Is it called cargo or shipment? Do both terms mean the same thing? What is the difference between shipment and cargo? Everyone who has ventured into the world of logistics, must have encountered these questions.
And that does make sense! Because on the surface, cargo and shipment may look like synonyms. But are they really similar words, or is there any difference between the two?
This blog will solve all your queries and will provide comprehensive information about the differences between cargo and shipment. So, without further delay, let's dive into the world of cargo and shipment.
Let's start by first understanding the fundamental differences between the two. In layman's terms both cargo and shipment are about moving goods from one place to the other. But once you scratch the surface, you will uncover the complexities.
What is Cargo?
The actual goods that are transported are called cargo. It can be anything. From raw materials to finished products, everything that is moved from one place to another using a truck, ship or a plane is called cargo.
What is Shipment?
Shipment is the act of moving goods from one place to another. This term is more focused and is generally tied to a particular order or delivery. For example, one can say that he or she has sent a shipment of 500 smartphones to the customer's warehouse in international shipping.
Let us now go further ahead and understand the differences in detail.
The term cargo, as discussed above, refers to the merchandise itself. It doesn't matter through which mode of transport the merchandise is moved. If we peek into the past, we get to know that earlier cargo was about maritime shipping but with time, the term has become more inclusive and versatile. Today it is used to cover transport by:
Sea/ocean freight
It would be an understatement to say sea freight dominates the cargo world. Because as per the data by International Chamber of Shipping, a whooping 95% of the world's total cargo by volume is moved through ocean freight. From clothes to car parts and from electronics to food items, most of the things around us have reached us through sea freight.
Air freight
Air freight handles a substantial amount of cargo across the world. Although the volume may not be as high as sea freight, Air freight holds its importance due to its speed. For high-value and time-sensitive items, nothing beats air freight.
Trucks/ Trains
Cargo being moved by trucks and trains keeps the supply chains across the world moving. Trucks and trains play a vital role in moving cargo across the globe.
To make it easier, look at cargo in this way: Any merchandise on the move is called Cargo.
The term 'shipment' is a broader one. It basically describes the merchandise or the products that are moved from one place to the other. Shipment comprises all steps of the process of transporting the cargo. Right from the start to the place of origin, till the place of destination, all processes are covered in shipment.
Shipment can be of varying sizes. It could be small packages or the bulk goods. It also includes moving of goods done for everyone, for individual customers to shifting inventory between warehouses.
Thus shipments are a crucial cog in the supply chain.
Based on the size of the shipment, it can be divided into two main categories. Now let's look at these two types of shipments in detail:
When the size of the shipment is big enough to fill an entire container, then they opt for the full container load option. In this option, the entire container is booked for a single entity. Having FCL helps in getting better prices, more security and less time as once the container is locked, there are no stoppages or openings during the transit. The container is directly opened at the destination.
When the shipment size is small, the customer prefers less than the container load option wherein they are sharing the container space with other customers. In this option, the container may be loaded or unloaded several times before arriving at the destination. So the time taken is more.
Now that we have understood what is cargo and what is shipment, let's move ahead. In the traditional world, the difference between cargo and shipment depended on the vehicle carrying the goods in question.
For example, when referring to air freight, we use the term, 'cargo planes' and not 'aircraft freight.' Similarly for goods transported through sea, we had the term, 'cargo ship,' and not 'freight ship.'
So basically, in the traditional world, freight refers to goods moved through truck or train and cargo is about air or ocean transport.
But, come the modern times and now the distinction between these two terms has become blurry. Today cargo refers to the actual goods that are being transported. It is basically the contents in the vehicle and we are not focusing on the type of the vehicle or the mode of the transport.
On the other hand, freight is the entire process of transportation of goods. Freight can be used to talk about the products, the method of moving the goods, and the cost incurred for the process.
If you are involved in or need to move goods from one place to another for domestic or for international shipping , or are engaged in supply chain management, then understanding the difference between shipment and cargo is crucial for you.
In any business, or transaction, clarity of communication can be decisive. If everyone is on the same page and knows the terms properly, then companies can avoid miscommunication and misinterpretations.
By understanding the differences between the two terms, you can streamline operations and make proper use of resources. The clarity results in smooth transportation, lesser transit times and ultimately helps in achieving company goals.
There could be different regulations and requirements pertaining to shipments and cargo. So having a firm understanding of the terms and other aspects goes a long way in complying with appropriate laws and industry norms.
If you have followed the blog till here, you would be having a good understanding of the difference between cargo and shipment. Need help moving your cargo or planning a shipment? We at Atlantic International Express are here to make it easy. Get in touch with us today to discuss your needs, and we will find the perfect shipping solution to get your goods where they need to go!
Cargo refers to the actual goods or merchandise being transported, regardless of the mode of transport (e.g., sea, air, truck, or train). Shipment, on the other hand, encompasses the entire process of moving those goods from the point of origin to the destination, including all logistical steps involved.
While cargo and shipment may seem similar, they are not interchangeable. Cargo specifically denotes the physical goods being moved, whereas shipment refers to the act or process of transporting those goods.
Atlantic International Express handles various types of shipments, including Full Container Load (FCL) for large shipments that fill an entire container and Less than Container Load (LCL) for smaller shipments that share container space with other customers.
Understanding these terms ensures clarity in communication, streamlines operations, and aids in regulatory compliance. It helps you choose the right shipping method (e.g., FCL or LCL), optimize resources, reduce transit times, and meet industry standards.
Traditionally, cargo was associated with goods transported by air or sea (e.g., cargo planes or ships), while freight referred to goods moved by truck or train. In modern logistics, cargo broadly refers to the goods themselves, and shipment (or freight) includes the entire transportation process, regardless of the mode.
Atlantic International Express simplifies your logistics by offering tailored solutions for moving cargo or planning shipments. Whether you need sea, air, or land transport, or assistance with FCL or LCL shipments, our team ensures smooth, compliant, and efficient delivery. Contact us to discuss your requirements!
