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Briefly explain any five factors a businessman should keep in mind while selecting a suitable mode of transport. - Commercial Studies

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Question

Briefly explain any five factors a businessman should keep in mind while selecting a suitable mode of transport.

Long Answer

Solution

  1. Cost of Service: Railways are a cheaper mode of transport for carrying heavy and bulky goods over long distances. Railways can handle a large volume of cargo at a time. Moreover, the fuel consumption of trains is less than that of motor vehicles. However, for small consignments over short distances, motor transport would be cheaper because goods can be carried to the destination without unloading and reloading on the way. Ocean transport is the cheapest for carrying heavy and bulky goods across the sea. But the speed is very slow, and this facility is available only between certain points. Air transport is the costliest. It is, therefore, suitable only for goods that are highly valuable or urgently required.
  2. Regularity of Service: Railways provide the most dependable and regular service. They follow a fixed route and a fixed time schedule and are not affected much by weather conditions. On the other hand, unfavourable weather conditions like heavy rains, snow, fog, etc., have an impact on motor transport and ocean transport.
  3. Capacity: Railways and shipping have a large carrying capacity, while the carrying capacity of road and air transport is comparatively low.
  4. Availability: Road and air transport are possible means of transport in hilly areas. For foreign trade, shipping and air transport are required. For the interiors of a country, road transport is the most conveniently available mode of transport.
  5. Safety: Roadways and airways provide better safety and security for goods than waterways and railways. The chances of pilferage and deterioration are comparatively high in the case of rail and water transport. Rail transport is less prone to accidents. Airways and waterways are the most risky means of transport.
  6. Speed of transport: Motor transport is faster than railways for short distances because the carrying capacity of a truck is much smaller than that of a goods train. Moreover, in rail transport, much time is wasted in loading and unloading goods, shunting wagons, etc. However, railways are faster than motor transport over long distances because they operate on an exclusive track without much hindrance. Air transport is the quickest because planes fly at high speed and take the shortest route. Aeroplanes can provide unbroken journeys over oceans, high mountains and dense forests. Ocean transport is the slowest and is, therefore, unsuitable for perishable goods.
  7. Flexibility of Service: Motor transport is the most flexible mode because it is not tied to fixed routes or time schedules. It can follow any route and operate day and night. On the other hand, rail transport can operate only on fixed routes and according to a fixed schedule. It cannot pick up and unload goods at the desired places. Unlike motor transport, railways cannot provide door-to-door service. Goods have to be brought to the railway station and have to be carried from there. Water and air transport are also similarly inflexible. Both provide transport services between certain fixed points.
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Choice of a Suitable Mode of Transportation
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Chapter 13: Logistics and Insurance - EXERCISES [Page 234]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 13 Logistics and Insurance
EXERCISES | Q 12. | Page 234
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