What is transit? Transit refers to the movement of goods from one point to another, usually passing through one or more intermediary countries. This method of international transportation is widely used in global trade and typically involves the transfer of goods from one country to another without altering their nature. Transit allows for faster delivery of goods to their final destination while also reducing logistical costs. Jahan Tarabar Abrisham Company offers various transit services for transporting goods from any point in the world to other locations.

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What are the types of transit?

The transit of goods is divided into various types depending on different conditions. Each type of transit has different characteristics and applications, which are used based on the needs and type of goods.

• Foreign Transit: The transfer of goods from one country to another, passing through international borders. In this method, goods pass through the intermediary country without processing and are sent to the final destination.
• Domestic Transit: The transportation of goods within a country from one point to another, with the final destination being another country.
• Direct Transit: Goods are sent directly to the final destination without stops or changes. This type of transit is typically used for time-sensitive goods.
• Indirect Transit: In this type of transit, goods may be stopped or stored temporarily in the intermediary country before being sent to the destination.

Types of goods transit methods

Goods transit is carried out through various methods. Each of these methods varies depending on the type of goods, distance, and customer requirements.

• Air Transit: Suitable for transporting time-sensitive and fast goods. This method of international air transportation is expensive, but its high speed is the main advantage.
• Ground Transit: Primarily used for transporting goods over short distances and regionally. This method is more economical compared to air transit.
• Sea Transit: Used for international sea transportation of bulky and heavy goods. It is the cheapest transit method but requires more time for delivery.

Ground Transit

Ground transit of goods (international ground transportation) is one of the most common methods of international and domestic transportation, using roads and railways to move goods. This method is used primarily for medium and short distances due to its lower cost and greater flexibility compared to other methods. Ground transit is mostly used for goods that do not require fast delivery, but their weight and volume make air transportation uneconomical.

Advantages of ground transit

• • Lower cost compared to air transportation
  • Suitable for bulky and heavy goods
  • Easy access to various locations through roads and railway networks in international rail transport

Disadvantages of ground transit

• • Longer time compared to air transportation
  • Limitations in transporting perishable and time-sensitive goods
  • Dependence on weather conditions and road conditions in international road transport, which may cause delays.

The cost of ground transit

• • The cost of ground transit is typically determined based on distance, weight, and type of goods. For bulky goods and long routes, the costs are lower than air transportation but may be higher than sea transport.

Air transit

Air transit is recognized as the fastest method of transportation and is typically used for goods that require urgent delivery. This method is commonly used for transporting high-value or time-sensitive items, such as pharmaceuticals or electronic components. Due to its high speed and the ability to reach distant destinations, air transportation is favored by many companies. It is also the best option for destinations where ground and sea transportation is either not possible or time-consuming.

• Advantages of air transit

• High speed and the ability to deliver goods quickly
• Suitable for time-sensitive goods
• Higher security against theft or damage

• Disadvantages of air transit

• Higher costs compared to other methods
• Weight and volume restrictions for shipments
• Environmental impacts due to the use of fossil fuels

• The cost of air transit:

• The cost of air transit is usually calculated based on the weight and volume of the goods. Due to higher transportation and fuel costs, this method is more cost-effective for small and lightweight shipments.

• Sea transit

Sea transit is one of the most cost-effective methods for transporting bulky and heavy goods internationally. Due to the high capacity of ships and lower costs compared to other methods, it is suitable for transporting large quantities of goods that are not time-sensitive. Sea transport is widely used in international trade, particularly for moving goods such as raw materials, heavy equipment, and industrial products. Despite the longer transit time, its low cost and ability to carry large volumes of goods are the main advantages of this method.

• Advantages of sea transit

• Lower cost compared to air and ground transportation
• Suitable for transporting bulky and heavy goods
• Ability to transport large quantities of goods in a single shipment

• Disadvantages of sea transit

• Longer transit time compared to other methods
• Dependence on weather conditions and sea conditions
• Potential delays in delivery due to logistical issues

• The cost of sea transit

• The cost of sea transportation is calculated based on the volume of goods and the distance. This method is highly suitable for transporting bulky goods and large quantities due to its cost-effectiveness.

The stages of goods transit

Goods transit is a complex, multi-step process that includes preparation, transportation, and customs clearance from the origin to the final destination. Adhering to each of these stages improves efficiency and reduces transit costs and time.

• Transit Order Registration: Agreement between the exporter and the transport company for moving goods to the final destination.
• Document Preparation: Preparation of necessary documents such as the bill of lading, customs declaration, and transit permit.
• Selecting the Mode of Transportation: Choosing the appropriate method (air, land, sea) and packaging for the goods.
• Customs Procedures at the Origin: Clearance of goods at the origin customs and document approval by customs authorities.
• Crossing Borders and Intermediary Countries: Submission of documents to the customs of the intermediary country and security checks.
• Customs Clearance at the Destination: Examination of goods and payment of customs duties at the final destination.
• Final Delivery of Goods: Delivery of goods to the recipient after all customs and transportation procedures are completed.

• Documents required for foreign transit

Foreign transit requires the preparation of specific documents, which must be carefully prepared and presented according to international transportation regulations. These documents are usually arranged by the exporter or importer and play an important role in expediting customs processes.

• Bill of Lading
• Transit permit from customs authorities
• Customs declaration
• Cargo insurance policy
• Commercial invoice

• Documents required for domestic transit

Domestic transit also requires specific documents that are prepared for the legal movement of goods within a country. These documents allow customs and logistics authorities to monitor the movement of goods.

• Customs clearance form
• Certificate of origin
• Domestic bill of lading
• Domestic insurance documents

Laws of goods transit

The laws of goods transit are designed to manage and oversee the movement of goods between countries, helping to maintain security and transparency throughout the process. Adhering to these laws helps reduce trade barriers, streamline customs procedures, and protect goods during transit. International maritime transportation laws are detailed in another article, but some of the key laws governing goods transit include:

• TIR Convention: Reducing customs stops and facilitating international transit.
• Domestic Customs Regulations: Strict control of goods by the customs authorities of countries.
• Safety and Security Regulations: Protecting goods from theft and damage.
• Environmental Laws: Reducing greenhouse gas emissions and the use of low-consumption fuels.

• The TIR Convention and its role in international transit

One of the main international agreements in this area is the TIR Convention, established to facilitate international road transit. This convention allows transport companies to move their goods across the borders of member countries with minimal stops and inspections. The use of the TIR system helps reduce both time and customs costs.

• Domestic customs regulations of countries

The domestic customs regulations of each country also play a key role in the transit process. These regulations include rules for the passage of goods across each country’s borders and may involve security checks, submission of customs declarations, and preparation of transport documents. Companies must carefully comply with these regulations to avoid delays and customs penalties

• Safety and security regulations of transit

International safety and security regulations play a crucial role in the transit of goods. These regulations ensure that goods are protected from damage, theft, or misuse during transit. The use of standard equipment and adherence to safety protocols are mandatory.

• Environmental laws and goods transit

Environmental laws are also important in international transit. These laws help reduce the environmental impact caused by the transportation of goods. Transport companies must use fuel-efficient and environmentally friendly vehicles to comply with these regulations.

Conclusion

Goods transit is a key element in international trade, enabling companies to quickly and cost-effectively move their products to global markets. The choice of the appropriate transit method—whether air, land, or sea—depends on the type of goods, the final destination, and time constraints. Each method has its own advantages and disadvantages that can impact cost and delivery time.

Furthermore, by adhering to customs regulations and leveraging modern technologies such as blockchain and the Internet of Things (IoT), the transit process becomes more efficient, secure, and transparent. Countries with strong transport infrastructure can become regional and global transit hubs, benefiting economically. Transit plays a significant role in reducing trade barriers, accelerating export and import processes, and increasing the competitiveness of businesses. Consequently, with the growing importance of international trade and the development of logistics technologies, the future of goods transit looks promising. Businesses must plan strategically to capitalize on these opportunities.