Hemp Inbound Logistics : A study of cost, time, transport modes and routes from Nepal to Finland

Abstract

This thesis explores the logistics of importing hemp bags from Nepal to Finland, aiming to identify the most suitable logistics options based on costs, delivery times, and regulatory factors. The research questions focused on understanding the shipping methods available, their respective costs, and how factors such as Incoterms and seasonal variation impact the import process. The study uses a qualitative research design, which combines an in-depth, semi-structured interview with a Nepalese cargo company and secondary data from government reports and academic literature. The findings reveal that three primary logistics methods air freight, sea freight, and courier services are used in the importation process. Air freight is the fastest but most expensive, suited for small or time-sensitive shipments. Sea freight offers the most cost-effective solution for large-scale shipments but requires longer lead times. Courier services, particularly express options, provide flexibility and ease of use for SMEs but come with higher costs for smaller shipments. The study highlights the role of Incoterms in shaping the importer’s logistical decisions and underscores the impact of external factors, such as port congestion and seasonal fluctuations, on shipping rates. The research is limited by a single interview with one cargo company, which may not fully represent all logistics providers or shipping routes. Additionally, the study is restricted to hemp bag imports, which may differ from other product categories. Future research could expand the scope to include multiple providers, additional product types, and longitudinal studies on evolving logistics trends.