FACTORS INFLUENCING THE CHOICE OF TRANSPORT

FACTORS INFLUENCING THE CHOICE OF TRANSPORT

• Distance: Although the cost of haulage increases with distance, the cost of rail and shipping services does not increase in proportion to distance travelled. Thus it is more economical to use rail or shipping services over long distances, whilst road transport is faster and cheaper for short distances.
• Nature of the Goods: Perishable goods need quick delivery and minimum handling. Specially constructed trucks can be used to transport vegetables, fish and milk. In foreign trade, air transport can be used to transport perishable goods. Products like oil can be transported in oil tankers in foreign trade and by pipelines or oil trucks in home trade.
• Quantity: Bulky goods are normally transported by railway in home trade and by sea in foreign trade.
• Value of Goods: Expensive goods, which are small and light are normally transported by air. In home trade, it is not advisable to send expensive goods by rail. Road transport is more suitable for expensive goods since the problem of transshipment does not arise.
• Risk of damage: Fragile goods, which are easily breakable and need careful handling are normally sent by sea or air.
• Urgency: Goods, which are urgently needed, are sent by air.
• Convenience: The most convenient mode of transport is the one most available with the least formality. Road transport is considered to be the most convenient mode of transport, with its door-to-door delivery service.
• Cost: The consignor would normally choose the most economical mode of transport, unless the factor of urgency arises. Sea and rail would be most economical for bulk goods. Air and road would be most economical for urgency goods.