What Is Cartage?

Cartage refers to the charge or service for moving goods by truck, wagon, or other vehicle. It is an essential component of the logistics and transportation industry.

Cartage: Charge or Service for Moving Goods

Cartage refers to the charge or the service involved in transporting goods from one location to another using trucks, wagons, or other vehicles. This term is commonly used in logistics and transportation industries, emphasizing short-distance movements within a city or between nearby locations. Unlike long-haul trucking or shipping, cartage services typically handle local deliveries and pickups, often serving an integral role in the supply chain process.

Types of Cartage Services

Less-Than-Truckload (LTL) Cartage

Less-than-truckload cartage involves transporting goods that do not require a full truck. This service consolidates smaller freight with other shipments, optimizing vehicle capacity and reducing costs for individual shippers. LTL cartage is essential for small businesses and partial load shipments.

Full Truckload (FTL) Cartage

Full truckload cartage is utilized when shippers have enough cargo to fill an entire truck. This method offers direct pick-up and delivery, reducing handling and potential damage. It is typically faster and more efficient for large shipments.

Express Cartage

Express cartage provides expedited delivery services for urgent shipments. This type of cartage is often more expensive but ensures quick and reliable transport of goods.

Special Considerations in Cartage

Pricing Factors

The cost of cartage services can vary based on multiple factors, including:

  • Distance between pickup and drop-off points
  • Weight and volume of the goods
  • Type of goods being transported (hazardous materials might incur additional charges)
  • Urgency of the delivery
  • Accessibility and infrastructure availability at the pickup and delivery points

Cartage services must adhere to local transportation regulations, which may include vehicle safety standards, driver qualifications, and permissible working hours. Compliance ensures safety and reliability in the transportation industry.

Examples of Cartage Services

Retail Distribution

Retailers often use cartage services to transport inventory from regional distribution centers to individual stores, ensuring timely replenishment of stock.

Construction Materials

Construction companies rely on cartage for the delivery of materials like concrete, lumber, and other supplies to job sites, facilitating efficient project progress.

Historical Context of Cartage

Cartage has origins dating back to the use of horse-drawn wagons for local goods transport. With the advent of motor vehicles in the late 19th and early 20th centuries, cartage evolved into a cornerstone of modern logistics. Today, it remains a critical service, adapting to advances in transportation technology and logistics management.

Applicability of Cartage

Cartage is essential in various sectors including retail, manufacturing, construction, and more. The service ensures goods are moved efficiently within urban areas, supporting businesses and consumers alike.

  • Freight: Freight refers to the goods transported, often used interchangeably with ‘cargo.’ It encompasses a broader scope of transport methods beyond just local cartage.
  • Drayage: Drayage involves the transport of goods over a short distance, particularly from ports to warehouses. It is a specific type of cartage focused on container and intermodal transportation.
  • Logistics: Logistics is the overall management of the flow of goods from origin to consumption, encompassing all transportation, warehousing, and inventory control functions.

Frequently Asked Questions

What is the difference between cartage and freight?

Cartage specifically refers to short-distance transportation of goods, typically within a city or nearby locations. Freight is a broader term that covers any goods transported, regardless of distance.

How is cartage cost calculated?

Cartage costs are calculated based on distance, weight, volume, type of goods, urgency, and specific service requirements.

Can cartage include both pick-up and delivery services?

Yes, cartage services can include both pick-up and delivery, depending on the agreement with the transport provider.

References

  1. “The Handbook of Logistics and Distribution Management” by Alan Rushton, Phil Croucher, and Peter Baker.
  2. “Logistics Management and Strategy” by Alan Harrison and Remko van Hoek.

Summary

Cartage plays a pivotal role in the logistics and transportation sector, focusing on the local movement of goods using trucks, wagons, or other vehicles. It encompasses services like less-than-truckload, full truckload, and express deliveries, catering to various business needs. Understanding the nuances of cartage, from pricing factors to compliance requirements, is essential for effective supply chain management.

Finance Dictionary Pro

Our mission is to empower you with the tools and knowledge you need to make informed decisions, understand intricate financial concepts, and stay ahead in an ever-evolving market.