Choice of the Appropriate Mode of Transport

No single mode of transport is "best" in every situation — a business must weigh several factors before choosing which mode (or combination of modes) to use for a particular consignment:

• Nature of the goods. Perishable goods (fruit, flowers, fresh produce) generally need the fastest available mode (air or, over shorter distances, road); heavy/bulky, non-perishable goods (coal, iron ore, cement) are usually cheapest to move by rail or water.
• Distance to be covered. Road transport is generally most economical for short distances; rail and water become more cost-effective as distance increases, especially for bulk cargo.
• Urgency of delivery. Time-sensitive consignments (urgent spare parts, medicines, express documents) justify the higher cost of air transport; where time is not critical, a cheaper mode is preferred.
• Cost of transportation relative to the value of the goods. For low-value, bulky goods, transport cost is a large share of the final price, so the cheapest suitable mode (rail/water) is chosen; for high-value, low-bulk goods (jewellery, electronics), transport cost is a small fraction of value, making a faster, costlier mode like air more affordable in relative terms.
• Accessibility/availability of the mode. A destination without rail connectivity or port access must rely on road (or a combination of modes with road completing the final leg), regardless of what would otherwise be most economical.
• Safety and risk of damage/loss in transit. Fragile or high-value goods may need a mode (and packaging) offering greater safety and lower risk of pilferage or damage, even at some extra cost. …