Unit-9 TRANSPORTATION

UNIT-9

TRANSPORTATION

Transportation

Transportation is an important aid to trade by which the movement of physical things are possible from one place to another place.

IMPORTANCE OF TRANSPORTATION.

1. Transportation helps to the movement of raw materials, finished goods and the labour from one place to another

2. It saves the time and cost of distribution of goods

3. It helps in continuous production by supplying raw materials in time.

4. It helps in international trade to export and import

5. It increases the employment opportunities

6. It helps the consumers to get goods in time

7. It helps in foreign trade and increases the economic growth.

TYPES OF TRANSPORTATION

The transportation methods are of three types

1. Land transport

2. Air transport

3. Sea transport

1. LAND TRANSPORT

Land transport is a common method of transport on land areas. Land transport is of two types

            -Road transport

            -Rail transport

A. ROAD TRANSPORT

            Road transport means the transportation using wheeled commercial vehicles on roads

Advantages of road transport.

1. Flexibility:-it is flexible method and can be seen everywhere in the land areas.

2. Door-to-door service:- It helps to the door to door delivery of goods to the customers

3. Remote rural areas:- It is possible to the remote rural areas where there is no more infrastructural facilities like rail way link, air or sea port links.

4. Convenience:- According to the type of goods the vehicles can be selected and used for short term distances, eg:- Pick-up vans, trucks, lorries, etc

5. Motor vehicles:- The arrival of motor vehicles increased the speed of transport according to the availability.

6. Lower cost:- Comparing to other methods of transport, it is less expensive and can be used the vehicles according to the consignment.

 7. Suitability:-It is the most suitable mode of transport for carrying goods over short distances.

Disadvantages of road transport.

1. Bulk goods.

    Road transport is not suitable for carrying bulk goods for long distances.

2. Long distance. 

 It is not suitable for carrying goods for very long distances.

3. Air pollution

The increased use of vehicles leads to the air pollution and diseases.

4. Congestion and delays

    Road transport may be subject to delays because of rush and traffic problems

5. Chance of damage

Comparing with other methods of transport, it increases the damage of goods.

COMMERCIAL VEHICLES USED FOR ROAD TRANPORT.

1. Tanker trucks.

            These are heavy trucks or Lorries specially built for carrying liquid items such as Oil, gas, water, etc.

2. Roll-on roll-off trucks.

            These are heavy trucks specially built for carrying goods without unpacking. It is suitable for carrying vehicles, machineries, etc.

3. Container trucks.

            These are heavy trucks/lorries specially built for carrying containers. These are used to carry heavy weighted goods for long distance. It may be refrigerated to carry perishable goods too.

4. Delivery van.

            These are small or medium pick-up vans used by the suppliers to deliver goods to the particular parties in the short distance.

5. Passenger vehicles.

            These are vehicles used for carrying passengers from one place to another. These include bus, taxi car or rental car, jeep, etc.

B. RAIL TRANSPORT.

            It is an important mode of land transport through a specially made metal tracks called rail ways. It is a largest and fast mode of transport in land area.

Advantages of rail transport.

1. Speed.

Comparing with other modes of road transport, rail transport is faster and suitable for long distance.

2. Lower cost of labour.

In rail transport, there is no need of number of labours, normally two or three employees are there –a driver and two guards. So it saves labour costs.

3. Bulk commodities

Railways are particularly suitable for the transport of bulk commodities such as coal, iron and steel over long distances

4. Containerization

Containers can be used in the rail transport. It helps to avoid delays, breakages, theft and Protect from weather conditions.

5. Less pollution.

            The arrival of electric trains reduced the air pollution happens due to the consumption of diesel and coal.

6. Distance.

            Railway transportation is intended to long distances carrying heavy goods such as oil, cement, coal, etc.

Disadvantages of rail transport.

1. Needs special tracks.

             For rail transport, specially built metal tracks called rail way, required. So it is limited and not available everywhere.

2. Depended on other vehicles

            The goods can be loaded and unloaded only at railway stations, but for further distribution of these goods, other vehicles such as trucks or pick-up vans are necessary.

3. High capital cost.

            For building railway tracks and signal system, high cost of investment is required and not possible to private individuals.

4. Delays.

            For loading and unloading of goods there are too much handlings and workers required. Sometimes it leads to the delay in supply of goods.

5. Not suitable for Short journeys

Short journeys by rail usually waste time and money, particularly where the consignments are small. 

 

Types of trains.

1. Passenger trains.

            These trains carry passengers from one place to another place. These trains run on fixed time tables.

2. Container trains

             These are heavy trains having many coaches specially built for carrying containers.

3. Bullet trains.

These are high speed trains moving on the special tracks with the help of magnetic force. These trains can move around 500 km per hour.

2. AIR TRANSPORT.

 Air transport is a very expensive as well as fastest mode of transport than all other modes of transport using aircrafts.

Advantages of air transport. (Importance of Air Transport)

1. Speed of air transport is higher than all other methods of transport.

2. It is suitable for carrying light weighted high valued goods such as diamond, gold etc, safely.

3. It is useful to carry perishable goods to any part of the world without spoilage.

4. It is useful to carry emergency goods such as newspapers, medicines, food and emergency help quickly.

5. It is suitable for carrying goods such as electronic goods, computers, etc., without damage.

6. No need of special packing to the goods because the chance of damage is less.

7. It is suitable for landlocked countries there is no direct sea access.

Disadvantages of air transport.

1. The rate of charge is usually higher than any other mode of transport.

2.  High cost of investment required for buying an aircraft.

3. Only limited quantity of goods is allowed to carry at a time.

4. Chance of risk is high.

5. Air services may be affected due to the bad weather.

6. Needs other vehicles to carry goods from the airports to the final destination.

TYPES OF COMMERCIAL AIRCRAFTS

1. Passenger flights.

These are used to carry passengers from one place to another.

2. Cargo flights.

            These are heavy flights specially built for carrying cargoes bulkily.

3. Container flights.

            These are newly arrived flights for carrying containers from one place to another.

3. SEA TRANSPORT

            Sea transport is the traditional and common mode of transport. It is less expensive and slow mode of transport.

Advantages of Sea transport

1. Cheap:- Sea transport is cheap for carrying bulky and heavy goods over long distances. Moreover the fuel needed to run a ship is much less when compared with air transport.

2. Bulk goods:- Heavy weighted goods can be delivered in a single journey. Oil tankers can deliver four hundred thousand tons of oil in a single journey.

3. Flexibility:- Ships go where business takes them. Hence they are flexible and exporters can transport goods easily.

4. Perishable goods:-Perishable goods can be transported in specially built refrigerated vessels.

5. Containerization:-Goods are now packed in containers, sealed and then transported in container ships. It reduces the chance of damage and theft.

6. Safety:-  The chance of damage to the products  due to the shake of vehicles will be lower than in sea transport comparing with road transport.

7. Long distance:- Sea transport will be cheap for long distance for carrying heavy goods.

Disadvantages of sea transport.

1. Lower speed: Sea transport is not suitable for goods urgently needed because of its slow speed.

2. Not suitable for all the goods:- Sea transport is no suitable for the goods which is to be delivered immediately, such as perishable goods, news papers, etc.

3. Chance of loss due to deterioration:- The goods may be damaged due to the salt water.

4. It is not suitable for short distance:- For carrying small goods over short distance, the sea transport will be expensive.

5. Weather:- Sea transport is greatly depending upon the weather and tide conditions.

COMMERCIAL VESSELS USED FOR SEA TRANSPORT.

1. Liner.

Liners are of two types-

            Passenger liner:-  These vessels carry passengers  and run on fixed routes in fixed time according to the time table.

Cargo liner:- These vessels carry huge cargoes and run on the prefixed routes and time.

2.  Tramps.

            These are cargo vessels and do not have fixed time and route for the voyage. They set out when they have sufficient loaded.

3. Tanker ships.

             These are bulk carriers specially built to carry liquid items such as Oils, gas and other petroleum products.

4. Container ships.

            These are ships can carry heavy weighted containers. It is used for exporting goods.

5. Ferries.

            These are small vessels- boats or ships which can carry passengers over short distances on a regular route.

6. Roll-on roll-off ferry (Ro-ro ferry)

             These are special ships can carry goods unpacked. These ships can be used for carrying vehicles and machineries.

 7. OBO (Oil, Bulk, Ore) ships.

            These are heavy vessels can carry both liquid and solid items such as Oil, ore, etc.

                                            OTHER FORMS OF TRANSPORT.

Pipeline Transport.

             This mode of transport can be used to carry liquid items such as petroleum products and gases. It is safe and secure because separate pipelines can be laid on land and can be used over long distances from the place of production. For example:- Oil rigs to Refineries.

Advantages of pipeline transportation.

1.  Less expensive than other method of transport.

2. Less air pollution.

3. Once installed, there is no need of more labours to handle.

4. It is not affected by weather conditions.

Disadvantages of pipeline transport

1. High initial cost to install pipelines.

2. Only suitable for certain types of products-liquid and gases.

MODERN TRENDS IN TRANSPORT

Following are the recent developments in transportation sectors.

1. Charter transport.

            Under this method, the user can hire the vehicles for a particular period or a journey.

2.  Express road routes.

            This is an important development in road transport. The express highways ensure the speedy transportation on land area.

3. High speed railways.

             The development of electric trains and bullet trains increased the speed of railway transportation and reduces the cost too.

4. GPS (Global positioning System).

            GPS is a satellite based device used to find location and possible routes to a particular destiny. It saves time and reduces delay in transportation.

5. OBO (Oil, Bulk, Ore) ships.

            These are heavy vessels can carry both liquid and solid items such as Oil, ore, etc.

 6. Containerization

            Containerization means the large usage of containers container terminals for transportation purposes. Which means storing of goods in large metal boxes for carrying conveniently and safely from one place to another place. Containers are large metal box used for storing the goods.

Advantages of Containerization or containers

Container acts as a warehouse to protect the goods against damage or theft.

1. It helps to store goods for long term.

2. It helps to allow trans-shipment of goods without unpacking.

3. It ensures the quick turnaround of ships and other forms of transport.

4. It saves warehouse space and labour expenses.

5. It provides refrigeration facility for perishable goods.

Disadvantages of containerization

1. High capital costs are involved in purchasing and maintaining containers.

2. Special machines like cranes are necessary to handle the containers.

3. Containers occupy a lot of space and hence large space is needed to keep the containers.

4. The usage of machines like cranes reduces the employment opportunities.

Logistics management

Logistics management is the part of supply management (distribution). Packaging, transport and warehousing are the major task of logistics company. In e-commerce, retailers supply directly from warehouse rather than their store.

FACTORS TO BE CONSIDERED WHEN CHOOSING A METHOD OF TRANSPORT.

1. Bulk of the consignment.

2. The degree of urgency.

3. Value of the consignment.

4. Nature of goods.

5. Choice of transport.

6. Distance.

7.According to the geographical area

8. Risk of damage.

9. Convenience.

TRANSPORT DOCUMENTS.

1. Delivery note

            It is sent by the seller to the buyer along with the goods to confirm the delivery of goods. It is used when the goods are sent through the seller’s own vehicles. The delivery van driver brings both the goods and the delivery note and the buyer has to sign on it after the goods are received.

2. Consignment note.

            This is similar to delivery note but it is used when the goods are sent by hired vehicles.

3. Bill of lading

          The bill of lading is the most important export document whenever goods are sent by ship. It is issued by the shipping company. It is a document of title to the goods which means the holder can claim the goods from the ship when it reaches the destination.

4. Air way bill.

              An airway bill is issued by an airline company when the goods are handed over to them. It is sent along with the goods.

INTERNATIONAL TRANSPORTATION.

            International transport means the transportation among different countries.

1. Services offered by the airport authorities.

       a. They provide bonded warehouses for storing the goods until the duties are paid.

       b. They provide office accommodation for customs authorities.

       c. They provide runways for safe landing and take-off for aircrafts.

       d. They provide refueling and repairing facilities for aircrafts.

       e. They provide facilities for easy handling of cargoes.

2. Services offered by the seaport authorities.

       a. They provide bonded warehouses for storing the goods until the duties are paid.

       b. They provide office accommodation for customs authorities

       c. They provide deep water access for safe landing of ships.

       d. They provide refueling and repairing yards.

       e. They provide loading and unloading equipment like cranes, machinery, etc

       f. They ensure fast turnaround of ships by speeding up the loading and unloading of cargoes.