Good Afternoon All,
Welcome back to Chris and Gerald’s blog.
Today we’ll be talking about the different modes of transport found throughout the business world from the perspective of the largest exporter in the world. The transportation methods that are used include: Rail, Truck, Water, and Air. The decision of which method to use is very important to business executives as each method has their own pros and cons. This decision is also important when it comes to the type of good and how urgently the good needs to be transported.
The first method used by businesses are trucks. Trucks are one of the most commonly used transportation. Trucks are good transportation method for goods as they can be brought directly towards the customer place of business, or residence, whereas all other forms of business are limited in that respect and truck is also very fast though speed does tend to decline, once the truck leaves an industrialized area. The con of transport goods by truck is that it can be very expensive to transport goods especially depending on the type of good. For example, someone would find it very costly regardless of country, if a coal company or someone requiring coal were to try and ship the same amount of coal that a train can by truck, the company would be looking at using several hundred trucks to make the same delivery that one train can.
The second method of transporting goods found throughout countries world wide is by rail. Rail is one the most popular options when it comes to transporting goods in bulk across very large distances, an example of a good commonly transported by train is the coal, which was mentioned earlier. Though in the world that has the global market, trains are somewhat limited in terms of moving from continent to continent, but are still used quite commonly as it is a part of inter-modal transportation for company. Trains are usually the first step in bringing its goods to a port, and because it is only part of the process. Trains transport their goods in containers that are easily transported from the train itself to the next transportation method. A business would use a train because they can be cheaper, and more energy efficient than other transportation methods which is important if you are transporting goods long distances.
The third transportation method that is perhaps used the most when it comes to exporting goods internationally, is shipping by water. If the business needs to ship a lot of items in bulk and there is really no time sensitivity to the items then shipping it, then transportation via the sea really is the best option. In fact, shipping via the ocean is used so much that there are now several different types of cargo ships used to transport goods, depending on whether they are bulk commodities, dry goods, perishable items, and liquids. Ships are an integral part of intermodal transportation, as they usually receive their containers from the trains themselves, and are then brought to the country where the delivery is to take place. Transit time ultimately depends on where port A and port B are. An example of this is, transporting containers via ship from a United States port to a European port will typically take anywhere between ten to twelve days, assuming there are no storms or similar delaying conditions. So transporting by ships, is usually the slowest method, but the most economically viable option for bulk, non perishable commodity goods needing to go from continent to continent.
The final transportation method used by international businesses is shipping goods by air. Using a plane is ultimately the fastest options, but is generally reserved for the most time-sensitive goods and orders. Other advantages to such a method include cheaper warehousing costs, reduced insurance rates, and much better control over inventory. The biggest con to air travel is that it can be very expensive, as the price for air freights depends on how heavy the shipment is, and how fast you want it to get to its destination. Heavy goods, that need to be transported very quickly will be the most costly. One other limitation commonly found when using air transport especially when transporting to underdeveloped countries is that air travel is limited by whether or not there is an airport of some kind.
Choosing a transportation method is very important when it comes to international business, which is why all businesses need to take some serious time to consider how their goods are transported. If you have bulk items that need to be transported across country lines, then trains or trucks are probably the best way. If their is no rush for goods to be transported then going by ocean would be the best option. And if your goods need to get to their destination as quickly as possible, planes are definitely the way to go. Well that concludes this look into the four different transportation methods when it comes to international marketing channels.
Stay tuned for our other blog posts.