There are only a few activities that are exclusively specific in the chain of international trade logistics; however the, the traditional logistical activities are managed differently in an international environment than they are in a domestic environment.
The environment in international logistics is quite important. While there is obviously the issue of language and culture, the physical environment of international logistics is quite distinct.
The decisions regarding international transportation are eminently more complicated – different modes of transportation, different carriers, different transportation documents and much longer transit times.
The number of intermediaries involved is greater. Banks, insurance companies, freight forwarders, governments of the exporting and importing countries all have different paperwork requirements.
Inherent risks and hazards are much more significant. In order to protect the goods while they are in transit, adequate packaging has to be provided.
International insurance is much more complex. The contracts often vary in meaning depending on the country in which the insurance company is located. International means of payment are a key area. The risks of non-payment and currency fluctuations call for specific strategies that are never used in domestic transactions.
