Perhaps “cargo” is not an unfamiliar phrase to everyone. Without the Transport of goods, the economy of every country could not grow. Especially in the Covid-19 era , freight is much more important than ever. The following article will provide knowledge about cargo, Transport of goods, the role of shipping, and common modes of transport.
What are goods/ commodities?
Goods/ Commodities are considered tangible products, formed from production and used for business to meet the needs of consumers. A product is considered a commodity when it satisfies two conditions:
- A tangible product, capable of physical impact (However, this has changed in this age. Find out more in the basic properties of the goods below).
- The ability to purchase, sell, and exchange. This is essential since in many cases items are just raw materials, but when resources are traded, they become goods.
Type of products
- Commodity: Raw materials or goods traded in business, such as ore, oil, coffee, etc.
- Cargo: goods or products transported by road, rail, water and air vehicles.
- Goods: the finished product that will be offered to customers.
Based on demand, goods are divided into categories such as:
- Consumer goods: satisfy basic human needs such as food, cosmetics, etc.
- Investment goods: are goods that serve more than a business purpose and generate profits for the buyer.
Basic properties of goods
According to classical theory, goods should be tangible products, but today the category of goods has been expanded. They frequently come in both invisible and tangible forms. Stocks, ownership rights, labor, intellectual property rights, and other things are all examples of products in some industries.
Whether intangible or tangible, goods have three basic attributes:
- Calculate measurable and convertable value
- Limited supply and scarcity
- Able to benefit users
Transport of goods
Transport of goods (Freight) is the process of goods being moved from one place to another by means of transport, for commercial purposes. Means of transport include trucks, wagons, container ships, boats, passenger and cargo planes.
The role of transporting goods
Cargo transport plays an extremely important role in the process of distribution and circulation of goods. Any social production process also requires the participation of transport. Without transportation, production cannot be carried out. Transport of goods is essential for all stages of the production process, from the input stage to the output stage.
The economy depends merely on the transport of goods, which connects businesses and manufacturing facilities, connects the producing area to the consumption sector, and serves to integrate the economy.
Important elements to take into account when organizing the transportation process for commodities are:
- Dimensions of the goods.
- Properties of goods: liquids, hazardous materials, high-value goods requiring high security.
- Quantity of goods.
- The manner in which the goods may be properly packed for transport.
- Destination, whether domestic, state or international.
Freight is the most important factor and accounts for the most cost of the 4 elements of Logistics: transportation, marketing, distribution and management. Depending on the needs, timing, size, and features of the goods… select the suitable shipping methods. Choosing a reasonable form of transport can enable cost savings, guarantee the best possible product prices for customers. This is also an important contributing factor in deciding to succeed in the production field of the company.
The method of delivery goods
Transport of goods by road
Transport of goods by road depends on the level of development of the local infrastructure, the distance of goods delivered by road, the weight and volume of each shipment and the type of goods transported.
- For short distances and light shipments, vans or pickups can be used.
- For large shipments, even if less than a full truck, a truck is more appropriate.
Trucks are the most common method of transporting goods in the supply chain. Other modes of transport are not necessarily used to reach all required destinations. Due to cost and accessibility, trucks are often the default choice for transporting large quantities of goods.
Commodity Type:
- Construction materials: Cement, water pipes, bricks, sand, stone, iron and steel, plaster, furniture, etc.
- Agricultural products: Rice, corn, flour, fresh vegetables, ….
- Transporting industrial products: textiles, packaging, animal feed, machinery and equipment, etc.
- Import and export goods.
- Super long, heavy goods.
Sea freight
In the global economy, ocean freight accounts for the majority of cross-border shipping. There are two main types of goods:
- General goods:
- Bread bulk: is a group of goods transported in the form of crates, boxes or pallets.
- Neo bulk: are items that are considered as a unit of goods before being packed and assembled (sawed wood, rolled paper, iron bars and vehicles).
- Containerized goods
- Bulk goods are goods that are not created, bagged or packed but are only stored in ship compartments, container compartments, etc., including 2 types:
- Liquid bulk cargo: such as petroleum, chemicals, water, crude oil, etc., are transported by tank ships of the type used to carry oil, gasoline (tankers), ships, trains.
- Dry bulk: materials (usually raw materials for production) such as coal, iron ore, grain, bauxite ore, and sand. This type of bulk cargo will be transported in large quantities on board such as: food, flour, loose grain, coffee, agricultural products, stone, materials…
Transport of goods by airway
Goods are transported by specialized cargo planes and in the luggage compartment of passenger aircraft. Air freight is the fastest method for transporting goods over long distances, but also the most expensive.
Commodity Type
- High value goods:
- Valuable items: gold, diamonds.
- Technical equipment: high-tech goods, auto parts, ships, aircraft.
- Luxury consumer goods: electronics, fashion.
- Items that need fast delivery time:
- Live animals.
- Perishable items: fresh food, fresh flowers, fruits,…
- Types of pharmaceuticals.
Sea and Air Freight Multimodal Transport
This is a combination of sea and air freight. These two forms can offset each other, creating a balance and optimizing benefits:
+ Sea shipping: low cost, slow time
+ Air freight: high cost, fast time.
After being transported by sea to ports, goods must be delivered as soon as possible to the intended receiver. Therefore, air shipping will be the most efficient way of delivering commodities to the mainland while maintaining their seasonality and preserving their value. We can balance shipping with an average cost and ensure on-time delivery.
Infinite – The best service provider for Air Freight and Ocean Freight
Infinite Co., Ltd provides customers with the most prestigious and quality logistics services. With 14 years of expertise in the transportation industry, Infinite is therefore among the best service providers. Team of experienced professionals and dedicated work will meet all the transportation needs of customers from the smallest packages to bulky shipments.
Low cost, fast delivery time and outstanding safety, so this is the preferred mode of transport for many people. You will receive top-notch logistics services from Infinite with various mode such as sea, air, road, etc at the most competitive rates for any kind of cargo you consign, from domestic to international shipping.
When using our service, you will constantly be guaranteed of the security of your goods. Committed to deliver the goods to the specified place and on time specified in the contract with fast sending speed. Staff with many professional skills along with hospitality will assist you as much as we can. Cooperate with Infinite and become a long-term partner, you will get various exclusive discounts.
Contact us
Address: 110 Cach Mang Thang Tam Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Viet Nam
Email: info@infinite.com.vn
Hotline: 0283 8230910
Facebook: www.facebook.com/infinite.logisticsandshipping
Linkedin: www.linkedin.com/in/infinite-ils-co-ltd
