This document discusses modes of freight transportation and common shipping terms. It describes four main modes of shipment - ground, ship, air, and intermodal. Ground transportation involves trucks and trains, ship transportation refers to cargo ships, air involves cargo planes, and intermodal uses shipping containers that can be transferred between modes. The document also outlines several common international trading terms used in shipping goods, including Free on Board (FOB), Carriage and Freight (C&F), and Carriage, Insurance and Freight (CIF).

1. CIV 441
URBAN TRANSPORTATION PLANNING
DESIGN AND MANAGEMENT
LECTURE #1
HISTORICAL DEVELOPMENTS OF TRANSPORT

74. FREIGHT TRANSPORTATION
• Freight transport is the physical process
of transporting commodities and merchandise goods and cargo.
• The term shipping originally referred to transport by sea, but is
extended in American English to refer to transport by land or air
(International English: "carriage") as well.
• Different modes of shipment are:
• Ground
• Ship
• Air
• Intermodal

75. MODES OF SHIPMENT
Ground
• Land or "ground" shipping can be by train or by truck (International English: lorry).
• In air and sea shipments, ground transport is required to take the cargo from its
place of origin to the airport or seaport and then to its destination because it is
not always possible to establish a production facility near ports due to limited
coastlines of countries.
• Ground transport is typically more affordable than air, but more expensive than
sea especially in developing countries like India, where inland infrastructure is not
efficient.
• Shipment of cargo by trucks, directly from the shipper's place to the destination, is
known as a door to door shipment and more formally as multimodal transport.
• Trucks and trains make deliveries to sea and air ports where cargo is moved in
bulk.

76. Ship
• Much shipping is done by actual ships. An individual nation's fleet and the people
that crew it are referred to as its merchant navy or merchant marine. Merchant
shipping is the lifeblood of the world economy, carrying 90% of international
trade with 102,194 commercial ships worldwide. On rivers and canals, barges are
often used to carry bulk cargo.
Air
• Cargo was transported by air in specialized cargo aircraft and in the luggage
compartments of passenger aircraft. Air freight is typically the fastest mode for
long distance freight transport, but also the most expensive.
Intermodal
• Intermodal freight transport refers to shipments that involve more than one mode.
More specifically it usually refers to the use of intermodal shipping containers that
are easily transferred between ship, rail and truck.
MODES OF SHIPMENT

77. Common trading terms used in shipping goods internationally include:
Free on Board (FOB)
• The exporter delivers the goods at the specified location (and on board the
vessel).
• Costs paid by the exporter include load, secure and stow the cargo, including
securing cargo not to move in the ships hold, protecting the cargo from contact
with the double bottom to prevent slipping, and protection against damage from
condensation.
• For example, "FOB JNPT" means that the exporter delivers the goods to the
Jawahar lal Nehru Port, India, and pays for the cargo to be loaded and secured on
the ship.
• This term also declares that where the responsibility of shipper ends and that of buyer starts.
The exporter is bound to deliver the goods at his cost and expense. In this case, the freight
and other expenses for outbound traffic are borne by the importer.
TERMS OF SHIPMENT

78. • Carriage and freight (C&F)
• Insurance is payable by the importer, and the exporter pays all expenses incurred
in transporting the cargo from its place of origin to the port/airport and ocean
freight/air freight to the port/airport of destination.
• For example, C&F Los Angeles (the exporter pays the ocean shipping/air freight
costs to Los Angeles).
• Most of the governments ask their exporters to trade on these terms to promote
their exports worldwide such as India and China.
• Many of the shipping carriers (such as UPS,DHL, FedEx) offer guarantees on their
delivery times. These are known as GSR guarantees or "guaranteed service
refunds"; if the parcels are not delivered on time, the customer is entitled to a
refund.
TERMS OF SHIPMENT

79. • Carriage, insurance and freight (now known in the US as "cost,
insurance and freight")(CIF): Insurance and freight are all paid by the
exporter to the specified location.
• For example, at CIF Los Angeles, the exporter pays the ocean shipping/air
freight costs to Los Angeles including the insurance of cargo. This also states
that responsibility of the shipper ends at the Los Angeles port.
• The term "best way" generally implies that the shipper will choose
the carrier who offers the lowest rate (to the shipper) for the
shipment. In some cases, however, other factors, such as better
insurance or faster transit time will cause the shipper to choose an
option other than the lowest bidder.
TERMS OF SHIPMENT