When
involving in global business, it is highly necessary to consider
the mode of transportation to ensure the goods are transported in
good condition and at a reasonable cost. Some of the factors that
influence the choice or mode for global transportation
are:
- Product characteristics: Product characteristics
include the size, durability, and value of the goods to be
transported. If the size of the goods being transported involves
hazardous chemicals, Air transportation is not chosen instead the
transportation is done through other methods like road or sea. If
the value of the product is very high (like Gold, Diamonds, etc.,)
Air transportation is chosen for safe and faster
transportation.
- Location characteristics: This involves the
country or the location in which the goods need to be transported.
If there are no sea routes for the country, either a combination of
a different mode of transport is done or any other direct mode of
transportation (Land or Air) is chosen to deliver the
goods.
- Modular service capabilities (TRACS): The ability
to provide services under TRACS includes:
- Transit time: Transport time is the sum of the
elapsed time that it takes to transport the goods from the starting
point to the final destination. Other time requirements that are
needed for receiving, handling, customs clearance, customer
delivery, etc., are also included.
- Accessibility: Accessibility is the capability of
the regime to achieve origin and destination facilities and provide
services on specific routes.
- Capacity: Capacity is the number of products being
moved, which can make the mode impossible or
unrealistic.
- Safety: Safety includes securing the goods to the
destination under the same conditions that they had when delivered
at the place of departure. In the case of fragile goods, intensive
care needs to be given while handling the goods as a failure may
result in a huge loss.
- Supply chain requirements: An example of the
supply chain requirements is the supply-demand factor in which, if
the product is needed on an urgent basis, the mode of
transportation that is earlier than the others is preferred. For
example, If a particular medicine is needed to minimize the impact
of pandemic disease, air transport is preferred as it is faster
than any other mode of transportation.