Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport 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", 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

In 2015, 108 trillion tonne-kilometers 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 or by truck (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 or seaport 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, where inland infrastructure may not be efficient.

Ship

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 and 60-70% by value. On rivers and canals, barges are often used to carry bulk cargo.

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 hubs also known as transport interchanges or nodes (e.g. train stations, airports, etc.).

Intermodal

Multimodal transport featuring containerized cargo (or intermodal 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

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 (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.

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