ABSTRACT

This chapter includes three terms, namely logistics, distribution and transport, all of which have a central role in the treatment of the topic, and as will be for the rest. Transport is the actual movement of goods from one location to another using a means or a vehicle of transport and a transport infrastructure. Distribution denotes all activities relevant to physical movement of goods, including transportation, but also transhipment and warehousing. Logistics is generally used as an overarching term that includes all activities related to the movement and coordination of goods from their source of origin to the final point of delivery, and includes production and distribution. The demand for freight transportation is generated by shippers. Each shipper will have their own logistics strategy, which includes whether to operate their own fleet or to use an external party to which it will outsource their logistics and distribution activities, as well as choosing the modes of transport.