Difference between Maritime, Shipping, Freight, Logistics and Supply Chain
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Difference between Maritime Shipping Freight Logistics Supply Chain
To the uninitiated (which included me at one stage), these industries are same or similar and it might come across that there is no difference between Maritime, Shipping, Freight, Logistics and Supply Chain…
But once you are involved in the business or know about these businesses, you will very soon understand that these are very different industries with different workings, assets, architecture, requiring .
very different sets of qualifications, experience, expertise, knowledge and attitudes…
In this article I unpack the difference between Maritime, Shipping, Freight, Logistics and Supply Chain and how it is all connected, starting with some simple definitions of these terms…
- Maritime Industry: anything related to the ocean, sea, ships, navigation of ships from point A to point B, seafarers, ship owning and other related activities.
- Shipping Business: the act of carriage of cargo from point A to point using the ships which falls under the Maritime industry…
- Freight: the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry…
- Logistics Services: the processes involved in getting the cargo from the manufacturers warehouse to the receiver’s warehouse including arranging for shipping services .
Offered by the shipping lines using the ships which falls under the Maritime industry.. - Supply Chain: the whole granddaddy process comprising of all aspects in a product cycle.
For example from picking of the fruit at a farm in Point A to delivering the fruit to the shelf at a store in Point B using all of the above mentioned industries, businesses and services…
- Maritime Industry:
It is fair to say that Maritime Transportation has been and still remains the backbone of global trade and has been so since the Egyptians, Greeks, Romans, Arabs, Indians, Chinese, Europeans .
All started sailing and improvising the sailing methods from sailboats, dhows, long boats, dragon boats, steamships to the current ULCVs, VLOCs, VLCCs etc..
Maritime transportation is a derived demand whose main purpose is to support trade, business and commerce – whether global or domestic, whether cargo or people…
An estimated 89.5% of global trade is carried by sea… As per UNCTAD figures.
In 2016, world seaborne trade reached a volume of 10.3 billion tons with a predicted expansion of 3.2% between 2017 and 2022…
The growth, numbers and the volume involved makes the maritime industry one of the most globalized industries in the world in terms of ownership and operations…
Not just in terms of ownership, the Maritime industry also provides employment for an estimated 1.65 million seafarers working in the global merchant fleet across the world…
- Shipping Business
As briefly defined above, Shipping is the act of carriage of cargo from point A to point using the ships which falls under the Maritime industry…
Cargoes are carried by various types of ships all around the world, such as: Oil Tankers, Dry Bulk Carriers, General Cargo Carriers, Container Carriers, Gas Carriers, Chemical Tankers.
Off Shore Vessels, Ro-Ro ships, Ferries/Passenger Ships, and others…
- Freight Industry
Many of us in the business relate to freight as “money”… Freight is what the entire global trade revolves around, but also has a different meaning to money…
In simple terms, FREIGHT refers to CARGO that is carried by a carrier (ship, road, rail, air) in exchange for commercial gain…
In the context of waterborne freight, freight refers to the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry…
- Logistics
The term logistics is said to have originated from the military and is said to have been initially used to define troop and equipment movement in the various areas of military operations…
Logistics is the process involved in getting the cargo from the manufacturer’s warehouse, point of origin, mine site, farm etc. to the receiver’s warehouse, door, store etc…
The process of logistics actually begins way before the actual shipment takes place as it involves discussing and deciding on the delivery schedules suitable to both the buyer and the seller…
Once these are decided, then the logistics services provider needs to decide on the best method of moving the cargo from the seller’s door to the receiver’s door…
- Supply Chain
Supply Chain is the whole granddaddy process comprising of all aspects in a product cycle.
for example from picking of the fruit at a farm in Point A to delivering the fruit to the shelf at a store in Point B using all of the above mentioned industries…
Supply chain involves a network of suppliers, transporters, warehouses, distribution centers, shipping lines. logistics services providers all working together from the creation and sale of a product till its delivery to you and me…
Supply chain management is the management of all the supply chain activities in developing and running the supply chain as effectively and efficiently as possible…
This management may involve product development, sourcing, production, logistics, and all the system required to coordinate and delivery these activities…
As you can see, there is a vast difference between Maritime, Shipping, Freight, Logistics and Supply Chain and we haven’t even covered the other related industries such as Ports, Terminals, and ICDs etc…
Difference between Maritime Shipping Freight Logistics Supply Chain
Difference between Maritime Shipping Freight Logistics Supply Chain
Difference between Maritime Shipping Freight Logistics Supply Chain
Difference between Maritime Shipping Freight Logistics Supply Chain
