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The term "in transit" is commonly used in logistics to refer to goods that are on their way to their destination. According to a recent survey, 37% of companies still struggle to monitor shipments in transit, leaving cargo vulnerable to delays, damage, and theft. This underlines the need to understand its meaning and significance.
Whether you are a manufacturer handling large shipment volumes or a transporter handling freight for multinational corporations, having a clear idea of what in transit means can help streamline your operations, increase customer satisfaction, reduce unforeseen difficulties, and boost overall profitability.
Here's a quick guide to what “in transit” means in delivery, how it differs from “out for delivery,” its duration, and the step-by-step process.
In shipping and logistics, the package status "in transit" refers to the stages when the package is actively en route from the sender to the recipient. It starts from the time of initial dispatch and ends when the item is put on the delivery truck for the last part of its trip.
When your tracking information shows "In Transit," it typically means:
The significance of the "in transit" status is twofold:
There are several misconceptions regarding the meaning of "in transit," as it is often mistaken for the "out for delivery" status. Therefore, you need to understand their key differences to ensure clarity on the shipments’ whereabouts.
The above table highlights how "in transit" refers to a broader scope of transportation, while "out for delivery" focuses on the final phase of the delivery process.
Understanding a package's journey from the sender to the recipient involves several processes with key stakeholders like shippers, transport service providers, and last-mile delivery partners. Here’s a thorough analysis of each shipping step.
The shipping process begins with the goods being picked up from the sender and moved to the warehouse or distribution center. Usually, a shipping carrier does this by scanning the product and creating the first tracking record.
With this initial scanning event, the package is marked as received and begins its trip through the logistics network.
Following the initial pickup, the shipment travels to a nearby distribution center or sorting facility. It is sorted here to find the most efficient path to its destination. After that, the package travels between hubs, potentially traversing national or state borders. The package is scanned at each hub to update its tracking status and ensure it is headed in the right direction.
After arriving at the last delivery location, the package is prepared for local delivery. At this point, the box is scanned again and loaded onto a local delivery vehicle, like a truck or van. Then, it is marked as "out for delivery" and sent to the recipient's address. This is the last stage of the shipment delivery process.
Businesses must track items in transit to ensure efficient logistical operations. It provides real-time visibility, which can greatly enhance supply chain performance, customer satisfaction, and overall efficiency. Let’s explore why it’s so important:
For businesses, providing clients with comprehensive monitoring information increases customer satisfaction and confidence. When customers can readily obtain real-time tracking updates, they are more likely to make repeat purchases and have a better overall buying experience.
In case problems occur, customer support representatives can utilize the tracking system to promptly respond with precise and thorough information, which enhances customer happiness and simplifies the resolution process.
Knowing when shipments will arrive can help businesses plan and replenish inventory levels accurately, lowering the risk of inventory shortages.
Tracking in-transit shipments improves resource allocation by giving precise information about when goods will arrive. This, in turn, lowers needless expenses like warehousing.
Proactive communication with customers about possible delays and accurate tracking allows businesses to manage expectations and cultivate client loyalty. As a result, businesses encounter fewer questions and complaints.
Constant monitoring identifies risks such as damage, spoilage, or pilferage that are common during transportation. It allows for prompt action to avoid significant losses and guarantee on-time delivery.
Sophisticated tracking systems streamline business activities. By tracking shipment status and transit time, businesses can spot possible delays and take early measures to resolve problems. This results in improved resource management and more effective freight handling.
How long does “in transit” take? To answer this question, you need to consider several factors, such as:
Unexpected congestion in ports, truck breakdowns, weather adversities, or mechanical failures can extend the "in transit" phase. Let’s explore them next.
Although there are many reasons why a delivery could be delayed, some of them fall under the heading of "in transit" in the shipping process.
Hence, to avoid losing clients, you need to recognize these obstacles and take action to overcome them. Here are a few of the most frequent challenges that arise during transportation.
Large shipment volumes, hub-to-hub miscommunication, and inefficient transit can slow freight movements. Goods can also be stolen, handled improperly, or damaged while in transit. Moreover, as logistics becomes more digitalized, cyber threats that target shipment data have become a worry.
Shipping volume rises significantly during holidays and other busy times. As a result of processing more packages than usual, carriers may become overloaded and experience delays.
Holidays can also cause customs offices to close and delivery staff to be unavailable, which further delays shipments.
Errors due to incorrect sorting can arise at different hubs and delivery facilities. Human error may result in a shipment being missorted or abandoned. These sorting errors result in major delays because the shipment must be rerouted to the proper delivery path.
Delays can also result from missing or inaccurate documentation, including labeling, packing lists, and invoicing.
A package can be misrouted to an incorrect delivery address or distribution location. When this occurs, the shipment must be rerouted, which prolongs the trip.
Delays also result from mechanical problems with vehicles. Moreover, mechanical breakdowns can completely stop shipment progress, necessitating repairs or other plans. This may affect the schedule as a whole and result in longer "in transit" times.
Adverse weather conditions cause shipping delays. Heavy snowfall, rain, extremely high or low temperatures, snowstorms, and natural disasters like earthquakes, floods, wildfires, hurricanes, etc., affect transportation routes and schedules by destroying entire supply networks and harming highways and bridges.
Consider the following scenario: A sandstorm forces the closure of Jaipur Airport, requiring carriers to reroute flights to Delhi. As a result, alternative sorting centers in Delhi become overloaded with the influx of diverted parcels. This congestion leads to traffic delays, misplaced shipments, and overall logistical disruption. Consequently, the cargo ends up stranded in a warehouse located 800 kilometers away from its original destination.
Since carriers have to reroute items or delay shipments until conditions improve, these unforeseen external events frequently result in delivery exceptions.
International shipments include customs checks, where packages are examined to ensure import laws are being followed. These inspections usually take time, particularly if the customs office is backlogged.
If packages chosen for arbitrary inspections do not have proper customs declarations, customs officials will hold the product until the appropriate paperwork is submitted. Moreover, a large number of foreign shipments may cause additional delays.
Large package sizes occasionally result in shipment delays. As a result, packages may have to stay in transit until the appropriate vehicle or delivery option is found. Moreover, it may attract unforeseen costs or face outright rejection by the carrier partner.
Overcoming the challenges faced in transit requires rigorous planning, the use of technology, and transparent communication. Here are a few key strategies:
Use Internet of Things (IoT) sensors and GPS-enabled tracking systems to:
Implement Blockchain technology to ensure tamper-proof, secure, and transparent records of the journey, the integrity of shipment data, and the prevention of fraudulent activities.
When included in inventory systems, artificial intelligence helps reduce stockouts and predict demand precisely. By avoiding surplus inventory in transit, companies can maximize supply chain efficiency.
Before big shipments leave the warehouse, divide them into several smaller parcels. This lowers the possibility of delays and helps you avoid additional fees that can affect your profit margins.
Verify the accuracy and completeness of all necessary forms, invoices, and declarations to make customs less of a barrier and more of a seamless part of the shipment journey. Also, do not forget about taxes and duties.
Ensure financial protection against unanticipated circumstances like theft, accidents, or natural disasters by having insurance coverage for commodities in transit from reputable companies.
Route optimization technology helps you find the most efficient delivery routes, cutting down on transit times and fuel expenses. This is particularly advantageous for shipments with tight deadlines.
Understanding and managing the "in transit" phase is key to smoother logistics operations. By monitoring shipments closely, you can minimize delays, enhance customer experience, and ensure smoother operations in your supply chain. This proactive approach helps ensure deliveries happen on time and without issues.
FreightFox integrates a variety of tools to give you complete control over your freight network. With Freight Manage, you can track shipments in real-time through SIM, Fastag, and other advanced technologies, helping you identify bottlenecks, reduce delays, and improve route optimization. Freight IQ provides data-driven insights to assist in making informed supply chain decisions, tracking industry trends, predicting seasonal impacts, and staying ahead of market changes—all from within one unified platform.
Stay agile, reduce disruptions, and drive growth with FreightFox. Book a Demo to get started.