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 concerns the effectiveness of 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 elements 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 effective 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 practical. This velocity must also been accompanied with a level of reliability in terms of schedule integrity. This enables a move from push (supply based) to pull (demand based) logistics where most of the inventory can be kept in circulation, minimizing warehousing. 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. Still, the velocity of freight is being challenged. For instance, an increase in the amount of traffic eventually leads to congestion either along transport segments or at terminals, both having a negative impacts on the velocity of freight.