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7 May, 2007 17:59:28 | in agriculture

Peru: Choosing the right mode of transportation



AmCham PeruInfo provided and translated by the
American Chamber of Commerce of Peru (AmCham Peru)



The selection of the right mode of transportation is highly related with a proper analysis of the product, the destination market and the modes of transport available in order to avoid that a competitive product fails because of its incapacity to achieve the established deadlines for delivery or that the rate of return of the operation is affected by a wrong choice of the mode of transportation.

Air transport is fast and safe, and also more profitable for small volume merchandise of great value. However, it is the most expensive mode of transportation and that explains why only a few products can stand the air freight cost.

Ship transport, on the other hand, has the advantage of being the cheapest mode of transportation in terms of cost per volume, but it is much slower. On shipment can take between 7 and 15 days to arrive to its final destination.

Road transport might be the most used mode of transportation since it is usually fast and economic to connect two destinations located close to each other.


Thus, it is not unusual to see that almost every export operation uses this latter mode of transportation at some point of the route of delivery. River transport is also used in the absence of the other three modes, although it can be more costly.

Then, in order to define the best transport alternative, an exporter has to consider the available options of connectivity since it will determine which mode to use. Secondly, he/she will have to analyze the product and the transport requirements in order to secure its safe and on time arrival, according to the deadlines established in the export contract. Thirdly, he/she will have to evaluate if the product can support the cost of transport and still be profitable

Finally, it is possible to state that the selection of the transport mode is a big and important step in order to grant the success of the operation. Therefore, a decision of the transport mode cannot be taken lightly, because it could undermine the expected rate of return of the whole operation and also it may risk damaging your own image before your partner or client in the other country. Hence, time for proper research is needed...once more.


** Please visit this link to forward your questions to Amcham Peru (link) **

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1 Comments

# Sonam says :
18 May, 2007 [ 03:32 ]
Can you give me the details of alternative channls available for exporting of Pharmaceuticals product in Peru

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