The main purpose of transportation is to move people and goods from one location to another. Transportation plays a vital role in modern society and has a significant impact on the economy, as it enables the distribution of goods and the movement of people for work, leisure, and other purposes. Transportation also plays a role in the development and maintenance of social and cultural connections within and between communities.
- Purpose of Transportation
- Product Movement
- Product Storage
Modes of Selection
There are several aspects to consider while selecting the most suitable mode of transportation for getting the product from point A to B. Shipping and logistics costs are reduced by the effective use of transport equipment and modes. However, export planning is not always as simple as it seems. Depending on the destination, goods sent to a foreign market may be transported by road, rail, air, sea, inland, waterway or a combination of these. When deciding which mode of transport to use, the following factors should be taken into account:
1) Cost of Transportation
When choosing the best mode of transportation of products for export, your budget should be the most important factor when making a decision. The cost may vary depending on the type and quantity of goods required for transportation. Keep in mind that the cost of transportation will affect the cost of the goods.
If you are transporting heavy or bulky products long distances inland, rail transport will be most economical. Land transportation, usually by trucks, is best suited for transporting small quantities of goods over short distances. It also saves on packing and handling cost. Water transport is undoubtedly the cheapest mode of transportation, very suitable for heavy or bulky goods that need to be transported over long distances where time is not an important factor. For the transport of perishable, light or valuable goods, air transportation will be the most efficient mode of transportation to use, although it is expensive. Importers and exporters should also consider the overall cost of transportation, taking into account "hidden costs" such as insurance premiums and finance charges.
2) Reliability and Reliability of Service
Transport modes differ in reliability and regularity. Your decision on which mode of transportation to use will be influenced by the urgency and speed with which you wish to have your goods delivered. Land, sea and air transportation are usually affected by inclement weather such as heavy rain, snow, fog and storms that can cause delays.
3). Safety
The safety and security of goods in transit also affect which mode of transportation is used. Land transportation may be preferred over railway transport as your losses are usually less. Water transport exposes goods to sea hazards; Therefore, from the point of view of security, sea transport is the most risky. In addition, to protect the goods in transit, certain types of packaging are recommended, which can affect the cost. Goods may also require special features such as refrigeration or special safety measures that must be taken into account.
4). Characteristics of goods
The size and weight of goods also play a part in deciding which mode of transportation to use. Land and air transport mainly cater for light and small shipments while rail and sea transport cater for heavy shipments. Deciding which mode of transportation to use will also depend on how dangerous, fragile or high-value the products are. Air and land transportation is generally the best option for the use of high value breakable products.
5). More considerations
Other factors to keep in mind
- Terms of the export sales contract, eg. The buyer can determine that a particular mode of transportation must be used.
- Clearly, a destination on another continent would eliminate the road and rail option for the main transportation phase.
- Location of the foreign buyer in relation to airports, sea ports and railway stations.
- The facilities at the port of destination, eg. Whether bulk handling or container-handling equipment.
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