FAQ
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You can ship just about anything by rail. In fact, it’s probably easier to cover what you can’t ship first. It’s a short list: personal property, passengers, pets and other living things.
What you can ship is a much, much longer list: Think raw materials to finished goods and everything in between. Here are just a few examples:
- Raw Materials: Sand, plastic pellets, soda ash, rock, fibers, minerals
- Building Materials and Component Parts: Auto parts, lumber, pipe, metals, paper, rebar, metal coil, cement
- Fuel: Ethanol, biodiesel, gasoline, petroleum, propane, coal
- Food and Beverages: Packaged food, canned goods, frozen food, produce, seafood, cheese, chocolate, meat, grain, feed products, corn syrup, beer, wine, tequila, orange juice
- Finished Goods: Shoes, clothing, toys, furniture, appliances, electronics, automobiles, machinery, military vehicles, irrigation equipment, paper, solar panels
If you don’t have tracks where you’re shipping from or to, there are still ways to connect to rail. Two processes – intermodal shipping and transloading – allow products to move seamlessly between trucks and trains and back again.
Let’s say the facility from which you’re shipping isn’t rail served. Trucks can pick up your products, deliver them to a transload facility or intermodal ramp, then transfer them to a train. If the destination doesn’t have tracks, either, your products can be transferred back to trucks for final delivery.
Shippers use intermodal shipping and transloading so they can take advantage of the economic benefits of shipping by rail. By combining shipping modes, you get the flexibility of over-the-road trucking and the affordability of long-haul rail shipping, all without an investment in tracks.
Why do people seek out rail? In short, it offers some major advantages:
- Capacity for large amounts of cargo
- Greater efficiency compared to truck, especially for long-haul moves
- Lower cost per ton mile
What benefits do these features offer shippers?
- Market Reach: With the rail network spanning North America, you can ship to distant markets more affordably.
- Scalability: Rail can accommodate small shipments (called “less-than-carload” shipments), very large shipments, and everything in between. You can even ship large, oversized freight like heavy machinery and wind turbines by rail.
- Reliability: Rail is a 24/7 operation.
- Sustainability: Shipping by train is the most fuel efficient and environmentally responsible mode of ground freight transportation.
- Cost Savings: Rail is almost always a more affordable transportation solution than truck, especially for long-haul shipments.
Theft from cargo trains is very rare. Railways and freight terminals are highly secure spaces with low rates of criminal activity and therefore the safest way to transport your goods over land
According to the AAR, moving freight by rail is 3 – 4 times more fuel efficient than moving freight on the highway. Efficient use of fuel means fewer greenhouse gas emissions for our planet.
Transport truck means a semitrailer combination rig designed or used for the purpose of transporting motor fuel over the public roads or highways.
At times the word ‘freight’ may be used to describe the goods solely, but can also be the process of transporting the goods. Cargo is typically goods carried by larger vehicles, such as large cargo ships and planes, whereas freight is typically goods carried by smaller vehicles like trucks.
Freight itself can be defined as the goods transported by truck, train, ship or plane. The means of transport commonly associated with freight shipping are trucks, railroad cars and large ships carrying containers.
The advantages and disadvantages of road transport are as follows: Its advantages are the ease of processing, its different modalities thanks to the different types of vehicles, its wide coverage and its low cost. Its disadvantages are its poor security and its more or less long waiting time.
- Special cargo transport of oversized goods.
- Transport of chemical products and dangerous goods (ADR).
- Transport of temperature-controlled goods in refrigerated trucks.
- Transport of liquids or powders in tanks.
- Road – Rail intermodal transport.
- Road – Sea intermodal transport.
Sea freight can take anything between 10-55 days, depending on the departure and arrival port of your goods. Let’s look at the average ocean freight transit times on some of the main routes: East Asia – Europe: 30 days. East Asia – North America East Coast: 25 days.
Ocean freight tends to be 12 to 16 times cheaper than air freight since it utilizes large-scale vessels that can transport larger loads for greater distances for less expense. Air cargo, on the other hand, is typically more expensive due to higher fuel costs and the need for faster delivery times.
How is ocean freight calculated? Ocean freight can be broken down into a base charge and multiple add-on charges. The base can vary depending on the nature of the shipment. In FCL the base charge would be a flat fee on the type of container in transit like 20 feet container, 40 feet container, etc.
1 CBM converts to different weight values (kg) depending on the type of transport used: Air freight: 1 CBM = 167 kg. Road freight: 1 CBM = 333 kg. Sea freight: 1 CBM = 1,000 kg.
LCL shipping is a method of shipment where your cargo doesn’t fill a full container – in other words, it takes up ‘less than a container load’. LCL shipping allows your goods to share container space with other small shipments to make up a full container between them. This way, you only pay for the space you use.
When selecting any company offering freight forwarding services you need to check how extensive their network is. Any freight forwarder should have an established and reliable international network to meet the requirements of its clients. The benefit of having these networks is that it helps truckload companies streamline their freight forwarding procedures.
If they have a large network then it is likely that they will easily meet the demands of their clients.
In case they do not have any presence in some countries, ensure that they have tie-ups with reputable agents in those countries, and they can rely on them.
The benefit of a tracking facility that comes equipped with automated notifications is that it helps to better plans of logistical needs and also assists in creation of an alternate plan of action in case things go wrong. By being able to track the freight, you will have the peace of mind that everything is working out as planned.
Custom clearance is an integral and important part of the freight forwarding procedure and many of the freight trucking companies offer this service. If this service is not provided then it can create problems and put the supply chain into complete disarray.
It is worth mentioning here that there are companies that only work as forwarders, which means that these companies are responsible for managing only transportation and logistics for the freights. In these situations, you will have to find a separate company that will be able to manage custom clearance details for you.
Thus, it will be better to work with a company that offers custom clearance, both at the origin as well as the destination country.
Rates that are provided tend to vary depending upon different factors such as the volume of merchandise, carrier, etc.
As such, it is better to get a quote quickly so that the freight can be planned out accordingly and deadlines can be met. Many truckload companies are now providing instant quotes when you apply online and it is also possible to book the freight online within the shortest period of time without having to visit the business in person.
It will be better to work with a company that is willing to provide a breakdown of services they provide and rates for the same. You need to be aware of the fact that some services like custom related fees and documentation charges are included in the rates by some of the freight forwarders, but not all of them.
Freight payment is an assortment of services that act much like a general accounts payable service for the various accounts and invoices created by shippers. Payment and financial service providers serve as an intermediary between shippers and carriers, managing the actions to receive, process, and pay invoices.
Freight brokers typically pay carriers by either check or ACH payment. Generally, carriers are paid within 15-30 days of the delivery of the shipment. Carriers can also be paid by cash on delivery (COD) or through fuel advances or advances on freight charges.
Prepaid means that the shipper owns the freight payment responsibility. Prepaid and Add means that the shipper advances the freight charges to the carrier and then bills the beneficial owner of the freight for an amount approximating or equal to the actual freight charges.
A description of the cargo, its quantity, weight, and even the estimated times of pickups and delivery deadlines are presented, along with payment method information and associated shipping fees and taxes. Upon completion of a shipment’s delivery, an invoice is issued to the shipper to be paid.
Free on board destination indicates that the seller retains liability for loss or damage until the goods are delivered to the buyer. FOB shipping point is usually paid for by the buyer, while FOB destination is usually paid for by the seller.
Storing Goods
The warehouse’s original function was purely for storage. And while modern warehouses serve many more purposes, storing goods remains a primary function. This is where organizations can store their goods, equipment, inventory, and other items.
- Receiving. Receiving is the initial step in the warehouse process. …
- Storage. After receiving, products are stored within the warehouse. …
- Picking. …
- Packing. …
- Shipping. …
- Inventory Management. …
- Order Fulfillment. …
- Returns Processing.
Good warehouse efficiency is not only about putting everything in its place and getting products out on time, it’s about maximising productivity while saving time and money. Some practices like labelling are intuitive and can be done without the use of software.
Warehousing and logistics are often used together or in tandem because they are essentially two sides of the same coin. Warehousing deals with the storage of goods while logistics focuses on transportation of the goods. Hence you should know each of these terms separately.
The benefits of logistics warehousing include improved customer service, cost savings through economies of scale, and reduced lead times. However, it also poses challenges such as space constraints, inventory accuracy, and operational costs.
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