UNIT 6: TRANSPORTATION

Exercise 1:
1. What are some of the advantages and disadvantages of air transport?
 The advantages of air transportation:
- High travelling speed
- High speed delivery
- Cheap insurance because goods are at risk for shorter periods
- World-wide transport operations
 The disadvantages of air transportation:
- Transhipment to other forms of transport essential
- Restrictions on weight and size
- Inflexible timetabling
- Delays due to bad weather
- Operating and maintenance costs are high
- High freight rates
2. Why do some buyers prefer FOB terms?
Because FOB is usually the most cost-effective option for buyers. Buyers don’t have to
pay a high fee to their sellers as they might with CIF. Buyers also have more control over
the freight timing and cost, because they are able to choose their freight forwarder. If
anything happens to the goods, they hold the title and responsibility, so they can better
access information and solve concerns.
3. Discuss the transport options open to importers in your country – Vietnam
Road transportation
Motorbikes
In Vietnam, there are about 45 million motorbikes which are used in daily lives of local
people for transportation. This type of transportation is popular for its small size suitable
for narrow road in Vietnam and its quite cheap cost. However, its disadvantages are
limitation on weight and size and only suitable for a short distance.
Containers
This transportation is common in Vietnam to transport goods in long distance and big
quantity. However, the disadvantage is that it takes more time to transport goods in this
type of transportation.
Rail transportation: Train
This is not common in Vietnam today. The advantages of train are that it is rarely
affected by weather conditions and it is quicker and cheaper for distances over 200 km.
However, the disadvantages of train are transhipment to other forms of transport essential
and inflexible timetabling.
Sea transportation: boats, ferries, motor boats, ships
In Vietnam, there are a lot of rivers across our country, so this type of transportation is
quite common. The advantages of sea transportation are very high capacity of load, low
freight rates, world-wide transport operations, continuous operations on 24-hour basis.
The disadvantages are delays due to bad weather, high capacity means disproportionate
increase in transit time, heavier packaging, slow speeds over long distance
Air transportation: passenger jets, helicopters, airships
This type of transportation is becoming more popular in Vietnam because of high
travelling speed, high speed delivery, world-wide transport operations. However, there is
still some disadvantages, they are restrictions on weight and size, inflexible timetabling,
delays due to bad weather, operating and maintenance costs are high and high freight
rates.
Exercise 2:
CARGO Transport Reasons
mode
Regular deliveries of 10,000t Seaway - Long distance
scrap metal - Large quantity

(Darwin to Kobe)
2500 day -old chicks Airway - Alive goods

(Antwerp to Algiers)
 50 air-conditioning units Seaway - Long distance about 6000
km
(Milan to New Delhi) - Type of goods is not alive or
valuable

Materials for training course Airway - Type of goods is documents,

so it needs to transport as
(London to Maputo) soon as possible

1200t beef Seaway with - Large quantity

frozen - Long distance
(Auckland to Nairobi) containers

3 diesel locomotives Rail transport - Short distance within France

- Available in short time
(Marseilles to Gabon)

2 kg platinum Airway - This cargo is valuable,

expensive
(London to Riyadh) - Small quantity

E. Extension activities
The purpose of this report is to examine ways of transporting with reference to cargoes
coming by sea.
In term of existing situation, main categories of transported goods are scrap metal and
goods in bulk. They are mostly general cargoes which unitizied carefully. The technical
status of the port system is generally old and outdated. The port system, wharf built from
the previous period has deteriorated in some places. In addition, auxiliary works in the
port system have not been paid much attention. Most recently, the demand for frozen
warehouses in port is becoming increasingly urgent.
To reduce limitations of present system and speed up the unloading and on – carrying
procedueres, we need to start by ensuring that employees have the training they need to
load and unload trailers efficiently. Besides, advanced technology can be implemented to
help ensure maximum efficiency in loading and unloading. For instance, automated
systems can use infrared sensors to detect the arrival of new trucks to the dock.
Moreover, upgrading to dock infrastructure is essential to enhance the productivity of
loading and unloading goods. We can replace many old port equipments by automated
versions which can free up a worker for more important tasks. Last but not least, we can
build a frozen warehouse to meet the demand of cargoes’s owners.
With the recommendation above, if we can fulfill all of them, I believe that the speed of
unloading and loading cargoes will be enhanced considerably.