what is logistics shipping and cargo management
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Answer:
This all-important network provides the critical guidance and support so vital for the smooth operation of the ever-evolving freight forwarding industry. Freight management logistics comprise the core mechanisms and infrastructure at the heart of this estimated $270 billion global business. Though essentially invisible to the land-based general public, international maritime shipping accounts for about 90 percent of world trade, and without such logistical precision underpinnings, would simply not be possible.
The following is a brief history, as well as a useful breakdown, of the key components of freight management logistics, including: communication, tracking and tracing, warehousing and distribution, customs, and insurance.
Understanding Commercial Logistics
Historically, “logistics” has been largely associated with military campaigns, such as the procurement, maintenance and transportation of materials and personnel along supply lines. By the 1960s, however, its many benefits to the administrative and organizational processes of the business world proved invaluable, and gave rise to a wide range of related specializations.
The commercial shipping industry, in particular, adopted more acute logistical applications in the wake of weathering a veritable market sea change during the mid-1980s. Detailed in a 1986 article in The New York Times titled "Shipping Awaits A Rebound," this period was characterized by “tumbling freight rates, rising costs, and sinking values of used ships,” which flipped the shipping world on its head and made logistics management a necessity for manufacturers and retailers alike; first, to capitalize on the cost-saving opportunities, but also, simply to remain on par with competitors.
Companies who embraced the new normal of cost-cutting adopted longer, more highly optimized supply chains. To do this, they suddenly needed to master the detailed coordination of complex operations involving many people, facilities, and supplies—the very definition of logistics.
In 1982, in the midst of this period of great change and uncertainty—one of several globally turbulent eras in shipping—CAF Worldwide was founded. Successfully navigating such waters requires strict adherence to what's known as the so-called "Seven Rs of Logistics.”