MODES OF

TRANSPORTATION

Prepared by Mrs.M.Janani
Department of Commerce (International Business)
Government Arts College, Coimbatore – 18.
Reference:
Logistics Management World Seaborne Trade
- Krishnaveni Muthiah
 DIFFERENT MODES OF
TRANSPORTATION
I. Railways:
Indian railway system has grown into Asia’s largest and the
world’s fourth largest. It has route length of 72,000 kilo meters
by the end of 1990. The daily run is 15,000 kilo meters with
running of 12,000 trains carrying 7 lakh tons of goods. The
average cost per ton kilo meter is 27 paise.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-
commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Merits:

1. Large carrying capacity:

Compared to other means of transport, railways are known for bulk carriage of goods over long distances.

2. It is economical:

As the freight rates are telescopic and referential, it works cheaper particularly in case of heavy goods over

long distances.

3. It is all weather modes:

Railways provide all season protection to the products moved on uninterrupted basis.

4. It has containerisation:

Indian railways have done a good job by containerising on major routes facilitating safe, uninterrupted and

speedier movement of goods.

5. It links international markets:

Railways are the main sources of connections with the markets outside the country moving goods from

interior parts to the points of overseas supply and shipping.

Reference:

https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Demerits:

1. Costlier over short distances:

Railway transport works costlier over short distances because of tapering and differential

tariff rates.

2. Slower movement:

As compared to road and air transport, the speed of movement is slower.

3. Inordinate delays:

In India we have three types of lines as broad, meter and narrow gauge resulting in frequent

transhipments; again shortage of wagons and, therefore, space forces the business community

to tolerate inordinate delays.

Reference:

https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-

modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
II. Roadways:
Indian road network is one of the largest in the world. It has a
total road length of 18 lakh kilo meters of which 50 percent is
surfaced. Of this, national highways account for 35,000
kilometers account for the 50 percent of total traffic. On this
road length, 9 lakh vehicles ply carrying goods.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-
commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Merits:

1. Economical over short distances:

As compared railways, it is more economical.The studies have proved that it is cheaper by 25 percent.

2. Speedier movement:

Road transport is speedier than the railways giving point to point service resulting in price stabilisation

and consumer satisfaction. The business community needs not wait because of wagon shortage,

transhipment because a truck has a smaller capacity and is flexible available 24 hours.

3.Touching for-flung markets:

Much beyond the capacity of railways, the roadways are known for reaching impregnable market

particularly hilly regions where railways cannot reach.

4. Lesser conditions of service:

The roadways do not insist on strict packaging requirements because of least transhipments shocks to

goods carried.Again, damage claims are settled faster.

Reference:

https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Demerits:
1. Uneconomical over long distances:
Long haulages work out much costlier because disproportionate rise in fuel and spare-parts
expenses.
2. It is fair weather friend:
Roadways are closed during monsoons and winters resulting in handicapped movement of
goods.
3. Not suitable for bulk transport:
Bulky and heavy goods to be moved particularly over longer distances need railway services
than roadways as it has a major limitation of carrying capacity.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-
modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
III.Airways:
We cannot boast of airways in India as we do in case of railways and
roadways because, it is underdeveloped and underutilised. It acts as a feeder or
supporting transport means. Domestic capacity available is 115 lakh ton kilo
meters but utilised only to the extent of 12 lakh ton kilometres in 1990.
International capacity corresponds to 218 lakh ton-kilo meters of which 175
lakh ton-kilo meters are used. India has 4 international airports, 92
aerodromes with 50 intermediate and 40 minor aerodromes.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-commonly-
used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Merits:

1. Fastest means of transport:

Air transport provides the speediest movement of cargo over the distant places by eliminating

practically spatial barriers.

2.All weather friend:

It is known for its dependable service during the times of floods, wars, earth-quakes. It is all weather

means, of transport though flights are cancelled due to bad weather conditions.

3. Consumer satisfaction:

The level of consumer service and, hence satisfaction is of high order as it is known for immediacy,

speed and least damage to cargo.

4. Reduced inventory holdings:

As it provides fastest and uninterrupted service, capital investments in the form of stocks of goods is

less.This is of particular importance in case of highly perishable items.

Reference:

https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Demerits:
1. It is costlier means of transport:
The cost of air transport is very high and there is limit of weight of cargo. Hence, it is suitable
for light weight, high grade and costly items only.
2. Limited coverage:
The planes cannot land at all the places of our choice. It connects metropolis and some
important cities only.
3. Limited cargo capacity:
The cargo capacity of a plane is much smaller because of its size as it works against the force
of gravity.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-
modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
IV.Waterways:
Waterways of the nation provide other alternative means of transport.
Unfortunately, in India, waterways are not fully developed though she has a
great potentiality.
Though India has 7,000 kilo meters of navigable river waterways, only 2,500
kilometrers are used. Again, we have 4,800 kilo metres of canals of only 600
kilo metres are navigable but hardly 400 kilo meters are actually used.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-commonly-
used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Merits:

It is cheaper means of transport:

Inland waterways tariffs are much lower and, therefore it works cheaper for both short and long

distances.

Most suitable for heavy and fragile products:

The items which are bulky and heavy and which are fragile can be moved with ease.

Loading and unloading facilities:

The sender of cargo has the facilities of loading and unloading from boats and wharves on and from

steamers and barges. Even the receiver has the similar facilities.

No problem of congestion:

Waterways provide an independent movement unlike road system where road is meant for all kinds of

vehicles creating the problem of congestion.

Reference:

https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-modes/49185
 DIFFERENT MODES OF
TRANSPORTATION
Demerits:
1. Slow speed:
The speed of the boats and steamers is badly limited in case of canals and rivers. Goods
needing quick movement as perishable can be hardly transported.
2. Unreliable:
Changing seasons create problems. Winter may freeze the rivers and canals and summer eats
the depth of rivers and canals.Again, the rivers are known for changing their course of flow.
3. Limited service:
The inland waterways are connecting the given places. Again, the cargo capacity is quite
limited.
Reference:
https://www.yourarticlelibrary.com/geography/transportation/5-commonly-used-transport-
modes/49185
 PIGGY BACK AND BIRDY
BACK
Piggy Back : Piggyback transportation refers to the transportation of goods where one

transportation unit is carried on the back of something else. Trailer-on-Flatcar (TOFC)

“Piggybacking” : The goods are packed in trailers and hauled by tractors to the railway station.

At the station, the trailers are moved onto railway flat cars and the transport tractors, which

stay behind, be then disconnected. At destination, tractors again haul the trailers to the

warehouses of the consignee.

COFC (Container-On-Flatcar): This type of piggybacking facilitates multiple containers to be

transported on a flat cars.

Birdy Back: It is a combination of road and airways and is generally use in International

shipments. Local cartage is a vital part of every air movement because air fright must

eventually transport from the airport to the final delivery destination. Air-truck movements

usually provide service and flexibility comparable to straight motor freight.

Reference:

https://www.slideshare.net/RaviKSingh3/logistics-transportation-58848916
 MULTI MODAL
TRANSPORTATION
MEANING

Combination of two or more modes of movement of goods, such as air, road, rail, or

sea.Also called combined transport.

DEFINITION

United Nations convention defines Multimodal transportation as,

"International multimodal transport' means the carriage of goods by at least two

different modes of transport on the basis of a multimodal transport contract from a

place in one country at which the goods are taken in charge by the multimodal

transport operator to a place designated for delivery situated in a different country“

Reference:

https://www.slideshare.net/rinuthomas969/multi-modal-transportation
MULTI MODAL TRANSPORTATION
There are four types of US multimodal transportation – Land bridge, Mini bridge or

Micro bridge, Land bridge rate, Combined or air truck

LAND BRIDGE

A variation of intermodal option is the Land bridge which moves containers

by a combination of sea and rail. It is commonly used for cargo bound for Europe from

the Pacific Rims.

MINI BRIDGE / MICRO BRIDGE

Two other international intermodal options are mini land bridge and micro

bridge. Mini bridge is a variant of land bridge in which freight movement originates or

terminates at a point within the United States. Micro bridge refers to door to door

service available along the west coast of United States rather than traditional port to

port services.

Reference:

https://www.slideshare.net/rinuthomas969/multi-modal-transportation
 MULTI MODAL TRANSPORTATION
LAND BRIDGE RATE

A freight rate embracing two maritime tariffs and surface transport rate. It may be a

consignment from a European port to japan and involving a voyage across the Atlantic, a rail journey across

North America and the final journey to japan by sea.

COMBINED AIR & TRUCK

Air and motor carriage combination into small cities from metropolitan airports

provides a needed service at a competitive cost. Manny air carriers have extended their motor freight range to

Provide services to expanded areas.

BENEFITS OF MULTIMODAL TRANSPORTATION

Easy documentation as confined to one document.

Carriage cost is reduced

Cost of product is reduced

Quick delivery

Easy for handling

No need of physical clearance at each point.

Reference:

https://www.slideshare.net/rinuthomas969/multi-modal-transportation
 FACTORS INFLUENCING TRANSPORTAION
COSTS
a) Mode of transport

For an organization, the decision regarding selecting the particular mode or modes of transport for distributing its

finished products is very critical. In the case of distribution of its products, the company has to think of

 The transit time, or the time lapse between the production of goods and its ultimate sale.

The amount of transportation costs involved.

Normally speaking there is an inverse relationship between the transit and transportation cost i.e. lower the transit

time, higher is the transportation cost. This is because to cut down on transit time. The company would like to transport

its goods faster by possibly a combination of various modes of transport. This would definitely increase its cost of

transportation. But as stated this need not be a generalization. E.g.: If a company decides on slower transit time to

reduce transportation costs then unsold inventory would pile. Thus there would be higher inventory cost for the

organization.

b) Transit Capital

When goods are in transit, the capital of the company (i.e. money) is locked up. The company would like to convert

goods into cash as quickly as possible so that the cash (i.e. capital) so generated can be put to profitable use. Hence the

company must ensure that the transit time of goods is kept to minimum level. Here an effective and planned

transportation should be evolved within the company’s logistical system so that the overall transit time is kept at the

minimum level.

Reference:

https://www.bms.co.in/what-are-the-factors-influencing-transportation-costs/
 FACTORS INFLUENCING
TRANSPORTAION COSTS
c) Obsolescence

When a company is tied down to a slow or say an erratic mode of transport (E.g.: Roadways in

monsoons) it is necessary for the company to maintain a higher level of inventory at depots/ware

houses/distributors. This required so that the customer can be assured of continuous and

uninterrupted supply of company’s products. However in case the designs of the products change

rapidly or the wants/desires of the customers change, the goods of the company will remain unsold

which may become time –barred and obsolete (E.g.. medicines and drugs). Again, rapid changes and

innovations in technology (E.g.: electronic items and computers) will be the technical obsolescence of

the goods. Any goods in the process of manufacture or, which are in transit to the

depots/warehouses, will realize a lower sales value when new models arrive. Hence, with proper

coordination and planning involving logistics the company has to decide on swifter more efficient

modes of transport to avoid possible obsolescence of goods/products.

Reference:

https://www.bms.co.in/what-are-the-factors-influencing-transportation-costs/
 FACTORS INFLUENCING
TRANSPORTAION COSTS
d) Packaging

Packaging can be considered as an inevitable factors which needs due consideration before

goods are transported from one place to another. The mode of transport (apart from the

type of the product) very often influences the type of packaging required. E.g.: Long distance

transport by road will require different sort of packaging for a product, as compared to the

same product being transported by air. Hence, the mode of transport determines the type

of packaging required. This can increase the cost of the product since packaging costs have

to be incorporated in profitability calculations. Also, more the packaging means more weight

and volume, which will increase the cost of transportation. Hence, design of packaging has

become very important in logistical planning.

Reference:

https://www.bms.co.in/what-are-the-factors-influencing-transportation-costs/
 FACTORS INFLUENCING
TRANSPORTAION COSTS
e) Insurance

Insurance risks are based on the modes of transport, transit time as well as on the possibility of damage

to the goods on route. In case the transit time for the goods is smaller and the handling of the goods by the transport

companies is skilful there will possibly be no damage to the goods. Proper management of the goods in transit by

efficient staff is also essential. Insurance premiums paid would be lower since less or no damage to the goods is

expected.

f) Breakages

The cost of the breakages of the products during transport has to be considered by any company while

calculating cost incurred on goods transported. Insurance companies do cover damages, cost to the goods due to

breakages during transport. The company cannot overlook this cost. Apart from the high premiums paid during transport

(called transit insurance), the delay in, establishing and receiving claims, the cost involved in making replacements, and

consequent loss of established customers and market will prove very expensive to the company.

Hence, the logistic manager must select that mode of transport which will reduce or eliminate the loss

due to breakages in transit. The firm must ensure that handling systems are sophisticated during transit, also if possible

special containers should be used to safeguard products from breaking. If direct door to door delivery is possible by the

transport company, it would ensure less multiple handling thereby safeguarding the goods from breakage:

Reference:

https://www.bms.co.in/what-are-the-factors-influencing-transportation-costs/
 FACTORS INFLUENCING
TRANSPORTAION COSTS
g) Pilferage

The Problem of pilferage of goods during transport-whether it be rail, truck or water, is very common in our

country. The cost involved due to loss suffered because of pilferage is enormous, especially when the products are

expensive. Practically speaking, the problem of pilferage is difficult to be eliminated from our country. But is can be

attempted to be reduced by proper storage containers that are pilter proof, adequate security arrangements during

transit, etc. But the loss due to pilferage during transit is real and has to be taken into account during cost benefit

calculations.

h) Deterioration

Many goods that are transported over long distance by rail, water and truck get

deteriorated due to various reasons. First, the goods may not have been protected against adverse weather conditions

like heavy rains or scorching sun. Second, the roads may be extremely bad making it difficult for the truck to move

smoothly, the rough seas may make water transport dangerous, long waiting times at railway yards can be a cause of

concern about the conditions of the goods. Deterioration during transport can prove to be expensive. Again, to avoid

losses due to deterioration in terms of special packages, conditioning, etc. may add to the cost of the goods, making them

expensive.

Reference:

https://www.bms.co.in/what-are-the-factors-influencing-transportation-costs/
 PACKAGING REQUIREMENTS
1. Packaging

 For transport of all pathology specimens and associated materials by air or surface transport methods, the

packaging must consist of three components:primary receptacle

 secondary packaging

 outer packaging.

2. Labelling and marking

 The IATA Dangerous Goods Regulations describe the markings and, if required, the labels required on packages

for air transport

The Australian Standard Packaging for surface transport of biological material that may cause disease in humans,

animals and plants describes the minimum marking required on packages for surface transport.

If dry ice or nitrogen refrigerants are used during transport, their presence must be indicated.

3. Documentation

 Documentation required by a transporter or operator should be accessible without opening the package.

Packages for or from overseas destinations must be accompanied by the necessary documentation, including

customs and/or quarantine permits. A check of the Australian Quarantine and Inspection Service website may be

necessary to review

Reference:

https://www1.health.gov.au/internet/publications/publishing.nsf/Content/npaac-pub-transp-path-spec-drft~transp-pack
 PACKAGING
REQUIREMENTS
4. Choosing the mode of transport

 The packaging required for pathology specimens depends on the mode of transport that is to be used, and

therefore can vary. the latest relevant information.

 There are many questions to consider when choosing the mode of transport for pathology specimens,

including:Should the specimens be kept cold or frozen?

 Are the specimens being sent within Australia and to whom?

 Collection centre to laboratory?

 Doctor’s surgery to laboratory?

 Laboratory to laboratory?

 Within hospital (i.e. from ward to laboratory)?

 Externally from one part of a hospital campus to another?

 Are the samples being sent overseas?

 What packaging is required to send these samples safely?

 What paperwork or documentation is needed?

 Are there additional hazards such as chemicals (flammable, acid or other substance), dry ice, liquid nitrogen, etc.?

Reference:

https://www1.health.gov.au/internet/publications/publishing.nsf/Content/npaac-pub-transp-path-spec-drft~transp-pack
 PACKAGE MARKINGS AND
LABELING
Marking and labeling are important steps when preparing a dangerous good package for transportation. Labels

often communicate the hazards associated with the package, and markings ensure the shipment is handled so

that spills, accidents and exposure are prevented. As such, they must be applied appropriately, reflect correct

information, and comply with the regulations.

Marking

Marking means a descriptive name, identification number, instructions, cautions, weight, specification, or UN

marks, or combinations thereof, required on outer packagings of hazardous materials or dangerous goods.

 The marking required:

Must be durable, in English, and printed on or affixed to the surface of a package or on a label, tag, or sign.

Must be displayed on a background of sharply contrasting color;

Must be unobscured by labels or attachments; and

Must be located away from any other marking (such as advertising) that could substantially reduce its

effectiveness.

Reference:

https://www.faa.gov/hazmat/safecargo/how_to_ship/mailing_labeling/
 PACKAGE MARKINGS AND
LABELING
Specialized markings:

There are specialized markings that you should be aware of as well. Among

them are:

For liquid hazardous materials or dangerous goods:

Labeling

Labels identify the specific primary and subsidiary hazards posed by the

materials in a dangerous goods package. These methods of communication rely on

specific colors, codes, and pictograms to clearly and immediately identify the type of

materials in the package.

Reference:

https://www.faa.gov/hazmat/safecargo/how_to_ship/mailing_labeling/
THANK YOU