The ease of goods transport between countries is an important factor when we speak of global trade. The medium of trading, of course, depends on a lot of factors, but if one has to go by statistics, it can be safely said that ocean shipping is the most preferred form with it being responsible for over 90% of global trade. However, when one talks about ocean shipping, it has been seen that there is a level of confusion and uncertainty over the different procedures and terms used for the same. One such term is ‘Haulage’ that makes up for a major part of the Ocean Shipping Industry. But what exactly does this term mean?
If one talks about it in the most literal sense, then ‘haulage’ can be explained in the following way – If you carry your own stock in a vehicle along with equipment and materials, then this would be classed as ‘carriage of own goods’. However, on the other hand, if you transport someone else’s goods or materials for a payment, then it would be termed as ‘haulage’. In simpler terms, Haulage is the business of transporting goods by road or rail.
Not all cargo can be shipped directly from one port to another. Sometimes, goods need to be transported overland to a port (or vice versa) before they can be delivered to the buyer or picked from the shipper. To facilitate Importers/Exporters, Dry Ports (Inland Container Depot-ICD) and Container Freight Station (CFS) are created in addition to ports. The CFS and ICD then function as fully integrated facilities for Import and Exports processes.
The process of Haulage can be further divided into two parts –
Carrier Haulage refers to the movement of containers from Point A to Point B, under the control of a shipping line, using a haulage contractor, which has been nominated by the shipping line in question. The procedure of Carrier Haulage is also at times referred to as Inland Haulage. An example to explain the same would be the movement of containers from CFS/ICD to the port of departure or vice versa.
The process of Merchant Haulage refers to the movement of containers from Point A to Point B, directly by the consignee using the haulage contractor nominated by himself. This movement could be from shippers warehouse/manufacturing plant to CFS/ICD or even to the port of departure.
A point to be noted is that shippers can directly deliver the Cargo to the Port or can even handover the Cargo at nearest CFS/ICD.
When one talks about Inland Haulage, they are referring to the transportation of cargo from inland container freight station to the seaport of loading or vice versa. If Cargo freight station is away from the seaport of loading, the shipper completes customs formalities at such container freight station (CFS) and CFS arranges to move cargo to the port of loading either by rail or road. Normally, most of the cargo in such locations is moved by rail.
The process of Ocean Shipping is an interesting topic with a lot to learn that can be used in everyday life. We at LogarGo are thus on a mission to decipher ocean shipping for those in the industry, as well as those, who may be interested in the same.