Factors that you would consider when choosing the mode of transport.
- Cost freight rate: Amount of money paid to transport companies and should be maintained at lowest levels possible.
- Speed and time: Time required to transport goods from source to destination. Fast moving goods need a means of transport that is fast e.g newspapers.
- Nature of goods: Bulky goods are transported by sea or rail while valuable and perishable goods are transported by road or air.
- Flexibility: Ability of a mode of transport to reach its destination. Road transport is the most flexible.
- Distance: The length of the journey for which goods have to be transported. Short journeys are more economical by road.
- Packing requirements: This is how goods have to be packed to meet a particular mode of transport. Special packing might add to the cost and become expensive.
- Convenience: This is the certainity that goods will reach the expected destination in required form.
- Availability: This deals with how possible it is to get a certain mode of transport
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