The shipping industry is the most valuable and integral part of domestic and international trade as its contribution to world trade goes well over 90%. The shipping companies or freight companies are responsible for transporting cargo or freight from one place to another. They also specialize in customs clearance and customs duties. As part of their services, they also provide local delivery. Shipping companies manage the whole supply chain and ensure that each component of the chain is delivering the best possible services to the customer. It is impossible to imagine trade without the shipping industry as it plays a crucial role in the import and export of raw materials and bulk transportation by covering large distances.
Shipping companies use multiple modes of transportation to transport cargo and inventory. Some of the methods of transportation include roadways, railways, seaways, and airways.
Roadways – This method of transportation is generally used to transport materials or cargo within the national borders.
Railways – This method of transportation is used for bulk transportation and it is generally used for domestic purposes.
Seaways – This method of transportation is used for international trade only. Transit usually takes a long time as it has to go through several custom clearances. The shipment could take from one week to several weeks.
Airways – This method of transportation is generally used when the transit time is short. It can be used for both domestic purposes and international purposes.
As mentioned earlier, the supply chain consists of several components; one such component is the warehousing system. The warehouse can be defined as a building where the shipped cargo or freight is stored and then further distributed and delivered to the location of the customer. Warehousing staff is responsible for loading, tracking, and packaging the inventory. Today, warehousing has become completely digitalized. As a result, the location tracking of products and the information regarding the delivery and other such details can be accessed quickly. Digital warehousing has made transportation of cargo more convenient.
All the expenses related to the shipment are also managed by the shipping companies. For example – the customer usually pays for fuel cost and port charges whereas the vessel owner is responsible for all the vessel expenses like repair and maintenance charges, crew wages.
Another crucial component in the supply chain is the third-party logistics company. A logistics company can basically perform all the functions performed by the shipping industry. They can manage the transportation, shipping, tracking of packages, delivery, etc everything on their own. The shipping industry maintains a close relationship with these logistics companies as they can use these companies for their transportation and warehousing services. When the shipping industry uses a logistics company in their supply chain, these companies usually act as the third party because all they have to do is transport the cargo, store the cargo, and manage the inventory. These logistics companies may or may not choose to work with the shippers as they can handle everything on their own but some logistics companies choose to provide some of their services to the shipping industry and act as the third party in their supply chain.
The warehouse professionals supervise the entire loading and packaging of the products. They make sure that all potential errors are reduced or minimized. They also make sure that the product is handled carefully so that damage could be prevented and the product arrives in the desired shape.
The final component in the entire supply chain is delivery. The delivery person’s job is to deliver the packages on time so that the customer is happy.
- Posted by WiserTech Solutions
- On July 9, 2021