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Glossary

Trade Finance Glossary and Export Import Terms

Home > Finance Glossary > Cargo

What is Cargo?

Cargo refers to goods or merchandise transported by ship, aircraft, train, or truck from one place to another for commercial purposes.

How It Works:

  • Goods are packaged and prepared for shipment.
  • They are handed over to a logistics provider or carrier.
  • The cargo is transported via the chosen mode (air, sea, road, rail).
  • It is delivered to the consignee at the destination.

Benefits:

  • Enables domestic and international trade
  • Supports supply chain movement of goods
  • Facilitates bulk transportation efficiently
  • Helps businesses expand to new markets

Example:

A textile manufacturer ships 1,000 garments from India to the USA. These goods being transported are referred to as cargo.

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