The Role Of Transport

• Expanding consumer • Improve economic growth

choice. and development.
• Expansion of markets • Encouraging the
and promoting movement of labor.
international trade. • Promoting the spread of
• Reducing product excess invention and science
and shortage in the and technology.
markets. • Avoiding unnecessary
• Reducing stock keeping expenditure.
cost. • Stimulates the flow of
• Increase production and capital and the tourisms
promoting mass industry.
production.
Advantages And Disadvantages Of
Motor Carrier
• Door to door delivery. • Large initial capital
• Fast and low-price for investment.
short delivery • Management may
• Flexibility in routing lack necessary skills
and scheduling to optimize
• Redirection is easy transportation fleet.
• Firm can control fleet • Limited loading
capacity.
easily
• Cost will increase as
distance increase.
 The Market Structure

Motor carrier

Trucks Buses

Common Private Contract Common Private Contract

Public for hire service Contractual agreement Public Buses Organizational Buses School Buses

Factory Buses

Charter Buses
 Rail Transport
• Haul high-density, low-valued freight over
long distances at low rates
• Lack flexibility of high-speed delivery
• Historically have been unreliable
• Classified by annual sales figures
The advantages and disadvantages
of rail transport
• Inexpensive for long • Non door-to-door
haul delivery. delivery.
• Large storage • Restricted to
compartment movement schedule.
• Specialize boogie for • Non suitable for short
special goods. haul delivery.
• No congestion. • High maintenance
cost
 Air Transport
• Fastest terminal-to-terminal mode
• Costs more than other modes
• Transports small volume shipments
• Predominantly variable cost carriers
 Air Transport

Narrow Body Wide Body

B-737 A300 MD-90 B-747 A380 MD-11

 Regional Carrier International Carrier

Charter Service

Air
Transport
The advantages and disadvantages
of air transport
• Fast • Very expansive
• Low insurance cost • Limited space/
• Good Safety track storage compartment
record • Easily disrupted by
• Access to remote adverse weather
areas condition.
• Suitable for low • Restricted to airport
volume, high valued usage only
products • non door-to-door
delivery
 Sea Transport
• Dominate international transportation
• Advantage of long-haul capabilities and
broad range of products
• Classified as private or for-hire, domestic
or international, tramps or liners