Transit Time Reveals the True State of Reliability

22/12/2023

Transit time, or the amount of time taken for goods to get from one destination to another is hugely significant in a company’s overall supply chain management process. In some instances, depending on the type of commodity being transported, the length of transit time can also impact the overall wellbeing of the cargo itself.

Measuring Transit Time

Measured in hours or days, transit time is the length of time cargo takes to get from point A to point B. The mode of transport varies depending on the goods and can include multiple delivery methods, including a ship, plane, train, and truck.

Transit time can be broken down into transit days, which include the time taken to move cargo from the supplier’s warehouse to the port of origin, any storage days used, sailing time, and the time taken to discharge the cargo at the destination port, ready for customs clearance. The number of days needed for the customs clearance of goods and their delivery to the customer’s premises are counted as clearance and delivery days (CDD).

Reliable transit times are important.

Transit time is an important component of lead time, which is the total time taken to realise a purchase order placed with a supplier. While shorter lead times are desirable, it can be challenging to get these from suppliers. However, longer lead times can limit supply chain responses to changing demand, variability, and uncertainties.

Having predictable transit times also contribute to cost management within shipping operations by reducing unnecessary expenses like inventory holding costs and optimising logistics processes.

Reliable transit times are also crucial for maintaining an efficient supply chain, by enabling companies to plan and coordinate their inventory, production, and distribution processes more effectively.

Factors affecting transit time.

Much like with airplanes, ships will try to respect the schedules and keep to predicted transit times as much as possible. However, there are important factors that impact transit time, including:

Inadequate handling equipment or equipment breakdown at ports
Labour problems including strikes, COVID, and national holidays
Discrepancies or errors in customs documents
Failure to arrange necessary transport or labour
Poor weather conditions
Blank sailing of cargo vessels
Vessel rotation

Shipping companies may also adjust transit times in instances of sustainability. In some cases, carriers have reduced the speed of the vessel to protect an endangered species. Although the ship will take longer to reach the destination, the benefits for the environment are significant.

Transit Time vs Flexibility

While transit time is undeniably important, there are cases where flexibility and forecast take priority. For example, if a clerical error occurs that means a container isn’t loaded onto the vessel, customers often appreciate the flexibility of moving the container to the next port by truck if possible.

Forecasting and preparing for possible delays is also very good practice. When shipping companies like MSC expect delays, they can add extra calls or extra vessels to a service in order to accommodate more volume. While there are some cases when it is unsafe to ship, such as during monsoon season, having flexibility within the shipping schedule enables as many challenges to be overcome as quickly and successfully as possible.

Ask MSC

At MSC, our team of experts are passionate about providing fast, and reliable transit times for our customers. We understand the importance of having reliable, flexible transit times for shippers and are committed to offering this. We offer additional services, such as end-to-end transport services designed to improve your overall supply chain management and ensure your cargo reaches its final destination as quickly and safely as possible.

Contact us today to explore how MSC’s full range of shipping and transportation solutions could be beneficial for your business.