Businesses most of the times need products and orders shipped from one geographic location to another. As such, it is crucial that businesses consider the kind of transportation that they would employ to achieve this important part of their operations. The two most common modes of transportation are Air Freight and Sea Freight. The factors that a business should consider are:
Perishability of Good
Perishable goods require the quickest mode of transport to ensure their freshness and the ability for the consumer to derive maximum utility from them. As such perishable goods would be favoured by air freight as opposed to sea freight. (Johnson, 2008)
While air freight charges a business on weight of the goods to be delivered, sea freight charges on the size of the goods to be delivered (Barnhart, 2007). In the case where one uses sea freight and does not transport goods ion a container, one is charged per cubic meter or foot that the goods occupy in the freight ship. As such, a business would usually opt for the cheapest mode in relation to the financial capability of the company.
Business require to determine the extent to which the constraint of time apply and how it affects the business’ operations. In the case where the constraint of time is inevitable and cannot be evaded by the company, then there is no question as to which mode would be preferable, air freight is most useful. This is because when the time constraint is existent, then cost is not an issue (Barnhart, 2007).
The delivery of goods is essential for any company. As such, the accessibility to the points of delivery is vital for the business. Air freight delivery points are much more accessible, air ports, than sea freight delivery points, ports.
When a business is transporting high value goods, it is essential that the business be able to track the where about and the progress of the transportation of their good (Barnhart, 2007)s. Generally, air freight companies provide better and more efficient tracking of goods as compared to sea freight companies.
Barnhart, C. &. (2007). Transportation. Amsterdam: North Holland.
Johnson, J. (2008). Switchpoints: Culture change on the fast track for business success. Hoboken: Wiley.