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What are the primary capabilities of each of the basic modes

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Question 1: What are the primary capabilities, advantages, of each of the basic modes.

The five basic mode of transportation with their primary capabilities, advantages, and disadvantages can be summarised as follows:

Road Transportation: The primary capability of the road transportation as the carriers of the goods is to provide transportation by the means of domestic supply chain efforts. The transportation is available by the private fleet that is available to hire. The advantages of the road transportation are that it requires low start-up cost or fixed cost and the transport are available on a regional basis. Every region has their own road transport setup. The disadvantage associated with road transportation method is that there is high variable cost associated with the mode and having a regional set up increases the level of competition.

Rail Transportation: The rail transportation method is suitable for the long distance transportation of the raw material and the finished goods associated with the industries. There are high value goods containers with liquid and petroleum products that are transported using the rail method. The advantages of the rail transportation is that bulk quantities can be easily transported over long distance at minimal costs. However the mode of transportation is slow and there is very little option of customization with the freight.

Air Transportation: The air is a customized mode of transportation, ir transportation is a preferred mode when there are high value and low weight freight that needs to be transported. The mode is expensive and there are chances of loss in the transit. Air transportation also have advantages of being very reliable and the quick mode to transport goods.

Water mode of transportation: International transportation that requires large quantities to be moved from one place to the other uses the waterways as the means of transportation. The advantages of the mode is that it requires the least cost of transporting the goods as compared to the other modes and at the same time transfers the highest quantities of the good. The low cost transport goods internationally in large quantities the disadvantage with the mode is that it is slow.

Pipeline transportation: The spreading of the international boundaries of trade have diluted the absolute distance between them. Pipeline transportation uses high value equipment to be placed and the high volume of the good is easily transported over the places. However the high value of fixed asset that is required to be placed between the transporting place is a disadvantage. The pipeline requires monitoring and security also.

Reference no: EM132805190

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