Freight transport

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Freight transport,also referred to asfreight forwarding,is the physical process oftransportingcommoditiesandmerchandisegoods andcargo.The termshippingoriginally referred totransportby sea but inAmerican English,it has been extended to refer to transport by land or air (International English: "carriage" ) as well. "Logistics",a term borrowed from the military environment, is also used in the same sense.

This map ofshippingroutes illustrates the relative density of commercial shipping in the world's oceans.

Modes of shipment

Global freight volumes according to mode of transport in trillions oftonne-kilometresin 2010

In 2015, 108 trilliontonne-kilometerswere transported worldwide (anticipated to grow by 3.4% per year until 2050 (128 Trillion in 2020)): 70% by sea, 18% by road, 9% by rail, 2% byinland waterwaysand less than 0.25% by air.

Grounds

Main articles:Road transport,Rail transport,andRail freight transport

Land or "ground" shipping can be made bytrainor bytruck(British English:lorry). Ground transport is typically more affordable than air, but more expensive than sea, especially indeveloping countries,where inlandinfrastructuremay not be efficient. In air and sea shipments, ground transport is required to take the cargo from its place of origin to theairportorseaportand then to its destination because it is not always possible to establish a production facility near ports due to the limited coastlines of countries.

Ship

Main articles:Ship transportandCargo ship

Harbour cranes unload cargo from a container ship at theJawaharlal Nehru Port,Navi Mumbai,India.

Much freight transport is done bycargo ships.An individual nation's fleet and the people that crew it are referred to as itsmerchant navyor merchant marine. According to a 2018 report from theUnited Nations Conference on Trade and Development (UNCTAD),merchant shipping (or seaborne trade) carries 80-90% ofinternational tradeand 60-70% by value.On rivers andcanals,bargesare often used to carrybulk cargo.

Air

Main article:Cargo airlines

Cargo is transported byairin specialized cargo aircraft and in the luggage compartments of passenger aircraft. Air freight is typically the fastest mode for long-distance freight transport, but it is also the most expensive.

Space

Main article:Space logistics

Multimodal

Main article:Multimodal transport

Cargo is exchanged between different modes of transportation viatransport hubs,also known astransport interchangesorNodes(e.g. train stations, airports, etc.). Cargo is shipped under a single contract but performed using at least two different modes of transport (e.g. ground and air). Cargo may not be containerized.

Intermodal

Main article:Intermodal freight transport

Multimodal transport featuring containerized cargo (orintermodal container) that is easily transferred between ship, rail, plane and truck.

For example, a shipper works together with both ground and air transportation to ship an item overseas. Intermodal freight transport is used to plan the route and carry out the shipping service from the manufacturer to the door of the recipient.

Terms of shipment

Main article:Incoterm

TheIncoterms(or International Commercial Terms) published by theInternational Chamber of Commerce(ICC) are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of the most commonly used terms in international trade. Common terms include:

• Free on Board(FOB)
• Cost and Freight(CFR, C&F, CNF)
• Cost, Insurance and Freight(CIF)

The term "best way" generally implies that the shipper will choose the carrier that offers the lowest rate (to the shipper) for the shipment. In some cases, however, other factors, such as better insurance or faster transit time, will cause the shipper to choose an option other than the lowest bidder.

Door-to-door shipping

Door-to-door(DTDorD2D)shippingrefers to the domestic or international shipment of cargo from the point of origin (POI) to the destination while generally remaining on the same piece of equipment and avoiding multiple transactions, trans-loading, and cross-docking without interim storage.

International DTD is a service provided by manyinternationalshipping companies and may featureintermodal freight transportusingcontainerized cargo.The quoted price of this service includes all shipping, handling, import and customs duties, making it a hassle-free option for customers to import goods from onejurisdictionto another. This is compared to standard shipping, the price of which typically includes only the expenses incurred by the shipping company in transferring the object from one place to another.Customsfees,import taxesand other tariffs may contribute substantially to this base price before the item ever arrives.

See also

• Affreightment
• Automatic identification system
• Mid-stream operation
• Outline of transport
• Ship transport
• Rail transport
• Transshipment
• Greek shipping
• Chinese shipping
• Environmental issues with shipping
• List of cargo types
• Right of way (shipping)
• Shipping markets
• Full container load(FCL)
• Less than container load(LCL)

Citations

• "Review of Maritime Transport 2014"(PDF).United Nations Conference on Trade and Development. 2014. Archived fromthe original(PDF)on 2015-01-15.
• "Special Chapter: Asia".Review Maritime Transport 2010 Flyer.United Nations Conference on Trade and Development. 2010.Retrieved9 December2011.

External links

• Schreiber, Zvi2016: The Year Freight Goes Online.December 2015
• BloombergFirst Cryptocurrency Freight Deal Takes Russian Wheat to Turkey.January 2018