What is Shipping? Its In-depth Definition and Meaning, Mode, and Types
If you’re looking to know “what shipping is”? This article will guide you through. Initially, shipping only meant transporting goods by water from one place to another. As the backbone of global trade, maritime shipping now accounts for the transport of the majority of cargo.
In This Article
- Understanding Status
- What is Shipping
- Definition of Shipping
- Shipping Meaning
- Difference Between Shipping and Delivery
- Shipping Mode
- Sea and Air Mode
- Types
- Shipping FAQs
According to Statista, ocean shipping is an integral part of the supply chain for most industries, making it a backbone of global trade. It is estimated that an overwhelming majority of goods, around 80 percent, are transported by ships.
The statistics underscore the role of shipping in global trade. A space where carriers such as Maersk and CMA CGM continue to impact the global economy.
To explore further, let’s start by defining some terms you need to know.
Understanding Status
Currently, shipping allows the transport of goods of various sizes and weights. However, it’s important to take into account the vital stages and status.
Below are typical statuses you’ll likely come across before and during shipping.
| Shipping Status | Description |
| Cargo/ goods receipt | The carrier acknowledges receipt of goods for transport. |
| Shipped on-board | It indicates that the cargo is on the carrier’s ship. |
| Departure date and time | Provides the ship’s departure date and time. |
| Shipping Process | Specify a timeline for the movement of goods from one location to another. |
| In transit | The goods are still on their journey to their destination. |
| Arrival date | Typically shows the actual date the ship will arrive. |
What is Shipping?
It is the backbone of global trade, which ensures the transportation of goods from one point to another.
Definition of Shipping
This is the process of transporting goods from one location to another using different modes of transportation. It’s also the physical movement of goods from one point (origin) to another (destination).
Moreover, this initially refers to transoceanic means of transportation, which now include air, rail, land, and pipeline.
The subject industry entails several logistics activities. They include packaging, documentation, labeling, loading, transportation, unloading, and delivery of goods. A process that requires the use of export documents such as the ‘Bill of Lading’ and ‘Commercial Invoice’, etc.
Shipping Meaning
As we dive deeper, it’s become necessary to focus more on transoceanic mode. It means the transportation of goods (cargo) from one place to another, precisely by waterways. Water bodies such as oceans, seas, rivers, and canals.
Shipped goods include raw materials, agro, energy, and factory products that drive the economy. However, transoceanic efficiency and relatively low-cost shipping make it ideal for transport.
A means that permits the efficient export and import of goods. The latter is vital for the support of the livelihoods of billions of people.
Transoceanic shipping can involve various modes of transportation, notably container ships, tankers, and bulk carriers. Each mode serves a specific purpose according to design specifics.
In the first quarter of the 21st century, the global fleet of container ships, tankers, and dry bulk ships was responsible for transporting about 80 percent of the world trade volume and about 70 percent of trade value.
These vessels transport different types of cargo, ranging from agro, consumer goods, machinery, automobiles, and energy products.
Difference Between Shipping and Delivery
| Shipping | Delivery |
| It’s the movement of goods from one place to another. | Specify the process of goods delivery to the buyer. |
| The movement of goods is via a transport mode. | Physical handing over of goods by the seller to the buyer. |
| Initially, transoceanic means of transport now include air and land. | Symbolic, such as delivering a symbol that represents the goods instead. |
Shipping Mode
Typically, there are three modes of shipping which are land, air, and water. These are mediums that enable the transport of goods from one location to another.
Amongst these modes, transoceanic is proven to be more reliable and efficient. Specifically for the transportation of all categories and sizes of goods.
These modes have enabled the transportation of goods worth trillions of dollars globally.
· Water
This refers to transoceanic, typically the most efficient and safest means of transporting goods internationally. This mode allows the transportation of all kinds of goods, including dry and wet (liquid) cargo.
· Air
It’s currently the fastest means of transporting goods internationally. Although transportation of goods by air is very efficient, but cost-effective. Unlike transoceanic transportation capacity, it has a benchmark of cargo weight and size.
Postal services and package delivery companies such as UPS and FedEx ship parcels via this medium.
· Land
Transportation of goods by land is either by road using vehicles or by rail (train). This mode is typically the most convenient means of transporting goods from one location point to another.
Postal service companies such as UPS and FedEx often ship parcels via ground services. For example, FedEx Ground service and UPS Ground service.
Looking at the characteristic attributes of each mode, it’s fair to note their differences.
Sea and Air Mode
These are unique modes of transporting cargo. However, judging by their characteristic attributes, it’s fair to independently differentiate them.
| Sea (transoceanic) | Air |
| Transportation of goods by water. | Movement of goods from one location to another by air. |
| It’s the most efficient and safest means of transporting goods. | Currently, the fastest means of transporting goods. |
| Offer relatively low-cost for transporting goods internationally. | It’s expensive to ship cargo internationally by air. |
Types
It’s significant at this juncture to focus mainly on the backbone of global trade. It refers to the transoceanic mode – transportation of goods by water. However, the transportation of goods by water is shipped in diverse forms.
The following are the basic ones you need to know.
· Freight Shipping
This means transporting goods from one place to another by a carrier, either through water, air, or land. It can involve the transport of various raw materials and factory products. They include raw materials, agro, factory goods, equipment, and hazardous substances.
Businesses that need to transport large quantities of goods that are too big for parcel carriers use this approach.
According to transportation experts, in 2024 the freight forwarding market was estimated at 176 billion U.S. dollars and is expected to increase by 2026. In 2029, the market is projected to reach the size of almost 216 billion U.S. dollars.
· Roro Shipping
It refers to a roll-on-roll-off method of transporting wheeled goods. Precisely by loading and unloading cargo onto and off a ship using ramps. This method is a popular choice for transporting wheeled cargo such as cars and other vehicles.
A useful method for shipping cars. It’s a process that allows the loading of cars onto a ship and transporting it to international markets.
Roro shipments also include construction equipment, rolling plants, and other self-propelled cargo.
· Container Shipping
This refers to the transportation of goods in standardized containers by ship. It is the most efficient and best way to ship goods internationally. Typically in 20ft (TEU) and 40ft (FEU) respectively.
Transporting goods via this method helps to protect and ensure the safety of the goods.
· LCL Shipping
LCL refers to less-than-container load. It is a method of transporting goods from one location to another by securing a space in a container. This process typically allows the shipper to share a shipping container with other shippers.
Transporting cargo as LCL helps to reduce costs. While taking advantage of container safety and protection features.
· Package Shipping
A means of sending packaged items, in boxes or containers, from one location to another via delivery service. The items are, in turn, tracked while in transit to the recipient’s address. Most often, through a postal service or courier company.
Courier companies use this method for standard ground delivery within a country. Also applicable for international package delivery. Package delivery companies such as UPS and FedEx often deliver shipments using this approach.
· Courier Shipping
This is a service that involves picking up and delivering parcels and documents to a specific address. This service is usually faster and more reliable than other methods of transporting goods.
Postal services such as DHL and UPS typically use this method for transporting letters and parcels.
· Dry Bulk Shipping
This refers to transporting large quantities of loose cargo that is not liquid or oil-based. It is a vital part of global trade and industry. Companies use this method to ship agro-produce (grains), iron ore, and coal.
There is also wet bulk. It means the transportation of large quantities of liquid substances in bulk. Examples are LNG, Crude oil, Chemicals, etc.
· Break Bulk Shipping
The last on this list. It’s a method of transporting goods in crates, boxes, bags, or drums instead of using containers. In practice, this means general cargo.
Conclusion
The transportation of goods from one location to another has been made easy via water. Ensuring the movement of diverse weights and sizes of goods typically via transoceanic shipping mode.
Currently, a higher proportion of goods are transported through water bodies.
A medium that permits the export and import of goods that support the livelihood of billions of people. This act of transporting goods is crucial for economic sustainability and ensures global shipment of products.
Shipping FAQs
What is the Meaning of Shipping?
It is the transportation of goods from one location to another with the use of different transport modes.
What is Called Shipping?
The physical movement of goods from one point (origin) to another (destination).
Does Shipping Mean Delivery?
Shipping is the movement of goods from one location to another. Delivery refers to the process of physical transfer of goods by the seller to the buyer.
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