What is transit time in shipping? Transit time is the time taken (measured in hours or days) for a shipment to be transported from point A to point B. This can be via air, rail, sea, or a combination of one or more of these modes of transportation .
Often, delivery time and transit time are used interchangeably. They are different, and here’s their distinction.
Transit time is a subset of delivery time, which only covers the duration of the cargo transportation. Delivery time encompasses the complete duration, from the placement of the order until its delivery to the final destination, including time taken for other shipping processes, such as cargo handling and customs clearance, that happen outside the transit time.
For instance, the total delivery time for a shipment whose order is placed on day 1, processed on day 2, shipped on day 3, arrived at the destination on day 4, and delivered to the final destination on day 5, is five days. However, its transit time refers only to the days/hours it took to ship it from source to destination on days 2 and 3.
Transit times can vary greatly depending on the mode of transportation chosen based on the speed, distance, and urgency of the shipment. For instance the transit time from Shanghai to New York can be anywhere between 2 days to 25 days. However:
Air freight can have a transit time between 2-4 days. These are preferable for urgent or high-value goods. Rail freights, best suited for shipments that need to go faster than on sea but slower than via air, can take approximately 20-25 days of transit time. Finally, sea freight, which is best for large-volume shipments, has a transit time of 25-45 days. What factors affect the transit time in shipping? Understanding the internal and external factors that influence transit times in shipping helps anticipate potential delays and manage the shipping process more effectively.
Geographical and environmental factors Longer routes through more complex, geographical terrains result in longer transit times than direct routes. Challenging geographical routes, such as those that go through mountainous regions, can slow down transit compared to that on plain ground.
The proximity of the source and the destination to major ports and hubs can expedite the cargo movement. Transit through poorly connected ports slows down transportation. Weather is yet another factor that influences transit times. Favourable weather ensures that the actual transit time aligns with the expected time. Severe weather conditions such as storms, hurricanes, and snow can cause an obstruction or delay in freight transit.
Natural disasters such as floods and earthquakes can aggravate these impacts, causing damage to the infrastructure that requires halting or rerouting the shipment. Heavy rains during monsoon can also affect port operations. The Panama Canal has witnessed issues with vessel throughput over the last couple of years due to a persistent drought in Panama.
Seasonal Atlantic and Pacific hurricanes and typhoons can affect shipping schedules at certain times of the year. Heavy snowfalls during winter can lead to a shutdown of key transportation routes, such as the Trans-Siberian Railways.
Operational and technical factors Operational factors such as shipping capacity and speed can drastically alter transit times in shipping. An overloaded vessel is more likely to cause extended transit times. A vessel overloaded beyond its capacity operates at a reduced speed and has an increased chance of running into mechanical issues. Exceeding capacity also increases the likelihood of non-compliance with regulatory norms, causing further delays in transit.
Additionally, loading and unloading an overloaded ship takes longer at ports. The manpower and handling equipment are not prepared to deal with the excessive cargo. This significantly adds to the transit time during transshipment processes, where cargo is transferred between ships. The overall journey time is extended because of handling and potential delays.
An underutilized capacity also leads to transit delays. Vessels frequently sail with partially loaded ships, which can increase port congestion and stretch transit times.
Port-related factors Several port-related factors, such as congestion, labor, and infrastructure issues, can cause transit time delays.
Congestions are most likely to occur during peak shipping seasons, such as the months preceding holidays. Shipment transit times during this duration can increase due to insufficient resources, such as labor, to handle the high cargo volume at ports. Another reason for congestion is the paucity of loading/unloading equipment at the port. This means vessels will spend more time there, increasing the transit time for vessels headed to those ports. Additionally, ports with outdated equipment can add to their infrastructure limitations, affecting freight transit times.
With insufficient infrastructure to handle unexpected weather circumstances, old ports are also more prone to operational disruptions during extreme weather conditions such as storms and hurricanes, causing modes of transport to halt/reroute.
Regulatory and geopolitical factors
Regulatory parameters related to emissions, safety, trade health, customs, and border control can significantly add to the transit time for shipment. Here’s how:
For example is the IMO 2020 regulation, which places an upper limit on the sulfur content in vessel bunker fuel. Mandatory safety checks affect the availability and operation of vessels. Region-specific standards impact the load/unload time at port, which leads to bottlenecks and eventual delays in shipment transit. For edible items and agricultural shipments, enhanced inspection for food safety during the transit can add to freight transit times. Economic sanctions against specific countries contribute to extra paperwork before the ship enters the ports in these regions. Often, targeted sanctions prevent vessels from docking at certain ports, which cause shipments to reroute and increase their transit times.
Take for instance, the US-China trade war . Countries involved in trade wars take countermeasures that disrupt the regular shipping schedules. Conflicts and civil unrest between trade regions cause abrupt port closures, restricted access, and increased security measures, all of which contribute to an increased freight transit time. For instance, the crisis in the Red Sea due to the Houthi rebels has forced vessel operators to circumvent the Horn of Africa, significantly increasing shipping times and distance.
Stricter shipment scrutiny, such as scanning for contraband, and stringent documentation requirements also add to the transit time for a shipment.
FAQs Are transit time and delivery time different for international shipping?
Transit time only covers the time during the goods transportation. Delivery time encompasses the complete duration from the placement of the order until its delivery to the final destination, including time taken for other shipping processes, such as cargo handling and customs clearance, that happen outside the transit time.
Will the weather affect shipping?
Weather is yet another factor that influences transit times. Favorable weather ensures that the actual transit time aligns with the expected time. Severe weather conditions such as storms, hurricanes, and snow can cause an obstruction or delay in freight transit. Natural disasters such as floods and earthquakes can aggravate these impacts, causing damage to the infrastructure that requires halting or rerouting the shipment. Heavy rains during monsoon can also affect port operations.
What is a shipment delay due to port congestion?
Several port-related factors, such as congestion, labor, and infrastructure issues, can cause transit time delays. Ports handling more than their share of cargo capacity eventually become congested. Congestions are most likely to occur during peak shipping seasons, such as the months preceding holidays. Shipment transit times during this duration can increase due to insufficient resources, such as labor, to handle the high cargo volume at ports.
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