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Questions and Answers
What are the two types of ocean freight loads and when does FCL become cost-effective?
What are the two types of ocean freight loads and when does FCL become cost-effective?
The two types of ocean freight loads are LCL (less than container load) and FCL (full container load). FCL starts being cost-effective at 15-20 CBM.
What are the two types of air freight and when is normal air freight more cost-effective than express?
What are the two types of air freight and when is normal air freight more cost-effective than express?
The two types of air freight are express and normal. Normal air freight is more cost-effective than express starting at 0.6 CBM and better than sea freight below 1/1.2 CBM.
What is the calculation for air freight, and how does express air freight differ from normal air freight?
What is the calculation for air freight, and how does express air freight differ from normal air freight?
The calculation for air freight varies based on the type, with express using a ratio of 1 CBM = 200 kgs while normal air freight uses actual weight or volumetric weight, whichever is higher.
Study Notes
Logistics Basics: Understanding the Shipping Industry and Transportation Methods
- 11 billion tons of goods are transported by ship each year, representing 1.5 tons per person.
- Shipping accounts for 80% of total exports and imports by volume and 50% by value for the European Union.
- The total value of the annual world shipping trade was over 14 trillion US dollars in 2019.
- Since COVID-19, supply chain challenges have included container shortages, lack of space on ships, the blocked Suez Canal, and COVID-19 outbreaks in large ports in China.
- Consequences of these challenges include skyrocketing prices and a lack of equipment and space.
- The shipping lines have realized customers are willing to pay five times more than before, so they may not stop increasing prices.
- Ocean freight remains the least expensive option for volumes above 1 cubic meter (CBM).
- There are two types of ocean freight loads: LCL (less than container load) and FCL (full container load).
- FCL starts being cost-effective at 15-20 CBM, and there are three main container types: 20 feet, 40 feet, and 40HQ or HC.
- Air freight is the fastest transportation method and is divided into two types: express and normal.
- Express air freight is interesting below 0.6 CBM or when the client wants the shipment asap, while normal air freight is more cost-effective than express starting at 0.6 CBM and better than sea freight below 1/1.2 CBM.
- The calculation for air freight varies based on the type, with express using a ratio of 1 CBM = 200 kgs while normal air freight uses actual weight or volumetric weight, whichever is higher.
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Description
Are you interested in learning about the shipping industry and transportation methods? Take our Logistics Basics quiz and test your knowledge on topics such as ocean freight, air freight, container types, and supply chain challenges. Discover fascinating facts such as how much goods are transported by ship each year and the total value of the annual world shipping trade. This quiz is perfect for anyone looking to expand their understanding of logistics and the transportation industry. Don't miss your chance to become a logistics expert!
