Freight Transport

Freight transport, or shipping, is a key in the value chain in manufacturing. With increased specialization and globalization, production is being located further away from consumption, rapidly increasing the demand for transport. Transportation creates place utility by moving the goods from the place of production to the place of consumption. While all modes of transport are used for cargo transport, there is high differentiation between the nature of the cargo transport, in which mode is chosen.

Freight Transport


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Land or “ground” shipping can be by train or by truck (International English: lorry). 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 transport, especially in developing countries, where inland infrastructure may not be efficient.
Shipment of cargo by trucks, directly from the shipper’s place to the destination, is known as a door to door shipment and more formally as multimodal transport. Trucks and trains make deliveries to sea and airports where cargo is moved in bulk.

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Much shipping is done by actual ships. An individual nation’s fleet and the people that crew it are referred to as its merchant navy or merchant marine. Merchant shipping is the lifeblood of the world economy, carrying 90% of international trade with 102,194 commercial ships worldwide (2016). On rivers and canals, barges are often used to carry bulk cargo.
Cargo is transported by air 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.
Intermodal freight transport refers to shipments that involve more than one mode. More specifically it usually refers to the use of intermodal shipping containers that are 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

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