Top 4 transportation options in the global supply chain
Photo by Jacob Meissner on Unsplash
The global supply chain is the lifeblood of modern business. Thousands of companies rely on the timely, efficient shipment of raw materials and finished goods to increase revenue, expand market share, reduce costs, innovate new products and meet the needs of their customers.
Having suitable transportation options in the global supply chain is essential for companies to move goods quickly and cost-effectively. The four most common transportation options in the global supply chain are trucking, ocean shipping, air cargo, and rail. Let’s look at each of them:
Shipment by road
Trucking is the most commonly used mode of transportation for goods shipped domestically within a country. It is also an option for shipping goods between countries, although it is not as common as shipping by sea or air. The significant advantage of trucking is that it is relatively inexpensive compared to other modes of transportation. It is also relatively fast and can transport a wide variety of goods. However, trucking can be slow and expensive compared to shipping by air, and it is not suitable for shipping large quantities of the same goods.
However, the major disadvantage of trucking is that it is susceptible to traffic congestion and delays. This can cause delays in the delivery of goods and increase costs for the shipper. In addition, trucking can be dangerous, mainly when the transported goods are hazardous or perishable.
Overall, trucking is a cost-effective option for shipping goods domestically and between countries, but it is unsuitable for many shipments.
Shipment by sea
Shipping goods by sea is the most common way to move cargo worldwide. It is cheap, efficient, and can carry a large volume of goods. In addition, sea transportation is the most sustainable option for the environment.
They packed the goods inside the containers, stowed them onto the ship using the stacking method. Usually, the cargo ships’ first one or two decks are used to carry the containerized goods, while the other decks contain the Ro-Ro (Roll-On/Roll-Off) shipments.
The containers are sealed, and the ship sets sail to the destination. Depending on where you are or want to ship to, the experts at TSL Australia have direct operational involvement in freight forwarding throughout Australia, China, south-east Asia, Europe and America. Although, the voyage can take two to four weeks, depending on the distance. Upon arrival, the containers are unloaded and transported to the final destination.
The main disadvantage of sea transportation is the long transit time, which could be a problem for time-sensitive shipments. In addition, the goods are susceptible to damage from weather and rough seas.
Shipment by rail
Rail transportation is the process of moving goods or passengers by rail. Trains are a vital part of the global supply chain and can be an attractive option for companies looking to move goods quickly and efficiently.
Rail transportation is one of the oldest forms of transportation and is still used today to transport goods and passengers. Trains can travel long distances and can be an efficient way to move large quantities of cargo.
There are several pros and cons to using rail transportation in the global supply chain. Here are the top four:
Pros:
- Rail transportation can be the least costly mode of transportation for freight movement.
- Railroads are the most energy-efficient form of land transportation and can reduce pollutants by up to 80% compared to trucks.
- Trains have the highest capacity for moving goods efficiently over long distances, transporting large amounts of cargo from one point to another.
- Rail transportation is a reliable form of transport and is less susceptible to weather conditions or traffic congestion than other forms of transportation, such as trucks.
Cons:
- Rail transportation can be the most expensive transportation model for freight movement.
- Railroads are the least energy-efficient form of land transportation, and the use of the railway system can cause an increase in air pollution.
- Trains have the lowest capacity for moving goods, only able to transport small amounts of cargo from one point to another.
- Rail transportation is not fast enough for the quick movement of smaller consignments of freight over short distances.
Rail transportation is a cost-effective and efficient way to move goods over long distances. However, it is not the best option for the quick movement of smaller consignments of freight over short distances.
Shipment by air
Photo by Jason Wong on Unsplash
Another option for the global supply chain is shipment by air. This is the quickest form of transportation and is often used for time-sensitive items. It is also the most expensive option. Some pros of using shipment by air are that it is speedy, has a low failure rate, and offers the ability to track shipments. Some cons are that it is the most expensive option, and it’s challenging to find space on planes.
Overall, shipment by air is a good option for the global supply chain if the shipped items are time-sensitive and the cost is not a factor. If the price is a concern, another option such as shipment by sea may be a better choice.
At TSL Australia, we are experts in the global supply chain. We can help you choose the best option for your needs and get your items to their destination quickly and safely.
