goods in entrepot trade also has requirements. Sea ports have more mature warehousing facilities and management systems, which are convenient for the storage of goods during transshipment. The warehousing capacity and adaptability of airports for air transportation are relatively limited.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of logistics connection, sea transportation is more smoothly connected with other transportation modes such as land transportation, and can be better allocated at the transshipment place. Air transportation sometimes has difficulties in connecting with other transportation modes, affecting the circulation of goods in entrepot trade.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Some countries have stricter regulatory policies for air-transported goods in entrepot trade, which increases trade risks and the difficulty of procedures. In contrast, the regulatory policies for sea transportation are relatively more relaxed.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In entrepot trade, the logistics service system such as freight forwarders has developed more comprehensively for sea transportation and can provide more comprehensive services. The service maturity of air transportation in the field of entrepot trade is relatively low.