Top ways for SMEs to grow exports through air cargo shipment

For Small and Medium Enterprises (SMEs), the allure of international markets is undeniable. The potential to reach a wider customer base and tap into new revenue streams can be a powerful growth driver. However, the journey from local hero to global champion is fraught with challenges. Complexities in navigating international trade regulations, managing logistics across vast distances, and competing against established players can leave even the most ambitious SME feeling overwhelmed. The good news? The global market for SME exports is booming. A report by the World Trade Organization (WTO) estimates that SMEs account for roughly two-thirds of global merchandise trade by value. This translates to a massive $22 trillion opportunity waiting to be seized.??

?

Major methods for growing SME Exports?

?One of the biggest hurdles for SMEs is navigating the labyrinthine world of international trade regulations.? Understanding customs procedures, tariffs, and quotas across different countries can be a daunting task. Additionally, managing logistics across vast distances poses unique challenges.? SMEs often lack the experience and resources to negotiate competitive shipping rates and ensure smooth product flow through international ports. However, amidst these challenges lie exciting opportunities. Technology advancements are empowering SMEs to overcome traditional barriers to exporting. Cloud-based platforms make it easier to manage international sales and track shipments in real-time. Additionally, e-commerce marketplaces provide SMEs with a cost-effective platform to reach a global audience without the need for a physical presence in overseas markets.?

• Logistics Management for Efficiency?

• End-to-End Visibility and Control?

• E-commerce Integration for Global Reach???

• Market Research and Analysis: Identify promising export markets based on product demand, trade regulations, and competitiveness.?

• Cultural Sensitivity Training: Equip your team with the cultural understanding needed to build successful relationships with international partners and customers.?

• Financing Solutions: Explore financing options to support your export activities, such as export credit insurance and trade finance solutions.?

• Niche Digital marketplace: Various emerging companies are offering unique digital marketplaces for suppliers and buyers which open doors for identifying new global market opportunities.?

How to export through commercial airlines??

Exporting goods through commercial airlines involves several steps. Here’s a concise overview:?

• Comply with Export Regulations: Familiarize yourself with U.S. export regulations, including licensing requirements and legal considerations. Determine whether your product or service needs an export license.?

• Prepare Your Cargo: Package your goods securely for air transport. Ensure compliance with safety and handling guidelines.?

• Airway Bill (AWB): Obtain an air waybill (AWB) for your shipment. The AWB accompanies goods shipped by air carriers and provides detailed information for tracking.?

• Choose Air Cargo or Air Courier: Choose air Cargo from various services (e.g., express, standard) based on speed and cost. Expedited air courier service with guaranteed delivery, but at a premium price.?

• Report Export Sales: Use the Automated Export System (AES) to report shipments valued at $2,500+ or requiring an export license.?

?

When shipping cargo by air in India, follow these steps:?

• Assess Your Shipping Needs: Understand the weight, dimensions, and nature of your cargo. Determine if it requires special handling or temperature control .?

• Choose the Right Air Cargo Service: Research various air freight options available. Consider factors like speed, cost, and reliability.?

• Prepare Documentation: Gather necessary paperwork, including invoices, packing lists, and export/import permits. Ensure compliance with customs regulations.?

• Packaging and Labelling: Properly pack and label your goods to prevent damage during transit. Follow airline guidelines for packaging materials.?

• Arrange for Pickup: Coordinate with the airline or a logistics provider for cargo pickup. Specify the pickup location and time.?

• Monitor and Await Delivery: Track your shipment using the provided tracking number. Await delivery at the destination airport.?

Overall, foreign carriers dominate India’s international air cargo market, accounting for around 94-95% of the total volume, while Indian carriers handle the remaining 5-6%2. The Indian air cargo market generated approximately 2.2 million tonnes of traffic, with about 30% on the domestic sector and the rest on international routes34. Despite challenges, India remains a bright spot for global air freight.?

Air cargo sustainability is a critical focus area for the industry. Here are some key aspects:?

• Reducing Carbon Emissions: The industry aims to achieve net zero carbon emissions by 2050. Initiatives include using innovative technologies, optimizing operations, and investing in lightweight materials.?

• Minimizing Single-Use Plastics: Efforts are underway to reduce single-use plastics in air cargo. Sustainable packaging alternatives are being explored2.?

• Weight Optimization: Airlines strive to minimize container weight to improve fuel efficiency. Lightweight containers positively impact both economic performance and operational efficiency.?

• Eliminating Perishable Waste: The industry works to reduce waste related to perishable goods. Efficient handling and sustainable practices contribute to long-term development.?

?

The IATA Cargo Program focuses on enabling global trade by transporting over 62 million cargo tonnes annually, representing more than 35% of global trade by value. Their priorities include safety, digitalization, and sustainability. Additionally, IATA aims to achieve a fully digitally connected and integrated air cargo supply chain.????

Nitisara Value Chain Platform goes beyond simply managing your export supply chain – we become a trusted advisor on your journey to global success.? We provide ongoing support and guidance, helping you navigate the nuances of international markets and adapt your strategies based on real-time data and market trends. NITISARA provides expert guidance on international trade regulations, customs procedures, and documentation requirements.? We help you classify your products correctly, determine applicable tariffs, and ensure your shipments comply with all import and export regulations.??

?

Frequently asked questions (FAQ’s)?

1. What are the major types of SMEs??

Small and midsize enterprises (SMEs) play a crucial role in economies worldwide. They are businesses that maintain revenues, assets, or a few employees below specific thresholds. SMEs can exist in various industries, but they are more likely to be found in sectors requiring fewer employees and smaller upfront capital investments. Examples include legal firms, dental offices, restaurants, and bars. These businesses fundamentally operate differently from large multinational companies, often requiring fewer complex systems due to their narrower scope of operations. Here are the common classifications of SMEs:?

• Micro-enterprises: These have fewer than 10 employees and generate less than $2 million in revenue.?

• Small enterprises: These employ between 10 and 50 people and generate between $2 million and $10 million in revenue.?

• Medium enterprises: With 50 to 250 employees, they generate between $10 million and $50 million in revenue.?

?

2.?How do we get air cargo rates??

Air cargo rates can be obtained through various channels. When shipping goods by air, consider the following methods:?

• Online Freight Platforms: Use online platforms like Freightos to compare air freight rates instantly. These platforms provide quotes based on shipment details, helping you find competitive prices.?
• Air Carrier Websites: Visit the websites of major air carriers such as DHL, UPS, or FedEx. Look for their rate calculators or request a quote directly from them.?
• Industry Tariffs: Air cargo rates are determined by each carrier and are openly accessible. These rates are also referred to as General Cargo Rates (GCR) or TACT Tariffs?

?

3. What are some major air-cargo companies that carries our shipment??

International air cargo has become a game-changer in logistics and trade, especially for eCommerce businesses. The global international air cargo capacity has seen a positive trend, with a 6% increase reported by Accenture. From clothes and toys to furniture, anything can be shipped via air freight worldwide. The coordination, validation, and proper documentation involved ensure seamless cargo transport across borders. Shiprocket, a leading player, facilitates efficient international air cargo services, enhancing customer experience?

Nitisara Value Chain Platform provides expert guidance on international trade regulations, customs procedures, and documentation requirements.? We help you classify your products correctly, determine applicable tariffs, and ensure your shipments comply with all import and export regulations.?

???

?Read more NITISARA blogs here https://nitisara.org/category/blogs-updates/

Views expressed does not represent companies position on the matter?