In the world of shipping and logistics, it is important to understand various related terms and concepts for hassle-free exports. One such term is cartage, which plays a crucial role in shipping. Cartage allows movement of goods from ports, airports, and other transportation hubs to their final destination.
What is cartage in shipping?
Cartage in shipping is transportation of goods by truck between different locations such as between a port and a warehouse, or from a manufacturing facility to a distribution center. It is an essential component of the overall supply chain, as it provides a bridge between different modes of transportation, such as from sea
or air to land.
Types of cartage expenses
Cartage shipping expenses can be categorized into different types depending on the nature and scope of the service provided. Some of the most common types of cartage transport expenses include:
This is when the freight loading and unloading charges are paid on the goods purchased.
This is where the freight loading and unloading charges are paid on the goods sold.
This is a combination of origin and destination THC charges. Some ports might charge a Combined THC, which covers both the costs of handling the cargo at the port of origin and the port of destination.
Factors that impact the services and costs of cartage
Here are some of the key factors that impact the services and costs of cartage:
Typically, longer distances require more time and resources, which can result in higher cartage fees.
Weight and volume:
Heavier and bulkier shipments require more labor and equipment to transport, resulting in higher cartage fees than others.
Type of goods:
Transporting hazardous materials may require specialized equipment and handling procedures, resulting in high cartage fees.
Additional services required for the shipment, such as liftgate delivery or inside delivery, can also impact the cost of cartage.
High fuel prices can result in higher cartage fees to cover the increased cost of fuel.
Mode of transportation:
Transporting goods by air
may be more expensive than transporting them by road or sea.
Where do cartage fees apply?
Here are some of the common areas where cartage fees may apply:
Ports and harbors:
Cartage fees apply at ports and harbors for transportation of goods from ships to warehouses, rail yards, or trucking terminals.
Cartage fees also apply at airports for transportation of goods from the airport to a warehouse or distribution center.
Warehouses and distribution centers:
Cartage fees also apply at warehouses and distribution centers for transportation of goods to and from the facility.
Cartage fees may also apply for specialized services, such as transportation of hazardous materials or oversized loads.
Cartage fees may also apply at transit points, such as rail yards or trucking terminals, where goods are transferred between different modes of transportation.
Cartage vs freight
Cartage and freight are two terms that are often used interchangeably in logistics process. Cartage refers to transportation of goods over short distances, typically within a local area or region. Freight, on the other hand, is movement of goods over long distances, typically between cities or regions.
Drayage vs. cartage
Drayage is transport of goods over short distances, typically between a port or rail yard and a nearby warehouse or distribution center. Drayage services are typically provided by trucking companies that specialize in transportation of goods over short distances. Cartage, on the other hand, refers to transport of goods over long distances, typically between cities or regions.
Amazon Global Selling: Your passport to hassle-free export and logistics
Amazon Global Selling
is an e-commerce exports program that enables businesses to sell their products
on Amazon’s international marketplaces
, helping exporters reach millions of customers across the world. Cartage and freight are important components of the logistics network, and Amazon supports exporters at every stage including training, logistics, compliance and registration. To support you for hassle-free logistics, Amazon has also launched SEND, enabling you to ship directly to international fulfillment centers at competitive prices. All you have to do is book, pay and track shipments without any hassles from India to the world.
Published on May 10, 2023.