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Automobile and Air transports comparative characteristics

Transport mode Advantages Disadvantages Sphere of application
Automobile - High availability, possibility of cargo “door-to-door” delivery; - High mobility and flexibility; - High cargo delivery speed; - Possibility of various routes and delivery schemes application; - High level of cargo preservation, possibility to ship it in small consignments; - Wide possibilities to choose the most appropriate carrier; - Less severe requirements as for goods package. - Low productivity; - Dependence on weather and road conditions; - Relatively high long-range transportation cost ; - Low level of exploitation indices; - High fuel energy consumption and metal capacity; - The biggest labor-output ration; - Contaminates the environment.   Short range transportation (up to 300 km)
Air Transport Air Transport - The highest speed of cargo delivery; - High reliability; - The best cargo preservation; - The shortest passage; - Mobility and efficiency, especially while new routes designation; - Possibility of fast dislocation of a moving stocks in casa of passenger flows changes, including cases of emergency with other transport modes; - High range of non-stop flights, 1000 km; - Economy of public time due to delivery time reduction; - Unlimited transport capacities (today they are limited only by capacity, airdrome characteristics); - Relatively not big capital investments (30 times less per 1km of air route than per 1lm of railway route). - High transportation cost, the highest fares among other transport modes; - High level of capital investments, material capacity and energy consumption of transportation; - Dependence on weather conditions; - Limited geographical availiability. Quite unlimited

 

Choosing cargo delivery transportation means, forwarders consider all 7 factors. Yet the final decision on cargo delivery variant is based on technical and economic calculation.

One of the significant factors that influence on forwarder’s choice is transportation cost. Transport products cost or transportation cost is determined by the sum of transport enterprises necessary expenses. Consumers that buy transport products compensate these expenses in the tariff and freight rate form. Transport tariff system depends on transport mode and transportation manner. In the whole during decision making on transportation it is necessary to consider tough compromises between different transport modes, and also it is better to take into account these compromises outcome for other activities in the system such as warehousing and material supply support. Since different transport modes expenses fluctuate with time, companies should review their transportation scheme with the aim of finding the most suitable variant for cargo shipping.

Taking into account that activity on the commodity circulation organization is linked to huge compromises it is required to use system approach for such decision making.



Still the main criteria for transport mode assortment remains economic factor, which is transportation cost, it will be the basis for consumer transport expenses. Other factors may be considered in conditions of market relations as they influence on the total field servicing efficiency. These are time factor, cargo type, distance and transportation route, insurance cost, warehousing procedures cost, cargo intensity on different route points, shipment frequency, supply and demand on transportation market, national habits or state legislation.

Such approach should be viewed as approximate one, because transport activity rational sphere is linked to limitations that occur due to specific exploitation conditions in certain region.

Calculating transportation costs in terms of specific exploitation conditions it is necessary to perform possible transportation scheme variants comparison, considering costs for: mixed transportation importing-exporting; reloading procedures; line haul transportation; possible cargo losses due to reloading, substantial expenses; packing and insurance, etc.

As exploitation expenses change in considerable limits depending on various factors (market intension, time of the year, time of the day, climate conditions, etc) that economic calculations are necessary to be done considering transportation period for optimal solution.

Table 6.3


Date: 2015-12-24; view: 776


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