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Which method of transportation makes up over 70% of freight shipped world wide?

What's in this article?
  1. Global Freight Transportation An Overview
  2. The Key Player In Global Freight Shipment A Closer Look
  3. Reasons Behind The Dominance Of This Transport Method
Which method of transportation makes up over 70% of freight shipped world wide?

Maritime transport is the primary method of transportation for global trade, accounting for over 70% of freight shipped worldwide. Its dominance is attributed to its cost-effectiveness and capacity to handle large volumes of goods.

Freight shipping is an essential component of the global economy, with maritime transport being the linchpin that holds the system together. The ability of sea freight to move massive quantities of goods across oceans efficiently and economically makes it the preferred choice for international trade, underscoring its critical role in the movement of the world's commerce.

Global Freight Transportation: An Overview

By facilitating global trade, goods transportation is vital to the global economy. This concept includes air, sea, road, and rail freight, each with its characteristics and uses. Businesses choose goods transportation based on goods type, distance, cost, and delivery speed to move raw materials, commodities, and finished goods.

International Shipping Carriers

Complex and interdependent, the global goods transportation system requires efficient planning, coordination, and implementation. The participants include natural resource providers, manufacturers, distributors, and customers. This system relies on effective logistics management to deliver the correct goods at the right time, place, and condition, optimizing goods flow and improving business performance and customer satisfaction.

The Key Player in Global Freight Shipment: A Closer Look

Maritime transport holds the dominant position in global freight shipment. With over 80% of the world’s merchandise trade by volume and 70% by value transported by sea, it's no surprise that shipping plays a crucial role in connecting suppliers and consumers across different continents. The cost-effectiveness and large-scale carrying capacity of cargo ships give them an edge over other modes of freight transport, like air freight or rail cargo.

Ship owners, operators, and managers form the backbone of this industry, overseeing every detail from the design and construction of ships to cargo handling, navigation, and maintenance. Multinational corporations and SMEs depend on them for reliable, safe, and timely transportation of goods. Despite its complexity, the maritime shipping industry has demonstrated exceptional resilience, adaptability, and commitment to sustaining global commerce.

Reasons behind the Dominance of This Transport Method

Freight shipping has asserted its dominance in the global transportation sector due to several reasons that cut across many strategic aspects. Primarily, the cost-effectiveness of this method has become an irresistible hook for businesses worldwide. Even considering the initial expense of logistics setup, freight shipping is a more economically viable option in long-term business operations. Moreover, freight transportation often offers opportunities for bulk shipping, further driving down costs by leveraging economies of scale.

Another critical factor that makes freight transportation a preferred choice is its unmatched capacity to accommodate heavy and oversized shipments. Whether transporting automotive parts across the ocean or moving construction materials across the country, freight shipping lends itself to tasks of considerable size and weight. Additionally, freight shipment also enables businesses to reach global markets with ease, providing unparalleled access and connectivity that other modes of transport can often struggle to match. This ability to facilitate international trade and commerce has made freight shipping an indispensable tool for global business operations.

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Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

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A-1 Auto Transport is a disclosed agent for the following shipping companies:

Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus Drive
Edison, NJ 08837
NO. 17858N
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
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