The shipping industry plays a critical role in globally intertwined economies as producers rely on the industry to move freight from manufacturer to consumer. Even as the logistics industry booms here in Savannah and many other port locations around the world, challenges have not gone away. Port City Logistics is part of a larger effort to engineer solutions to both pressing immediate problems and long term issues, such as...
- Delays in delivery
- Pricing challenges
- Filling personnel roles like truck drivers
- Low Demand and Oversupply
- Environmental Regulations
- Security Threats
- Lagging infrastructure
Industry Definitions and Terminology
There are numerous stakeholders in logistics management that work on resolving local and international issues that touch almost every segment of our economy. Because logistics is a ”vital organ” crucial to the overall health of our state and nation, we like to educate our readers about how our industry works.Here’s another look at some of the important topics and terms we use in our daily interactions with shippers and vendors...
The first definition is the Freight Bill-of-Lading (BOL) which is defined by in Logistics Glossary as "A document providing a binding contract between a shipper and a carrier for the transportation of freight, specifying the obligations of both parties". In this case, the carrier for the shipper issues this document as a receipt of freight.
Another important definition is Free-on-Board Point (BOD) which is defined as the "Point at which ownership of freight changes hands from shipper to consignee". According this definition, FOB origin means that the goods in transit are owned by the consignee while FOB-destination means that the goods in transit are owned by the shipper.
Hub-and-Spoke is another shipping term that is defined as "A transportation system design in which large hub terminals are used for freight consolidation". Hub-to-spoke distribution tasks and spoke-to-hub collection are normally served by the medium-volume services while the top-hub markets are characterized by large-volume services.
A Dead-Head is "A portion of a transportation trip in which no freight is conveyed; an empty move.” this is one of the problems that logistics information technology is overcoming as the location and movement of empty assets can many times be assigned a cargo even for short distances.
The Basics of Managing Cargo Shipping
Supply chain managers must be familiar with shipping time-frames and shipping terms. With the resources derived from data mining, we’re getting better at predicting how much time it takes to move goods through several modes and routes. Artificial intelligence is helping shippers choose the optimal means for conveyance by storing and comparing the mountains of data on the movements of trucks, trains, and air freight modes. Third party logistics firms like ours play important roles is not only providing and using data to create greater efficiency, but to broker relationships with distributors, overseas customers, and local suppliers.
Robotics in logistics management
Apart from being used to increase efficiency in the shipbuilding industry, the robotics technology is also being used by shipping companies for packing and handling cargo in warehouses. The technology speeds up warehouse processes reducing the time it takes to prepare a cargo for shipping. It is expected that in the next 10 years, automated oceangoing ships will revolutionize the shipping industry by reducing shipping costs and increasing cargo intake.
Big Data and the Internet of Things
Currently, most shipping businesses adopt advanced data analysis in their operations. Big data provides needed opportunities in operational control in the modern interconnected shipping systems.
Port City logistics is your single source shipping resource. Contact us for more information on how we can make your shipping and logistics worry free!
Find out more about Logistics Management