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Supply Chain Glossary
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Transportation lead time

What is transportation lead time?

Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.

How to calculate transport lead times

Transportation lead times can be calculated by summing up the individual lead times for each segment of the transportation journey. This includes the time needed for processing, scheduling, transit, and any potential delays. Additionally, factors such as distance, mode of transport, carrier reliability, and customs clearance procedures must be considered when calculating transportation lead times.

Ocean freight lead times

Ocean freight lead times specifically refer to the duration it takes for goods to be shipped via sea transport. This includes the time required for cargo loading at the port of origin, transit across the ocean, and unloading at the destination port. Ocean freight lead times can be impacted by factors such as shipping route selection, vessel schedules, and port congestion.

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