Business Laws and Ethics (BLE)

Merits and Demerits of Carriage by Land and Sea

Think and Grow Rich

Merits of Carriage by Land

Less Capital Outlay :

Road transport required much less capital Investment as compared to other modes of transport such as railways and air transport. The cost of constructing, operating and maintaining roads is cheaper than that of the railways. Roads are generally constructed by the government and local authorities and only a small revenue is charged for the use of roads. ‘

The door to door Service :

The outstanding advantage of road transport is that it provides door to door or warehouse to warehouse service. This reduces cartage, loading and unloading expenses.

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. Exchange of goods, between large towns and small villages, is made possible only through road transport.

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.

Suitable for Short Distance :

It is more economical and quicker for carrying goods and people over short distances. Delays in transit of goods on account of intermediate loading and handling are avoided. Goods can be loaded directly into a road vehicle and transported straight to their place of destination.

Lesser Risk of Damage in Transit:

As the intermediate loading and handling are avoided, there is lesser risk of damage, breakage etc. of the goods in transit. Thus, 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.

Saving in Packing Cost :

As compared to .other modes of transport, the process of packing in motor transport is less complicated. Goods transported by motor transport require less packing or no packing in several cases.

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.

Less Cost :

ROad transport not only requires less initial capital investment, the cost of Operation and maintenance is also comparatively less. Even if the rate charged by motor transport is a little higher than that by the railways, the actual effective cost of transporting goods by motor transport is less. The actual cost is less because the motor transport saves in packing costs and the expenses of intermediate loading, unloading and handling charges.

Private Owned Vehicles :

Another advantage of road transport is that big businessman can afford to have their own motor vehicles and initiate their own road services to market their products without causing any delay.

Feeder to other Modes of Transport :

The movement of goods begins and ultimately ends by making use of roads. Road and motor transport act as a feeder to the other modes of transport such as railways, ships, and airways.

Demerits of Carriage by Land

Seasonal Nature :

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

Accidents and Breakdowns :

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

Unsuitable for Long Distance and Bulky Traffic :

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

Slow Speed :

The speed of motor transport is comparatively slow and limited.

Lack of Organisation :

The road transport is comparatively. less organized. More often, it is irregular and undependable. The rates charged for transportation are also unstable and unequal.

Sea Transportation

Sea transportation is used by businesses for the delivery of goods from distant suppliers. Most sea transportation is conducted in containers which vary in size.

Goods can be grouped into a container (LCL) or fill a container (FCL). Sea tankers are used for bulk shipments of loose goods such as oil, grain, and coal.

Merits of Carriage by Sea

  1. The way’ is free, and gives access to most parts of the world.
  2. Small power is needed to drive a vessel so that large vessels are practicable and economies can be achieved.
  3. Transport by sea is relatively slow so that passengers are easily lost to airlines when speed is important.
  4. The possibility of determination of cargo is great because sea water is corrosive and also liable to affect the quality and flavor of cargoes.
  5. Because weight is not important, ships can be massive enough to be strong.
  6. The buoyancy of the effective weight zero. Hence sea transport is very suitable for heavy goods.
  7. Pilfering of cargoes is not uncommon, though ‘containerization‚Äė is doing much to reduce this.
  8. Ports are expensive and delay not uncommon.

Demerits of Carriage by Sea

  1. Longer lead/ delivery times
  2. Bad weather
  3. Difficult to monitor the exact location of goods in transit
  4. Customs and Excise restrictions
  5. Could be costly

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