Learn the Types of Cargo Shipping Services and Delivery Methods

Cargo shipping is an important process for businesses with supply chains throughout Indonesia or even globally, where suppliers and customers come from various regions. 

Whether your customer is 100 or 1,000 km away, the condition of the product received can determine whether the customer will buy from you again or not.

This is why it is important to pay attention to safe cargo shipping processes at reasonable costs. Because ultimately, customer satisfaction affects business development.

Procurement managers, VPs of operations, and teams involved in supply chain processes understand well how crucial it is to choose a credible cargo logistics vendor to minimize shipping risks and support business expansion.

Before discussing cargo logistics vendors, what exactly is meant by cargo shipping? It will be discussed thoroughly in the article below!

What is Cargo Shipping?

Cargo shipping is the process of transporting commodities and goods by land, sea, or air where goods are loaded onto trucks, trains, ships, and aircraft. 

Any shipment weighing more than 114 kg is considered cargo. However, in some cases, goods with large dimensions weighing less than 114 kg are also shipped as cargo.

For example, if you want to ship a cabinet with dimensions 60x30x150 (length, width, height), that shipment would not be classified as a regular package, regardless of its weight. Items with dimensions larger than 75x75x75 cm are also considered cargo shipping.

Shipping a laptop? This is considered a parcel shipment. Shipping dozens or hundreds of laptops? Sending them as cargo would be a cheaper and simpler option.

Because it transports goods in large quantities, cargo is used by businesses to supply inventory to their distributors and other companies they work with.

Types of Cargo Services

Cargo shipping service companies can use one or several modes of transportation to deliver goods, and each type of service has its own advantages and disadvantages. 

Which service type is most appropriate? The answer depends on budget, size and weight of the goods, urgency, and many other variables.

Land Shipping

Cargo is shipped via highways and railways, where cargo is grouped together or placed in special containers based on size, weight, and urgency. This shipping method can carry various types of products if the route to the destination is only by land.

Some advantages of land shipping:

• Low cost. The most cost-effective option for moving large packages (such as large furniture, industrial equipment, aircraft spare parts) over short distances compared to air and sea transport services.
• Environmentally friendly. Trucks and trains have a smaller carbon footprint than ships and aircraft.
• On the other hand, trucks have weight and volume limits and depend on traffic, road, and weather conditions. And if you want to ship products across borders, this service may need to be combined with other services to achieve a balance between speed and shipping costs.

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Learn more: Advantages & Disadvantages of Land Cargo Shipping

Sea Shipping

This type of service loads goods on container ships and is one of two ways to transport goods abroad. 

Sea shipping can also carry various types of commodities such as grains, minerals, metals, and petroleum, as well as large uniquely shaped products such as industrial equipment.

When it comes to international shipping, sea service is hard to beat because it can transport more goods at much lower costs. There are also other benefits to using this type of service, which include:

• Not limited by weight. Ships do not experience setbacks with heavier loads like aircraft do.
• Wide reach. Ships can travel to many countries around the world and can carry various types of goods.
• Environmentally friendly. Ships consume less fuel than aircraft while being able to carry more goods.
• Although sea transport is very cost-effective, ships take longer to transport products abroad compared to aircraft. If air shipping takes a few days, sea shipping can take weeks.
  

So, if you have suppliers in other parts of the world and you have a tight schedule, it is important to plan carefully to maximize the benefits of sea shipping.

Air Shipping

This type of service ships goods by passenger aircraft or cargo aircraft. This type of shipping is more expensive than sea shipping for transporting goods abroad. 

The greatest advantage of this service is shipping speed, where aircraft fly directly to the destination country with little or no transshipment. 

This type of service is ideal for perishable items such as flowers, food, and pharmaceuticals.

Advantages of air shipping:

• Better shipping protection. Airport safety regulations are very strict and cargo aircraft are not exempt from those regulations. Cargo is also less likely to be damaged or lost because it is handled by fewer people.
• Can be tracked. Aircraft can be tracked in real time because of its definite departure and arrival periods.
• Less packaging required. Air shipping requires less packaging than land and sea transport services, which can save costs on packaging materials.
• Lower insurance premiums. Because the transit time for air cargo is significantly shorter compared to sea transport, shipping has lower risk.
• Wider reach than sea transport. Aircraft can reach landlocked destinations faster and more efficiently compared to using sea and land transport services.
• Replenish supply faster. This makes it easier for businesses with 'just-in-time' (JIT) schemes to restock inventory, so businesses can meet customer demand as quickly as possible.
  

Given its capabilities and advantages, it is no wonder that air transport is the most expensive shipping option. However, aircraft have weight and volume limitations, and large, uniquely shaped products tend to be more expensive.

Cargo Shipping Methods

There are many ways to ship cargo from point A to point B. The right shipping method will depend on the size, weight, value, urgency of shipment, etc. 

And it is important to choose the right shipping method to avoid delays and other problems in the supply chain.

Land Cargo Shipping Methods

Goods carried by truck are generally measured by how much space is required inside the trailer. And there are various types of trailers (such as refrigerated, air suspension) that can transport goods with special shipping requirements.

Each method can also be customized with additional services that help make loading and unloading easier.

Less-than-truckload (LTL) 

Usually used when shipment weight is between 70kg - 4500 kg and uses one to five pallets, which do not fully occupy the trailer. Goods are transported by various trucks to the destination as they pass through different terminals. 

The LTL option is more cost-effective because shipments from various shippers are consolidated together and you only pay for the space and weight used in the trailer.

A variation of LTL shipping is Volume LTL, which applies to shipments that use at least six pallets and weigh more than 2,200 kg, or require space between 3.5 m and 10 m.

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Full truckload (FTL)

Used for shipments that fill an entire trailer. Shipments typically range between 4,500 to 22,000 kg and will be transported directly to the destination with little or no transshipment.

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Partial truckload (PTL)

PTL is between LTL and FTL where shipments use at least 6 pallets or weigh more than 2,200 kg. 

PTL is similar to LTL where the shipper only pays for the space used by the goods because it does not fully occupy the trailer. It is also similar to FTL because PTL shipments in transit to the destination are rarely transferred to other trucks and handled by fewer people.

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Flatbed Shipping

Method used to transport products that cannot be moved to and from the dock or do not fit the dimensions of the trailer.

Examples of these products include machinery and industrial equipment, concrete blocks, rebar, baled tires, etc. Flatbed trailers typically have a length of 15 m and a width of 2.5 m, with different deck lengths for step deck, tandem drop, and removable gooseneck. Cargo can be loaded from all angles with a crane or forklift and secured with chains, straps, corner protectors, or tarps.

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Read: Advantages & Disadvantages of 4 Cargo Shipping Methods

Sea Cargo Shipping Methods

Goods shipped by sea are stored in ISO containers. These containers are also available in various types (such as insulated, refrigerated, dry shipping) to accommodate various types of products.

And shippers have two options for using containers, namely:

Full container (FCL). This allows the shipper to use the entire container, whether full or not. The shipper's cargo is protected from other shipments and does not need to wait for the container to be filled.

Less-than-container (LCL). Shipments that do not use the entire container. Also known as share-a-container, so the shipper only pays for the space used in the container.

Intermodal

Combination of truck, train, and cargo ship to move goods with shipment signed under one bill. Shipments are stored in intermodal/ISO containers and do not require special handling. Depending on the options available for shipping goods, this method can be cheaper and more environmentally friendly because it consumes less fuel.

Multimodal

This is the same as the intermodal method which also uses multiple modes of transportation to transport goods. However, the difference is that the shipper must coordinate with each operator individually rather than consolidating the process through a broker.

Expedited

This is for time-sensitive or urgently needed shipments, at the highest cost. This method uses special trucks sized appropriately for the shipment and makes little or no transshipment so goods are delivered faster. For shipments abroad, air transport is chosen for expedited cargo because of its speed and safety.

Conclusion

After checking whether your shipment is best suited for parcel delivery, LTL, or FTL, try to determine the specific services your shipment might need.

You don't need to be a cargo shipping expert, you just need to get a trusted advisor. ABC Express has become a trusted advisor to hundreds of companies such as ASBA, Street Boba, and AirNav Indonesia. The way we do this is by formulating & recommending several route options and modes of transportation that suit your needs & event goals.

You don't need to be confused making the decision yourself. 

Consult your best shipping option with ABC Express or Get special shipping quotes today!