International Shipping: Intimidating, Yet Rewarding for Your Business
The world of transportation and logistics can appear very confusing to those outside the industry or for those attempting to break in to it. It is an industry mired in rules, regulations, terminology and high expectations. This is especially true of international shipping. According to a new study conducted by DHL, this fear and intimidation is also felt by businesses currently shipping domestically that are looking to expand their business globally.
The world is now more connected than ever. We are able to speak to anyone, anywhere and at any time on this planet and even beyond. In this age of a connected world, any business is missing out on potential revenue sources if they are not actively participating in the global trade market. However, this connectivity also brings increased complications. There are currently 196 nations in the world, all with their own established rules and regulations when it comes to trade and customs. According to DHL, this expansive and confusing web of regulations and laws is so immense that is scares away many companies from participating in the global economy.
Per DHL, nearly half participants reported that customs and trade laws are directly barring them from international growth. This has led many within the international logistics community to question why there are not a standard set of rules when it comes to international trade. There is a major push for governing bodies to come together and agree upon a standard and concise set of international customs laws that would help align all nations’ rules and regulations. This would allow for an easier transition into the international market for many businesses. Currently, if a company ships to three different nations, they would have to be well versed in the customs rules and regulations of each nation. As a result, this makes expanding into new international markets very difficult. With one set of laws that are more aligned with one another, a business could expand into new international markets with the same ease that they do domestic markets.
A major catalyst for this need for international growth and more concise regulations is e-commerce or the internet. Individuals and businesses around the world now have access to new products that were not previously available as a direct result of the internet. This has led to added pressure on businesses to at least get involved in international small package shipping. Two major forces that are leading the way in e-commerce are the United States and China. The rise of the middle class in China is currently changing the landscape of international trading. In the past, trade between the United States and China was generally a one-sided affair. China used to export to the U.S. at a much greater rate than the U.S. to China. However, the growth of the middle class in China has led to more disposable income which equals more potential buyers for U.S. goods in China.
Another huge factor in the current state of international commerce growth is India. India’s Prime Minister Narenda Modi has taken an invested interested in expanding their global trade influence and expanding the Indian economy. With a population of over 1.3 billion, the potential is endless for trade and growth. As the developing world continues to develop and progress, there will be more potential markets emerging in places would have been unexpected in the past.
The world is shrinking each day, because of this, knowing the rules are regulations of international shipping could be the defining factor that makes your business grow or what causes it to be left in the dust.
If you have any additional questions regarding your international shipping needs, please reach out to our PNG Logistics offices at (717) 626-1107.