Topic 1, Sub-Topic 1
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Scope for International Carriage of Goods

Scope for International Carriage of Goods

  • International trade is the exchange of goods and services across international borders. 
  • International trade is based on the notion of exchange, which involves what is being traded, the partners involved as well as the transactional environment in which trade takes place, namely customs procedures (tariff and non-tariff barriers). 
  • International trade is a series of commercial transactions between trade partners that tracks the value of what is being traded and the types of goods these transactions involve.
  • The physical realization of international trade requires a transport chain
  • This is a series of logistical activities that organize modes and terminals, such as air, railway, maritime, and road transportation systems, and thus the continuity along the supply chain through a set of stages.

Transport Chain Stages:

  1. The first stage in the transport chain is composition, where loads are assembled at the origin, often on pallets and in containers.
  2. The cargo being traded then moves along the transport chain using a transport mode, commonly rail or road, to reach a terminal where it is transshipped on an international transport mode (port or airport depending on the nature of what is being transported). 
  3. Once cargo enters another country through a gateway (point of entry), customs inspection takes place as the cargo is transshipped over the inland transport system
  4. The final stage of the transport chain, decomposition (the last mile), occurs in proximity to the final destination. Loads are broken down into units corresponding to effective demand, such as store orders.