GlossaryEN1 min readUpdated: Jun 22, 2026
Transit time
Forwarders and carriers measure transit time as the total duration from cargo collection at the shipper to final delivery at the consignee.
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Source: https://www.investopedia.com/terms/t/transit-time.asp
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Definition & Explanation
Forwarders and carriers measure transit time as the total duration from cargo collection at the shipper to final delivery at the consignee. Beyond the actual transport legs, it encompasses cargo handling, customs clearance, storage, and equipment waiting times – which is why transit time consistently exceeds pure driving or sailing time. As a key performance indicator, it directly shapes customer expectations, inventory holding costs, and the working capital tied up in goods in transit. It should not be confused with the customs transit time limit, which is a legally prescribed and enforceable deadline; transit time, by contrast, is an operational planning and service quality metric with no regulatory obligation attached.
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