TRANSPORTATION

INTRODUCTION

TRANSPORT FUNCTIONALITY

Product Movement Product Storage

Principles Economies of Scale Economies of Distance

MODES OF TRANSPORTATION

AIRLINES

Advantages Quickest mode of Transportation Suitable for long distances

Disadvantages Costlier mode of transportation Not Suitable for short Transport small volumes of goods Transports light weighted products High risk involved due to bad weather

conditions.

ROADWAYS

Advantages Flexible Suitable for short and medium distances Serves as initial and final stage of freight

transport Door to door service to Customer Quite speedy

ROADWAYS

Disadvantages Not suitable for long distances Low Capacity More chances of accidents and damages to

goods Unsuitable for very heavy and large size

loads

RAILWAYS

Advantages Economical medium of transportation Suitable for transportation of heavy goods Speed of operation Capability to efficiently transport large

tonnage over long distances.

RAILWAYS

Disadvantages Chances of Accidents are high Not Flexible Not effective for small loads and short

distances Secondary transport is needed

WATERWAYS

Advantages Play major role in international trade Effective method of transporting large

quantities of goods Less costly than air transportation Suitable for long distances and large volume

shipments

WATERWAYS

Disadvantages Not Flexible Not suitable for short distances Risk involved due to bad weather conditions Limited range of operation and low speed

ROPEWAYSAdvantages Transports bulk material over short distance Lower capital cost Ideal for hilly areasDisadvantage Limited scope for operations Slowest mode of transport

PIPELINES

CLASSIFICATION OF CARRIERS Common Carriers Contract Carriers Private Carriers Specialized Carriers

TRANSPORTATION COST

Fixed Cost Variable Cost Joint Cost Common Cost

FACTORS INFLUENCING TRANSPORTATION COSTS AND PRICING

Density Stow ability Ease or difficulty of handling Liability

MIXED MODES

Piggyback Fishy back Birdy Back

RO-RO LASH

MODEL CHARACTERISTICS AND SELECTION

Cost Transit time Safety Reliability Speed