Intermodal means that one service provider coordinates the movement of freight via multiple conveyances, under one ‘thru bill of lading’. From an environmental standpoint, motor freight is not environmentally friendly and is second only to airfreight in the amount of carbon emissions produced per ton-mile. It is the only form of international transport that offers door to door service without repositioning of the cargo. Motor freight is the most flexible form of transport as delivery to fixed terminals is not necessary. This can allow for the most time efficient movement of cargo as the cargo can go from point to point, without reloading to another conveyance. The sole use of ground transport for the international movement of cargo is attractive when the size of the shipment is a truckload or less, if the merchandise is moving between countries located in the same region or hemisphere, and the distance the cargo is traveling is not prohibitive. When properly managed, and trade flows allow for it, a trucker can deliver a full container and return with another. These trucks are engineered to haul containers mounted on chassis. In international trade, this most often involves the use of ‘semis’ in North America and ‘cab-overs’ in Europe. Motor freight is one of the two available forms of ground transport and is the movement of cargo by truck. Let’s examine each of the transportation methods one by one. Environmental Impact (Is shipping being done in the most environmentally friendly way).Flexibility (Availability of service and how customizable is the time of shipment).Capacity (The volume of cargo that can be delivered).Security (Likelihood of pilferage or damage).Speed (The time anticipated to complete, or the urgency of, the shipment).Cost (The carrier’s charge for the transport of the shipment).The use of a certain mode of transport, is driven by the varying importance of a range of factors: There are four modes of transportation employed for the movement of consumer goods in international trade, vessel (water), motor freight, rail, and air. If the cost of freight is too high, the product won’t move. The “Father of Containerization”, Malcolm McClean, once answered the question, “What is freight?” by saying “Freight is something that you add to the cost of your product. Gaps and misinformation create delays and increase costs. The timing of all this information is critical, as is the integrity of the data. Warehouses can then coordinate domestic distribution of the product. The warehouses must prepare space for the shipment and communicate receiving information back to payment coordinators. The shipment information must also be advised to the import trucker and import warehouse so that delivery can be coordinated. The shipment information will be communicated to a customhouse broker who will assist in clearing the shipment through customs and, if required, other government agencies. The freight forwarder works with the appropriate carrier to secure space and equipment to load the cargo.Ĭoncurrently, import personnel require the necessary documentation to facilitate the import process. Usually this is done through an intermediary known as a freight forwarder. Once the product is ready for shipment the vendor must provide an advanced shipping notice (ASN). All of these affect the efficient movement of the cargo and must be communicated to the vendor. Sourcing, traffic, import and production personnel input data on terms of sale, classification, documentation, routing, labelling and testing requirements. The logistics process begins with the placement of the purchase order. The diagram below demonstrates how data and documents that support international shipments flow from the inception of the order through warehouse delivery.
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