Logistics Market Information

In 2022, the global parcel shipping volume reached over 161 billion parcels. This number is expected to grow significantly, with projections estimating it will reach 256 billion parcels by 2027. This growth is driven by the increasing demand for e-commerce and online shopping, which has led to a surge in package deliveries worldwide. The logistics industry, which includes the transportation of these parcels, is a crucial part of the global economy. It ensures that goods are delivered efficiently and on time, supporting businesses and consumers. （Ref. Statista）

The estimated time to transport a package from New York to the rest of the world and back to New York is around 64.5 hours. This is a rough estimate, and the actual time can vary based on specific routes, layover durations, and customs processing times.

Transporting a package from New York around the world and back to New York involves several factors, including the mode of transport and customs processing times. Here’s an estimate using air freight, which is the fastest option:

Flight Time: The circumference of the Earth is approximately 40,075 kilometers. The average speed of a commercial cargo plane is 900 km/h. Total flight time: 40,075 km/900 km/h≈44.5 hours. Layovers and Refueling: Assuming an average of 2 hours per stop and about five stops worldwide adds approximately 10 hours. Customs and Handling: Customs processing and handling at each stop can add significant time. Let’s estimate an additional 10 hours for these procedures.

The way of global transportation

Things you need to consider

1. Terms for transportation
   • For global transportation, it takes time.
2. Regulatory Compliance:
   • Export Control Regulations: Understand export control laws, such as the U.S. Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), which govern the export of sensitive technologies and defense-related items.
   • Import Quotas: Be aware of import quotas, which limit the quantity of certain goods imported into a country during a specific period.
   • Harmonized System (HS) Codes: Use the correct HS codes for your products to ensure accurate classification and avoid delays or penalties.
3. Transportation Modes:
   • Charter Services: Consider chartering a vessel or aircraft for large or specialized shipments. This can provide flexibility and control over the shipping schedule.
   • Cold Chain Logistics: For perishable goods, implement cold chain logistics to maintain the required temperature throughout transportation.
   • Last-Mile Delivery: Plan for efficient last-mile delivery, which is the final step of the shipping process from a distribution center to the end customer.
4. Cost Management:
   • Freight Rate Negotiation: Regularly negotiate freight rates with carriers to secure the best possible terms.
   • Duty Drawback Programs: Explore duty drawback programs that allow for the refund of duties paid on imported goods that are subsequently exported.
   • Cost Allocation: Implement cost allocation methods to distribute transportation costs across different departments or products accurately.
5. Vendor Management:
   • Supplier Risk Assessment: Conduct thorough risk assessments of suppliers to identify potential vulnerabilities and mitigate risks.
   • Supplier Development Programs: Invest in supplier development programs to improve the capabilities and performance of your suppliers.
   • Collaborative Planning: Engage in collaborative planning with suppliers to align production schedules and inventory levels.
6. Cultural and Ethical Considerations:
   • Language Barriers: Address language barriers by employing multilingual staff or using translation services to facilitate communication.
   • Local Holidays and Customs: Be mindful of local holidays and customs that may affect business operations and shipping schedules.
   • Ethical Sourcing: Ensure that your sourcing practices are ethical, including fair labor practices and environmentally sustainable methods.
7. Quality Control:
   • Statistical Process Control (SPC): Use SPC techniques to monitor and control production processes, ensuring consistent quality.
   • Corrective and Preventive Actions (CAPA): Implement CAPA processes to address quality issues and prevent recurrence.
   • Supplier Quality Agreements: Establish quality agreements outlining specific requirements and expectations with suppliers.
8. Logistics and Documentation:
   • Advanced Shipping Notices (ASN): Use ASNs to provide detailed information about upcoming shipments, improving visibility and planning.
   • Document Management Systems: Implement document management systems to electronically organize and store all shipping-related documents.
   • Customs Valuation: Ensure accurate customs valuation of goods to avoid disputes and penalties.
9. Risk Management:
   • Supply Chain Mapping: Map out your entire supply chain to identify potential risks and dependencies.
   • Scenario Planning: Conduct scenario planning exercises to prepare for various risk scenarios and develop appropriate responses.
   • Supplier Contingency Plans: Work with suppliers to develop contingency plans for potential disruptions.

License For Global Transportation

Cosmetic

Registration through VCRP

• For individual establishments, the operator/owner of the establishment must register their facility by submitting Form FDA 2511
• Domestic firms can register their establishments before or after their cosmetic products are placed in the U.S. market for commercial sale.
• Foreign firms may register their establishments once the products are exported to the U.S. for sale.
• The FDA gives each establishment a registration number
• A Cosmetic Product Ingredient Statement (CPIS) can be filed by the manufacturer/distributor for each product commercially distributed in the U.S. by submitting the Form FDA 2512

Benefits of VCRP

• Provides information to the FDA about the cosmetics marketed in the U.S., such as their frequency of use, business engagement, etc.
• Provides ingredient information to the Cosmetic Ingredient Review (CIR) for assessing the safety of ingredients used in the formulation of the product

SASAL, INC’s Case

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