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Difference between Maritime, Shipping, Freight, Logistics and Supply Chain

2018-12-24 Source: Jctrans

This article's original author is Hariesh Manaadiar

1.Maritime Industry= anything related to the ocean, sea, ships, navigation of ships from point A to point B, seafarers, ship owning and other related activities. 2.Shipping Business= the act of carriage of cargo from point A to point using the ships which falls under the Maritime industry. 3.Freight= the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry. 4.Logistics Services= the processes involved in getting the cargo from the manufacturers warehouse to the receiver’s warehouse including arranging for shipping services offered by the shipping lines using the ships which falls under the Maritime industry. 5.Supply Chain= the whole granddaddy process comprising of all aspects in a product cycle, for example from picking of the fruit at a farm in Point A to delivering the fruit to the shelf at a store in Point B using all of the above mentioned industries, businesses and services. Maritime Industry It is fair to say that Maritime Transportation has been and still remains the backbone of global trade and has been so since the Egyptians, Greeks, Romans, Arabs, Indians, Chinese, Europeans all started sailing and improvising the sailing methods from sailboats, dhows, long boats, dragon boats, steamships to the current ULCVs, VLOCs, VLCCs etc. Maritime transportation is a derived demand whose main purpose is to support trade, business and commerce – whether global or domestic, whether cargo or people. Shipping As briefly defined above, Shipping is the act of carriage of cargo from point A to point using the ships which falls under the Maritime industry.Shipping lines may be operating airliner service or a tramp service. On the liner service the majority of the business is handled by container shipping lines. Shipping includes (but not restricted to) activities as below : Booking cargo for specific vessels, sometimes weeks and months in advance Ensuring that all cargo booked is planned on the intended vessels Ensure that the cargo that is planned on the vessels is actually shipped Ensure that the?stowage planning?is done properly on the vessel to optimise the vessel loading Ensure that all containers loaded have their VGM Ensure safe loading and discharging of the cargo Issuing;bill of lading;and other documentation for all cargo loaded Freight Many of us in the business relate to freight as “money”. Freight is what the entire global trade revolves around, but also has a different meaning to money.In simple terms, FREIGHT refers to CARGO that is carried by a carrier (ship, road, rail, air) in exchange for commercial gain.In the context of waterborne freight, freight refers to the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry. Logistics Logistics is the process involved in getting the cargo from the manufacturer’s warehouse, point of origin, mine site, farm etc to the receiver’s warehouse, door, store etc.The process of logistics actually begins way before the actual shipment takes place as it involves discussing and deciding on the delivery schedules suitable to both the buyer and the seller.Once these are decided, then the logistics services provider needs to decide on the best method of moving the cargo from the seller’s door to the receiver’s door.A LSP (Logistics Services Provider) should have the expertise to choose the best solution for the movement of the cargo. Cargo is moved using road, rail, air and sea and each of these modes of transport have their own peculiarities and characteristics. Air freight may be quicker than sea freight, but much more expensive.Rail freight may offer more reliable transit times and schedules than road freight and may also be better for the environment.. Road freight has the capability to offer complete door-to-door service and can be considered as one of the more economical means of transport.The planning, implementation and execution of the various aspects involving the movement of cargo such as materials, services, information, shipping, documentation, scheduling, tracking and delivery is the main function of logistics. Supply Chain Supply Chain is the whole granddaddy process comprising of all aspects in a product cycle, for example from picking of the fruit at a farm in Point A to delivering the fruit to the shelf at a store in Point B using all of the above mentioned industries.Supply chain involves a network of suppliers, transporters, warehouses, distribution centres, shipping lines, logistics services providers all working together from the creation and sale of a product till its delivery to you and me.Supply chain management is the management of all the supply chain activities in developing and running the supply chain as effectively and efficiently as possible.
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