The Velocity of Freight

The velocity of freight is more than simply the speed at which it moves along modes; the shipment speed. It also includes transshipment speed, which includes intermodal operations. Since many transportation modes, particularly maritime and rail, have not shown any significant speed improvements in recent decades, an indication that a speed barrier may have been reached, intermodal operations have become one of the most important element behind the increased velocity of freight. Containerization has been the fundamental factor behind such a radical change, as prior to containerization the shipment speed may have been adequate but acute delays linked with inefficient transshipment prevented any forms of operational time management of freight distribution. In many transport chains, the velocity of freight has reached a level (logistical threshold) where time based management of distribution becomes a possibility and a reality. This enables a move from push (supply based) to pull (demand based) logistics where the inventory is in circulation. It is very likely that any future improvements in the velocity of freight are solely going to be based on the function of transshipment, both from an intermodal and transmodal perspective.