Advantages/Disadvantages, Modes of Transport
Air Freight
Air freighting is commonly used by companies who work with short lead times, or advanced service levels. Shipping by air certainly isn’t the cheapest alternative, and is only advisable for certain size/weighted products.
Advantages
o Fastest for long distance deliveries
o Customer perception is high, easy for order fulfilment
o Very safe mode of transport
o Reduces lead time on suppliers
o Improved service levels
Disadvantages
o Risky
o Potential for flight delays and/or cancellations
o Customs and Excise restrictions
o Expensive vs. other modes
o Unsuitable for some goods,
o Limited routes, and inflexible timetables
o Environmental pollution
o Airport taxes
Sea Freight
Sea transportation is usually used by companies who ship a large amount of goods at once, with longer lead times. This mode of transport is the longest, yet is ideal for bulk shipments such as coal and minerals.
Advantages
o Ideal for transporting heavy and bulky goods
o Suitable for products with long lead times
o Cheap for large volumes
Disadvantages
o Very slow, longer lead/delivery times
o Difficult to monitor exact location of goods in transit o Customs and Excise restrictions
o Could be costly
o Inflexible routes and timetables
o Port duty/taxes
o Requires inland transportation for door-to-door delivery.
Sea transportation is used by business for the delivery of goods from distance supplies. Most sea transportation is conducted in containers with very in size. Goods can be grouped into a container LCL or FCL sea tankers are used for bulk shipments of loose goods such as oil, grain and coal