Logistics is everywhere… Have you noticed that it is present in everything around us? From what you ate for breakfast to the smartphone you’re using to read this post.
Logistics is the “invisible force” that is essential to the functioning of our modern society.
Would you like to understand how it works? Discover these 6 Logistic Curiosities.
1. What are the Most Transported Products?
- Bananas
That’s right! Bananas are one example of a fruit that is most commonly transported and distributed by cargo ships.
Thanks to globalisation and technological advances, it is now possible to enjoy seasonal fruit and vegetables from anywhere in the world, all year round.
- Furniture and Home Decor Items
Chairs, tables, beds… and so on are items that take up a lot of space. It’s not surprising, then, that many cargo ships carry containers filled with furniture.
Many of these items are designed by European or American companies but manufactured on the other side of the world.
- Automotive Components
Although many car brands are European, most car components are manufactured in Asia and then shipped by sea to Europe for assembly.
- Dispositivos Eletrónicos
Have you ever wondered how your smartphone, computer or television came to you?
High value-added electronics are among the most transported products in the world. For a long time, most of these items were transported by air, but in recent years they have been shipped by sea as it became faster and safer.
- Fashion (Clothing, Footwear and Accessories)
Production is mainly concentrated in Asian countries, with destinations worldwide, including the USA and Europe. Although they are relatively light items compared to cars and raw materials, they have a high added value, which makes them very important for the international transport of goods.
- Toys
During festive periods, games and toys are often transported because of their light weight relative to their high value.
2. Logistics Includes All Existing Forms of Transport… Well, almost all of them!
- Road Freight
It is one of the pillars of the supply chain, enabling solutions that connect routes directly to ports or railways.
- Air Freight
It is ideal for industries such as food and pharmaceuticals, for urgent or valuable goods. It provides the speed and security required for cargo whose sensitive nature makes them dependent on transport efficiency.
- Rail Transport
It is a halfway between air and sea transport in terms of speed and cost. It plays a key role, particularly in inland areas. It is widely used in the coal, minerals and agricultural products industries, where large volumes need to be transported over long distances.
- Ocean Freight
From ancient wooden ships carrying spices to colossal containerships, shipping is the backbone of international trade.
Shipping is vital to the success of industries that rely on imported raw materials, commodities and bulk goods.
- Multimodal Transport
It’s a concept developed as supply chains became more complex and involves at least two modes (air, sea and land) for the movement of goods.
3. Airlines Convert Passenger Aircraft into Cargo Aircraft
In order to meet the growing demand for air freight, many airlines have converted passenger aircraft into freighters.
Around 65.6 million tonnes of goods are transported by air each year, which already accounts for around 35% of global trade by value.
4. 80% of Cargo Is Transported by Sea
Container shipping is one of the main indicators of global economic stability. From 1990 to 2021, the amount of goods carried by ships increased a lot. They went from 4 billion tons to 11 billion tons. It is estimated that the vast majority of goods – around 80% – are now transported by ship.
5. Henry Ford Was the First to Embrace Supply Chain Management
Henry Ford is the “Godfather” of mass production. Its innovations in assembly lines, spare parts and vertical integration are thought to have revolutionized the manufacturing industry and influenced modern supply chain practices.
Its supply chain management system included centralising operations – improving coordination and efficiency – and implementing a multi-modal strategy – using trucks, trains and ships – to deliver parts and materials to factories faster and more cost-effectively.
This more streamlined approach to the supply chain has reduced costs and optimised production efficiency, making the car more accessible and boosting demand.
6. The Word “Logistics” Comes from the French Word “Logistique”
The term “Logistics” comes from the French “Logistique”, meaning “To Lodge”. It was first used in the book “The Art of War” by Baron Henri, the general of the French army during the Napoleonic period. At that time, the term was only in use in a military context, in reference to the planning and organisation of various important items such as weapons, equipment and garrisons. Later, it was also the name for the activity of management, warehousing and distribution of resources for a particular activity.
Logistics is a fascinating and complex world that affects our lives in ways we do not always realise. However, an understanding of how Supply Chains work will give you a better view of the world and a greater appreciation of the complex network of people, technology and infrastructure that surrounds us.
With Olicargo, you can start simplifying your supply chain today! Our experience can help you optimise your processes and achieve new levels of efficiency. Contact us today.
Sources:
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ASSTRA: Associated Traffic. (2023). Types of transportation in logistics. How to choose the right means of transport for your cargo?. Retrieved 1 July 2024 at: https://asstra.com/blog/types-of-transportation-in-logistics/
Eurosender. (s.d.) Top 10 Most Shipped items in the world. Retrieved 1 July 2024 athttps://www.eurosender.com/blog/en/most-shipped-items/
Enciclopédia Significados. (2023). Significado de Logística. Retrieved 1 July 2024 at: https://www.significados.com.br/logistica/
Global Shopaholics. (2023). Discover the Top 10 Most Shipped Items in the World. A Comprehensive Guide by Global Shopaholics. Retrieved 1 July 2024 at: https://globalshopaholics.com/blog/top-10-most-shipped-items-in-the-world/
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Maersk. (2023). A Short Guide On Ocean Freight Transit Times. Retrieved 1 July 2024 at: https://www.maersk.com/logistics-explained/transportation-and-freight/2023/09/27/sea-freight-guide
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