- GANS Article
Choosing a shipping route is not simply a matter of selecting the lowest freight quotation. The route affects transit time, inventory requirements, customs exposure, product condition and the exporter’s ability to meet the buyer’s delivery expectations.
Two services between the same origin and destination may follow very different journeys. One may offer a direct sailing with fewer handling points, while another uses transhipment through a regional hub. A third option may combine road, rail, sea or air transport.
The most suitable route balances cost, speed and reliability against the characteristics of the cargo. This requires a complete door-to-door assessment rather than a comparison of port-to-port freight rates alone.
Why route selection has become more complex
Global transport networks change in response to demand, port conditions, security risks, carrier capacity and operational disruption. A route that previously provided the best balance may no longer perform in the same way.
UN Trade and Development reported that global seaborne trade measured in ton-miles increased by 5.9% in 2024. Ton-miles account for both cargo volume and distance travelled, showing how longer journeys and rerouting can increase demand for vessels even when trade volumes grow more slowly. UNCTAD Review of Maritime Transport 2025
Three areas should guide the route decision:
The comparison should include freight, handling, customs, insurance, inland delivery and inventory implications.
The quoted transit time must be evaluated alongside departure frequency, transhipment risk and actual schedule performance.
The selected mode and route must support the product’s size, value, shelf life and handling requirements. When these factors are considered together, the lowest freight rate does not always produce the best commercial result.
Map the complete door-to-door journey
A route assessment should begin at the supplier or collection point and end at the buyer’s delivery location.
The route map may include:
- Collection from the supplier
- Consolidation or warehousing
- Export customs processing
- Origin terminal handling
- Main international transport
- Transhipment points
- Destination terminal handling
- Import customs clearance
- Temporary storage
- Final inland delivery
Each transfer creates another dependency. A port-to-port service advertised as 20 days may require additional time for collection, terminal cut-offs, customs clearance and final delivery.
Exporters should request a realistic end-to-end schedule showing the main milestones and the party responsible for each stage.
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Compare sea, air and regional transport
Sea freight is generally suitable for larger planned shipments where cost per unit is important and the delivery window allows for longer transit.
Air freight is more expensive but can provide value for urgent, lightweight, time-sensitive or high-value products. According to IATA, air cargo carries less than 1% of global trade by volume but more than 33% by value. This reflects its importance for goods where speed and value concentration justify the higher transport cost. IATA Cargo
Road freight is central to regional trade and to the movement of products between inland locations and ports. Rail may support particular bulk or containerised flows where suitable services and infrastructure are available.
Many shipments use more than one mode. The comparison should therefore evaluate the complete multimodal journey rather than treating sea, road, rail and air as isolated options.
Direct services versus transhipment
A direct service moves cargo from the origin port to the destination without transferring it to another vessel. This can reduce handling and the number of operational dependencies.
A transhipment service moves the container through one or more intermediate ports. It may provide wider destination coverage or a more competitive freight rate, but it introduces additional connection risk.
The choice should consider:
- Number of transhipment points
- Connection time
- Frequency of onward sailings
- Performance of the hub port
- Risk of missed connections
- Additional handling
- Cargo sensitivity
- Availability of alternative services
A one-stop route may still be suitable when the connection is well established and services operate frequently. For time-sensitive cargo, the exporter may prefer a direct route even when the rate is higher.
Evaluate departure frequency
Transit time describes how long the booked service is expected to take. Frequency determines how quickly another departure is available if cargo misses the planned vessel or flight.
A weekly service may provide more recovery options than one operating every two or three weeks. A slightly longer journey with frequent departures can sometimes be more dependable than a faster but infrequent service.
The assessment should ask:
- How often does the service depart?
- What is the booking cut-off?
- When must cargo enter the terminal?
- What happens if the booking is rolled?
- How soon is the next available departure?
- Is additional capacity normally available?
- Does the service change during peak periods?
Frequency is particularly important when production dates are uncertain or the supplier must meet a narrow delivery window.
Select the origin and destination gateways
The nearest port is not automatically the best gateway. Road distance must be considered alongside sailing frequency, terminal performance, carrier availability and total route cost.
A more distant port may offer a direct service or more frequent departures. The additional inland transport could be justified if it reduces transhipment or improves reliability.
At the destination, the buyer’s preferred port may not provide the most efficient final delivery. Import clearance capacity, congestion, storage charges and inland transport should all be considered.
The World Bank’s redesigned 2025 Logistics Performance Index uses shipment-level information to assess supply-chain connectivity, speed and reliability. Its methodology reinforces that logistics performance depends on the complete chain rather than one port or carrier in isolation. World Bank Logistics Performance Index
Match the route to the cargo
Cargo characteristics can eliminate otherwise attractive routes.
The exporter should identify:
- Gross weight and dimensions
- Product value
- Shelf life
- Temperature range
- Fragility
- Hazard classification
- Security requirements
- Permits or inspections
- Loading and unloading needs
- Packaging limitations
Perishable and temperature-sensitive products require confirmation that the cold chain can be maintained through every transfer and storage point.
Oversized or heavy products may need specialist equipment and route surveys. Dangerous goods require correct classification, documentation and carrier acceptance.
IATA notes that special air cargo may require specific packaging, labelling, documentation and handling. Products can include dangerous goods, perishables and time-sensitive healthcare items. IATA guidance on air-cargo categories
Calculate the complete cost
A useful route comparison includes more than the main freight rate.
The calculation may include:
- Supplier collection
- Export packaging
- Origin handling
- Freight
- Security and documentation charges
- Insurance
- Customs-clearance fees
- Destination handling
- Storage or demurrage exposure
- Final delivery
- Inventory financing
- Expected cost of disruption
Consider an illustrative shipment containing R1 million of products. Route A takes 30 days door to door, while Route B takes 45 days. At an annual financing rate of 12%, the additional 15 days on Route B represents approximately R4,932 in additional inventory-financing cost:
R1,000,000 × 12% × 15 ÷ 365 = R4,932
This excludes storage, additional safety stock and the commercial effect of a late delivery. The calculation does not mean the shorter route is automatically preferable, but it shows why transit time has a financial value.
Assess reliability, not only scheduled time
A scheduled transit time is a plan rather than a guarantee. Exporters should request information about actual performance, service changes and previous delays where available.
Useful measures include:
- On-time departure
- On-time arrival
- Average delay
- Frequency of rolled bookings
- Missed transhipment connections
- Cargo damage or loss
- Customs-clearance time
- Tracking visibility
UNCTAD identifies shipping schedules, service reliability, security measures and shipment delays as important issues when transport routes are disrupted. UNCTAD analysis of global shipping-route disruption
A route with a slightly longer published transit may be commercially stronger when actual arrival performance is more consistent.
Consider inventory and customer commitments
The transport route influences how much stock the exporter and buyer need to hold.
Longer or more variable transit may require:
- Earlier production
- Additional safety stock
- Larger order quantities
- More working capital
- Longer customer lead times
- Additional destination inventory
For repeat shipments, the parties may create a rolling schedule so that one order is in production while another is in transit and a third is available to the buyer.
High-value or urgent components can sometimes be divided between modes. A small quantity may move by air to protect operations, while the balance travels by sea at a lower cost.
Build a route scorecard
A route scorecard creates a consistent basis for comparing alternatives.
Each option can be assessed against weighted criteria such as:
- Total landed cost
- Door-to-door transit time
- Departure frequency
- Schedule reliability
- Number of transhipments
- Cargo compatibility
- Customs complexity
- Tracking visibility
- Carrier capacity
- Contingency options
The importance of each criterion should reflect the shipment. Cost may carry greater weight for a planned, low-value bulk order, while reliability and product protection may dominate a perishable or customer-critical shipment.
The scorecard should be updated when rates, services or operating conditions change.
Prepare alternative routes
A primary route should be supported by realistic contingency options for important trade lanes.
These may include:
- A second carrier
- A different origin port
- An alternative destination port
- A service through another transhipment hub
- Air freight for urgent quantities
- Regional warehousing
- Revised production and stock schedules
Alternative routes should be evaluated before disruption occurs. The business should already understand the expected cost, documentation and operational implications.
An alternative shown on a carrier’s schedule may provide limited protection if capacity is unavailable when it is needed.
Review performance after delivery
Actual shipment performance should be compared with the original route plan.
The review can record:
- Planned and actual departure
- Planned and actual arrival
- Complete door-to-door time
- Unexpected charges
- Customs delays
- Product condition
- Tracking quality
- Buyer feedback
This information creates an internal route history that can improve future quotations and decisions.
A route that performs consistently may justify continued use even when another carrier offers a marginally lower rate. Repeated delays should trigger a new comparison.
Choosing routes with greater commercial control
The right shipping route connects freight cost with inventory, product requirements and customer commitments. It is a commercial decision supported by logistics information, not merely a booking choice.
GANS South Africa supports exporters and international buyers with supplier coordination, freight planning and shipment documentation. Working with appropriate logistics and customs providers, GANS can help compare route options, coordinate cargo preparation and monitor delivery milestones.
This structured approach allows businesses to select routes that support cost control, product integrity and reliable international delivery.
* Published data provides general industry context and should not be interpreted as a freight quotation or guarantee of route performance. Rates, schedules, transit times and capacity change regularly and should be confirmed for each shipment.
