![Shipping routes red black](https://upload.wikimedia.org/wikipedia/commons/3/39/Shipping_routes_red_black.png)
Freight transport, also referred as ''Freight Forwarding'', is the physical process of
transport
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
ing
commodities and
merchandise goods and
cargo
Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, including trans ...
. The term shipping originally referred to
transport
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
by sea but in
American English
American English, sometimes called United States English or U.S. English, is the set of varieties of the English language native to the United States. English is the most widely spoken language in the United States and in most circumstances i ...
, it has been extended to refer to transport by land or air (International English: "carriage") as well. "
Logistics
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...
", a term borrowed from the military environment, is also used in the same sense.
Modes of shipment
![Freight goods according to mode of transportation 2010](https://upload.wikimedia.org/wikipedia/commons/4/4b/Freight_goods_according_to_mode_of_transportation_2010.png)
In 2015, 108 trillion
tonne-kilometer
The units of measurement in transportation describes the unit of measurement used to express various transportation quantities, as used in statistics, planning, and their related applications.
Transportation quantity
The currently popular units ...
s were 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% by
inland waterway
A body of water, such as a river, canal or lake, is navigable if it is deep, wide and calm enough for a water vessel (e.g. boats) to pass safely. Such a navigable water is called a ''waterway'', and is preferably with few obstructions against d ...
s and less than 0.25% by air.
Grounds
Land or "ground" shipping can be made by
train
In rail transport, a train (from Old French , from Latin , "to pull, to draw") is a series of connected vehicles that run along a railway track and transport people or freight. Trains are typically pulled or pushed by locomotives (often ...
or by
truck
A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame constructi ...
(British English:
lorry
A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame constructio ...
). In air and sea shipments, ground transport is required to take the cargo from its place of origin to the
airport
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consists of a landing area, which comprises an aerially accessible open space including at least one operationally active surfa ...
or
seaport
A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as H ...
and then to its destination because it is not always possible to establish a production facility near ports due to the limited coastlines of countries. Ground transport is typically more affordable than air, but more expensive than sea, especially in
developing countries
A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...
, where inland
infrastructure may not be efficient.
Ship
![Jawaharlal Nehru Trust Port](https://upload.wikimedia.org/wikipedia/commons/2/28/Jawaharlal_Nehru_Trust_Port.jpg)
Much freight transport is done by
cargo ships. An individual nation's fleet and the people that crew it are referred to as its
merchant navy or merchant marine. According to a 2018 report from the
United Nations Conference on Trade and Development (UNCTAD), merchant shipping (or seaborne trade) carries 80-90% of
international trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy)
In most countries, such trade represents a significant ...
and 60-70% by value. On rivers and
canal
Canals or artificial waterways are waterways or engineered channels built for drainage management (e.g. flood control and irrigation) or for conveyancing water transport vehicles (e.g. water taxi). They carry free, calm surface flo ...
s,
barge
Barge nowadays generally refers to a flat-bottomed inland waterway vessel which does not have its own means of mechanical propulsion. The first modern barges were pulled by tugs, but nowadays most are pushed by pusher boats, or other vessels ...
s are often used to carry
bulk cargo
Bulk cargo is commodity cargo that is transported unpackaged in large quantities.
Description
Bulk cargo refers to material in either liquid or granular, particulate form, as a mass of relatively small solids, such as petroleum/ crude o ...
.
Air
Cargo is transported by
air
The atmosphere of Earth is the layer of gases, known collectively as air, retained by Earth's gravity that surrounds the planet and forms its planetary atmosphere. The atmosphere of Earth protects life on Earth by creating pressure allowing f ...
in 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.
Multimodal
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. Cargo is exchanged between different modes of transportation via
transport hub
A transport hub is a place where passengers and cargo are exchanged between vehicles and/or between transport modes. Public transport hubs include railway stations, rapid transit stations, bus stops, tram stops, airports and ferry slips. F ...
s also known as
transport interchanges or
nodes (e.g. train stations, airports, etc.).
Intermodal
Multimodal transport featuring containerized cargo (or
intermodal container
An intermodal container, often called a shipping container, is a large standardized shipping container, designed and built for intermodal freight transport, meaning these containers can be used across different modes of transport – from ship ...
) 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
The
Incoterms
The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsiblities of exporters a ...
(or International Commercial Terms) published by the
International Chamber of Commerce
The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. Its over 45 million members in over 100 countries have interests spanning every sec ...
(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 (free on board) is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the Inte ...
(FOB)
*
Cost and Freight
The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsiblities of exporters and ...
(CFR, C&F, CNF)
*
Cost, Insurance & Freight (CIF)
The term "best way" generally implies that the shipper will choose the carrier who 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 (DTD or D2D) shipping refers to 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, transloading, and cross-docking without interim storage.
International DTD is a service provided by many
international
International is an adjective (also used as a noun) meaning "between nations".
International may also refer to:
Music Albums
* ''International'' (Kevin Michael album), 2011
* ''International'' (New Order album), 2002
* ''International'' (The T ...
shipping companies and may feature
intermodal freight transport
Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail, ship, aircraft, and truck), without any handling of the freight itself when changing ...
using
containerized 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 one
jurisdiction
Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels.
J ...
to 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.
Customs fees,
import taxes
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and polic ...
and other tariffs may contribute substantially to this base price before the item ever arrives.
See also
*
Affreightment
*
Automatic Identification System
*
Mid-stream operation
Mid-stream operation is the operation of loading and unloading cargo containers at the container ship while at sea, with barges or dumb steel lighters performing the transfer, distribution or landing of containers to piers nearby.
Although mid-s ...
*
Outline of transport
The following outline is provided as an overview of and topical guide to transport:
Transport or transportation – movement of people and goods from one place to another.
Essence of transport
* Driving involves controlling a vehicle, ...
*
Ship transport
Maritime transport (or ocean transport) and hydraulic effluvial transport, or more generally waterborne transport, is the transport of people ( passengers) or goods (cargo) via waterways. Freight transport by sea has been widely used throu ...
*
Rail transport
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a p ...
*
Transshipment
Transshipment, trans-shipment or transhipment is the shipment of goods or containers to an intermediate destination, then to another destination.
One possible reason for transshipment is to change the means of transport during the journey (e.g ...
*
Greek shipping
Greece is a maritime nation by tradition, as shipping is arguably the oldest form of occupation of the Greeks and has been a key element of Greek economic activity since ancient times. Today, shipping is the country's most important industry wo ...
*
Chinese shipping
In 1961 China established a state-run maritime shipping company and subsequently signed shipping agreements with many countries, laying the foundation for developing the country's ocean transport. That organization developed into the present-day ...
*
Environmental issues with shipping
The environmental effects of shipping include air pollution, water pollution, acoustic, and oil pollution. Ships are responsible for more than 18 percent of some air pollutants.
As for greenhouse gas emissions, the International Maritime Orga ...
*
List of cargo types Primary maritime cargo types
References
{{Container shipping companies
Intermodal containers
Economic globalization
Freight transport
...
*
Right of way (shipping)
The International Regulations for Preventing Collisions at Sea 1972 (COLREGs) are published by the International Maritime Organization (IMO) and set out, among other things, the "rules of the road" or navigation rules to be followed by ships a ...
*
Shipping markets
The international shipping industry can be divided into four closely related shipping markets, each trading in a different commodity: the freight market, the sale and purchase market, the newbuilding market and the demolition market. These four m ...
*
Full container load
Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers). Containerization is also referred as "Container Stuffing" or "Container Loading", which is the p ...
(FCL)
*
Less than container load
Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers). Containerization is also referred as "Container Stuffing" or "Container Loading", which is the p ...
(LCL)
References
Citations
*
*
External links
* Schreiber, Zv
2016: The Year Freight Goes Online December 2015
* Humplik, Carme
Winds of change in freight transportation supply chain: Platooning technology July 2017
* Bloomberg.co
First Cryptocurrency Freight Deal Takes Russian Wheat to Turkey January 2018
{{Authority control
Economic globalization
Intermodal containers
Merchant navy