Advantages And Disadvantages Of Air Transport

During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management

The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).

24. The total cost approach involves evaluating each possible PD system and identifying all the transportation

The Canadian National Railways is a part of the Railway Industry and it is the most popular and longest system all over North America. It is the only “transcontinental railway” company that Canada has which crosses the Atlantic Coast in Nova Scotia to the Pacific Coast in British Columbia. The CN Railway system provides transportation services to coal, automobiles, grain, beverages, lumber and metal products. They use railway containers which is a cost-effective method that helps easily transport Canadian and American goods. CN Railway’s profit increases every year due to the vast amount of items it transports and this causes multiple consumers and businesses to be involved with the CN Railway Company. (Canadian National, 2015).

In the twenty-first century many people wonder why transportation by rail cars can still be such a major way of transporting goods.The answer can be found in the advantages that come with choosing rail cars. Lets start with the thing that every business owner likes is dependability. People like to know that the products will be delivered on time no matter the weather conditions. Rail cars regularly get maintenance and inspections. Rail cars are great when it comes to organization, The routes are fixed, and scheduled so there are less stops, and delays. The speed trains travel at can only be topped by the speeds of a plane. With long distance shipping you can expect for this method to help get your product to its destination in the least amount

The majority of movement of materials and goods across continents is through container ships, however, in some cases, planes are used to transport goods. Trucks and trains move materials and goods and within a country or a continent. In some cases, ships sail in rivers, as is the case in parts of Canada. The shares of freight transport as the percentage of the total tone-km by road, inland waterways, and railways in the EU are 75.9%, 6.7%, and 18.4% respectively (EUROSTAT, 2016). In the USA, trucks are the most used means of transportation for moving freight up to 750 miles. Trains move items in bulk beyond the 750-mile limit up to 2000 miles (United States Department of Transportation, 2015).

Secondly Road freight transport has advantages such as cheaper investment funds, high accessibility, mobility and availability. While its disadvantages are low capacity, less safety, and quite slow in speed. Thirdly and lastly the advantages of pipeline transport are high carrying capacity, lower effect by weather situation, cheaper operation price, and continuous conveyance while the disadvantages are very expensive infrastructures, harder supervision, goods specialization, and lots of normal maintenance needed. Too much usage of land transport might also brings many problems, such as traffic jams, pollution and also traffic collision. So In the future, if want to improve the land transport to make the transport efficiency and reliability, a revolution of transport policies and management is needed, for example like

Airlines provide air transportation facilities for everyone, being one of the most common passenger transportation around the world. Although the airline industry is a very competitive market it is very beneficial for everyone. Everyone has experienced distance at least once in their lives, however, the invention of the air craft is one of the many inventions that has changed how people live; making life easier for those that must travel long distances across the country or abroad for either business, fun, visit loved ones or for the pursuit of dreams and happiness. American Airlines is not only the largest airline network but, it is also the best and most affordable of all the airlines in the world.

Fourthly, The Airborne maintained low prices, provided tailored services and achieved higher efficiencies and lower cost in order to long run and remain competitive in the market. So, Airborne targeted business customers who shipped frequently and was able to better serve them through repetition and experience including using customization codes to provide tailored service to specific large business accounts. Moreover, Airborne had a high concentration of customers in metropolitan area and a high percentage of afternoon and second day deliveries, permitting it to use ground shipping more often than its competitors and save up to two-thirds the cost of air shipping (Exhibit 8). Finally, Airborne had total control of its airport hub, which is design as per the needs and expand to enclose warehouse space for its business customers. Furthermore, Airborne achieved greater efficiency in its shipping by utilizing 80% of shipping space therefore; Airborne lowered cost not having retail service centers, using independent contractor van services and it was more efficient by picking up and delivering more parcels per stop than FedEx. Hence, Airborne becomes a stronger competitor in the market due to low prices and provided excellent service to the customers.

Today, container ships are used as major transport method between countries, and most of products, which are called dry cargo such as daily products, processed food, timbers and metals, are transported by container ship.

Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.

This essay attempts to describe current air freight market conditions, challenges in air freight demand and generate potential solutions to increase air cargo demand. It is divided into four parts: air freight, current demand for air freight, challenges, and potential

The major advantage in air freight is speed, but there is a lot of handling inefficiencies, paperwork, airport congestion and more. But recently air freight has a very strong growth these few years. Another downside to air freight is that it is very expensive.

plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers ' requirements’’.i It is important in all the business processes and concentrates on moving goods and services from suppliers to producers to the end consumers. One important part of logistics is the transportation industryii. The

TRANSPORT: Transport is a system in which passengers & goods are carried  from one place to another.