Page 196 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 8: International Transport System

14. ....................... passenger transport involves more than one mode of transport of passengers. Notes
15. Critical aspect of selecting the most desirable method of transportation is to balance speed
and ........................

8.6 Summary

Transportation is a non-separable part of any society.

It exhibits a very close relation to the style of life, the range and location of activities and
the goods and services which will be available for consumption.
Given a facility network and information capability, transportation is the operational
area of logistics that geographically positions inventory. Because of its fundamental
importance and visible cost, transportation has received considerable of managerial
attention over the years. Almost all enterprises, big and small, have managers responsible
for transportation.

Transportation requirements can be accomplished in three basic ways. First of all, a private
fleet of equipment may be operated. Second, contracts may be arranged with transport
specialists. Third, an enterprise may engage the services of a wide variety of carriers that
provide different transportation services on an individual shipment basis. These three
forms of transport are typically referred to as private, contract and common carriage.
From the logistical system viewpoint, three factors are fundamental to transportation
performance: cost, speed and consistency.
The cost of transport is the payment for movement between two geographical locations
and expenses related to administration and maintaining in-transit inventory.

Logistical systems should be designed to utilize transportation that minimizes total system
cost. This means that the least expensive transportation does not always result in the
lowest total cost of movement.

8.7 Keywords

Air Transport: When goods are transported by air, the mode of transport is called airways.
Facility: An installation, contrivance, or other things which facilitates something.
Intermodal Transport: Intermodal transport (or intermodal transportation) involves the use of
more than one mode of transport for a journey
Logistics: Logistics is the management of the flow of resources, between the point of origin and
the point of destination in order to meet the requirements of customers or corporations.
Procurement: Procurement is the acquisition of goods or services.
Seaways Transport: When goods are transported through the water medium by a ship, it is
called seaways transportation.
Transportation: Transport or transportation is the movement of people, animals and goods
from one location to another.

8.8 Review Questions

1. Briefly explain the concept of international transport system.
2. What are the basic terms involved in the study of transportation?

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