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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 Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land ...
ing
commodities In economics, a commodity is an economic goods, good, usually a resource, that has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to who Production ...
and
merchandise Merchandising is any practice which contributes to the sale of Product (business), products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customer ...
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 Commerce, commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, includ ...
. The term shipping originally referred to
transport Transport (in British English), or transportation (in American English), is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land ...
by sea but in
American English American English, sometimes called United States English or U.S. English, is the set of variety (linguistics), varieties of the English language native to the United States. English is the Languages of the United States, most widely spoken lan ...
, 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

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 dir ...
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 Passenger train, transport people or Rail freight transport, freight. Trains are typically pul ...
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 construction ...
(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 construction ...
). 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 surface ...
or
seaport A port is a maritime law, maritime facility comprising one or more Wharf, wharves or loading areas, where ships load and discharge Affreightment, cargo and passengers. Although usually situated on a sea coast or estuary, ports can a ...
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 sector, industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is al ...
, where inland
infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
may not be efficient.


Ship

Much freight transport is done by
cargo ship A cargo ship or freighter is a merchant ship that carries cargo, goods, and materials from one port to another. Thousands of cargo carriers ply the world's seas and oceans each year, handling the bulk of international trade. Cargo ships are usu ...
s. 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 (economics), capital, goods, and Service (economics), services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countr ...
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 boat, 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 (boat) ...
s are often used to carry
bulk cargo Bulk cargo is commodity cargo that is transported packaging, 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/ ...
.


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 fo ...
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 Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for Commerce, commercial gain. ''Cargo'' was o ...
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 Mode of transport, modes of trans ...
) 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 and ...
(or International Commercial Terms) published by the
International Chamber of Commerce The International Chamber of Commerce (ICC; French language, French: ''Chambre de commerce internationale'') is the largest, most representative Trade association, business organization in the world. Its over 45 million members in over 100 countri ...
(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 & 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 shipping companies and may feature
intermodal freight transport Intermodal freight transport involves the transportation of cargo, freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail transport, rail, ship, aircraft, and truck), without any handling of the freigh ...
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. Jur ...
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 Customs is an authority In the fields of sociology Sociology is a social science that focuses on society, human social behavior, patterns of Interpersonal ties, social relationships, social interaction, and aspects of culture associa ...
fees, import taxes and other tariffs may contribute substantially to this base price before the item ever arrives.


See also

*
Affreightment Affreightment (from freight) is a legal term relating to shipping. A ''contract of affreightment'' is a contract between a ''ship-owner'' and a charterer, in which the ship-owner agrees to carry goods for the charterer in the ship, ''or'' to giv ...
* Automatic Identification System * Mid-stream operation *
Outline of transport The following outline is provided as an overview of and topical guide to transport: Transport Transport (in British English), or transportation (in American English), is the intentional Motion, movement of humans, animals, and cargo, go ...
*
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 throug ...
*
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 pre ...
*
Transshipment Transshipment, trans-shipment or transhipment is the shipment of Cargo, goods or Intermodal container, containers to an intermediate destination, then to another destination. One possible reason for transshipment is to change the means of trans ...
* Greek shipping * Chinese shipping * Environmental issues with shipping *
List of cargo types Primary maritime cargo types References {{Container shipping companies Intermodal containers Economic globalization Freight transport ...
* Right of way (shipping) * Shipping markets * Full container load (FCL) * Less than container load (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