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Logistics transportation refers to the process of moving goods from the origin to the destination. During this process, carriers need to balance safety, economy, efficiency, environmental protection and other factors according to actual transport requirements. In other words, as consumers or end users, we hope to maximize the value of goods, minimize logistics costs, and receive intact goods delivered quickly. However, we cannot have it all. Improvements in transport service quality inevitably lead to higher costs. In many cases, logistics activities boil down to balancing trade-offs. Examples include the balance between transport demand factors, the distribution and balance of cargo flows across different transport modes, and the balance of interests between the logistics industry and upstream & downstream supply chain participants. From one perspective, logistics transport organizational models are products of such balancing acts, representing a consensus reached by all logistics stakeholders under specific transport demand scenarios.
In practice, logistics transport organizational models are flexible and diverse. New concepts emerge depending on cargo types, operation methods, time requirements and transport equipment. For this reason, people sometimes struggle to understand the concepts, features and distinctions of different models. In fact, everything becomes clear once the basic logic of logistics models is grasped. This article summarizes common logistics transport organizational models to help readers gain a comprehensive understanding of logistics.
This is essentially direct transportation. When there is sufficient and balanced cargo volume moving back and forth between two logistics nodes, logistics companies adopt round-trip transportation along fixed routes to effectively cut logistics costs. It is one of the most prevalent models. Dedicated line logistics generally handles general cargo only. Its drawbacks include limited timeliness; goods are delivered merely to freight stations or logistics parks, requiring last-mile delivery for door-to-door service.
Corresponding to full-truckload logistics. When the volume or weight of the shipper’s cargo is far below the capacity of a truck, exclusive trucking becomes uneconomical. Cargo is consolidated to fill an entire truck to reduce transport costs.
For road transport, shipments over 3 tonnes are normally handled as full-truckload transport. Essentially, it refers to exclusive truck service. Goods under 3 tonnes can also use FTL transport, such as dangerous goods, bulk cargo, and time-sensitive shipments.
A transport mode that uses containers as loading units to consolidate goods and enable efficient transshipment, loading and unloading. Containerized transport serves as a key component and implementation channel for multimodal transport.
A logistics transport method using tractor-trailer combinations. Tractors and trailers can be separated, eliminating waiting time during loading and unloading. Combined with optimization strategies including two-end drop-and-hook, cyclic drop-and-hook, en route drop-and-hook and network-based drop-and-hook, tractor capacity can be maximized to greatly improve logistics efficiency.
A maritime transport mode where road or rail vehicles together with their cargo are carried aboard ships. It can significantly boost port loading & unloading efficiency and expand the coverage of door-to-door services.
A mode where rail wagons carry road vehicles loaded with goods. The mature practice integrates road drop-and-hook vehicles, transporting only trailers while separating tractors. Piggyback transport mainly aims to save loading and unloading time in multimodal transport.
Specialized logistics for temperature-sensitive goods such as fruits, vegetables, meat, aquatic products, dairy, frozen drinks, quick-frozen food, pharmaceutical products, cosmetics and chemical reagents. Such goods must remain in low-temperature conditions throughout the supply chain to preserve quality or efficacy. Cold chain logistics is not only about cargo movement; more importantly, it reduces product spoilage. Its management and transport costs are higher than ordinary cargo transport.
Urban distribution addresses the "last mile" of logistics, covering cargo delivery activities within city boundaries. Compared with trunk line logistics, urban distribution has stricter time requirements, yet it may adversely affect residents’ travel and daily life, such as aggravating traffic congestion, consuming land resources, and generating exhaust, noise and vibration pollution. It forms a critical part of urban governance and poses challenges to the optimized coordination of urban resources.
Logistics activities involved in the recovery of defective products, waste and other items. Beyond economic value, its core philosophy incorporates green and sustainable development for the logistics industry. Reverse logistics operations often adopt alliance models among retailers, manufacturers and third-party service providers.
Logistics activities catering to production and daily life in rural areas. It features obvious seasonality, dispersion and diversity, with notable public welfare attributes. Rural regions are usually sparsely populated with relatively weak economic foundations. Profit-driven logistics networks cannot achieve full coverage, so integrated passenger-cargo solutions combining postal networks and rural passenger transport routes are commonly adopted.
A special transport model for hazardous materials. Dangerous goods transport is subject to strict reviews by industry regulators. Relevant qualifications must be obtained to conduct transport and storage businesses. The definition and management of dangerous goods must comply with mandatory national standards. China operates the National Road Dangerous Goods Transport Safety Supervision System for dynamic full-process monitoring.
Special transport for over-limit or overweight cargo. "Over-limit" means cargo dimensions exceed the clearance limits of highway or railway infrastructure; "overweight" means cargo weight exceeds the vehicle’s designed load capacity. Qualifications are mandatory for this business. Before shipment, professionals must survey transport routes, and transport plans need prior approval from competent authorities along the route.
Transport for commodities such as petroleum, coal, ore and grain. It is characterized by bulk handling, large shipment volumes, low added value and long transport distances. Economy, low energy consumption and environmental protection are prioritized during transport and storage.
Transport completed by two or more different transport modes. Multimodal transport emphasizes integration of advantages from various modes and optimized one-stop transport. Carriers provide services and bear liabilities under multimodal transport contracts or waybills, while shippers do not need to manage transport details.
Commonly known as courier service. Compared with other logistics models, it focuses heavily on timeliness, safety, reliability and convenience for point-to-point delivery. Its higher service level corresponds to higher unit freight rates, so express shipments mostly apply to small, lightweight, high-value or time-sensitive items.
Logistics activities requiring collaboration between two or more independent countries. International logistics is far more complex than domestic logistics. Coordination across multiple countries is challenging due to differences in governance systems, economic development, laws, culture, technology and standardization. International cooperation and transport alliances are often needed to remove barriers and unify standards.
An innovative logistics concept proposed in recent years. Relying on intelligent and automated technologies, it uses underground pipeline networks for efficient cargo delivery. It delivers fast and accurate service while effectively mitigating negative impacts brought by urban distribution, making it one of the solutions for sustainable urban development in the future.
Logistics activities providing emergency supplies for meteorological disasters, geological disasters, public safety and public health emergencies. Emergency logistics features unpredictability and weak economic returns. It emphasizes rapid response, decision-making and disposal before, during and after incidents.
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