2. Limited Area of Operation:
It can be used only in a limited area which is served by deep canals and rivers.
3. Seasonal Character:
Rivers and canals cannot be operated for transportation throughout the year as water may freeze during winter or water level may go very much down during summer.
4. Unreliable:
The inland water transport by rivers is unreliable. Sometimes the river changes its course which causes dislocation in the normal route of the trade.
5. Unsuitable for Small Business:
Inland water transport by rivers and canals is not suitable for small traders, as it takes normally a longer time to carry goods from one place to another through this form of transport.