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Transport or transportation is the movement of goods from one location to another. Modes of transport include air, rail, road, water and pipeline. The field can be divided into infrastructure, vehicles, and operations. Freight transport has become focused on containerization, although bulk transport is used for large volumes of durable items. Transport plays an important part in economic growth and globalization Freight transport, or shipping, is a key in the value chain in manufacturing. With increased specialization and globalization, production is being located further away from consumption, rapidly increasing the demand for transport.
While all modes of transport are used for cargo transport, there is high differentiation between the nature of the cargo transport, in which mode is chosen. Logistics refers to the entire process of transferring products from producer to consumer, including storage, transport, transshipment, warehousing, material-handling and packaging, with associated exchange of information. Incoterm deals with the handling of payment and responsibility of risk during transport. Containerization, with the standardization of ISO containers on all vehicles and at all ports, has revolutionized international and domestic trade, offering huge reduction in transshipment costs.
Traditionally, all cargo had to be manually loaded and unloaded into the haul of any ship or car; containerization allows for automated handling and transfer between modes, and the standardized sizes allow for gains in economy of scale in vehicle operation. This has been one of the key driving factors in international trade and globalization since the 1950s. Bulk transport is common with cargo that can be handled roughly without deterioration; typical examples are ore, coal, cereals and petroleum.
Because of the uniformity of the product, mechanical handling can allow enormous quantities to be handled quickly and efficiently. The low value of the cargo combined with high volume also means that economies of scale become essential in transport, and gigantic ships and whole trains are commonly used to transport bulk. Liquid products with sufficient volume may also be transported by pipeline. Air freight has become more common for products of high value; while less than one percent of world transport by volume is by airline, it amounts to forty percent of the value. Time has become especially important in regards to principles such as postponement and just-in-time within the value chain, resulting in a high willingness to pay for quick delivery of key components
or items of high value-to-weight ratio. In addition to mail, common items send by air include electronics and fashion clothing. Cross Docking
Cross-docking is a practice in logistics of unloading materials from an incoming truck and loading these materials directly into outbound trucks with little or no storage in between. This may be done to change type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same, or similar destination.
In the LTL trucking industry, cross-docking is done by moving cargo from one transport vehicle directly into another, with minimal or no warehousing. In retail practice, cross-docking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. Advantages of Retail Cross-Docking
* Streamlines the supply chain from point of origin to point of sale * Reduces handling costs, operating costs, and the storage of inventory * Products get to the distributor and consequently to the customer faster * Reduces, or eliminates warehousing costs
* May increase available retail sales space.
Disadvantages of Cross-Docking
* Potential partners don’t have necessary storage-capacities * or an adequate transport fleet to operate Cross-Docking * Need of adequate IT-Systems
* Possibility of violation of secrecy
Hub and Spoke
The hub-and-spoke distribution paradigm (or model or network) is a system of connections arranged like a chariot wheel, in which all traffic moves along spokes connected to the hub at the center. The model is commonly used in industry, in particular in transport, telecommunications and freight. The spoke-hub model is applicable to other forms of transportation: * Sea transport, where feeder ships transport shipping containers from different
ports to a central container terminal to be loaded onto larger vessels. * Cargo airlines; for example, most UPS Airlines flights travel through its “World port” at Louisville International Airport, and a significant portion of FedEx Express parcels are processed at its “Super Hub” at Memphis International Airport. * Freight rail transport, where cargo is hauled to a central exchange terminal. At the terminal, shipping containers are loaded from one freight car to another, and classification yards (marshalling yards) are used to sort freight cars into trains and divide them according to varying destinations.
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