Shipping companies encompass all those organisations involved with moving freight between destinations in the same country or different countries. The goods moved by shipping companies vary enormously: anything from a single parcel to a full load of coal.
Shipping companies move freight by land, sea and air. Some companies specialise in only one of these, while major global carriers like DHL and FedEx use all three means of transport. Often shipping companies which coordinate door-to-door shipments will need to use more than one mode of transport to complete delivery.
Shipping companies typically need to balance two major factors when choosing modes of transport. If speed is the priority – if a parcel needs to get to its destination quickly – then air freight is often the mode of choice. However, air freight is expensive, so where cost minimisation is the priority the shipping will be done by road or sea.
Shipping containers revolutionised sea-based shipping in the 1960s. Because all containers are built to standard sizes, they can readily be stacked on board ships maximising the amount they can carry.
More recently, technology has further revolutionised the modern shipping company. These companies are now fascinating examples of modern technology at work. The use of bar codes, radio frequency (RF) tracking and GPS means that most shipping companies know where each and every van, truck, aircraft or ship is at any time. In many cases they also know where every container is at any time – to the precise point that the container sits on the dock.
While international trade has long meant that shipping companies have an important place in the economy, in the modern global economy they are now more important than ever.
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