System
Movement of freight from Asia comes with a wide array of options because of the elaborate establishment transport channel. Air and sea transport remains the two modes of moving freight between the two regions because of the oceanic separation. Asia leads by having 70% of the busiest ocean ports. Air transport is also advanced because there are at least fifteen direct flights between the Asian cities and the United States of America (USA). A logistic manager charged with deciding on the movement of freight needs to analyze various factors before settling on an appropriate form of shipment. The elements are not only confined to the type of goods but also the value, size, and price of the shipment, among other factors (Coyle, Novack & Gibson, 2016) . This essay discusses time and price as the two main factors that a logistics manager must consider in selecting to move freight from the USA transportations system.
Time is one of the significant considerations for any freight manager when moving freight from Asia to the USA. The movement of cargo between the two destinations has varying timelines that range from 3 days to up to 40 days. The fastest form of moving the freight is the use of express freight. It is advantageous since the freight can be delivered to the doorstep as opposed to the other ways that require collection at the airport or port. It has an estimated lead time of 3 days. Airfreight is second with a lead time of 8 to 10 days. Moving freight by regular post has a lead time of one to two weeks. Choosing to move freight by sea, on the other hand, is the slowest with an estimated lead time of 30 to 40 days (Coyle, Novack & Gibson, 2016 & "Air Freight Shipping from China: A Complete Guide | CFC," 2019) . However, the consideration of time alone is not sufficient for a logistics manager to choose any of the discussed channels.
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Price is another critical consideration that a logistics manager must consider before moving freight from Asia to the USA. Price is affected by other factors that include weight, classification of the goods, size of the goods, and insurance. All the factors affecting the price of shipment vary according to the mode of transport to be used. For instance, weigh is a standard form of pricing the cost of transporting freight by all the channels. The calculation on the variation of weight may vary between the gross weight of the goods to the Dimensional Weight (DIW) of the package. Whereas gross weight focuses on charging the freight on its total weight, DIW targets to charge the freight by considering its weight and the space it occupies (Browne, 2014). According to "Air Freight Shipping from China: A Complete Guide | CFC," (2019(, it is economical to transport goods between 150 kilograms to 500 kilograms by air freight and those over 500kgs by sea freight.
Size of the goods is also a key consideration when one chooses to move freight from Asia to the USA. Other than determining the price, it also affects the probable mode of transport. Small freight of fewer than 100 kilograms such as product samples is moved best by air courier services, airmail, and air freight. Medium to large-sized packages of between 100kgs and 500kgs are preferably moved by air freight. Large freight of over 500kgs is transported best by sea freight. They can be either Full Container Load FCL or Less than full Container Load LCL are (George, 2014 & "Air Freight Shipping from China: A Complete Guide | CFC," 2019) .
Finally, the classification of goods and insurance also affect the price of moving freight. Air transport has two main classifications: General goods and special goods. The special goods fall under a particular group of goods that must be tested and declared fit for air transport. They may also include high-value goods. The classification of goods also determines the value of insuring them. High value and special value goods attract a higher insurance premium compared to regular goods hence increase their cost of transportation ("Air Freight Shipping from China: A Complete Guide | CFC," 2019) .
I conclusion the logistics manager must consider the time and price of moving the goods before choosing between air and sea in moving freight from Asia to the USA. Both of the two channels are advanced. However, they offer different prices, lead times, and favor different types of goods. Generally, moving freight by sea is the cheapest though it the slowest. It, however, favors a large load that especially when it is FLC. Freight by air, on the other hand, is the most expensive but faster. It is, however, economical for small to medium loads of up to 500 kilograms. It is prudent for the logistics manager to factor the opportunity cost of moving the goods by sea or air depending on their agency.
References
Air Freight Shipping from China: A Complete Guide | CFC. (2019). Retrieved 21 September 2019, from https://cargofromchina.com/air-freight/
Browne, M. (2014). Moving Freight. Transport Reviews , 34 (3), 273-275. DOI: 10.1080/01441647.2014.916511
Coyle, J., Novack, R., & Gibson, B. (2016). Transportation . Boston: Cengage Learning.
George, R. (2014). Ninety Percent of Everything . New York: Picador.
