Logistics is the lifeblood of business, and there are many ways to effectively manage the flow of goods between their point of origin and the point of consumption, satisfying the needs of customers or corporations. Day to day management of supply chains and the distribution of goods are essential to the success of businesses all over the world. Shipping goods, raw materials, equipment, and supplies is a complex process that has to account for all kinds of steps including handling materials, packaging, inventory, transportation, warehousing, security and managing data about the process.
The term logistics entered the business world from its military usage, particularly during the Second World War. Shipping originally referred to transport by sea, but in North America especially, shipping has come to refer to transporting freight by land, sea and air. Today, shipping generally involves transportation by ground, ship and air, as well as intermodal freight transport which uses of more than one of these means of transportation.
Historically, many logistics companies specialized in one mode of transportation, like managing a fleet of trucks or shipping containers, but the demand for intermodal freight transport has transformed the industry, fostering new partnerships and collaboration between different sectors. For more information, read more about these eight different types of shipping options:
1. Full Truckload (FTL) Shipping
Full Truckload shipping uses an entire vehicle or fleet of trucks for ground transportation. Goods are loaded at distribution points and driven long distances. FTL transport is a relatively quick and steady means of shipping. One advantage of FTL shipping is that the whole order is transported by a single truck, improving delivery speeds. FTL is the preferred means of shipping by retail industry giants.
FTL is also common for perishable items, as refrigerated trucks as well dual-temp and multi-temp vehicles are now available. New multi-temp vehicles allow for simultaneous control of the temperature in separate cargo compartments to set ideal shipping conditions for different goods.
2. Less Than Truckload (LTL) Shipping
Less Than Truckload shipping essentially shares space with a truck between different parties. If you’ve ever moved using a moving truck company, your possessions were very likely shipped using only part of the moving truck. LTL shipping operates on the same principle. It is generally less expensive, but can take longer. Refrigerated, dual-temp and multi-temp are also increasingly available for LTL shipping.
3. Flat Bed Shipping
Flatbed shipping involves shipping goods on a trailer without a top enclosure. Flatbed shipping is ideal for cargo that does not require the enclosure or cannot be loaded or unloaded at a distribution point or simply will not fit inside the dimensions of ordinary truck trailers. Flatbeds allow good to be loaded by crane or forklift.
4. Intermodal
As noted above, the revolution of communications technology of the last 50 years has engendered new possibilities for expediting international shipping routes by using intermodal shipping. It is believed that every year more than 25 million containers and trailers move via intermodal transport throughout North America. A shipping container that might arrive by sea, to be transported by truck to a train, where it is picked up by a truck for delivery to its final destination.
This is the path most consumer goods follow before they arrive in your local stores. Those goods might have also traveled by air at some point. Taking advantages of additional options to can significantly reduced the costs of global shipping items, creating opportunities for global shipping experts to maximize efficiency along the way and better serve the special international business needs.
Intermodal freight transport has become an increasingly common and effective means for getting goods from point A to point B. In the age of information, more and more firms are able to offer comprehensive online shipment tracking, which allows supply chain managers to follow materials in transit in real time. Some of common shipping options for transporting goods nationally and internationally include the following:
5. Rail Service Shipping
Shipping containers and tractor trailers can be shipped whole by rail. Rail transport is often cheaper than using trucking exclusively. This is because significantly less fuel is required to operate a train than a truck or aircraft. Rail in North America is essential for travelling long distances, where it maximizes cost effectiveness.
6. International air and ocean freight
Shipping often involves negotiating with several international authorities. This is where the value of using trusted established global logistics firms that have built a reputation and earned respect in the industry is so important. For shipping food and other perishable items, the importance of a timely and smooth operation is even more critical.
International transportation typically has to travel by air and ocean freight. Ocean freight takes place using sea containers stacked on a ship and delivered from seaports to seaport or another terminal. Shipping by air operates similarly, but depending on size of the cargo being transported, air is often more expensive than ocean travel.
7. Tanker
A tanker ship is designed for the transportation or storage of large quantities of liquids or gases. Types of tankers include ships specially built for transporting oil, chemicals, and gas. Tankers can also carry liquids like vegetable oils, molasses or wine.
8. Drops/ “Milk Runs”
There was a time when people in cities and villages used to receive their milk and dairy products by regular delivery from the milk man. Also known as drops, the term “milk run” has come to refer to this kind of regular replenishment of goods on a regular basis and it involves warehousing goods at a central distribution point.
