cargorouting

Cargo routing is the planning and execution of moving freight from origin to destination in the most efficient manner. It encompasses selecting routes, modes of transport, and schedules to minimize cost, transit time, or emissions while meeting service requirements and regulatory constraints.

Cargo routing covers all transport modes—road, rail, sea, and air—and their intermodal combinations. Decisions include shipment consolidation, sequencing, loading plans, yard operations, and handoffs at hubs, ports, and warehouses. Constraints include vehicle capacity, delivery windows, weight and size restrictions, hazmat handling, customs, and carrier limitations.

Techniques used include optimization models such as the vehicle routing problem (VRP) and its variants like VRP with time windows, as well as linear or integer programming, and heuristics or metaheuristics. Dynamic and stochastic routing adapts plans in response to disruptions. Practical tools include transportation management systems, route optimization software, GIS, and real-time data on weather, traffic, and carrier schedules.

Outcomes and challenges include balancing cost, speed, reliability, and carbon footprint; coping with disruptions from weather, congestion, and capacity constraints; data quality and integration across planning and execution systems; and regulatory and security considerations.

Overall, cargorouting is a core function of logistics and supply chain management, aimed at improving service levels and efficiency through informed route selection, mode mix, and adaptive planning.