Freight transport
Freight transport, or shipping, is a key in the value chain in manufacturing. With increased specialization and globalization, production is being located further away from consumption, rapidly increasing the demand for transport. Transport creates place utility by moving the goods from the place of production to the place of consumption. While all modes of transport are used for cargo transport, there is high differentiation between the nature of the cargo transport, in which mode is chosen. Logistics refers to the entire process of transferring products from producer to consumer, including storage, transport, transshipment, warehousing, material-handling, and packaging, with associated exchange of information. Incoterm deals with the handling of payment and responsibility of risk during transport.