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Stay informed about the latest news and updates in the shipping industry. 

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LET'S BREAK DOWN SHIPPING, SHALL WE?

Shipping and transportation logistics involve the management and coordination of goods moving from a supplier to a customer. This industry covers everything from packaging to transportation to warehousing. Here are the basics:

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Key Terminology

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  • Carrier: The company or entity that physically moves the goods (e.g., trucking, shipping lines, railroads, or air freight companies).

  • Freight: The goods or cargo being transported.

  • Consignment: A batch of goods being shipped under one shipment order.

  • Bill of Lading (BOL): A legal document between the shipper and carrier that details the type, quantity, and destination of the goods being transported.

  • FOB (Free on Board): A term that determines at which point in the shipping process the buyer takes ownership of the goods. With "FOB origin," the buyer owns the goods from the shipping point; with "FOB destination," they take ownership at delivery.

  • Lead Time: The time it takes from the order placement until the goods are received.

  • Tracking Number: A unique code that allows parties to track the status and location of a shipment.

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Common Practices

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  • Warehousing: Goods are often stored in warehouses before shipping to ensure they are close to customers and can be shipped quickly.

  • Consolidation: Combining smaller shipments into one larger shipment to reduce costs and improve efficiency.

  • Routing and Scheduling: Planning the best routes and schedules to deliver goods efficiently and on time.

  • Freight Classification: Classifying goods by weight, size, and value to determine pricing and shipping method.

  • Incoterms: Standardized international trade terms that specify the responsibilities of buyers and sellers. Examples include FOB, CIF (Cost, Insurance, and Freight), and EXW (Ex Works).

  • Just-in-Time (JIT) Shipping: A strategy where materials are shipped exactly when they are needed to minimize storage costs.

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The goal in shipping logistics is to get goods from point A to point B safely, on time, and in the most cost-effective way possible.

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