TransportationTotal transportation of commodities across the globe!!

March 6, 2020by adminewl0

Commodity Logistics

Commodities require specialized forms of transportation and storage. Due to its international character and the large quantities of commodity products being transferred all over the world, commodity logistics have a unique character.

Commodity Logistics

Commodity storage

Commodities are stored in different manners. This will mostly depend on the type of commodity, but can also be influenced by the transportation method. The commodity itself will, however, be the primary factor for selecting the most suitable storage method, as there are commodities that need to be protected against weather conditions, deterioration or physical damage.

Ocean freight

Ocean freight makes up for an important portion of the total transportation of commodities across the globe. Ships are a very effective method for transporting commodities since they are capable of transporting large quantities with relative safety. There are many different types of ships in different sizes.

Rail Freight

The use of railway cars is an effective method for transporting commodities. It is commonly a faster form of land transportation, compared to truck transportation. A single freight train is also capable of transporting a much greater cargo than a single truck.

Truck freight

Trucks perform an essential role in commodity transportation. They are capable of functioning as an intermediary between the other transportation types such as rail and ships and the destinations. Furthermore, they have the highest flexibility regarding trade routes and are also capable of transporting virtually any type of cargo.

Best commodity logistics

Intermodal Freight

Intermodal Freight describes the transportation of goods in standardized containers. This type of transport makes use of multiple transportation methods such as rail, ship and truck. The use of containers enables the freight to be safely and quickly transferred from one type of carrier onto the next.

Incoterms

Incoterms are a collective of international commercial terms published by the international chamber of commerce. These terms are widely used in international commercial transactions, to clarify the rights, risks, and obligations of both parties concerning the transportation of goods.

Freight exchange

A freight exchange is a virtual platform, where companies can either advertise on freight they want to be transported or offer cargo space to other companies. This helps increase the effectiveness of the international freighting companies, who now have a clear overview of available freight that’s being offered. And trading companies can engage in searching for a suitable transporter for their goods. In contrary to futures exchanges, freight exchanges are not a physical trading pit where freight and cargo space is traded. They are mainly websites who usually are subscription-based and may charge a small fee for placing an advert.

Ref: AGIBOO

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