Freight
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. 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. Logistics refers to the entire process of transferring products from producer to consumer, including storage, transport, transshipment, warehousing, material-handling and packaging, with associated exchange of information. Incoterm deals with the handling of payment and responsibility of risk during transport.
Containerization, with the standardization of ISO containers on all vehicles and at all ports, has revolutionized international and domestic trade, offering huge reduction in transshipment costs. Traditionally, all cargo had to be manually loaded and unloaded into the haul of any ship or car; containerization allows for automated handling and transfer between modes, and the standardized sizes allow for gains in economy of scale in vehicle operation. This has been one of the key driving factors in international trade and globalization since the 1950s.
Bulk transport is common with cargo that can be handled roughly without deterioration; typical examples are ore, coal, cereals and petroleum. Because of the uniformity of the product, mechanical handling can allow enormous quantities to be handled quickly and efficiently. The low value of the cargo combined with high volume also means that economies of scale become essential in transport, and gigantic ships and whole trains are commonly used to transport bulk. Liquid products with sufficient volume may also be transported by pipeline.
Air freight has become more common for products of high value; while less than one percent of world transport by volume is by airline, it amounts to forty percent of the value. Time has become especially important in regards to principles such as postponement and just-in-time within the value chain, resulting in a high willingness to pay for quick delivery of key components or items of high value-to-weight ratio. In addition to mail, common items sent by air include electronics and fashion clothing.
Famous quotes containing the word freight:
“These have been wonderful years. How many happy, happy times we have traveled about together! Day and night, in stage coaches, on freight trains, over the mountains and across the prairies, hungry and tired, we have wandered. The work was sometimes hard and discouraging but those were happy and useful years.”
—Susan B. Anthony (1820–1906)
“People who make puns are like wanton boys that put coppers on the railroad tracks. They amuse themselves and other children, but their little trick may upset a freight train of conversation for the sake of a battered witticism.”
—Oliver Wendell Holmes, Sr. (1809–1894)
“Man, she looked as though she’d been thrown off the crummiest freight train in the world. Yet, in spite of this, I got the impression of beauty. Not the beauty of a movie actress, mind you, or the beauty you dream about when you’re with your wife. But a natural beauty. A beauty that’s almost homely because it’s so real.”
—Martin Goldsmith, and Edgar G. Ulmer. Al Roberts (Tom Neal)