COURSE TITLE :

 
LOGISTICS AND WAREHOUSE
MANAGEMENT
 
COURSE CODE: 26136
 
 
 Transport Management

Terminology of transportation – Cargo / goods

Modes of Transport – Air , Water , Pipeline , Rail and Road . Ro-Ro

Transport cost Economizing – Factors – mode of transport , Time , Cost ,

urgency ,nature of goods.

Multimodal Transport – Meaning concept application

Cold chain shipment – Temperature controlled dispatches , Monitoring and

corrective actions for deviations.
Terminology of Transportation – Cargo /goods

Cargo transport is a form of transport which is designed to move goods from

one location to another. Also known as freight transport, cargo transport is
typically used to move products which are intended for commercial sale,
although things like mail may also be treated as cargo for transport purposes.

 The term This means any product that is being transported can be called a
cargo. Large cargo containers are usually used in transporting the goods
called cargo. cargo is generally used for goods transported by ship or
plane. Cargo is only related to the transportation of goods and not money.

Cargo refers to goods or produce carried in a truck, van, airplane, train, or

ship. We can transport cargo by land, sea, or air. The word freight has the
same meaning. For example, if the cargo is dairy produce, it could be cheese,
yogurt, milk, cream, or butter.
We can also refer to livestock during transport, such as cattle, pigs, or chicken
as cargo. When we transport humans, however, we refer to them as
passengers or crew.
Cargo originally only referred to a load on a ship. Most shippers, especially if
their cargo is large, should take out cargo insurance to protect goods from
damage, theft, or loss while in transit.

Cargo consists of bulk goods conveyed by water, air, or land. 

 Modes of Transport –

• Air
1.

• Water
2.

• Pipeline
3.

• Rail
4.

• Road
5.

• Ro-Ro
6.
1.Air –
Air transport is an aircraft design for transporting passengers and freight from one
location to another in the air using airplanes, jets, rockets helicopters, and drones.
Each of these type of air transport has a unique way of achieving speed and the
sustainability of it voyage, However there are other types of air transport which may
or may not be used for conveying goods, but could be used for recreational purposes,
they include, hot air balloons, blimps,gliders,hang gliding, parachuting etc.

It is the fastest mode of transport. But the cost of its operation is very high and thus it
is suitable for only rich passengers, and light and costly cargo. 

Air transport is the fastest means of movement from one place to the other. It has
reduced distances by minimizing the travel time. 
Types of air transport

1.Commercial airplanes
2.Helicopters
3.Private planes
4.Blimps
5.parachute

1.Commercial airplanes: these are the common ways in which people travel
through the air, the commercial planes provide a fast means of transportation
compared to other modes of transport such as road transport, rail
transport and water transport. 

2.Private planes: private planes are made to provide transportation service

for a single person or at most five (5) people at a time. These planes provide
comfort and privacy during the trip and these could travel from one location
to another for a business purpose or for pleasure.
3.Blimps: blimps and hot air balloons are used to transport people for
recreational purposes. They cover a limited area that enables tourists to see a
location on a larger scope than if they tried to view the area from the
ground. 

4.Rocket: a rocket is any vehicle that uses a rocket engine; it includes

amissile, spacecraft, aircraftor other vehicle. 

5.Parachute: this is a cloth canopy that is filled with air and allows a person,
package or a heavy object attached to it to descend slowly when dropped
from an aircraft, or which is released from the rear of an aircraft on landing to
act as a brake.
Advantages :

1. High Speed:
The supreme advantage of air transport is its high speed. It is the fastest mode of
transport and thus it is the most suitable mean where time is an important factor.

2. Comfortable and Quick Services:

It provides a regular, comfortable, efficient and quick service.

3.Easy Access:
Air transport can be used to carry goods and people to the areas which are not
accessible by other means of transport.

4.Most Suitable for Carrying Light Goods of High Value:

It is most suitable for carrying goods of perishable nature which require quick delivery
and light goods of high value such as diamonds, bullion etc. over long distances.
5.No Physical Barriers:
It follows the shortest and direct route as seas, mountains or forests do not
come in the way of air transport.

6.Emergency Services:
It can operate even when all other means of transport cannot be operated
due to the floods or other natural calamities. Thus, at that time, it is the only
mode of transport which can be employed to do the relief work and provide
the essential commodities of life.
Disadvantages :
1. Small Carrying Capacity:
Its carrying capacity is very small and hence it is not suitable to carry cheap and bulky
goods.

2. Very Costly:
It is the costliest means of transport. The fares of air transport are so high that it is
beyond the reach of the common man.

3.Uncertain and Unreliable:

Air transport is uncertain and unreliable as it is controlled to a great extent by weather
conditions. Unfavorable weather such as fog, snow or heavy rain etc. may cause
cancellation of scheduled flights and suspension of air service.

4. Breakdowns and Accidents:

The chances of breakdowns and accidents are high as compared to other modes of
transport. Hence, it involves comparatively greater risk.
5. Large Investment:
It requires a large amount of capital investment in the construction and
maintenance of airplanes. Further, very trained and skilled persons are
required for operating air service.

6. Specialized Skill:
Air transport requires a specialized skill and high degree of training for its
operation.

7. Unsuitable for Cheap and Bulky Goods:

Air transport is unsuitable for carrying cheap, bulky and heavy goods because
of its limited capacity and high cost.

8. Legal Restrictions:
There are many legal restrictions imposed by various countries in the interest
of their own national unity and peace.
Water Transport –

Water transport is defined as the process of moving people, freight by barge,

boat, ship, or sailboat over a sea, ocean, lake, canal, and river or by other
types of water transportation. It is an important mode of transport. Water
transportation is the cheapest means of transporting bulky and perishable
goods over long distances. This mode of transportation is primarily used for
the carriage of people, perishable and-perishable goods which are generally
referred to as cargo.

Water transport is the cheapest and the oldest mode of transport. It operates
on a natural track and hence does not require huge capital investment in the
construction and maintenance of its track except in case of canals. The cost of
operation of water transport is also very less. It has the largest carrying
capacity and is most suitable for carrying bulky goods over long distances. 
Advantages:

1. Less Maintenance Cost:

Maintenance cost in rail and road transport is quite high but maintenance
cost of water transport is quite less.

2. Cheap:
The transport channel is quite cheap as compared rail and road Transport.

3. Useful for Bulky Goods:

Heavy and bulky goods can be transported easily at little cost through water
transport.
4. Useful During Natural Calamities:
During natural calamities like flood and rains, when rail and road transport is
disrupted, relief operations can be operated through water transport.

5. Helpful in Defense:
Development of shipping is essential for the defense of the country also.

6. Important for Foreign Trade:

Water transport plays important role in foreign trade. India’s foreign trade is
mainly dependent on water transport.
Disadvantages of Water Transport:

1. Slow Speed:

It is a slow means of transport. Failure of monsoon results into fall in the

water level of rivers making navigation difficult.

2. More Risky:
Water transport is more risky as compared to other means because there is
always danger of sinking ships or boats.

3.Not Appropriate For Perishable Goods:

 Water transport is wasteful for conveying short-lived items because of the
time span expected to arrive at the objective.
4. Rail Transport :

Rail transport is also known as train transport. It is a means of transport, on

vehicles which run on tracks (rails or railroads). It is one of the most
important, commonly used and very cost effective modes of commuting and
goods carriage over long, as well as, short distances.

Rail transport is also one of the fastest modes of land transport. Rail transport
has some constraints and limitations also. One of the biggest constraints of
rail transport is heavy cost.

Trains need high capital to build and maintain and the cost is magnified when
a whole rail network is to be built. The cost of construction, maintenance and
overhead expenses are very high compared to other modes of transport.
Also, rail transport cannot provide door-to-door service as it is tied to a
particular track. Intermediate loading or unloading involves greater cost,
more wear and tear and wastage of time.
Rail transport has emerged as one of the most dependable modes of
transport in terms of safety. Trains are fast and the least affected by usual
weather turbulences like rain or fog, compared to other transport
mechanisms. Rail transport is better organized than any other medium of
transport. It has fixed routes and schedules. Its services are more certain,
uniform and regular compared to other modes of transport.

Rail transport or railway transport is defined as the movement of people and

commodities via the use of railways or railroads, or it is the movement of
passengers and goods via wheeled vehicles made to move on railway tracks
or rails. A train is a connected series of rail vehicles that move along the track,
an engine locomotive running on electricity or on diesel powers trains.

Rail transport is one of the oldest modes of transportation that is suitable for

conveying bulky goods over long distances.
Advantages :

1.Dependable:
The greatest advantage of the railway transport is that it is the most
dependable mode of transport as it is the least affected by weather
conditions such as rains, fog etc. compared to other modes of transport.

2. Better Organized:
The rail transport is better organized than any other form of transport. It has
fixed routes and schedules. Its service is more certain, uniform and regular as
compared to other modes of transport.

3. High Speed over Long Distances:

Its speed over long distances is more than any other mode of transport,
except airways. Thus, it is the best choice for long distance traffic.
4. Suitable for Bulky and Heavy Goods:
Railway transport is economical, quicker and best suited for carrying heavy
and bulky goods over long distances.

5. Cheaper Transport:
It is a cheaper mode of transport as compared to other modes of transport.
Most of the working expenses of railways are in the nature of fixed costs.
Every increase in the railway traffic is followed by a decrease in the average
cost. Rail transport is economical in the use of labour also as one driver and
one guard are sufficient to carry much more load than the motor transport.

6. Safety:
Railway is the safest form of transport. The chances of accidents and
breakdowns of railways are minimum as compared to other modes of
transport.
Disadvantages :

1. Huge Capital Outlay:

The railway requires is large investment of capital. The cost of construction,
maintenance and overhead expenses are very high as compared to other modes
of transport.

2. Lack of Flexibility:
Another disadvantage of railway transport is its inflexibility. Its routes and
timings cannot be adjusted to individual requirements.

3. Lack of Door to Door Service:

Rail transport cannot provide door to door service as it is tied to a particular
track. Intermediate loading or unloading involves greater cost, more wear and
tear and wastage of time.

4.No Rural Service:

Because of huge capital requirements and traffic, railways cannot be operated
economically in rural areas. Thus, large rural areas have no railway service even
today. This causes much inconvenience to the people living in rural areas.
Road transport
Road transport means transportation of goods and personnel from one place to
the other on roads. Road is a route between two destinations. There are many
advantages of road transport in comparison to other means of transport. The
investment required in road transport is very less compared to other modes of
transport such as railways and air transport. The cost of construction, operating
cost and maintaining roads is cheaper than that of the railways. 

Road transport can be classified as transporting either goods and materials or

transporting people. The major advantage of road transport is that it can
enable door-to-door delivery of goods and materials and can provide a very
cost-effective means of cartage, loading and unloading. Sometimes road
transport is the only way for carrying goods and people to and from rural areas
which are not catered to by rail, water or air transport. Delivery of goods
between cities, towns and small villages is made possible only through road
transport. However, in spite of various merits, road transport has some major
limitations. For instance, there are more chances of accidents and breakdowns
in case of road transport. So, motor transport is not as safe as other means of
transport. 
Road transport is one of the modes of transport which involves the use of
motor vehicles (cars, lorries, buses, bicycles, trucks and animals). There are
various types of roads according to size and functions, some roads are tarred
while others are not. 

Types of Road Transport

Animal
walking
v Automobile
Cycling
Bus

1. Animal:  It is the oldest means of transportation; this usually involves the
use of animals for the transportation of people and goods on land or road.
Examples of animal used for this transportation include camel, horse, donkey,
elephant, and giraffe.
2.Walking: Walking is a means of transport that is commonly done on the
road, it is used for only on short distance trips.

3. Automobile: Automobiles are used to transport people and items from one
location to another location on roads.

4. Cycling– this is also referred to as biking or the use of bicycle; this means of
transportation is often used for conveying people or goods within short and
moderate distance trips. It is one of the cheapest means of transportation. 

5.Bus: this is a road vehicle designed to carry passengers and goods to

various locations. Some buses are designed with a large capacity to convey
about 18 to 60 passengers at a time on larger roads.
Advantages of Road transport -

1.Less Capital Outlay:

Road transport required much less capital Investment as compared to other modes of
transport such as railways and air transport.

2. Door to Door Service:

The outstanding advantage of road transport is that it provides door to door or warehouse to
warehouse service

3. Service in Rural Areas:

Road transport is most suited for carrying goods and people to and from rural areas which are
not served by rail, water or air transport.

4. Flexible Service:
Road transport has a great advantage over other modes of transport for its flexible service, its
routes and timings can be adjusted and changed to individual requirements without much
inconvenience.

5. Suitable for Short Distance:

It is more economic and quicker for carrying goods and people over short distances. Goods
can be loaded direct into a road vehicle and transported straight to their place of destination.
6. Lesser Risk of Damage in Transit:
road transport is most suited for transporting delicate goods like chinaware
and glassware, which are likely to be damaged in the process of loading and
unloading.

8. Rapid Speed:
If the goods are to be sent immediately or quickly, motor transport is more
suited than the railways or water transport. Water transport is very slow. Also
much time is wasted in booking the goods and taking delivery of the goods in
case of railway and water transport.

9. Less Cost:
Road transport not only requires less initial capital investment, the cost of
operation and maintenance is also comparatively less.

10. Private Owned Vehicles:

Another advantage of road transport is that big businessmen can afford to
have their own motor vehicles and initiate their own road services to market
their products without causing any delay.
Disadvantages Of Road Transport:

1. Seasonal Nature:
Motor transport is not as reliable as rail transport. During rainy or flood season,
roads become unfit and unsafe for use.

2. Accidents and Breakdowns:

There are more chances of accidents and breakdowns in case of motor transport.
Thus, motor transport is not as safe as rail transport.

3. Unsuitable for Long Distance and Bulky Traffic:

This mode of transport is unsuitable and costly for transporting cheap and bulky
goods over long distances.

4. Slow Speed:
The speed of motor transport is comparatively slow and limited.

5. Lack of Organization:
The road transport is comparatively less organized. More often, it is irregular and
undependable. The rates charged for transportation are also unstable and unequal.
Pipeline :

Pipeline transportation is a method of transportation which involves

movement of solid, liquid or gaseous products over long distances through
pipelines. This mode of transportation is mostly used for transport of crude
and refined petroleum products such as oil and natural gas. 

pipelines are most convenient, efficient and economical mode of transporting

liquids like petroleum, petroleum products, natural gas, water, milk, etc. Even
solids can also be transported through pipelines after converting them into
slurry.

Pipelines have been the preferred mode of transportation for liquid and gas
over competing modes such as truck and rail for several reasons: they are less
damaging to the environment, less susceptible to theft, and more
economical, safe, convenient, and reliable than other modes. 

Pipeline is a long distance transportation of a liquid or gases through a system

of pipes.
Advantages of Pipeline:

Pipelines have the following advantages over other means of transport:

1. They are ideally suited to transport the liquids and gases.

2. Pipelines can be laid through difficult terrains as well as under water.

3. It involves very low energy consumption.

4. It needs very little maintenance.

5. Pipelines are safe, accident-free and environmental friendly.

Disadvantages of Pipelines:

Following are the main disadvantages of pipeline transport:

1. It is not flexible, i.e., it can be used only for a few fixed points.

2. Its capacity cannot be increased once it is laid.

3. It is difficult to make security arrangements for pipelines.

4. Underground pipelines cannot be easily repaired and detection of leakage

is also difficult.
Ro-Ro:
RoRo stands for ROLL-ON/ROLL-OFF and means that specially designed ships for
carrying wheeled cargo, such as cars, trucks, semi-trailer trucks, trailers, and railroad
cars can drive on and off of the ship on their own wheels through a vehicle platform. 

Ro-Ro means “Roll On-Roll Off” and refers to the loading (roll on) and unloading (roll
off) of these vehicles using ramps that can be stacked on the cargo ships or else
permanently installed at the port itself. 

A combination of road and sea transport, where loaded road vehicles are driven on to
a ferry or ship (roll-on/roll-off ship) and off at the port of destination. Major benefits
of RoRo are reduced handling of the actual goods and packages, competitive costs for
unit loads and schedules services.

LOLO or lift-on/Lift-off-
On the other side from the RORO vessels there are the called LOLO, or lo-lo, which
are those equipped with cranes for the loading and unloading of the cargo.
RORO advantages

The main advantages of ro-ro freight transport are speed and time saving.

Speed: Vehicles those can be directly driven into the vessel or land through
the ramps making the loading and unloading process more quick and agile.

Time saving: Being able to cut through loading and unloading procedures
enables the trucks and vehicles to land just minutes after docking  and
continue with their route to their destination, improving on their delivery
time.

Another important advantage to have in mind is less cargo handling. Because

there is no loading and unloading at port, there is less risk of accidents
and cargo damage.
Variations of ro-ro vessels:

There are different kinds of ro-ro vessels. Depending on their characteristics

or the cargo they transport we can find:

Car carriers: Those which transport cars exclusively. They are also called Pure
Car Carriers (PCC).

Pure car/truck carrier (PCTC): The ones that transport trucks as well as cars.
Transport Cost Economizing :

Transport costs are the costs internally assumed by the providers of transport services. They
come as fixed infrastructure and variable operating costs, depending on various conditions
related to geography, infrastructure, administrative barriers, energy, and how pass. Transport
costs have significant impacts on the structure of economic activities as well as on
international trade,engers and freight are carried. 

Factors –

Mode of transport –

The efficiency and capacity of transport modes and terminals have a direct impact on transport
costs. Poor infrastructures imply higher transport costs, delays, and adverse economic
consequences. More developed transport systems tend to have lower transport costs since
they are more reliable, connected, and can handle more movements.
Different transport costs characterize different modes since each has their own capacity
limitations and operational conditions. 
Time – Transport time is also an important dimension in evaluating transport
costs, particularly since logistics concomitantly involves cost and time
management. The transport time component is also an important
consideration as it is associated with the service factor of transportation.
They include the transport time, the order time, the timing, the punctuality,
and the frequency.

Cost – The cost of transport is the payment for shipment between two
geographical locations and the expenses related to maintaining in-transit
inventory. Logistical system should utilize transportation that minimizes total
system cost.

The cost of transportation adds to the cost of the goods .Rail transport is
comparatively a cheaper mode of transport for carrying heavy and bulky
traffic over long distances. Motor transport is best suited and economical to
carry small traffic over short distances. Motor transport saves packing and
handling costs.
Water transport is the cheapest mode of transport. It is suitable to carry only heavy and bulky goods over long distances where
time is not an important factor. Air transport is the most costly means of transport but is particularly suited for carrying perishable,
light and valuable goods which require quick delivery.

Urgency – Urgency of delivery will always hike up the transportation cost. Usually, organizations try to cover some extent of the
cost of urgency by the customers.

Nature of goods:
Rail transport is most suitable for carrying cheap, bulk and heavy goods. Perishable goods which require quick delivery may be
carried through motor transport or air transport keeping in mind the cost and distance.