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CATHAY OCEAN CAN ADVISE ON Choosing the right mode of transport for your cargo . . .
The type of transport your business uses will depend on a number of factors: The products you sell Supplier production lead times Product availability Source of supply Customs and Excise rules Volume of shipment You can use one method for all your transportation needs, or a combination, using an intermodal system. Here are the main types, and their advantages and disadvantages:
1. OCEAN Transportation Most OCEAN transportation is conducted in containers, which vary in size, including 20-foot, 40-foot, 40-foot high cube, 45-High Cube, and the jumbo 53-footERS used in intermodal transport, plus specialty containers of sorts and kinds to suit special cargo REQUIREMENTS. Advantages of the ocean Transportation: The cheapest means of long distance transport Ideal for transporting heavy and bulky goods Suitable for products with long lead times Disadvantages of the Sea Transportation: Longer lead/delivery times Bad weather Port congestion duty/taxes/DELAYS 2. Trucking/road tRansportation A very popular mode of transport used by suppliers and businesses to deliver orders. Goods can be packed/grouped in box vans or in containers which are also used for sea transportation. road transport is normally used to move goods from the warehouse to the port or terminal, and then from the port or terminal to final destination. Advantages of the Road Transportation: Cost effective Fast delivery Ideal for short distances, but possible for long distances Easy to monitor location of goods Disadvantages of the Road Transportation: Transport subject to traffic delays Goods susceptible to damage through careless driving Bad weather Driving regulations can cause delays 3. Rail Transportation Businesses use rail transportation for the delivery of a wide range of goods including coal, steel and other heavy goods. Advantages of the Rail Transportation: Longer lead/delivery times Cost effective Safe mode of transport Reliable Disadvantages of the Rail Transportation: Suppliers/customers are not always located near a rail freight depot delivery to/from the depot can be costly and time consuming. 4. Air Transportation This mode of transport is useful to deliver products with short lead times, fragile goods and products that are not bulky. The bulk/value ratio will be a determining factor. Advantages of the Air Transportation: Fast delivery Customer is not kept waiting for order fulfillment Reduced lead time on supplier Improved service levels Disadvantages of the Air Transportation: Flight delays and/or cancellations Customs and Excise restrictions Cost 5. Multimodal transportation Multimodal transportation (also known as combined transportation OR INTERMODAL) is transportation of goods under a single contract, but performed using at least two different means of transport (sea, Air, rail, road) using a various transport infrastructure, terminals, warehouses, ports, airports). Intermodal shipments involve only one company/carrier that is responsible for the organization of ALL transportation from the beginning up to the final delivery of the cargo. Advantages of the multimodal transportation: Minimizes time loss at trans-shipment points Provides faster transit of goods Reduces burden of documentation and formalities Saves cost Establishes only one agency to deal with Reduces cost of IMPORTS/exports Disadvantages of the multimodal transportation: There are risks associated with overloads with heavy cargos.