What is Cargo? Advantages and Disadvantages

Article content: 

1. What is Cargo.
2. Advantages and Disadvantages of Cargo Delivery.
3. What is Included in Cargo Delivery.
4. Who Will Benefit from Cargo Delivery.
5. How Cargo Delivery is Carried Out.

Cargo delivery, or the transportation of goods without the necessary documents when crossing the border, has become a popular way of importing goods from China for many entrepreneurs. This method offers a number of advantages, including reduced cost and a simplified process, but also has certain risks and drawbacks that need to be considered.

What is Cargo

Cargo delivery is the process of transporting goods without processing the necessary documents during border crossing. This is done by intermediaries who collect goods in large warehouses in China, pack them in containers, process the necessary documents, and arrange the shipment. The arrived cargo is delivered to the customer without additional formalities.

Advantages and Disadvantages of Cargo Delivery

Many companies choose this method of cargo transportation due to its relative simplicity and cost-effectiveness; however, it also comes with certain risks.

Advantages:

• Simplification of the process. There is no need to handle documentation independently - intermediaries take care of all of this.
• Insurance. The possibility of obtaining comprehensive insurance that ensures complete safety at all stages of transportation.
• Convenience of receipt. Receiving the goods without unnecessary paperwork and delays.

Disadvantages:

• Possible delays. The cargo is not always delivered within the promised timeframes, which can disrupt business plans and lead to losses.
• Risk of fraud. There is a risk of encountering unscrupulous intermediaries who may disappear after receiving the cargo, especially in the absence of proper documentation.

What is Included in Cargo Delivery

Cargo delivery from China to Ukraine can be carried out by sea or air. Sea freight delivery is most commonly used as it is the most cost-effective. In cases where urgent delivery is needed, air delivery is used, but it is more expensive.

The cargo delivery service usually includes:

1. Consolidation of goods using a warehouse in China, collecting goods from various suppliers and forming a single shipment for dispatch.
2. Loading goods into containers or onto transport vehicles.
3. Preparing the necessary documentation for cargo transportation.
4. Transporting the cargo to our warehouse.
5. Unloading and delivering goods to the recipient or the option of self-pickup from the warehouse.

Due to accumulated experience and modern logistics solutions, DiFFreight strives to provide its clients with reliable and efficient cargo delivery with minimal risks and costs.

Cargo delivery from China to Ukraine

More information

Cargo transport risks and restrictions

The simplified method of transportation can be risky since a full set of documents does not accompany the cargo. The main problems arise at customs: delays and thorough inspections, which extend delivery time, as well as fines and cargo seizures.
In case of loss or damage, there is a risk of not receiving full compensation, as the value of expensive goods is often understated to save money. Operational risks also exist, including poor tracking, missed deadlines, improper packaging, and issues during the loading process.

Cargo restrictions include:

• Prohibited from transporting weapons, ammunition, precious metals, medicines, counterfeit products.
• Not recommended for expensive or fragile goods.
• Restrictions on volume and weight. Most companies do not accept shipments that are either very small (up to 20 kg) or very large (over 3 tons).
• The absence of documents also complicates tax reporting and may limit the types of business activities.

Who Will Benefit from Cargo Delivery

Cargo delivery is an efficient method of transporting goods that finds wide application in various business sectors. It is especially beneficial for entrepreneurs and companies that require international delivery of goods but lack sufficient experience in this field. Cargo delivery provides simplicity and convenience in organizing freight transportation, minimizing complications related to documentation and border crossing.

This type of delivery is also ideal for online stores, wholesale traders, distributors, and manufacturing companies that require regular supply of goods. Thanks to cargo delivery, they can provide their customers with quality products from different regions of the world while maintaining competitive prices and effective management of logistics processes.

However, it is worth noting that cargo delivery may be less advantageous for transporting oversized or high-value goods due to the risks associated with transportation and the need for additional insurance. In such cases, companies may turn to alternative delivery methods that better suit their specific needs and requirements.

Comparison of Cargo with Other Delivery Methods

Let’s summarize the main differences between cargo and other delivery types in a table:

The high speed of cargo shipping is often due to the simplified documentation process, but it comes with risks. Therefore, it is important to choose the optimal delivery method depending on the type of goods, budget, and business activity.

How Cargo Delivery is Carried Out

The cargo delivery process includes the following stages:

1. Collection of orders from suppliers and their assembly into various containers at the warehouse.
2. At consolidation terminals, goods are re-measured, reweighed, and labeled.
3. Preparation of necessary documents for the cargo by intermediaries.
4. Packing and loading of goods into containers and then onto transport vehicles.
5. Transportation of cargo by sea or air to the destination point.
6. Unloading of cargo at the warehouse.
7. Delivery of goods to the recipient or the possibility of self-pickup from the warehouse.