Shipping

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Shipping

Shipping is physical process of transport

Transport

Transport or transportation is the movement of passenger and cargo from one location to another. Transport is performed by various modes of transport, such as aviation, rail transport, road transport, ship transport, cable transport, pipeline transport and space transport....
ing goods

Product (business)

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce from the Latin produce, lead or bring forth....
and cargo

Cargo

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Encyclopedia

Shipping is physical process of transport

Transport

Product (business)

Cargo

Cargo refers to goods or produce transported, generally for Commerce gain, by Cargo ship, Cargo airline, Train#Freight trains, van or truck. In modern times, containers are used in most intermodal freight transport long-haul cargo transport....
. Virtually every product ever made, bought, or sold has been affected by shipping. Despite the many variables in shipped products and locations, there are only three basic types of shipments: land, air, and sea.

Land or "ground" shipping can be either by train or by truck. Trucking is easily the most popular form of shipping. Even in Air and Sea shipments, ground transportation is still required to take the product from its origin to the airport or seaport and then to its destination. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea. Trucks are also much faster than ships and rail but slower than planes.

Many trucks will take freight directly from the shipper to its destination in what is known as a door to door shipment. Vans and trucks of all sizes make deliveries to sea ports and air ports where freight is moved in bulk also.

Much shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to its merchant navy

Merchant Navy

The British Merchant Navy, known simply as the Merchant Navy, is the maritime register of the United Kingdom, and describes the seagoing commercial interests of UK-registered ships and their crews....
or merchant marine. Merchant shipping is essential to the world economy, carrying the bulk of international trade. The ships are also extremely expensive constructions themselves, being some of the largest man-made vehicles ever. The term originates with the shipping trade of wind power

Wind power

Wind power is the conversion of wind energy into a useful form, such as electricity, using wind turbines. At the end of 2008, worldwide nameplate capacity of wind-powered generators was 120.8 gigawatts....
ships, and has come to refer to the delivery of cargo and parcel

Parcel

Parcel may refer to:* Lot , a piece of land* Air parcel, a concept in atmospheric thermodynamics* A package, sent through the mail* An object used in the game "Pass the parcel"...
s of any size above the common mail

Mail

Mail, or post, is a method for transmitting information and tangible objects, wherein written documents, typically enclosed in envelopes, and also small packages, are delivered to destinations around the world....
of letters and postcard

Postcard

A postcard or post card is a rectangular piece of thick paper or thin Card stock intended for writing and mailing without an envelope and at a lower rate than a letter ....
s.

Ground shipping can be cheaper and less restrictive to size, quantity, weight, and type of freight than by air transport. Air transport is usually reserved for products which must be sent within a shorter time frame. Some carriers offer ground shipping that operates on an exact timeline as air does. This is a recent development becoming mainstream among major carriers since the late 1990s. UPS and FedEx both offer guaranteed day ground shipping.

Terms of shipment

The most common trading terms used in shipping goods internationally are:

Freight on board, or free on board (FOB): freight on board means that the exporter delivers the goods at the specified location (and on board the vessel). This means any cost to load and lash, including securing cargo not to move in the ships hold, place something under the cargo so it is protected from contact with the double bottom to prevent slipping, and protection against damage from condensation, are to be paid by the exporter. An example is, FOB Kunming Airport (the exporter delivers the goods at Kunming airport) and pays for the cargo to be loaded and secured on the plane. This means an exporter is bound to deliver the goods at the Kunming Airport at his cost and expenses. In this case, the freight and other expenses for outbound traffic is borne by the importer.

Cost and freight (C&F, CFR, CNF): (With insurance payable by the importer). The exporter pays the ocean shipping/air freight costs to the specified location. Example, C&F Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles). Many of the shipping carriers (such as UPS, DHL, FEDEX) offer guarantees on their delivery times. These are known as GSR guarantees or "guaranteed service refunds". This means that if the parcels are not delivered on time, the customer is entitled to a refund on the shipping cost.

Cost, insurance, and freight (CIF): Insurance and freight are all paid by the exporter to the specified location. Example, CIF Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles including the insurance).

Shipping

Terms of shipment

See also