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An accademic arguement in favour and against container systems for regional(inland)and global(maritime)freight transport using the following factors.(1)Initial innvestmen (2)speed of delivery,rresponsiveness(3)reliability,service levels realizable,(4)regu - Essay Example

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Intermodal freight transport requires simple, effective and efficient movement of bulk cargo from one mode of transport to another. Container…
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An accademic arguement in favour and against container systems for regional(inland)and global(maritime)freight transport using the following factors.(1)Initial innvestmen (2)speed of delivery,rresponsiveness(3)reliability,service levels realizable,(4)regu
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Extract of sample "An accademic arguement in favour and against container systems for regional(inland)and global(maritime)freight transport using the following factors.(1)Initial innvestmen (2)speed of delivery,rresponsiveness(3)reliability,service levels realizable,(4)regu"

Download file to see previous pages The high initial investments create barriers to entry as the potential already established investors because the rate of competition is low. Most shippers have been forced to integrate and take advantage of the economies of large scale since container shipping is dependent on the volume of the load. Shipping companies stands a better chance of making profit if the utilisation of the shipping services they offer is prolonged and consistent. However, the high barriers to exit leads to risky returns because firms are forced to struggle and ensure that they remain operational and competitive (Elliot, 2002). Low competition in the industry may be disadvantageous to the clients because the quality of the services offered will be affected. Although the initial investment costs for successful installation of container systems are high, successful application of containerisation negates the costs involved in the increased costs of labour. This stabilised the cost of liner companies. The modern technology applied in harbours and ports is suitable for the application of containerisation; thus, it is only logical that container systems should be applied despite their high initial capital. Additionally, loading and unloading ships requires considerable amount of time that has been reduced significantly with the application of container systems. Packing goods in the wooden or metallic casings helped ease transport and transhipments. According to Parker (2012) and Rushton et al. (2010), container use has been embraced by the business fraternity and transporters as the most effective and efficient mode of transport. This means that the efficient ports should be well standardised and improved to meet the international standards of trade and shipment. Containerisation leads to speedy handling of voluminous and bulky goods that could not be effectively handled through manual means. Container ...Download file to see next pagesRead More
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