We refer to trade logistics as a cluster of activities because each area involves a
range of different actors and services. Trade logistics brings together a cluster of related service activities that help firms engage in international trade and which
facilitate the development of international supply chains. For example, transport
includes international shipping and air transport to move goods between countries, as
well as rail and road links to move goods within countries (and sometimes between
them as well). Freight forwarders and express operators – such as UPS, DHL, FedEx,
and a range of smaller local operators – arrange shipping transactions between parties
in different countries, as well as domestically. They organize transport nationally and
internationally, and provide tracking and tracing services that help ensure the secure
and timely delivery of merchandise. Warehousing activities are necessary at various
points in the logistics supply chain, particularly at cargo entry points such as ports and
airports. They allow shippers to temporarily store goods before moving them on to
the next stage in the process; for example, storage at an international gateway port
frequently occurs in developing countries due to the lag between completion of the
international shipping leg and commencement of the goods’ domestic movements.
Finally, retail and wholesale distributors move goods, respectively, to consumers
and to smaller retail outlets that have direct contact with consumers. They include
super- and hyper-market chains, as well as convenience stores and small local
operations. They represent the final stage in the logistics supply chain, as they
provide the purchase point for consumers of goods that have passed through the
chain. A focus on time, cost, and reliability from a supply chain point of view can
be seen as a “new generation” trade facilitation initiative, which moves beyond
traditional concerns such as streamlining border processes and lowering trade
costs, to deal with factors that promote the development of global and regional
value chains.