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
Rail
Freight
Rail transportation offers many advantages and is (for obvious reasons) used for domestic use or inter-continental. Rail transport is ideal for heavy goods and has a wide range of applications.
Advantages
o
Fast delivery
o
Capacity
o
Cost effective
o
Safe mode of transport
o
Reliable
o
More
environmentally friendly than alternatives
o
Does not add to congestion
Disadvantages
o
Potential of damages, from shunting
o
Subject to unforeseen delays
o
Reliance on rail freight operator's timetable
o
Suppliers/customers are not always located near a rail freight depot and delivery to/from the depot can be
costly and time consuming
o
Limited routes, inflexible routes and timetables
Road
Freight
Road transportation is the most commonly used method in practice today. The numbers are getting smaller as more and more companies export but it is still the most used mode of transport by a wide margin.
Advantages
o
Cost effective
o
Fast delivery, Ideal for short distances
o
Ideal for transporting perishables (eg fruit and vegetables)
o
Easy to monitor location of goods
o
Easy to communicate with driver
o
Ideal for sending by courier shortages to customers
o
Private
Disadvantages
o
Transport subject to traffic delays
o
Transport subject to breakdown
o
Goods susceptible to damage through careless driving
o
Bad weather
o
Driving regulations can cause delays
o
Pollutes the environment
o
Less safe than alternatives
o
Can be expensive where there are congestion or road charges