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What is cartage and its role in international shipping?

Cartage in shipping refers to the transportation of goods by truck between different locations, such as between a port and a warehouse. Learn more in the blog.

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:

Inward cartage:

This is when the freight loading and unloading charges are paid on the goods purchased.

Outward cartage:

This is where the freight loading and unloading charges are paid on the goods sold.

Combined THC

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:

Distance:

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.

Accessorial services:

Additional services required for the shipment, such as liftgate delivery or inside delivery, can also impact the cost of cartage.

Fuel prices:

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.

Airports

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.

Specialized services:

Cartage fees may also apply for specialized services, such as transportation of hazardous materials or oversized loads.

Transit points:

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.

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Frequently Asked Questions

How to choose between drayage and cartage?

If you need to transport goods over short distances within a specific region, then drayage may be the best option for you. On the other hand, if you need to transport goods over long distances between cities or regions, then cartage may be a better choice.

What is a cartage agent?

A cartage agent is a professional who specializes in providing cartage services to businesses and individuals.

What’s the difference between cartage and haulage?

Cartage refers to transportation of goods over short distances within a specific region, while haulage refers to transportation of goods over longer distances between cities or regions.

What’s the difference between cartage and shunting?

Cartage refers to the transportation of goods over short or long distances, while shunting refers to the movement of goods within a specific location, such as a warehouse or port.

When are cartage services used?

Cartage services are used whenever businesses or individuals need to transport goods over short or long distances.

Published on May 10, 2023.

Sources:
1. https://www.freightcourse.com/cartage/
2. https://thebusinessprofessor.com/en_US/mgmt-operations/cartage-definition
3. https://ratings.freightwaves.com/what-is-cartage/

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