An incredibly short note on Freight.

TLDR : An incredibly short note on freight.

From the time that humans left the African continent, to the vikings setting sail to invade other lands, to the British dominating the world through their navy, the sea has always been the preferred mode of transport for many a generation.

This wasn’t due to some unrequited love for the sea (as some poets might fantasize) but rather a technological limitation. The first airplane was invented on December 17th of 1903 by the Wright Brothers, while the first (discovered) ships had been in use for more than 3000 years before that.

One statistic where this is apparent is that almost 80% of international trade is done on the ocean, with some countries having more than 90% of their trade through the sea. Given this overwhelming love for the money of the sea, it is natural then that trade routes give rise to disputes. Maritime borders unlike real borders cannot be fenced off, and so consequently are easier to occupy. Most countries know this, and so protect their maritime borders themselves with a well armed navy or ally themselves with other countries that can do it for them. The game of chess over maritime trade routes is truly a fascinating topic.

And not the focus of today. Today is going to be a little about the basics, the boring definitions and little quirks about ports and freight.

Types of Freight

Container Freight : Most goods across the ocean are sent in containers i.e containerized cargo. This standardization of cargo also means that there are multiple other standardized equipment to load, unload and perform other functions.

Tanker Freight : These are used for shipping liquids and gases (Think petroleum and natural gas).

Ports

3 types of ports to keep in mind:

Dry ports : These ports are connected to road/rail networks, allowing for quick distribution of cargo and preventing the port from overcapacity.

Cold Water Ports : These ports are ports that freeze during some parts of the year. This essentially makes them unusable for that period of time.

Warm Water Ports : These are available all year round.

Notes

General Diagram of Shipping.

1. Reducing waiting times in ports is incredibly useful because it prevents additional costs such as crew costs, ship maintenance, port fees, etc.
2. Geographical distances are not as important in shipping as economical distances between countries.
3. Adding to the above point, shipping connectivity and distance from global shipping lanes is also important.
4. Having a monopoly on trade routes means that you can capitalize on all ships going through. It also generally means that you can block countries during times of war, making them strategically important. (Malacca Straight, Bosporus Straight, Strait of Hormuz).
5. Port characteristics determine throughput. More cranes, shape and layout of terminals can increase throughput but affect costs.
6. Lack of port connectivity to internal transport is also a limiting factor.