Cartage

Cartage Logistics Supply Chain Management Transportation Costs Freight Charges Trucking Service
Cartage refers to the charge or service for moving goods by truck, wagon, or other vehicle. It plays a crucial role in logistics and supply chain management.
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Definition

Cartage refers to the cost or charge associated with the transportation of goods over a short distance by truck, wagon, or other vehicle. It encompasses the activities involved in the local hauling and delivery of goods within a metropolitan area or a defined jurisdiction. This charge can encompass various services including loading, unloading, and actual transit time.

Examples

  1. Local Deliveries: A retailer might pay a cartage fee for the delivery of merchandise from a regional distribution center to individual store locations within a city.
  2. Construction Materials: A construction company might incur cartage charges when transporting materials such as bricks, cement, or lumber from a local supplier to the construction site.
  3. Rental Equipment: A business renting heavy machinery might pay cartage fees for the delivery and return of the machinery to their premises.

FAQs

Q1: What is the difference between cartage and freight?

A1: Cartage usually refers to short-distance transportation of goods, often within the same city or metropolitan area. Freight, on the other hand, refers to the long-distance transportation of goods, which can span across states or countries.

Q2: How is cartage calculated?

A2: Cartage charges can be calculated based on various factors including distance, weight of goods, time taken for transportation, and any additional services like loading and unloading.

Q3: Is cartage the same as drayage?

A3: While both terms refer to the transportation of goods over short distances, drayage specifically involves the transport of goods over a short haul from ports or railway depots to a local location. Cartage has a broader application and doesn’t necessarily involve ports or depots.

Q4: Who typically pays for cartage?

A4: In many cases, the buyer or receiver of the goods might pay for cartage, although this could vary based on the terms agreed upon between the seller and the buyer.

Q5: Can cartage charges be negotiated?

A5: Yes, cartage charges can often be negotiated, especially if there is a regular or high volume of goods to be transported.

  1. Freight: The transportation cost associated with moving goods over long distances, typically by land, sea, or air.
  2. Drayage: Short-distance transportation of goods, often specific to ports or railway depot transfers.
  3. Haulage: The business or process of transporting goods by road or rail.
  4. Logistics: The detailed coordination of complex operations involving the movement of goods, services, or information.
  5. Supply Chain Management: The management of the flow of goods and services, including all processes that transform raw materials into final products.

Online References

Suggested Books for Further Studies

  1. “Logistics and Supply Chain Management” by Martin Christopher
  2. “Supply Chain Logistics Management” by Donald Bowersox
  3. “The Handbook of Logistics and Distribution Management” by Alan Rushton
  4. “Introduction to Logistics Systems Management” by Gianpaolo Ghiani, Gilbert Laporte, and Roberto Musmanno
  5. “Global Logistics For Dummies” by SOLE - The International Society of Logistics

Fundamentals of Cartage: Logistics Basics Quiz

### What does cartage refer to in logistics? - [x] The charge for moving goods by truck, wagon, or other vehicle over short distances. - [ ] The long-haul transportation of goods by sea. - [ ] The air transportation of high-value items. - [ ] The fees associated with storage in a warehouse. > **Explanation:** Cartage specifically deals with short-distance transportation services for moving goods using trucks, wagons, or other vehicles within local or defined regions. ### Which transport mode is primarily associated with cartage? - [x] Truck - [ ] Airplane - [ ] Boat - [ ] Train > **Explanation:** Cartage charges typically involve the use of trucks for the local transportation of goods over short distances. ### What type of businesses might frequently encounter cartage charges? - [ ] Airlines - [ ] E-commerce websites - [x] Retailers and Construction companies - [ ] Software companies > **Explanation:** Retailers and construction companies often require local delivery services for their goods and materials, thereby frequently encountering cartage charges. ### How can cartage charges be calculated? - [x] Based on distance, weight, and additional services - [ ] Standard flat rate set by the government - [ ] Solely by the volume of goods transported - [ ] A fixed fee regardless of service required > **Explanation:** Cartage charges are typically calculated based on a combination of distance traveled, weight of the goods, and additional services like loading and unloading. ### In the context of short-distance movement, what is drayage? - [ ] Transporting goods by sea - [ ] Long-distance hauling of goods - [ ] Storage of goods in a warehouse - [x] Short-distance transportation, often from ports or railway facilities to a nearby location > **Explanation:** Drayage involves the transportation of goods over a short distance, especially from ports or railway facilities to local destinations. ### Who can generally negotiate cartage charges? - [ ] Only the supplier - [ ] Federal government agencies - [x] Buyers and sellers - [ ] Insurance companies > **Explanation:** Both buyers and sellers involved in the transportation of goods can typically negotiate cartage charges based on service expectations and volumes. ### Does cartage apply to international shipping? - [ ] Yes, it includes transporting goods across countries. - [x] No, it is for local short-distance transportation. - [ ] Only when goods are transported by air. - [ ] Only during the initial stages of export. > **Explanation:** Cartage is primarily associated with local short-distance transportation and does not typically involve international shipping. ### What logistics role involves the coordination of short-distance transportation? - [ ] Pilot - [x] Truck driver - [ ] Warehouse manager - [ ] Customs officer > **Explanation:** Truck drivers are often involved in the execution of cartage, managing the short-distance transportation of goods. ### Which scenario is mostly related to cartage? - [x] Furniture being delivered from a city warehouse to a local customer - [ ] Shipping containers being sent overseas - [ ] Overnight air express services - [ ] Online order fulfillment through drone delivery > **Explanation:** The delivery of items such as furniture from local warehouses to customers within the same city is a typical example of cartage. ### What is a fundamental requirement for a cartage service? - [x] Short-distance transportation within a localized region - [ ] Transoceanic shipping capabilities - [ ] Use of air freight only - [ ] Exclusive use of rail unless otherwise specified > **Explanation:** Cartage services fundamentally require the transportation of goods over short distances within localized regions, often using trucks or wagons.

Thank you for exploring the essentials of cartage with us. Keep leveraging this knowledge to enhance your logistics and supply chain expertise!

Wednesday, August 7, 2024
Carte Blanche
Carryover Basis
Carload Rate January 1, 1
Bill of Lading (B/L) January 1, 1
Bonded Goods January 1, 1
Consolidator January 1, 1
Cost and Freight (C&F) January 1, 1
Delivery Lead Time January 1, 1
Distribution Strategy January 1, 1
Freight Forwarder January 1, 1
Logistics January 1, 1
Materials Handling January 1, 1

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