Transportation & Logistics

When you start any business, you constantly analyze the various factors that can minimize the losses and maximize the profits. Transportation has become a vital part of business, be it business within a single country or international.

Goods and services are transported via many routes including railways, ships, roadways, and air. Of all these, air transport has acquired a key position in the world of business. Airfreight has boosted business and trade to a great extent. This article will help you understand why air transport is so important in business

High Speed

Speed is a crucial element in every aspect of life in today’s world. A fast production of goods followed by slow transport can have devastating effects on one’s business.

Therefore, the means by which goods and services are transported need to be fast and efficient. Airfreight is probably the fastest mode of transport so far. Speedy delivery of goods and services from one corner of the world to another has revolutionized the trade industry.

Overcoming Geographical Barriers

When it comes to long-distance trade, geographical barriers including rocky mountains, oceans, forests, etc. can prove to be a big hurdle in the transport of goods.

The use of airplanes for transportation of cargo has allowed us to overcome such barriers and has made such long-distance trade not only possible but much easier than ever.

Safety of Goods

Damage or theft of goods on their way to their final destination is a source of huge loss for any businessman. History gives us many examples of goods being stolen by bandits or pirates when transported via roadways and water respectively.

Thus, it is very important to ensure that the transported goods are well protected and air freight has proven a very reliable means of transport in this regard

Transport of Large quantities of Goods

Air transport allows us to send very large quantities of goods worldwide. Thus a single plane can be used to transport way more cargo than a two or three vehicles carrying goods via roadways. This makes air freight cost-friendly, but only in the case of long-distance transport.

Price Stabilization

In the past, due to slow transport, goods were produced and stored and transported when asked for. Even though large quantities of goods were available in the storage, due to the slow transport, the demand was not fulfilled rapidly as now, creating a false scarcity at times and leading to inflation.

However, in these days, rapid air transport allows us to produce goods when there is demand, without much need for storage. This creates equilibrium between the supply and demand and stabilizes the prices of various goods and services.

Globalization of Markets

Our world has become a global village. Air transport has played a vital role in the globalization of markets. Goods and services can be exchanged across the globe at very reasonable prices.

This has allowed expansion of business across the globe and goods are now available in almost every part of the world due to the high-speed air freight.

The Cons

Despite the amazing advantages of air transport, it’s cons can not be ignored. Airfreight carries with it huge risks. Accidents involving airplanes, such as air crashes, rarely have any chances of survival and there is large scale loss of lives and goods.

Moreover, under bad weather conditions, air transport can come to a complete halt. Also, inflammable substances, corrosives, explosives, and toxic materials are not allowed to be transported via air.

Conclusion

Air transport, due to its high speed and efficiency, has made business much easier, overcoming hurdles that mankind considered impossible to overcome in the past. It has had no less than a revolutionary impact on the business industry throughout the world.

For centuries, railways have been used for trade and business purposes. The earliest known railway systems date back to the mid 16th century in Germany. These early forms of railways were hauled by horses. Later, steam-powered vehicles were invented in Great Britain in the 19th century. These British railway systems stand today as one of the oldest functional systems of rails in the world.

Advancement in science and technology has had revolutionary impacts on the various means of transport including railways. Commencing as horse-driven wagonways, the railway systems today have advanced to the level of electric bullet trains, thanks to the developments in science and technology.

The business sector has almost always benefited from the railway transport. Carrying goods and passengers across lengthy distances, trains have been proving their worth ever since they were made.

In fact, there are some traces which suggest that the Diolkos, a paved pathway near Corinth, Greece, used to be a railway track that operated from 600 BC to the mid-1st century AD. This shows that railways have been an important asset for the business sector for a very long time.

There are a lot of different forms of railways, some of which are rudimentary and exist only in books or museums while others are helping us humans transport people and goods at this very moment.

Types of Railway Transport

As mentioned before, the earliest forms of trains consisted of wagons hauled by horses, and in certain cases even by humans. These are no longer in use, but can easily be called as the ancestors of the modern-day trains, carrying various goods and commodities from one place to another. When it comes to modern freight trains, we can classify them into various types on different bases. Here we have classified them into 3 types.

Mixed Freight Trains

As the name indicates, these trains carry goods of different types. Each of the cars carrying the goods has a specific destination where it is to be delivered. Therefore, the arrangement of cars behind the locomotive depends upon the order of the stations where the train will arrive.

Unit Trains

In contrast to mixed trains, the unit trains carry only one particular type of commodity. This train usually has a single route, thus carrying its freight from the same source to the same destination.

Examples of unit trains include coal-carrying “coal trains”, automobile carrying “auto trains”, and grain carrying “grain trains”.

Intermodal Trains

These trains have greatly improved the speed of transport of goods and commodities. Basically, intermodal trains carry goods inside containers. The containers can easily be loaded onto roadway vehicles, trains, and even ships, using cranes, thus speeding up the transfer of goods from one mode of transport to another. This saves much time and energy and has become an important tool in business.

Conclusion

Railway transport is an asset that allows us to transport huge quantities of all forms of goods along with a variety of distances. Many railway systems that were made centuries ago are still functioning and have proved the worth of this amazing means of transport. Even though people use it worldwide as passengers, the business sector greatly benefits from it as well.

Cars, grains, coal, oil, automobiles, clothes, and so many other forms of goods are transported each day in freight trains, and at very reasonable prices. Railway transport, indeed, is a very important luxury for us human beings in our private lives as well as our business.

A country is run on transportation. Transportation is a major part of any country or place as well as a huge part of a successful economy. Efficient transportation can increase the efficiency of a country and can make the logistics system better.

There are two types of transportations; one is the public transport and the other is the logistical transport. Public transport also encompasses private transportation and it means the vehicles of means of commute which take people from one place to another.

On the other hand, logistical transport means vehicles that carry things and stuff around from place to place. Because transportation is a very important thing and because it surrounds us; we must know about different modes of transportations along with their advantages and disadvantages.

List of different modes of transportations with pros and cons

Road Transportation

Road or land transportation is the identifiable way of getting from one place or another. You can travel on a road with any vehicle or animal be it a car, horse, bike camel or a truck. This way humans and things can commute through the road and it is considered as the safest way to travel.

Advantage of road transportation

• This transportation is nature friendly.
• By road transport, minor and remote areas can also be facilitated and explored.
• In road transport, you have a lot of vehicle options like cars, trucks, busses, bikes, rickshaws, etc.
• It requires a low capital investment rate.
• It is ideal for shorter journeys.

Disadvantages of road transportation

• A long road journey can be tiring.
• It is not economical enough to travel for longer distances.
• Slow as compared to air and rail transportation.
• It is time-consuming.

Railway Transportation

Railway is also a land transport but has a separate road for its cars. No ordinary car can use that road. It is an ideal way to transport goods from one city to another (within a country).

It is also ideal for passengers because it is not tiring and safer than road transportation. This means of transportation is also very fast and economical. Railway transportation can help the government of a country to provide administrative facilities to all the citizens.

Advantages of Railway transportation

• It is economical for longer distances because it can cover more land as it is fast.
• It can transport a huge amount of goods at affordable prices.
• It provides a comfortable ride to the passengers.
• It is one of the most dependable means of transport.
• It provides employment opportunities.

Disadvantages of railway transportation

• It requires a huge capital investment.
• It is not suitable for the mountains and hills.
• Mostly it is not nature friendly because of all the smoke and pollution.

Water Transportation

The vehicles that take people and goods from one place to another in the sea refer to water transportation. There are many pots around the world on which the boats and ships dock to load and unload goods as well as people.

The most important thing for which water transport is used is for cargo because ships can carry immense weights around for transportation. Water transport is a crucial element in the economy of a country; especially imports and exports.

There are many shipping companies in the world that provide vessel and freight facilities to International Trade.

Advantages of water transportation

• It is the cheapest and easiest way to commute.
• It promotes imports and exports.
• A huge amount of heavy goods can be transferred easily.
• It is less risky than any other transportation.

Disadvantages of water transportation

• The commute is very slow.
• The performance of this transportation highly depends on the seasons.
• Huge sips can’t get everywhere; it is limited.

Air Transportation

It is fast and the most modern way of transportation but it is also the most expensive way. It is ideal for the transportation of goods that have high value but are not very heavy. The time and cost of air operations are very high compared to other transportations.

Advantages of air transportation

• Fastest mode of transportation.
• Suitable for emergencies.
• Very useful in natural calamities like floods and earthquakes.
• An essential part of national security and defenses.

Disadvantages of air transportation

• A huge capital investment rate is needed.
• Working is affected by weather conditions.
• It can be highly risky if even a small thing goes wrong in the engine or with the pilot.
• Not suitable for heavy goods transportation.

Since ships can transport larger quantities of cargo and over longer distances than any other mode of transport. That’s exactly why it’s the preferred or the only feasible transportation in many cases.

Owing to this, it contributes a major percentage to the world’s economy. Whether it’s an export-import business that you are a part of or plan on moving across the borders, you’ll need to put some time and effort into researching the world’s best shipping companies.

Each one covers different countries, offer different prices and may take different routes for transportation. Here is a list of the top 7 shipping companies that you can pick from

APM-Maersk

With its headquarters in Copenhagen Denmark, AP Moller – Maersk is the biggest operating unit of the Maersk Shipping Line. The Maersk Line started operating from the year 1904 and has held its invincible reputation since then. Since its the largest container ship operator across the globe, it’s the number 1 preference of most businesses that are looking for international transportation. 

The company is estimated to transport cargo worth around $675 billion each year and runs its services across 130 countries. Currently, the company owns a fleet of 711 ships and makes a revenue of 40.3 Billion US Dollars. 

MSC – Mediterranean Shipping Company

The Mediterranean Shipping Company or MSC is headquartered in Geneva, Switzerland and started its operation from the year 1970. Holding the ownership of 524 container ships at present, it operates in over 150 countries. Currently, the company has over 480 offices in different locations around the world and has stopovers at 315 ports. 

MSC also owns 4 of the largest container ships present in the world. These large container ships have the capacity to carry 19,000 containers, 20 feet each. 70,000 employees are associated with the company and it generates over 28 billion US Dollars as revenue.

CMA-CGM

CMA-CGM Group is the third biggest shipping company in the world and is based in France. The headquarters of the company is in Marseille, France but it operates in 160 countries worldwide and calls at 420 ports situated across the waters. The company was founded in 1978 and currently generates a grand revenue of over 15.7 billion USD. They own a fleet of 509 vessels and 750 warehouses.

COSCO – China Ocean Shipping Company

More widely known as COSCO, the China Ocean Shipping Company is another one of the leading names in the shipping industry. The headquarters are situated in Beijing, China but the company operates in 40 countries around the globe. 

It owns 461 container ships presently, 5 of which are categorized among the top 10 largest container ships of the world. Each of these large ships can hold over 19,000 containers, 21 feet each. The company was founded in 1961 and generates a revenue of 10.2 billion USD in the present day.

Hapag-Lloyd

Another one of the renowned shipping companies in the world is Hapag-Lloyd which is based in Hamburg, Germany and operates 175 containers across 117 different countries globally. It started operating since 1970 and generates a revenue of 12 billion USD currently. 

Ocean Network Express (ONE)

Last but not least, we have a comparatively new shipping company which was launched by Japan in 2017. Although it’s a Japanese company, ONE has its headquarters in Singapore and covers most of Asia, Africa, and Latin America through its services. With over 217 vessels currently, it’s among the largest shipping companies in the world.

Evergreen Line

Evergreen Line (or Evergreen Marine Cooperation) is another Chinese shipping company that deserves a spot among the world’s largest container shipping companies. Dr. Yand Fa Chang founded the company back in 1968 and the headquarters are based in Taiwan. Currently, Evergreen Line holds the possession of more than 200 container ships.  

FCL(Full Container Load) containers are used for a type of shipment where the entire container is used by one single importer/exporter for shipping his cargo. Although a logistics company helps a person in calculating how many shipments he can fit in his container, it is important for the exporter as well to understand how these calculations are done so that he can plan his shipping more efficiently.

The number of shipments that can be shipped in one FCL container depends upon the capacity of the container and CBM (Cubic Meter) of each cargo. Freight charges also vary upon the size and volume of your cargo.

The more you understand these calculations, the better you can plan your shipment. Click here to know more about FCL shipments and plan your shipping with ease.

CBM of cargo is used to determine how many shipments will fit in an FCL container.

How is CBM calculated?

CBM stands for cubic meter which is defined as the freight volume of a cargo/shipment. The goods are packed in cubicle cartons which is why CBM is used as the measuring unit in freights. It is important in calculating how many shipments can be fitted in one container depending upon the container capacity.

CBM is generally calculated using a very simple – (Length*Width*Height). You can calculate CBM in a few simple steps, they are:

• Note down the dimensions- length, width and height of your cargo/shipping cartoon.
• Convert the measurements into metres(m). If the measurement is taken in centimetres, divide by 100. For example, if the length is 2500 cms it will equal to 25 metres. Similarly, if the length is taken in inches, multiply by 0.305. For example, if the length is 250 inches, it will equal to 76.25 metres.
• In this way, convert measurements of all the three dimensions into metres. Then apply the formula and get the value of CBM.
• For instance, if the measurements of the three dimensions are given as, length = 75m, width = 35m and height = 25m then CBM will equal to 65,625m.

In this way, the CBM of cargo can be calculated. The calculation is simple and can be done in a few minutes.

How many shipment units can fit in an FCL container?

The cargo containing capacity of an FCL container depends upon the type of FCL container that you choose. There are 3 most popular types of FCL containers that are used by the shippers, they are:

• 20 Feets FCL containers: The dimension of this container is 20ft*8ft*(8ft 6 inch)
• 40 Feets FCL containers: The dimensions of this equals to 40ft*8ft*(8ft 6 inch)
• 40 Feets HC(High Cube) containers: The dimensions of this equals to 40ft*8ft*(9ft 6 inch)

The knowledge of the loading capacity of a container is important so as to make an estimation of the amount of cargo that can be fitted in the container. When it comes to calculating the number of shipments that can be shipped in an FCL container, one needs to understand that it is practically not possible to use every inch of available space of a container.

Usually, as per the human tendency, a person expects to fill every corner of a container to make the optimum use of it as he is paying the price to own it. However, a container’s actual usable capacity is around 80-85% of its maximum capacity value.

Therefore, the exact number of shipments that one can fit in an FCL container depends upon the size of the cargo. The usable space may also vary if the cartoons are not equal in size and shape. Given that, one can make an estimation of how many shipments can be fit by considering the following data:

• A 20ft FCL container’s usable capacity is 24-28 CBM and the maximum is 33 CBM.
• A 40ft FCL container’s usable capacity is 56-58 CBM and the maximum is 66 CBM.
• A 40ft High Cube FCL container’s capacity is 62-28 CBM whereas the maximum is 72 CBM.

Knowing the capacity of a container and the CBM values of your shipments are very important. An FCL container is entirely for you to utilise and when you know the maths related to its loading, you can make the optimum utilisation of the container as well as the money that you pay for it.

FCL containers offer a lot of advantages at reasonable freight charges and it is up to you how you make the most of it.

Your shipments are much safer in FCL containers as you are in charge of it and you have the authority to decide the types of goods you will put in it. You should take help from your logistics company and make the entire shipment cost-effective.

Having the proper knowledge and expert assistance will help you to ship your cargo in a perfect way and make optimum use of the capacity of the containers.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

The value of worldwide seaborne trade has increased over the years. Moreover, Statista reported that the seaborne trade’s capacity of container ships was nearly ten times higher in 2016 compared to when it was back in 1990. The projected global number of containerships is predicted to be about more than 5,500 by the end of December next year.

While shipping goods via sea route may take the longest time compared to the other modes of transportation, Sea Freight Services have several key benefits over other freight forwarders. Here are five of the advantages of choosing sea or ocean freight services to manage your import or export business.

Offer a safe mode for long-distance goods transportation

When it comes to transporting goods over long distances, ocean freight offers the best and most reliable shipping mode. With sea freight services, companies can obtain the additional benefit of having their goods transported overseas under more thorough supervision than the standard services.

Moreover, compared to road transportation, shipping cargo through the ocean minimizes the chances of the goods getting damaged or lost.

Relatively inexpensive

Ocean freight is by far the cheapest option of transportation mode, compared to other types of cargo transportation, such as air freight. Cutting down on transportation costs is a smart way to increase the company’s revenue. Money saved from freight expenditure can be directed towards another essential things contributing to the success of the company.

Lowering down freight costs also allows a company to sell goods at a lower price point. This is apart from helping the company to stay ahead of the competition. So in a sense, sea forwarding can boost profitability.

Moreover, some goods are charged with a more expensive fee if transported by other means than the sea.

Eco-friendly

Companies with supply chain requirements are aware of the impact of freight forwarding service providers on the environment. With the degradation of our natural resources, it is always imperative to try to choose a greener option for cargo shipping.

Likewise, consumers are more informed of environmental concerns and may look for companies that adopt eco-friendly practices in their business.

Since logistics is an essential component of the operation of every business, companies need to watch for their carbon footprint caused by the transportation of goods. Choosing ocean freight services to lead to a lower harmful greenhouse gas emissions.

Other freight forwarding services, on the other hand, such as air freight, not only will cost more expensive, it also releases a considerable amount of toxic gasses.

Can ship large cargo volume and size

Space availability is a significant concern for most businesses, especially if with bulky goods. Fortunately, Sea Freight Services offer great flexibility when it comes to size, dimension, and cargo weight.

On the other hand, freight forwarding services like air freight has a strict policy with regards to the measurement of the goods and may impose certain limitations on particular products.

Better Documentation

International transportation requires plenty of documentation and paperwork. This, in itself,  can be quite challenging for most businesses, especially with the time management and tracking of appropriate documents.

Companies that choose to ship their goods via sea freight allow their documentation team to manage the complicated paper works. This ensures that the shipment is free of hassle.

When you need to ship a large number of goods, sea freight would be the best choice. Aside from offering an efficient and timely mode of transportation, sea freight service is cost-effective, eco-friendly, and can accommodate almost any type of cargo.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. Reach her on Email 

Freight invoice factoring is one of the golden buzz words in the shipping industry for managing cash flow effectively. Not only does the service provide your business with the right solutions, but it is one crucial step to getting payment discounts within a short period.

Many moving businesses, regardless of their size, find a freight factoring service beneficial because they reap the rewards for having back-office support. These companies primarily function to provide operational backing and immediate cash flow assistance.

Not only will freight factoring organize your entire operations, but the service also provides your company with the efficiency to manage billings and collections without exerting too much effort.

Some Important reasons why you should consider Factoring

In today’s business environment, where efficiency spells the difference between success and failure, finding freight factoring for your moving company spells the difference. Consider that OTR Capital is all about sustainability and the reliability to manage your cash flow.

Freight factoring is all about being prepared for some eventual necessities your company might experience. Take, for example, repairs, fuel consumption tracking, and payroll checks.

These are essential operational expenditures your company needs to manage well. By selling your invoices upfront, you are guaranteed full support for your billing and collection needs. A freight factoring service is also one right way of filing cash flow gaps, which often become a significant operational hindrance for transport companies. 

By having your invoices factored, your company expenses are covered during eventual needs. It is one of the most effective business financings for any shipping company as they get the needed monetary backing for slow-paying customers and freight bills.

Some of the reasons for considering freight factoring include

• Get a comprehensive commercial creditworthiness check for your prospective shipper or client.
• Quickly increase your customer base.
• Get access to better commercial financing and cash flow so your company can take more loads.

Focus on your core Operational Needs

Late-paying shippers and customers are often a stumbling block for most trucking service providers. In most instances, this means the inadequacy of financing other trucks and get them the needed funding.

This is what freight bill factoring tries to address, allowing trucking personnel to get a sustainable monetary backing to finance their operational needs. The primary consideration with freight factoring, though, is getting a reliable partner who seeks the betterment not only of their company, but also yours.

Factoring removes the burden of collecting payments from late payers. And once payments are settled, they are considered closed. This tactic removes all the pains of dealing with your customers for the entirety of their invoice.

It is a crucial element of sustaining your company’s momentum and removing all the unnecessary tasks that often becomes a drudgery to most trucking companies. Nascent companies who are trying to cut their expenses can also benefit from the services provided.

Extend your resources by removing unnecessary Collection Tasks

One concept of eradicating unwanted collection pains and headaches is to have you outsource your receivables to reliable freight factoring companies. This process allows you to get immediate payment for the outstanding invoices related to your completed works. It brings your working capital back so you can move on with your operations.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. Reach her on Email