What Is the Shipping Industry?

Shipping refers to the transportation of people or goods by means of water transport and air transport. Generally speaking, water transportation takes a long time, but the cost is relatively low. This is unmatched by air transportation and land transportation. Water transport can carry a large amount of cargo per voyage, while air and land transport have a relatively small load each time. Therefore, in international trade, water transportation is a more common mode of transportation. The vigorous development of the shipping industry since the 15th century has greatly changed human society and the natural landscape.

Shipping means transportation and

Classification of shipping tools:

• Shipping

• Regular shipping

  Regular shipping means that the ship accepts sporadic groceries or container freight between ports on a fixed route, and reciprocates according to a pre-arranged schedule. One of the advantages of regular shipping is that the freight is more stable.

  The opposite of scheduled shipping is irregular shipping. Non-scheduled shipping is mainly for the transportation of dry bulk cargo or oil in bulk. There are no fixed schedules or fixed routes. The voyage is determined according to the needs of cargo movement, which is different from regular shipping.

  Shipping terms

  The use of waterways for international trade involves some provisions.

  • Free on Board (FOB)-The seller is responsible for the cost of shipping to the port, and the subsequent costs are borne by the buyer; the seller is responsible for the goods to the port of departure, and the responsibility is borne by the buyer.

  • Cost, Insurance & Freight (CIF): Insurance and freight are paid by the seller until the destination; the seller assumes responsibility for the goods to the port of destination. ^[1]