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Why carriers in all modes of transport are concerned with weight vs. volume when applying their rates. Give two examples on how carriers in a specific mode of transport may apply this concept - Essay Example

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volume is important in determination of freight charges in any mode of transport. Shippers have to keep track of the weight to figure out how the transportation shall be loaded. Considering the many packages that are boxed today, one would realize that weight bears…
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Why carriers in all modes of transport are concerned with weight vs. volume when applying their rates. Give two examples on how carriers in a specific mode of transport may apply this concept
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Using weight vs. volume in determination of freight charges Weight vs. volume is important in determination of freight charges in any mode of transport. Shippers have to keep track of the weight to figure out how the transportation shall be loaded. Considering the many packages that are boxed today, one would realize that weight bears much relevance in determination of moving costs and freight charges. Weight limits how much of something can be transported and the fuel that will be consumed.
It is important to use weight to avoid violation of logistics rules setup by local, state and federal authorities. Some cargo might take lots of space while the weight is trivial. Taking dimensional weight is significant as it takes into consideration the volume and weight of the cargo.
For instance, a plane of 848 cargos can carry 120,000 lbs. If it exceeds, the plane will not fly and might as well violate the air transport rules set up by federal and state governments. In America, bulk coal long-distance rates are one cent/ton-mile thus a 50 car train carrying each carrying 150 tons over a 100 miles will cost $15000 (Behrens, Kristian & Pierre 129)
In using weight in determination of freight charges, the shippers take into consideration fuel consumed as it considers the density of the goods (w = ρ × v) and hence ensure that they do not transport at a loss an ensure that they fully utilize the road load supporting capacity. However, it may lead to charging low rates when the cargo is of less weighty goods. In using volume, the capacity of the shipping vehicle remains underutilized. However, the shippers reap maximally even from goods that would be less costly for them to deliver considering fuel consumed.
Works Cited
Behrens, Kristian, and Pierre M. Picard. "Transportation, freight rates, and economic geography." Journal of International Economics (2008). Print. Read More
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