Reference no: EM133412234

Background:

Marine transportation is the oldest and most important mode of moving people and goods for travel and commerce. This has been especially the case in the development of Canada as a trading nation. The First Nations of Canada used our many rivers, streams and lakes as their critical source of travel in search of favorable sites for their communities, their food and trade with other tribes. European explorers charted the lands and waterways deep into the Canadian landscape, eventually conducting their own trade with the indigenous peoples. These waterways carried furs and lumber from the interior to new coastal centres in Montreal, Toronto, and Halifax to be further transported across the oceans to European markets, thus serving as the initial gateways to the emerging Canadian economy. Later, Vancouver became an important costal centre for global trade across the Pacific and remote norther communities will emerge as important ports of call for Arctic transport.

Marine transportation currently accounts for approximately 90% of globally transported goods with ships constructed to carry a multitude of different products and commodities. Canada being a coastal nation with access to three of the world's oceans has become an important marine transportation hub for the movement of its own products to international markets as well as a conduit for the movement of goods into North American canters of commerce.

The industry is also highly regulated, domestically and globally, the former by Transport Canada and latter by the International Maritime Organization (IMO) who's head offices are in Montreal, Quebec. Marine commerce and the operators who ply the high seas and inland waterways, are subject to a myriad of international laws and regulations pertaining to safety (prevention of accidents), navigation and ship construction requirements - again, mostly related to the safe operation of vessels - the safety of life at sea, environmental protection and piracy.

The port and terminal system to support marine transportation is the most highly developed transportation system in the world and Canada's marine transportation system is among the best. This very important transportation industry is the focus of this assignment.

Assignment:

The purpose of this assignment is to involve students in the development of a detailed profile of the water carrier or marine transportation industry. Every mode of transportation involves transferring a product to where the customer wants or needs it or where they wish to purchase it in the distribution channel (at the right place), when they want it (the right time), for what they are willing to pay (at the right price), and finally, at the expected quality or specified quality, thus meeting all their requirements.

Question:

1. Cost Structure: Students should use all their previous learning regarding the cost structure of the marine industry including,

fixed versus variable cost components,

cost of labor,

fuel and infrastructure,

how this industry can achieve economies of scale,

density and scope,

the application of rates and tariffs in the industry,

If and how they affect the pricing in the provision of service to customers.

( Please Include all points and provide proper answer of this question without repetition ).