Function of shipping

 The function of shipping is the conveyance of goods from where their utility is low to a place where it is higher. Goods may consist of raw materials conveyed in bulk cargo shipments or purpose-built containers, equipment components or parts for assembly at an industrial plant or on-site capital project, like a power station, or the whole range of consumer products, many of which are durable and may be shipped in containers, on swap bodies or by an international trucking operation. A growth area in recent years is out - sourcing. This involves manufacturers relocating their industrial plant from a high labour cost economy, such as Germany or the UK, to a low labour cost environment as found in many Far East countries. Components are sourced locally or from neighbouring countries to the industrial assembly plant. Subsequently the products are marketed locally to the major trading centres, such as Europe and North America. Outsourcing is logistically driven and relies primarily on c...