Role of Road Transport in International Trade

International trade is the foundation of countries' economic development, providing an exchange of goods and services amounting to more than 30 trillion dollars in 2023, according to data from the World Trade Organization. For the effective functioning of this system, a developed transport infrastructure is necessary, in which road transport plays a key role. Due to its flexibility and accessibility, road transport has become an integral part of global logistics, connecting various modes of transport and ensuring the delivery of goods to the most remote points.

Role of Road Transport in International Trade

Road transport occupies a central place in international trade due to its ability to deliver goods to virtually any point accessible by roadways. It is particularly important for the so-called "last mile" — delivery from ports, airports, or railway stations to end consumers. The global road transport network, spanning 27.8 million kilometers, makes it one of the most extensive transport systems, connecting remote regions and contributing to the globalization of trade.

One of the key events that increased the efficiency of road transport was the "container revolution." The standardization of containers simplified the transshipment of goods between different modes of transport, such as sea freight or rail transport. This made road transport an important link in complex logistics chains.

According to research data, road transport accounts for 13% of the world's freight volume and 82% of passenger transport. In Russia, its share is even higher: 68% of freight transport by tonnage and two-thirds of the total transportation volume. This underscores the importance of road transport in the national and international economy. Road transport not only connects various modes of transport but is also itself an important means of delivery for industries such as retail trade, manufacturing, and agriculture.

Advantages and Disadvantages of Road Transport

Road transport has a number of advantages that make it in demand in international trade. The main one is the high flexibility of routes and schedules. Vehicles can deliver goods directly to the destination, bypassing intermediate warehouses, which reduces time and costs. In addition, road transport is capable of carrying a wide range of goods, including perishable products, hazardous materials, and oversized items. Due to these characteristics, road transport is ideal for "just-in-time" logistics, where goods are delivered at the right time and place.

However, road transport also has disadvantages. The main one is the high cost of transportation compared to sea or rail transport, especially over long distances. For example, sea freight is considered more economical for large volumes of goods. In addition, road transport is vulnerable to weather conditions, traffic jams, and other external factors, which can lead to delays. Another problem is the environmental aspect: road transport contributes significantly to carbon emissions, which raises concerns amid the global push for sustainable development.

Regional Aspects

The role of road transport in international trade varies depending on the region. In Western Europe, road transport dominates, accounting for 40% of freight volume due to the developed network of highways and integration into logistics systems. In North America, road transport and rail transport share the market roughly equally, each having its own advantages. In the CIS countries and Eastern Europe, rail transport traditionally predominates, but the role of road transport is gradually growing, especially in cross-border shipments.

In Russia, road transport plays an important role in international trade, particularly in delivering goods from ports and railway stations to final destinations. The average route length is less than 50 km, which is due to high costs over long distances. Nevertheless, with the development of infrastructure and technologies, road transport is becoming increasingly competitive. In recent years, Russia has seen steady growth in road freight transport, especially in the less-than-container-load (LCL) segment, associated with increased trade with China. However, shipment volumes with the European Union decreased by 4.2% in 2018 compared to 2017, reflecting changes in trade flows.

Operational Aspects

International road transport requires strict compliance with procedures and documentation. The standard package of documents includes invoices, HS codes for goods, TIR Carnet (in accordance with the 1975 Convention), border control ticket, and international consignment note (CMR) in three copies. These documents ensure the legality and transparency of shipments.

Goods and vehicles undergo customs control, which may include external inspection, sampling, or quality checks. These procedures are necessary to ensure safety and compliance with international standards. International transport companies play an important role in simplifying these processes by providing professional logistics solutions.

Conclusion

Road transport remains an indispensable element of international trade, providing flexibility, accessibility, and efficiency in goods delivery. Despite high costs and environmental challenges, its role continues to grow, especially in regions with developed road infrastructure, such as Russia and Western Europe. Integration with other modes of transport, such as sea freight, and the use of digital technologies make road transport even more attractive for business. In the future, the development of technologies and infrastructure will likely enhance its importance in global logistics.