Transportation and logistics
Transportation and logistics are two of the most primary factors of progress and development and plays vital roles in the transfer of goods and services.
As the world continues to become a smaller place due to growing trade and commerce as an offshoot of globalization, many countries are productively and consistently trading basic commodities and even determine the economies of other states and nations ho are more reliant on other countries for food supply being non-agricultural countries.
The etymology of transportation and logistics
Transportation and logistics go well together however, both have separate meanings.Transportation refers to the activity of transferring the good from a point of origin to another point of destination.It is this activity that connects businesses to their supply chains.It is a vital economic activity as it performs the primary role of moving good and commodities from the source to the user or consumer. It links the supplier with the customer.On the other hand, logistics is the system that implements how the supply chain management is controlled, where there is the effective flow of goods from the supply chain to the consumer, as well as how it is being managed effectively.When you combine both transportation and logistics, it would then result to a more effective process of scheduling, delivering, processing and fulfilling requests and orders between the supplier and the customer.
The economic s of transportation and logistics
Just to give you a brief yet amazing overview of the transportation and logistics industry, revenues generated from the overall transportation industries back in 2015 earned a gross amount of 4.8 trillion US dollars, with a Growth Domestic Product (GDP) of 6.0 % back in 2015.The United States alone generated their Core Transportation Sector Revenues of 1004.5 billion US dollars.This was the latest report for the Industry Statistics Transportation, Supply Chain and Logistics Business Statistics Analysis by the market research authority Plunkett Research, Ltd.This means transportation and logistics takes a share of the pie in running the global economy with the revenues it generates. If you can just imagine the magnitude of import and export activities all over the world, from shipping containers, cargo vessels, air freight and cargo, train and land-transport systems, the non-stop transfer of good and commodities continue to shape the world and open up more opportunities for prople ll over the world.
The different methods of transportation and logistics
There are several ways that goods and commodities are being transported all over the world. One of the biggest and most economical by far would be shipping.Shipping carries vast amounts of cargo all around the world with the most volume of cargo being transported day in and day out. It can load thousands of metric tons of payload in one single shipment, which cannot be matched by air transport and where land transport is limited from accessing.With the earth covered by more than 60% of water, shipping good and commodities become the biggest carrier of products.This is followed by land transport. Land transport is more functional in the aspect of delivery and movement of good and products within a land network. In the United States, interstate transportation are mostly done by train and rail networks, followed by trucking services in between states or from port of call for delivery to other areas of destination within the United States.This is similar to the transportation of goods and services in Europe and the Middle East where most of the countries are separated only by borders and are in face reachable and accessible through land.Land transport is also more beneficial and cost efficient compared to air transport for common and unperishable goods as it costs less to transport compared to air freight.The next would be air transport. This is by far the fastest means of transporting goods and basic commodities all over the world, however, this would cost more compared to sea and land transport systems.The other downside to air transport is the limitations of carrying cargo on each flight as it is limited only to a certain volume. Logistically, in terms of speed of transport, air freight is by far the fastest courier process especially when it deals with the transportation of perishable goods like fresh food or medicines.
E commerce and progress
With the advent of ecommerce, industry experts are looking at a significant increase in the uptick of transportation and logistics,with more and more people moving over to ecommerce purchasing platforms every day.They hope to see an more robust increase starting this year as people prefer to stay indoors, do their marketing and groceries online compared to actually going to the market .With the ongoing progress and developments in the marketplace, we shall be expecting exponenetial growth in the global marketplace and networks.