Whether you are a small business or a large corporation, if you sell products, you have to move the logistics in or outside the country. In logistics, there are four major modes of transportation: ocean, road, rail, air, and multimodal (in which you can use one or two methods of transportation simultaneously).
There are several factors, such as cost, speed, reliability, size of shipment, and environmental impact, to consider while choosing the mode of transportation for your logistics. That’s why we have not just listed the mode of transportation but also the advantages and disadvantages of each method. It would be easy for you to decide which method is best for your business.
What is freight transportation?
Freight transport is the physical process of transporting commodities and merchandise. There are various modes of transportation, such as trucks, ships, airplanes, and ships.
It is an important aspect of the global economy as the economies of the country now depend
on importing goods and commodities from other countries. Disruption in the supply chain creates serious challenges for the economies of the countries.
Advantage of freight transportation
Taking the services of a freight forwarder is important for your business. There are a lot of advantages of using freight transport to import and export your goods, such as flexibility, tracking, reliability, compliance, insurance, and reduced environmental impact.
We have explained some of the advantages in the article.
Cargo tracking
The companies that ship their goods want to know where they are, how long it will take to reach their destination, and how much shipping will cost them. The technology of tracking, tracing, and price prediction has solved these questions. Answers to these questions could be given without human interaction on the shipping company’s website.
Accurate documentation
Shipping of goods between the countries may require some legal documents. The shipping companies can help you manage the process with paperwork and make sure that everything is in order and that cargo is delivered according to legal processes. Inaccurate documentation can cause long delays, fines, and goods being held at the port.
Improved flexibility Freight transportation can help businesses to expand their reach and grow their customer bases. Shipping companies provide various modes of transportation, you can choose according to your needs and requirements. They help you to reach customers that otherwise are difficult to reach.
Reduce environmental impact
Cargo ships have a very high carrying capacity. These ships can contain from 500 tons to a whopping 300,000. It reduces the amount of fuel that would be used to transport these goods if you shipped otherwise. Now, some shipping companies are using electric trucks and autonomous trucks instead of combustion engine trucks, which will drastically reduce carbon emissions into the environment.
Types of freight transportation
There are four major types of freight transportation: road, rail, ocean/ship, and air. The other is multimodal transport, in which two or more modes of transportation are used. To make an informed decision, you must know the pros and cons of each type.
Ocean/sea transport
Sea transport is the most common way of moving commodities around the world. According to statistics, the world’s ten largest ports are responsible for the transportation of 275 million containers per year. More than 90% of logistic transportation is carried out by sea.
In this mode of transportation, cargoes are loaded into standardized shipping containers, and then these containers are stacked on the ship. There are specialized containers that can carry liquids to perishable foods and can preserve them for a longer period of time. Ships have greater carrying sizes than all other modes of transporting logistics. They can carry 500 tonnes to 300,000 tons of items.
Benefits of sea freight
Capacity: Ocean freight has the largest carrying capacity compared to other means of transportation. Best way to transport large and heavy goods.
Cost-effective: Ocean freight is cheaper than air freight due to the difference in the cost of fuel and the capacity to carry the goods. Ocean shipping can transport goods around the world.
Flexibility: If you have some boxes to ship, you can do so by ocean freight. The shipping companies give flexibility by providing the services of less-than-container load (LCL) and Full container load (FCL)
Safe: In se freight, cargo goes through minimal handling that reduces the chances of tampering and breaking of goods. Also, the slow motion of vessels adds safety to goods and products.
Environmental impact: Ocean freight is more environmentally friendly than air freight because sea freight consumes less fuel than airplanes.
Drawbacks of sea freight
Sea freight can take much longer to deliver your goods; if you want your items to be delivered faster, you can opt for air or road transport. The cargo ships also have longer transit times, which means it will take more days to deliver your items to destinations.
Some countries are landlocked. So there are other options than sea freight. To reach the country, either air freight or overland freight is the mode of transportation.
Rail transport
Rail transport involves the use of trains to transport goods. Rail transportation is an ideal choice for countries with good rail networks. In 2022, rail transportation of goods between Canada and the US was 16%. It has a large carrying capacity. It is also more environmentally friendly than road transport because it produces less emission.
The main disadvantage is it is less flexible than road transport as it requires a rail network and terminals. Containerized cargo can be moved by rails, which makes it the best choice for intermodal transportation (where two or more modes of transport move freight), e.g., from port to port via sea vessel and then inland via rail.
Benefits of rail freight
Capacity: Train freight offers more carrying capacity than road freight. It also gives the option of LCL (less-than-a-container load). In inland transportation, bulk or heavy items can more easily be transported via rail than road.
Environmental impact: Rail freight has traditionally a lower carbon footprint than other modes of transport. The train can move 500 tons of weight on one gallon of fuel. It emits 75% lower carbon emissions than road freight.
Traffic congestion: If we move the freight over trains rather than roads, the number of trucks on the road will be significantly reduced. Trucks could be the source of accidents and also lead to traffic congestion in urban centers.
Drawback of rail freight
Generally, the countries have well-connected rail networks, but transporting goods to their destination needs additional transport. Door-to-door services that are available in road freight are only possible in rail freight if they have predefined routes.
Air transport
Air freight involves the use of airplanes to transport goods. Air freight is accessible all over the world. Air freight can be useful if you want to send aid to war-torn countries. It is a faster mode of transportation compared to all other modes.
Air cargo consists of specialized airplanes that are only used for the transportation of goods. Different logistic companies have their air cargo. This is the most expensive way of transporting goods.
Benefits of air freight
Speed: Speed is the unique selling point of air freight. Flights are not delayed more than hours. It allows a direct route to the destination compared to other modes of freight.
Flexible and reliable: Air cargo has only a few weather-related delays. They are fixed schedules that do not maintain the proper functioning of the air traffic system. It allows you to make last-minute changes, and it is the best mode of transportation for urgent deliveries.
Drawbacks of air freight
Air freight is the most expensive way of transporting goods. The cost of air freight depends on various factors such as fuel cost, distance of shipment, cargo size, and handling fees.
Road transport
Road freight is the most common alternative for the transportation of goods. Road freight involves small pickups, vans, trucks, and tractor-trailers. It is used to transport goods overland. It is the most flexible mode of freight as it allows to pick up goods from the door and deliver them to door
Road freight accounts for 55% of the traffic between the USA and Canada, thanks to the extensive road networks connecting the two countries. Even when goods are transported by rail, sea, or air, road freight is often essential for delivering them to their final destination. Similarly, within the EU, road transport is a cornerstone of cross-border logistics, connecting member states and ensuring smooth trade flows. The CEMT permit plays a vital role here, simplifying international road transport by allowing carriers to operate across multiple countries without requiring separate permits for each.
Benefits of road freight
Accessibility: Road freight is a highly accessible transportation mode. Every country in the world has road networks that make it the most common way of transporting goods.
Cost-effective: Road transportation can be one of the most cost-effective ways of transporting logistics. It allows safe and easy loading and unloading of goods. When you have to transport the logistics inside the country from one city to another, road freight is the preferred mode of transportation.
Flexibility: You can easily adjust routes in road freight. You can find specialized containers if you want to transport hazardous materials or perishable goods. You can also track your shipments in road freight as in other modes of transportation.
The drawback of road freight
Extreme weather conditions could make the road freight unsafe. If you want to transport heavy or bulky items over long distances, rail freight is a better option than road freight. Road freight is used for very localized transportation of goods.
It is not suitable for trans-globe logistics transportation. In case of a road close, maintenance of the road would affect the delivery dates of logistics and can also disrupt the company’s supply chain.
What is multimodal transportation?
There are other ways of transporting goods. The four major modes of transportation listed above are rail, road, sea, and air. It is actually the use of two or more modes of transportation to reach a destination.
If the goods are transported by ships, the container would be offloaded at the port. And from the port, it would be transferred inside the country via roads or rail networks. The same is the case when air freight is used for trans-globe transportation of logistics. Read more about multimodal transport.
What is the best way of transporting goods?
The best way of transporting logistics depends on various factors such as the types of goods being transported, distance, volume of goods, time sensitivity, and budget.
Road freight: if you want to send items over a short distance, road freight is a better option. It allows you to send any item, from perishable food items to hazardous materials.
Rail freight: it is a safe and sustainable mode of transportation if you want to transport items over a longer distance.
Ocean freight: The most affordable way for transporting goods internationally. Large volumes of goods can be transported via sea freight.
Air freight: it is the fastest way of transporting goods locally and internationally. But this facility comes with a cost. Perishable items and luxury goods can be transported via air freight.
Ultimately, the best way of transporting goods is the one that meets your business needs and specifications.
