Freight Transportation Modes, Documentation, and Key Concepts for Logistics

What are the 5 primary modes of freight transportation?

Air, Motor (Truck), Rail, Water, Pipeline.

Which mode offers the lowest cost per ton-mile?

Water transportation.

What is the fastest mode of freight transport?

Airfreight.

Define intermodal transportation.

Use of two or more transport modes in a single shipment without handling the freight itself.

What is a TEU?

Twenty-foot Equivalent Unit — a standard measure for containerized cargo volume.

What is the purpose of a Commercial Invoice?

Provides details of the sale — value, description, and buyer/seller information.

What document serves as the contract of carriage between shipper and carrier?

Bill of Lading (B/L).

What does a freight forwarder do?

Consolidates shipments, arranges transportation, prepares documents, and manages export processes.

What is the main advantage of intermodal transport?

Combines cost efficiency (rail/water) with flexibility (truck).

Which document identifies the manufacturing country?

Certificate of Origin.

Who issues a Letter of Credit, and why?

The buyer's bank, to guarantee payment to the seller.

Which mode is best for transporting petroleum and natural gas?

Pipeline.

Name two benefits of using freight forwarders for exporters.

Reduced paperwork, expert handling of customs and insurance.

What are the six performance measures of transportation?

Cost, Speed, Reliability, Capability, Capacity, Flexibility.

Why is documentation crucial in international freight?

It ensures legal compliance, payment, and customs clearance.