How Supply Chain Works?
For the uninitiated (which included me at one stage), these sectors are the same or similar, and there might seem to be little difference between the Maritime, Transportation, Freight, Logistics, Supply Chain management, and Trade sectors. But as soon as you get interested in or know about these companies, you will soon realize that these are very different industries with different workings, properties, structures, requiring a very different set of training, experience, expertise, knowledge, and attitudes.
The purpose of writing this article is to let you know the difference between maritime, shipping, freights, logistics, and supply chain like how they work and how the beginning of this trading starts.
- Maritime Industry = Something related to the ocean, shore, ships, ship navigation from point A to point B, seafarers, ship owners, and other related activities.
- Shipping Business = the act of transporting cargo from point A to point using ships that fall under the maritime industry.
- Freight = cargo that is transported on the basis of the shipping services provided by the shipping lines using ships that fall within the scope of the maritime industry.
What is Air Freight?
Air freight services, or air cargo, allow goods to be moved easily by air. Shipping by air has always been a high cost-to-weight method of shipping, offset by the fact that it is the cheapest way to transport goods internationally.
Advantages of Air Freight?
Time – air freight transport saves time – it’s much quicker than boat, rail, or road transport and for this purpose time management will be the key to Air Freight shipping and cargo.
Life of shipping – Mainly the work of exit and entering or you can say arrival and departure there is no delay in flights because air freight is key to get success in the life of shipment and logistics.
Low insurance premium – due to the short length of the shipping, air freight insurance rates are usually lower.
Safe – air cargo shipments are closely controlled by police, so the risk of cargo being stolen or damaged is minimal, and safe quality things are actually the main freight.
Less warehousing requirements – the clearance time for air freight is short, as there is usually less stock to unload than that for container ships, so the customs clearance is short, and there is less stock to unload.
- Logistics Services = the processes involved in moving the cargo from the manufacturer’s warehouse to the receiver’s warehouse, including the provision of shipping services provided by the shipping lines using the ships that fall under the maritime industry.
- Supply Chain = The whole granddaddy method, including all aspects of the product cycle, from fruit harvesting at a farm in Point A to fruit delivery at a store in Point B, utilizing all of the above-mentioned industries, businesses, and services.
- Trade = Is a basic economic principle concerning the acquisition and sale of products and services, the compensation paid by the purchaser to the seller, or the exchange of goods or services between the parties. Trade is the reason why, above all, 1-5 companies exist.
It is safe to say that maritime transport has been and continues to be the backbone of global trade since the Egyptians, Greeks, Romans, Arabs, Indians, Chinese, Europeans. The method of sailing and longboats and dragon boats is converted into the new method VLOCs, VLCCs, etc. Maritime transport is a derivative demand, the main aim of which is to help commerce, industry, and trade – whether foreign or domestic, whether freight or individual.
WHAT WILL HAPPEN IN FUTURE?
The main challenge for landlocked developing countries is to generate enough traffic To attract air freight services which are both frequent and competitively priced? Allowing free competition, or ‘open skies,’ for air cargo services may be significant but not sufficient if most of the cargo is transported as small passenger aircraft shipments. The liberalization of passenger services to include the fifth freedoms has been a major challenge, particularly in countries with national carriers and limited passenger volumes. It is also important to expand the role of consolidated companies, in particular large integrators such as UPS and international freight forwarders specializing in air cargo.
Freight Traffic Growth
In the short term, higher fuel prices are expected to result in slower air freight traffic growth or even a possible downturn. Over the longer term, traffic should continue to increase, but air freight will increasingly be integrated into multimodal supply chains that provide a better balance between cost and time. So in the freight forwarding services mainly the air freight will be raising in the future also.
Airfreight will continue to support production activities, in particular the exchange of samples and the delivery of critical spare parts and high-value inputs. Finally, air freight will increase the importance of supporting reverse logistics, Including repair and warranty work on electronics and other high-end consumer goods.