Cargo

Last updated February 21, 2024

In transportation, freight refers to goods conveyed by land, water or air,^[1] while cargo refers specifically to freight when conveyed via water or air.^[2]^[3] In economics, freight refers to goods transported at a freight rate for commercial gain. The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facilities, including warehouses.

Multi-modal container units, designed as reusable carriers to facilitate unit load handling of the goods contained, are also referred to as cargo, especially by shipping lines and logistics operators. When empty containers are shipped each unit is documented as a cargo and when goods are stored within, the contents are termed containerized cargo. Similarly, aircraft ULD boxes are also documented as cargo, with an associated packing list of the items contained within.

Description

Marine

Container ship at the Port of Helsinki in Finland CargoShip.jpg — Container ship at the Port of Helsinki in Finland

Seaport terminals handle a wide range of maritime cargoes.

Break bulk / general cargo are goods that are handled and stowed piecemeal to some degree, as opposed to cargo in bulk or modern shipping containers. Typically bundled in batches for hoisting, either with cargo nets, slings, crates, or stacked on trays, pallets or skids; at best (and today mostly) lifted directly into and out of a vessel's holds, but otherwise onto and off its deck, by cranes or derricks present on the dock or on the ship itself. If hoisted on deck instead of straight into the hold, liftable or rolling unit loads, like bags, barrels/vats, boxes, cartons and crates, then have to be man-handled and stowed competently by stevedores. Securing break bulk and general freight inside a vessel, includes the use of dunnage. When no hoisting equipment is available, break bulk would previously be man-carried on and off the ship, over a plank, or by passing via human chain. Since the 1960s, the volume of break bulk cargo has enormously declined worldwide in favour of mass adoption of containers. Bulk cargo, such as salt, oil, tallow, but also scrap metal, is usually defined as commodities that are neither on pallets nor in containers. Bulk cargoes are not handled as individual pieces, the way heavy-lift and project cargo are. Alumina, grain, gypsum, logs, and wood chips, for instance, are bulk cargoes. Bulk cargo is classified as liquid or dry.

Air

Air cargo refers to any goods shipped by air, whereas air freight refers specifically to goods transported in the cargo hold of a dedicated cargo plane.^[4] Aircraft were first used to carry mail as cargo in 1911. Eventually manufacturers started designing aircraft for other types of freight as well.

There are many commercial aircraft suitable for carrying cargo such as the Boeing 747 and the more prominent An‑124, which was purposely built for easy conversion into a cargo aircraft. Such large aircraft employ standardized quick-loading containers known as unit load devices (ULDs), comparable to ISO containers on cargo ships. ULDs can be stowed in the lower decks (front and rear) of several wide-body aircraft,^[5] and on the main deck of some narrow-bodies. Some dedicated cargo planes have a large opening front for loading.

Air freight shipments are very similar to LTL shipments in terms of size and packaging requirements. However, air freight or air cargo shipments typically need to move at much faster speeds than 800 km or 497 mi per hour. While shipments move faster than standard LTL, air shipments do not always actually move by air. Air shipments may be booked directly with the carriers, through brokers or with online marketplace services. In the US, there are certain restrictions on cargo moving via air freight on passenger aircraft, most notably the transport of rechargeable lithium-ion battery shipments.

Shippers in the US must be approved and be "known" in the Known Shipper Management System before their shipments can be tendered on passenger aircraft.

Rail

Trains are capable of transporting a large number of containers that come from shipping ports. Trains are also used to transport water, cement, grain, steel, wood and coal. They are used because they can carry a large amount and generally have a direct route to the destination. Under the right circumstances, freight transport by rail is more economical and energy efficient than by road, mainly when carried in bulk or over long distances.

The main disadvantage of rail freight is its lack of flexibility. For this reason, rail has lost much of the freight business to road transport. Rail freight is often subject to transshipment costs, since it must be transferred from one mode of transportation to another. Practices such as containerization aim at minimizing these costs. When transporting point-to-point bulk loads such as cement or grain, with specialised bulk handling facilities at the rail sidings, the rail mode of transport remains the most convenient and preferred option.

Many governments are encouraging shippers to increase their use of rail rather than transport because of trains' lower environmental disbenefits.

Road

Many firms, like Parcelforce, FedEx and R+L Carriers transport all types of cargo by road. Delivering everything from letters to houses to cargo containers, these firms offer fast, sometimes same-day, delivery.

A good example of road cargo is food, as supermarkets require deliveries daily to replenish their shelves with goods. Retailers and manufacturers of all kinds rely upon delivery trucks, be they full size semi trucks or smaller delivery vans. These smaller road haulage companies constantly strive for the best routes and prices to ship out their products. Indeed, the level of commercial freight transported by smaller businesses is often a good barometer of healthy economic development as these types of vehicles move and transport anything literally, including couriers transporting parcels and mail.^[6] You can see the different types and weights of vehicles that are used to move cargo around .^[7]

Less-than-truckload freight

Less than truckload (LTL) cargo is the first category of freight shipment, representing the majority of freight shipments and the majority of business-to-business (B2B) shipments. LTL shipments are also often referred to as motor freight and the carriers involved are referred to as motor carriers.

LTL shipments range from 50 to 7,000 kg (110 to 15,430 lb), being less than 2.5 to 8.5 m (8 ft 2.4 in to 27 ft 10.6 in) the majority of times. The average single piece of LTL freight is 600 kg (1,323 lb) and the size of a standard pallet. Long freight and/or large freight are subject to extreme length and cubic capacity surcharges.

Trailers used in LTL can range from 28 to 53 ft (8.53 to 16.15 m). The standard for city deliveries is usually 48 ft (14.63 m). In tight and residential environments the 28 ft (8.53 m) trailer is used the most.

The shipments are usually palletized, stretch [shrink]-wrapped and packaged for a mixed-freight environment. Unlike express or parcel, LTL shippers must provide their own packaging, as carriers do not provide any packaging supplies or assistance. However, circumstances may require crating or another substantial packaging.

Truckload freight

In the United States, shipments larger than about 7,000 kg (15,432 lb) are typically classified as truckload (TL) freight. This is because it is more efficient and economical for a large shipment to have exclusive use of one larger trailer rather than share space on a smaller LTL trailer.

By the Federal Bridge Gross Weight Formula the total weight of a loaded truck (tractor and trailer, 5-axle rig) cannot exceed 80,000 lb (36,287 kg) in the United States. In ordinary circumstances, long-haul equipment will weigh about 15,000 kg (33,069 lb), leaving about 20,000 kg (44,092 lb) of freight capacity. Similarly a load is limited to the space available in the trailer, normally 48 ft (14.63 m) or 53 ft (16.15 m) long, 2.6 m (102+3⁄8 in) wide, 9 ft 0 in (2.74 m) high and 13 ft 6 in or 4.11 m high overall.

While express, parcel and LTL shipments are always intermingled with other shipments on a single piece of equipment and are typically reloaded across multiple pieces of equipment during their transport, TL shipments usually travel as the only shipment on a trailer. In fact, TL shipments usually deliver on exactly the same trailer as they are picked up on.

Shipment categories

Freight is usually organized into various shipment categories before it is transported. An item's category is determined by:^{[ citation needed ]}

the type of item being carried. For example, a kettle could fit into the category 'household goods'.
how large the shipment is, in terms of both item size and quantity.
how long the item for delivery will be in transit.

Shipments are typically categorized as household goods, express, parcel, and freight shipments:^{[ citation needed ]}

Household goods (HHG) include furniture, art and similar items.
Express: Very small business or personal items like envelopes are considered overnight express or express letter shipments. These shipments are rarely over a few kilograms or pounds and almost always travel in the carrier's own packaging. Express shipments almost always travel some distance by air. An envelope may go coast to coast in the United States overnight or it may take several days, depending on the service options and prices chosen by the shipper.
Parcel: Larger items like small boxes are considered parcels or ground shipments. These shipments are rarely over 50 kg (110 lb), with no single piece of the shipment weighing more than about 70 kg (154 lb). Parcel shipments are always boxed, sometimes in the shipper's packaging and sometimes in carrier-provided packaging. Service levels are again variable but most ground shipments will move about 800 to 1,100 km (497 to 684 mi) per day. Depending on the package's origin, it can travel from coast to coast in the United States in about four days. Parcel shipments rarely travel by air and typically move via road and rail. Parcels represent the majority of business-to-consumer (B2C) shipments.
Freight: Beyond HHG, express, and parcel shipments, movements are termed freight shipments.

Shipping costs

An LTL shipper often realizes savings by utilizing a freight broker, online marketplace or another intermediary, instead of contracting directly with a trucking company. Brokers can shop the marketplace and obtain lower rates than most smaller shippers can obtain directly. In the LTL marketplace, intermediaries typically receive 50% to 80% discounts from published rates, whereas a small shipper may only be offered a 5% to 30% discount by the carrier. Intermediaries are licensed by the DOT and have the requirements to provide proof of insurance.

Truckload (TL) carriers usually charge a rate per kilometre or mile. The rate varies depending on the distance, geographic location of the delivery, items being shipped, equipment type required, and service times required. TL shipments usually receive a variety of surcharges very similar to those described for LTL shipments above. There are thousands more small carriers in the TL market than in the LTL market. Therefore, the use of transportation intermediaries or brokers is widespread.

Another cost-saving method is facilitating pickups or deliveries at the carrier's terminals. Carriers or intermediaries can provide shippers with the address and phone number for the closest shipping terminal to the origin and/or destination. By doing this, shippers avoid any accessorial fees that might normally be charged for liftgate, residential pickup/delivery, inside pickup/delivery, or notifications/appointments.

Shipping experts optimize their service and costs by sampling rates from several carriers, brokers and online marketplaces. When obtaining rates from different providers, shippers may find a wide range in the pricing offered. If a shipper in the United States uses a broker, freight forwarder or another transportation intermediary, it is common for the shipper to receive a copy of the carrier's Federal Operating Authority.^[8] Freight brokers and intermediaries are also required by Federal Law to be licensed by the Federal Highway Administration. Experienced shippers avoid unlicensed brokers and forwarders because if brokers are working outside the law by not having a Federal Operating License, the shipper has no protection in case of a problem. Also, shippers typically ask for a copy of the broker's insurance certificate and any specific insurance that applies to the shipment.

Overall, shipping costs have fallen over the past decades. A further drop in shipping costs in the future might be realized through the application of improved 3D printing technologies.^[9]

Security concerns

Governments are very concerned with cargo shipment, as it may bring security risks to a country. Therefore, many governments have enacted rules and regulations, administered by a customs agency, for the handling of cargo to minimize risks of terrorism and other crime. Governments are mainly concerned with cargo entering through a country's borders.

The United States has been one of the leaders in securing cargo. They see cargo as a concern to national security. After the terrorist attacks of September 11th, the security of this magnitude of cargo has become highlighted on the over 6 million cargo containers that enter the United States ports each year.^[10] The latest US Government response to this threat is the CSI: Container Security Initiative. CSI is a program intended to help increase security for containerized cargo shipped to the United States from around the world.^[11] Europe is also focusing on this issue, with several EU-funded projects underway.

Stabilization

Many ways and materials are available to stabilize and secure cargo in various modes of transport. Conventional load securing methods and materials such as steel strapping and plastic/wood blocking and bracing have been used for decades and are still widely used. Present load-securing methods offer several other options, including polyester strapping and lashing, synthetic webbings and dunnage bags, also known as airbags or inflatable bags.

Practical advice on stabilization is given in the International Guidelines on Safe Load Securing for Road Transport.^[12]

Stabilization methods
Application in container
Polyester strapping and dunnage bag
Polyester lashing
Bronze Age amphorae from shipwrecks near Bodrum, Turkey, with rack and roping device illustrating how they might have been kept from shifting

Related Research Articles

Freight transport, also referred as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the military environment, is also used in the same sense.

Containerization is a system of intermodal freight transport using intermodal containers. Containerization, also referred as container stuffing or container loading, is the process of unitization of cargoes in exports. Containerization is the predominant form of unitization of export cargoes, as opposed to other systems such as the barge system or palletization. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail transport flatcars, and semi-trailer trucks—without being opened. The handling system is mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems.

An intermodal container, often called a shipping container or ISO Container, is a large standardized container designed and built for intermodal freight transport, meaning these containers can be used across different modes of transport – such as from ships to trains to trucks – without unloading and reloading their cargo. Intermodal containers are primarily used to store and transport materials and products efficiently and securely in the global containerized intermodal freight transport system, but smaller numbers are in regional use as well. These containers are known under a number of names. Based on size alone, up to 95% of intermodal containers comply with ISO standards, and can officially be called ISO containers. Many other names are simply: container, cargo or freight container, shipping, sea or ocean container, container van or sea van, sea can or C can, or MILVAN, SEAVAN, or RO/RO. The also used term CONEX (Box) is a technically incorrect carry-over usage of the name of an important predecessor of the international ISO containers, namely the much smaller prior steel CONEX boxes used by the U.S. Army.

Package delivery or parcel delivery is the delivery of shipping containers, parcels, or high-value mail as single shipments. The service is provided by most postal systems, express mail, private courier companies, and less-than-truckload shipping carriers. Package delivery is different in each country, and how packages are delivered is closely connected with the cost for delivering to that country as well as population. In 2019, China, The United States, and Japan were the leaders in package delivery while Latvia, Macau, and Iceland were the bottom three. The population of the bottom three barely totals 2 million while the population of the top three tops totals more than 2 billion. Package delivery is an every day occurrence in the US while many other countries do not have this luxury.

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law or define where title to goods transfers.

Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation, without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damage and loss, and allows freight to be transported faster. Reduced costs over road trucking is the key benefit for inter-continental use. This may be offset by reduced timings for road transport over shorter distances.

FOB is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce. FOB is only used in non-containerized sea freight or inland waterway transport. As with all Incoterms, FOB does not define the point at which ownership of the goods is transferred.

Rail freight transport is the use of railways and trains to transport cargo as opposed to human passengers.

Truckload shipping is the movement of large amounts of homogeneous cargo, generally the amount necessary to fill an entire semi-trailer or intermodal container. A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. This is as opposed to a less-than truckload (LTL) company that generally mixes freight from several customers in each trailer. One advantage Full Truckload (FTL) carriers have over Less than Truckload carriers is that the freight is never handled en route, whereas an LTL shipment will typically be transported on several different trailers. Truckload shipments are typically run on 48' or 53'dry van trailers which will hold 24 or 26 pallets respectively.

A freight rate is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport, the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.

Less-than-truckload shipping or less than load (LTL) is the transportation of an amount of freight sized between individual parcels and full truckloads. Parcel carriers handle small packages and freight that can be broken down into units less than approximately 150 pounds (68 kg). Full truckload carriers move entire semi-trailers. Semi-trailers are typically between 26 and 53 feet and require a substantial amount of freight to make such transportation economical. The term LTL can refer to the freight itself, or to the carrier that transports the such freight.

A freight forwarder or forwarding agent is a person or a company who co-ordinates and organizes the movement of shipments on behalf of a shipper by liaising with carriers. The carriers may use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often use multiple modes for a single shipment. A freight forwarder does not move the goods but acts as an agent in the logistics network and will carry out freight consolidation, rate negotiations, shipment tracking, customs and other documentation, among other tasks. FIATA describes a freight forwarder as the "Architect of transport".

Freight companies are companies that specialize in the moving of freight, or cargo, from one place to another. These companies are divided into several variant sections. For example, international freight forwarders ship goods internationally from country to country, and domestic freight forwarders, ship goods within a single country.

Dimensional weight, also known as volumetric weight, is a pricing technique for commercial freight transport, which uses an estimated weight that is calculated from the length, width and height of a package.

A specialized set of jargon describe the tools, equipment, and employment sectors used in the trucking industry in the United States. Some terms may be used within other English-speaking countries, or within the freight industry in general. For example, shore power is a term borrowed from shipping terminology, in which electrical power is transferred from shore to ship, instead of the ship relying upon idling its engines. Drawing power from land lines is more efficient than engine idling and eliminates localized air pollution. Another borrowed term is "landing gear", which refers to the legs which support the front end of a semi-trailer when it is not connected to a semi-truck. Some nicknames are obvious wordplay, such as "portable parking lot", in reference to a truck that carries automobiles.

A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. In the context of international shipping trade, "container" or "shipping container" is virtually synonymous with "intermodal freight container", a container designed to be moved from one mode of transport to another without unloading and reloading.

Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the associated processes.

A shipping agency, shipping agent, or ship agency is the term used to refer to the appointed companies that handle operational and procedural (legal) requirements for a commercial vessel's call at a port for the purposes of cargo handling (loading/discharging), emergency calls, repairs, crew changes, or ship demolition, and protect the general interests of their principals on behalf of ship owners, disponent owners, or charterers in an objective manner.

A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. Although the term is historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods. Bills of lading are one of three crucial documents used in international trade to ensure that exporters receive payment and importers receive the merchandise. The other two documents are a policy of insurance and an invoice. Whereas a bill of lading is negotiable, both a policy and an invoice are assignable. In international trade outside the United States, bills of lading are distinct from waybills in that the latter are not transferable and do not confer title. Nevertheless, the UK Carriage of Goods by Sea Act 1992 grants "all rights of suit under the contract of carriage" to the lawful holder of a bill of lading, or to the consignee under a sea waybill or a ship's delivery order.

A freight broker is an intermediary between a shipper and a freight service provider. Freight brokers can specialize in certain types of freight, such as equipment hauling on lowboys, oversize, bulk tanker, auto, or other types of freight transportation.

References

↑ "Freight Definition & Meaning". Dictionary.com. Retrieved 2023-06-27.
↑ "Cargo Definition & Meaning". Dictionary.com. Retrieved 2023-06-27.
↑ "CARGO Definition & Legal Meaning". Black's Law Dictionary (2nd ed.). 4 November 2011. Archived from the original on 24 January 2023. Retrieved January 24, 2023.
↑ "Air cargo VS. Air freight". AN Aviation Servies.
↑ In an all-freight configuration also on their main deck, but this is less common.
↑ "Transportation is a crucial driver of economic growth and poverty reduction". The World Bank. Archived from the original on 30 June 2013. Retrieved 14 April 2013.
↑ "Archived copy". Archived from the original on 2015-02-10. Retrieved 2015-01-29.{{cite web}}: CS1 maint: archived copy as title (link)
↑ Federal Motor Carrier Safety Administration Archived 2013-02-22 at the Wayback Machine
↑ Durach, Christian F.; Kurpjuweit, Stefan; Wagner, Stephan M. (2017-09-25). "The impact of additive manufacturing on supply chains". International Journal of Physical Distribution & Logistics Management. 47 (10): 954–971. doi:10.1108/ijpdlm-11-2016-0332. ISSN 0960-0035.
↑ "News Releases - Newsroom - United States Senator Patty Murray". www.murray.senate.gov. Archived from the original on May 31, 2007.
↑ "CSI: Container Security Initiative". Archived from the original on October 10, 2006.
↑ "International Guidelines on Safe Load Securing for Road Transport" (PDF). Archived from the original (PDF) on July 6, 2015.

Reference bibliography

- Cambridge Systematics (1998). Multimodal corridor and capacity analysis manual. Transportation Research Board. ISBN 978-0-309-06072-1.

External links

The dictionary definition of cargo at Wiktionary
Media related to Freight at Wikimedia Commons

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.

[1] "Freight Definition & Meaning". Dictionary.com. Retrieved 2023-06-27.

[2] "Cargo Definition & Meaning". Dictionary.com. Retrieved 2023-06-27.

[3] "CARGO Definition & Legal Meaning". Black's Law Dictionary (2nd ed.). 4 November 2011. Archived from the original on 24 January 2023. Retrieved January 24, 2023.

[4] "Air cargo VS. Air freight". AN Aviation Servies.

[5] In an all-freight configuration also on their main deck, but this is less common.

[The_World_Bank-6] "Transportation is a crucial driver of economic growth and poverty reduction". The World Bank. Archived from the original on 30 June 2013. Retrieved 14 April 2013.

[7] "Archived copy". Archived from the original on 2015-02-10. Retrieved 2015-01-29.{{cite web}}: CS1 maint: archived copy as title (link)

[8] Federal Motor Carrier Safety Administration Archived 2013-02-22 at the Wayback Machine

[9] Durach, Christian F.; Kurpjuweit, Stefan; Wagner, Stephan M. (2017-09-25). "The impact of additive manufacturing on supply chains". International Journal of Physical Distribution & Logistics Management. 47 (10): 954–971. doi:10.1108/ijpdlm-11-2016-0332. ISSN 0960-0035.

[10] "News Releases - Newsroom - United States Senator Patty Murray". www.murray.senate.gov. Archived from the original on May 31, 2007.

[11] "CSI: Container Security Initiative". Archived from the original on October 10, 2006.

[12] "International Guidelines on Safe Load Securing for Road Transport" (PDF). Archived from the original (PDF) on July 6, 2015.

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