10 Main Criteria to Consider When Choosing an International Logistics Service

International logistics services are at the heart of global trade. The journey a product goes through from leaving the factory to reaching a buyer on the other side of the world is a strategic process that determines the competitiveness of businesses. Making the right choices during this process reduces costs, increases delivery speed, and enhances customer satisfaction. However, making the wrong choices can lead to unexpected expenses and reputational damage. Therefore, when choosing a logistics service, many factors, including technological infrastructure, sectoral expertise, operational transparency, and environmental sustainability, should be carefully considered, in addition to cost factors.

Business Needs Analysis: Where to Start?

The first step in seeking logistics services is to comprehensively analyze a business's expectations and constraints regarding transportation processes. This analysis is shaped by considering many variables beyond cost and speed, such as the type of cargo, volume, delivery targets, and legal regulations in the receiving markets. A correct needs analysis forms the basis for all subsequent logistics decisions.

Freight Type and Volume Estimation

The physical characteristics of the products being transported (fragility, temperature sensitivity, value) and the quantity to be transported directly impact the infrastructure capabilities of the selected service provider. For example, the transportation of hazardous materials requires special licenses and equipment, while e-commerce logistics involves faster, smaller-volume partial shipments. Accurate calculation of freight volume plays a critical role in both cost calculations and operational planning.

Delivery Time Objectives and SLAs

The efficiency of logistics operations is largely dependent on delivery times. On-time and complete deliveries are key determinants of customer satisfaction. In this regard, Service Level Agreements (SLAs) clarify the expectations and obligations between the carrier and the customer. SLA documents should clearly define delivery time objectives, delay tolerances, intervention scenarios for disruptions, and performance indicators related to service quality. Companies with high on-time delivery rates gain a competitive advantage in the industry thanks to their operational discipline and reliability.

Transit Time and Service Network

Transit time refers to the total time a shipment takes from its origin to its destination. Beyond geographical distance, many factors influence this time, including the logistics provider's service capacity, operational efficiency at border crossings, preferred transportation modes, and infrastructure conditions. Companies with a broad and integrated service network optimize delivery times by conducting uninterrupted transportation operations across different geographies. This reduces the impact of potential delays and local logistics disruptions, making the supply chain more predictable and sustainable.

Multimodal Transportation Modes (Multimodal / Intermodal)

Multimodal transportation modes are a strategic choice for companies seeking operational flexibility and cost advantages in international logistics. Multimodal transportation refers to a structure where different modes of transportation, such as road transport, sea transport, air transport, and rail, are integrated under a single transportation contract. In intermodal transportation, the cargo is held within the same transportation unit (usually a container), and this unit is transferred to different transportation vehicles, thus reducing the need for handling.

Both models contribute to reducing transit time, operational risks, and carbon emissions. The integration established by the logistics provider between these modes supports environmental sustainability and improves delivery performance.

Cost Transparency and Hidden Charges

Logistics cost analysis should not focus solely on the main transportation cost. To ensure realistic and comparable bids, all cost items related to the process must be clearly defined. Additional costs such as BAF, CAF, and DTHC, as well as details such as waiting fees, loading and unloading expenses, and insurance costs, directly impact the total cost.

Clearly stating cost items allows companies to make objective decisions when comparing bids. Surprise costs can cause significant losses to the entire operation.

Additional Charges such as BAF, CAF, and DTHC

Additional charges, which are not included in the total transportation cost in logistics bids, constitute a significant portion of operational costs. Clarifying these items in advance is critical for both budgeting and supply chain planning:

• Bunker Adjustment Factor (BAF): This is a fuel adjustment fee applied to offset the impact of global fluctuations in fuel prices on maritime transportation.
• CAF (Currency Adjustment Factor): This is an exchange rate difference fee added to compensate for differences arising from exchange rate fluctuations in international shipping.
• Destination Terminal Handling Charges (DTHC): This is a service fee charged for loading, unloading, terminal handling, and documentation procedures performed at the destination port.

Operational Reliability

Reliability is a logistics provider's ability to deliver service within the promised time and manner. This encompasses both adherence to planned transit times and the ability to provide rapid and effective solutions to operational problems. Reliable companies provide customers with control over the process by making their operations traceable.

On-Time Delivery Rates and KPIs

On-time delivery rates are considered a cornerstone of logistics performance and are continuously monitored as part of KPIs (Key Performance Indicators). This rate indicates the extent to which shipments reach their recipients within the scheduled timeframe, making it a strong indicator of both operational discipline and customer satisfaction.

Achieving a delivery rate above 95% increases a logistics provider's reliability and creates a positive customer perception. Regularly reporting and transparently sharing these rates by logistics companies allows business partners to make clearer decisions regarding risk assessments. This improves process management and establishes a solid foundation for long-term partnerships.

Technology and Traceability

The impact of digitalization in the logistics sector is becoming increasingly evident. Advanced tracking and management systems ensure more transparent, controlled, and secure transportation processes. GPS-enabled fleet tracking allows for real-time vehicle location tracking, while RFID (Radio Frequency Identification) technology allows for tracking goods at every stage of the shipment. Automatic notification systems instantly notify relevant units of potential delays or route deviations, enabling rapid response.

Furthermore, with digital document management, all documents such as invoices, transport documents, and delivery forms are created and processed electronically. These advancements not only increase operational efficiency but also offer significant savings in terms of time and cost.

Customs and Regulatory Expertise

In international logistics operations, each country has its own customs regulations, import-export documents, and inspection procedures. Proper management of these processes ensures compliance with legal requirements, shortens shipment times, and contributes to more efficient cost control.

The slightest disruption at customs clearance can disrupt the entire supply chain. Therefore, the preferred logistics service provider must be knowledgeable about current regulations for different countries, have the ability to fully prepare the necessary documents, and possess an infrastructure that can anticipate potential issues at border crossings. With an expert team and accurate process management, customs procedures can be completed quickly, seamlessly, and compliantly. This prevents time loss and ensures the continuity of commercial operations.

Target Market-Specific Certifications

Successful logistics service delivery in international markets requires meeting specific quality and compliance standards, as well as operational competence. Leading industry organizations such as FIATA (International Federation of Freight Forwarders Associations) guide companies by setting global standards that enhance reliability in transportation. Companies that operate in accordance with these standards gain faster acceptance in their target markets and maintain a strong position in their relations with regulatory authorities.

Additionally, companies holding ISO 9001 Quality Management System certification can maintain their business processes in a quality-focused, measurable, and open-to-improvement structure. This approach provides a systematic foundation for meeting customer expectations and instills confidence in companies for long-term partnerships.

Beyond regulatory compliance, certifications clearly demonstrate a company's professional approach, transparent operations, and quality standards in process management. These qualities build trust in target markets and enhance competitiveness.

Insurance, Security, and Risk Management

Risks encountered in international transportation operations can have significant operational and financial consequences. Delays, damage, theft, natural disasters, or problems at border crossings are among the risk groups that can disrupt the entire process. Therefore, logistics companies must systematically address risk management and establish protective mechanisms against possible scenarios.

Security protocols, pre- and post-transport inspections, route-based precautions, and policies covering driver and vehicle safety are integral parts of this process. Furthermore, pre-defining alternative plans to be implemented in times of crisis ensures operational continuity.

Cargo Insurance Coverage and Limits

Cargo insurance plays a vital role in mitigating the impact on a business of damage, loss, or damage that may occur during transportation. Many variables, such as the unit value of the product being transported, the shipping route, the duration, and the mode of transportation, should be taken into consideration when issuing an insurance policy.

In some sectors, such as electronics or pharmaceutical transportation, because the products are quite valuable, setting realistic and adequate insurance limits is crucial. Missing or excluded coverage can create financial burdens that the business cannot afford in the event of a loss. Therefore, the insurance options offered by the logistics service provider should be carefully evaluated and policies that fully cover the risks should be adopted.

Sectoral Compliance (Niche Solutions)

Logistics needs vary significantly across sectors. Industries such as food, pharmaceuticals, automotive, and textiles each have their own transportation dynamics. Therefore, the logistics provider must be able to offer solutions tailored to the customer's specific industry. This both improves process quality and minimizes errors.

Cold Chain and Food Logistics

Cold chain logistics ensures that temperature-sensitive products reach the end consumer without any loss of quality. The temperature chain must be maintained at all stages during the transportation of perishable foods such as dairy products, meat, fruits and vegetables. This process must be managed using in-vehicle temperature sensors, remote monitoring systems, emergency generators, special thermal packaging methods, and strict adherence to hygiene rules.

Even the slightest disruption in cold chain processes can lead to financial losses and damage brand reputation. Therefore, working with a carrier specialized in food logistics is essential for ensuring safety and consistent quality.

High-Value & Sensitive Cargo (Electronics, Pharmaceuticals)

Transporting electronics, pharmaceuticals, and similar high-value products requires utmost care and specialized infrastructure. These products carry significant costs and regulatory burdens. Protection from moisture and static electricity must be ensured when transporting electronic components, including anti-static packaging, specialized cabinets, and humidity control devices.

In pharmaceutical transportation, compliance with GDP (Good Distribution Practices) standards, temperature-controlled environments, traceability systems, and certified transportation solutions are essential.

Damage to these product groups can lead to significant financial losses and potentially have irreparable consequences for human health. Therefore, elements such as security protocols, additional insurance coverage, detailed record keeping, and high-precision tracking systems must be meticulously implemented.

Sustainability and Green Logistics

Environmental sustainability is one of the factors determining the future of the logistics sector. While increasing carbon emissions are being limited by legal sanctions, customer demands are also mandating environmentally friendly practices. Companies focusing on green logistics solutions in this regard both provide cost advantages and increase brand value.

Reducing environmental impact in the logistics sector is no longer a choice, but an operational and legal imperative. Increasing carbon emissions, including emissions from air and land transportation, are among the main factors contributing to the global climate crisis. The carbon regulations introduced by the European Union as part of the Green Deal impose both tax and operational obligations on transportation companies. In this context, companies that adopt green logistics strategies strengthen their competitiveness by complying with regulations through environmentally friendly solutions and build a strong brand image in the eyes of consumers.

Carbon Footprint Reporting

Carbon footprint reporting is a critical step in measuring the environmental impact of logistics operations. Measurements based on parameters such as transportation modes, route lengths, fuel types, and operational volume provide concrete data on company emissions. Regular reporting of this data is crucial for both internal auditing and public policy.

Alternative Fuel and Route Optimization

Fossil fuels used in transportation operations are among the main sources of carbon emissions. Therefore, switching to alternative fuel technologies stands out as a powerful solution for reducing environmental impact.

Electric trucks, LNG (liquefied natural gas), biofuels, and hydrogen-based solutions can replace traditional diesel fuels, reducing both carbon footprint and cost savings in the medium term. Furthermore, route optimization systems analyze transportation routes to identify the shortest and most fuel-efficient routes. This approach not only improves delivery times but also reduces fuel consumption, mitigating the environmental burden. Considering these two elements together within sustainable logistics strategies paves the way for operations with high environmental performance.

References and Customer Service

A company's past operational experience and the quality of its customer support services are among the most decisive factors in the selection process. The sectors it has served in previously, how it has solved logistics problems, and how successfully it has completed projects provide a direct insight into its capabilities. References or detailed case studies can help more clearly assess whether a long-term partnership can be established. A structure that responds quickly, maintains uninterrupted communication, and remains transparent throughout the process, particularly in times of crisis, stands out as a strategic partner.

Proof of Experience: Case Studies

The performance results achieved by logistics companies in past projects can be highly instructive for potential clients. Unique solutions developed to address challenges encountered in different sectors, in particular, are a testament to operational flexibility and expertise. Case studies, in this context, go beyond abstract promises and provide measurable, evidence-based data. Well-structured case studies allow for a detailed examination of how a company approaches challenges, what results it achieves, and how efficiently it manages the process.

24/7 Support and Multilingual Communication

International logistics activities are conducted seamlessly across different continents and time zones. Therefore, 24/7 availability is crucial to prevent operational disruptions. A support line that responds promptly in emergencies or critical operations facilitates the management of the process.

Additionally, our multilingual customer service team eliminates language barriers, ensuring clarity in communication. This prevents problems in operations with business partners in different countries and contributes to a smoother process.

References

• https://www.drewry.co.uk/supply-chain-advisory/case-studies/assisting-with-identifying-carrier-kpis-and-target-setting
• https://www.drewry.co.uk/supply-chain-advisory/research/esourcing-ocean-freight-solution
  
• https://www.freightos.com/logistics-technology-insights/why-logistics-technology-investment-is-growing-rapidly/