Choice of Transportation – SS2 Marketing Lesson Note (First Term)

Choice of transportation is the decision on which means of transport to use for moving goods and people.

Behavioural objectives

By the end of the lesson, students should be able to:

1. state the factors to consider when selecting a means of transport;
2. explain how the nature and value of goods affect the choice of transport;
3. match goods and journeys to suitable means of transport;
4. list the main documents used in transport and state what each does;
5. describe a demise (bareboat) charter.

What are the means of transport?

There are five main means of transport: road, rail, water, air and pipeline.

• Road: uses lorries, buses, cars and motorcycles, and gives door-to-door service.
• Rail: uses trains on fixed tracks, and carries heavy goods and many passengers over long distances.
• Water: uses ships, boats and barges on the sea, rivers and lagoons, and suits very bulky goods.
• Air: uses aeroplanes, and is the fastest means for people and light, valuable goods.
• Pipeline: carries liquids and gases such as crude oil, petroleum products and natural gas.

What factors should be considered when selecting a means of transport?

The main factors are cost, destination, value of goods, nature of goods, time, convenience, safety and speed.

• Cost: the cost of transport affects whether it will be chosen for moving goods and people.
• Destination: many rural areas in West Africa are served only by road, so road may be the only choice.
• Value of goods: valuable goods are sent by means of transport that are safe and fast.
• Nature of the goods: bulky goods are better carried by ships, while fragile and lighter goods suit aeroplanes.
• Time: the time and period of travel matter, because some means of transport are not available at particular times of the day.
• Convenience: people often choose the aeroplane because of its degree of convenience.
• Safety: the safety of the means of transport should be taken into consideration.
• Speed: speed must be seriously considered for perishable goods such as frozen fish, fruits and vegetables.

How do the nature and value of goods affect the choice of transport?

The nature of goods decides what can be carried safely, and their value decides how much security and speed are needed.

Nature of goods

• Bulky goods: cement, coal and grain in large quantities go best by ship or rail.
• Fragile and light goods: glassware and electronics suit aeroplanes, which give careful handling and fast delivery.
• Perishable goods: frozen fish, fruits and vegetables need fast transport so that they do not spoil.
• Liquids and gases: crude oil and natural gas are often moved by pipeline.

Value of goods

• High-value goods: items such as jewellery need safe and fast transport, so air is often chosen.
• Low-value goods: cheap, heavy goods are sent by the cheapest means, such as ship or rail.

Which means of transport suits which goods?

The table shows how the factors point to a suitable means of transport.

What are the main documents used in transport?

The main transport documents are the bill of lading, consignment note, airway bill, packing list and weight note.

• Bill of lading: issued by the shipping company for goods carried by sea, and acts as a receipt for the goods.
• Consignment note / delivery note: travels with goods by road or rail and shows what is delivered and to whom.
• Airway bill / air consignment: the document used for goods carried by air.
• Packing list: lists the contents of each package in a consignment.
• Weight note: states the weight of the goods, which helps to work out the freight charge.

What is a demise (bareboat) charter?

A demise or bareboat charter is a type of charter in which the charterer takes responsibility for crewing and maintaining the ship during the period of the charter.

• Charterer: the person or firm that hires the ship.
• Responsibilities: the charterer provides the crew and maintains the ship.
• Legal position: the charterer assumes the legal responsibilities of the owner.
• Disponent owner: the name given to the charterer under a demise charter.

Evaluation

1. State five factors to consider when selecting a means of transport.
2. Why is speed important when transporting frozen fish, fruits and vegetables?
3. Which means of transport suits bulky goods, and which suits fragile and lighter goods?
4. List the main documents used in transport.
5. What is a demise (bareboat) charter, and who is the disponent owner?

Assignment

1. Explain how the value of goods and the nature of goods affect the choice of transport, giving one example of each.