🚚 Agro Trading 101: Transportation Mediums (Domestic & International)
Efficient logistics is crucial for success in agro trading. The transportation method you choose directly impacts delivery timelines, cost control, risk, and customer satisfaction.
🇮🇳 Domestic Transportation in India
In India, agro commodities are primarily transported via the following methods:
🚛 1. Lorry / Truck Transport
- Most widely used for short- to mid-range trade across states.
- Suitable for both Full Truck Load (FTL) and Part Truck Load (PTL) consignments.
Common Truck Types:
| Type | Capacity |
|---|---|
| Normal Truck | ~10–15 tons |
| Container Truck | ~16–21 tons |
✅ Advantages
- Flexible and accessible
- Cost-effective for regional trade
- Widely available across India
🚆 2. Railway Transport (Rack Booking)
- Used for bulk shipments over long distances.
Booking Options:
- Full Rack: ~2,600 quintals (~260 tons)
- Half Rack or Shared Rack
✅ Advantages
- Faster over long distances
- Efficient for large volumes
- Preferred by institutional buyers
⚠️ Limitations
- Requires high volumes
- More expensive than lorry for mid-range loads
- Booking and scheduling complexity
📦 3. Courier-Based / Small Logistics
- Suitable for small orders or samples
- Typically handled by third-party logistics providers (e.g., Kadam Courier)
✅ Advantages
- Fast for low-volume shipments
- Aggregated freight with other parcels
- Flexible delivery options
⚠️ Not suitable for bulk trading.
🌍 International Transportation Methods
The logistics strategy for exports depends on volume, urgency, destination country, and customs requirements.
🚢 1. FCL – Full Container Load
- You book an entire container for your shipment.
Container Sizes:
| Type | Capacity |
|---|---|
| 20 ft | ~28–30 CBM |
| 40 ft | ~55–60 CBM |
✅ Advantages
- Best suited for large, consolidated exports
- Lower cost per unit for bulk quantities
- Fewer handlers = less damage risk
📦 2. LCL – Less than Container Load
- Share container space with other exporters.
✅ Advantages
- Cost-efficient for smaller shipments
- Scalable for growing exporters
⚠️ Limitations
- Slower due to multiple handlers
- Higher risk of damage or delays
✈️ 3. Air Freight
- Fastest method for international shipments.
✅ Use Cases
- Urgent delivery timelines
- High-value, low-weight goods (e.g., spices, herbs)
- Samples or perishable items
⚠️ Limitations
- High cost per kilogram
- Volume limitations
🚚 4. Inland/Surface Transport (Cross-Border)
- Rare, but used in land-border trades:
- India–Nepal
- India–Bangladesh
✅ Use Case:
- Cross-border road networks for specific agreements
✨ Choosing the Right Transport Method
| Factor | Domestic Options | International Options |
|---|---|---|
| Quantity | Lorry (small), Rack (bulk) | FCL (bulk), LCL (small), Air (urgent) |
| Speed | Lorry < Rack | Ship (slow), Air (fast) |
| Cost | Rack > Lorry > Courier | FCL < LCL < Air |
| Risk | Lower | Higher (customs, delays, damage) |
💡 Tips from OBAOL Supreme
- Use Rack Bookings for high-volume domestic buyers.
- Prefer LR-based tracking when using lorry transport.
- For international logistics:
- Understand Incoterms
- Estimate all freight and port costs
- Study destination country’s customs regulations
- Partner with a trusted freight forwarder
Choosing the right logistics partner and transport mode is as important as selecting the right buyer.
Safe, timely delivery builds reputation — and repeat business.