3.

Distinguish between multimodal and intermodal transport

Definition ● Transportation involves the movement of goods and people from

one location to another
● An efficient supply chain management requires the movement of
people, equipment and products to different locations (i.e., fast and
effective)

Modes of 1. Multimodal ● This occurs when two or more methods of

transport transport transport are used to move finished or semi-
finished goods and materials from one
location to another, e.g., trucks to ship to
trains/vans/trucks
● The producer will organise multimodal
transport through a contract with a
specialist provider of transport and
distribution services
● The single provider will be legally
responsible for arranging and coordinating
all the various methods of transportation
required, planning the most efficient route
and ensuring the goods reach their final
destination, undamaged and on time
● This reduces the resources the producer
needs to invest in distribution and also the
risk of financial loss

2. Intermodal ● This involves the movement of goods from

transport the origin to their destination using several
methods of transport using several
service providers
● Each transport provider or carrier involved
will be contracted separately by the
producer, and they will only be legally
responsible for the safe and efficient
transport and delivery of the goods on their
leg of the journey
● The producer will have to plan, arrange and
coordinate each method of transport and
carrier involved.
● This allows them to be more flexible to
alter routes, change transport methods and
timescales in order to select the best or
cheapest service provider

Transport can take place by: 1. Air - passenger and cargo aircraft flights
 2. Land - road, rail and pipeline networks
3. Sea and waterways - passenger and cargo
between seaports and along rivers

Methods of Transport

1. Air Transport ● Includes airlines for passengers and cargo carriers for goods.
- ● There are integrated express carriers which offer intermodal transport
services (transporting goods via land, air and land again to its final
destination)
● Regular and reliable flights allow workers and visitors to move easily
between destinations
● Many Caribbean countries have upgraded their airport facilities to
international standards to support the increase in air traffic
● St. Vincent - opened Argyle International Airport which receives
flights from international carriers as opposed to just regional airlines
● Guyana’s Cheddi Jagan International Airport is a hub.

Advantages Disadvantages

➔ Fastest mode of transport ➔ It can be risky, and small mistakes can be

➔ Suitable for perishable goods and costly to lives and property
important documents that need to be ➔ Not suitable for large bulky cargo
transported quickly ➔ Very costly
➔ Less infrastructure is needed for air ➔ Affected by adverse weather conditions
transport than with other methods like
the laying of rail tracks for rail transport
➔ No physical barriers to affect the route of
the plane
➔ Transport large volumes of cargo over
long distances at relatively reasonable
cost

2. Rail Transport ● In the past rail transport (train) was popular for the movement of
people and goods in the Caribbean.
● In Jamaica rails continue to be used for transporting goods for export
to the various ports around the island

Advantages Disadvantages

➔ Good for moving bulky cargo and ➔ Requires a heavy capital investment by
transporting over long distances government
➔ Goods can be moved at a faster rate than ➔ Schedules can be rigid, so shippers must
with road transport conform to times provided
➔ Cheaper than road transport ➔ Not suitable for small quantities of goods
➔ Tends to be very reliable, as there are set and short distances (may be uneconomical)
schedules and no traffic on the lines ➔ Does not provide door-to-door delivery, as
➔ There are fewer breakdowns (than with road transportation does.
use of trucks) and maintenance can be ➔ It still requires the use of trucks to move the
completed on downtimes goods from the station on to the new
destination

3. Road ● Transport of people and goods from one place to another via roads.
Transport ● A road is any route between two destinations that has been paved or
worked on in some way.
● Most common form of transportation in the Caribbean as businesses
use vans, trucks, motorbikes, etc. to move people and goods

Advantages Disadvantages

➔ It is very flexible - can be used for door- ➔ Subject to delays caused by accidents,
to-door delivery and the movement of roadworks, etc.
large quantities from port of entry to ➔ It is costly as it requires regular
plant facilities maintenance of vehicles, to avoid
➔ Suitable for reaching all locations in a breakdowns
country from rural to urban ➔ It requires drivers to be well trained to
➔ Allows for fast delivery of goods from avoid damage to goods from reckless
plant to customers driving
➔ The location of the goods being ➔ It is subject to delays from teh weather, e.g.,
transported can be monitored via GPS rain and flooding
systems ➔ Can add to air pollution due to emissions
➔ Communication with the driver can be from diesel trucks
easily done ➔ There are limits to the speed that can be
➔ Cost effective (by comparing the volume used
that can be transported with the fuel cost,
driver and wear and tear on the vehicle)
➔ Offers easy publicity as advertising can
be placed on the vehicle

4. Marine ● Standardised shipping containers are used - 5 ft, 10ft

transport ● These can be easily loaded and unloaded by the shipper, stacked one
on top of the other and transferred from one mode of transport to
another (e.g., sea to road) without being opened
● Used to move goods in and out of the Caribbean region
● Most seaports include an international jetty as well as a West Indian
jetty (as goods like fresh fruits and vegetables move easily between
islands)
● Transport people between the smaller multi-island states, where
ferries are used to move citizens from island to island or from one
point on an island to another (important for workers and improves
productivity)
● Cruise ships also operate within the region bringing tourists for
within or outside the region
 Advantages Disadvantages

➔ Suitable for large quantities ➔ It is lengthy, and therefore proper planning

➔ Suitable for large and bulky goods is required as there is a long lead between
➔ Suitable for non-perishable items ports
➔ Can be cost effective for large shipments ➔ Can be delayed by bad weather (hurricanes
➔ Can carry specialised cargo from and storms)
containers to loose shipments of oil and ➔ Subject to Customs and Excise regulations,
grain and the goods may be inspected
➔ Insurance for goods is highly recommended
and this increases the final cost
➔ There can be pilferage of goods at the
various ports, even though the use of
containers should prevent this

5. Pipeline ● Theses transport goods or material through pipes (liquids, gases and
chemically stable substances)
● Movement of crude and refined petroleum and fuels such as natural
gas
● Movement of water throughout countries

Advantages Disadvantages

➔ Transport large volumes ➔ High capital investment required

➔ Not affected by weather, and can move ➔ Broken or damaged lines can lead to
goods 24/7, 365 days a year pollution, affect lives and incur high cost
➔ High safety levels with low incidence of ➔ It is a fixed route, as pipelines cannot be
accidents easily moved
➔ Cost effective for large quantities

6. Digital ● Linked to e-commerce

delivery ● Online purchase is made with the customer getting a unique URL
(Virtual product).
● The customer follows the online steps - create an account, password
then product is downloaded onto the customer’s gadget (laptop,
phone, tablet, etc.)
● Used for ebooks, music, journal articles, payments for phone service
and suppliers send gifts and prizes to customers

Advantages Disadvantages

➔ It is fast - customers can receive their ➔ It usually requires the use of a credit card
product instantly, the only delay can be ➔ It is more suitable for tech savvy buyers
caused by the speed of the internet ➔ It requires the use of the internet, which is
➔ Care must be taken by the seller to wide stream and does not cover all the
ensure that the product is safeguarded buying public
and cannot be shared or copied ➔ High level of competition (both locally,
➔ No physical barriers to affect the transfer regionally and internationally online)
of date, unless through legislation
➔ Many talented artists can produce and
sell work quickly, without the hassle and
cost of producing a CD
➔ The seller benefits from a large built-in
audience of potential buyers who already
exist on the internet

4. Interpret information on transport documents

Importance of ● To record and monitor information about the movement of goods

transport from producer to end user
Documents ● It sets out details of the consignor (the shipper of the goods) and
the consignee (the receiver of goods)
● They represent the contract of carriage (outlines all the conditions
related to the shipping transactions)
● They provide proof that the gods have been delivered
● Show that the goods were delivered to the shipper in good
condition and ‘clean’ if the goods have been damaged the
document will be known as ‘dirty’ with flaws and damages noted
● Show ownership of the goods - the consignee will then present
themselves to customs to receive the goods
● A Bill of Lading and Airway bill both allow for the transfer of
title of goods
● Goods being moved inland are shipped via a consignment note
which does not carry transfer of title
● Legal transfer of the goods takes place during the sale. THe
transfer of the goods from Point A to B needs specific legal
documents starting from the Sales Invoice.
● When moving goods across international borders the following are
used:
➔ Import Licence
➔ Bills of Lading
➔ Airway Bill

Import Licence ● A document or permit giving permission for an organisation or

individual to import certain goods that are restricted or regulated in
some way.
● The importer has to apply for the licence or permit
● There may be quotas restricting the quantity of a particular product
imported, or safety or environmental concerns regarding the
importation of particular items (plants, guns, arms, drugs, alcohol,
etc.)
 ● In Trinidad and Tobago an import licence is required for all animal
or animal-related products and cars

Bill of Lading ● A legally binding document traditionally used when goods are
traded
● It provides the shipper with all the necessary information to
process the shipment properly
● Three Main Functions:
➔ It is a document of TITLE (ownership) of the goods described
➔ It is a receipt for the received goods
➔ It represents the terms and conditions for the transportation of
the goods
● It is also required as ‘evidence in claims for compensation for any
damage, delay or loss during carriage and in the resolution of any
disputes regarding ownership of the cargo’.
● It shows:
 ➔ Exporter’s and receiver’s names and addresses
➔ Date of shipping
➔ Description of items being shipped
➔ Weight of the items
➔ Port of discharge
➔ Name of ship freight charges

Airway Bill ● This as a document used when goods are traded using air
transportation
● It accompanies the goods during transportation
● It is evidence of the contract between the shipper and the air
carrier
● It is NOT a document of TITLE like the bill of lading
● It includes:
➔ Exporter or shipper’s name and address
➔ Importer or consignee’s name and address
 ➔ Origin and destination airport
➔ Value of goods
➔ Number of packages
➔ Weight
➔ Description of goods
➔ Special instructions: fragile/perishable
➔ Charges applicable

5. Explain the role of transport in marketing

Roles ● It brings materials and other inputs to a business

● It takes finished products from the producer to the consumer
● To fast-track sourcing of commodities
● To ensure security of supply
● To facilitate cost reduction.

Importance Explanation

Physical supply of It moves finished goods from the producer to the middleman to the
goods consumer
Transportation Some businesses will specialise in transportation and this will bring
creates costs down. It creates cost saving for the producer
specialisation

Mobility of labour The better the transportation infrastructure the easier it is for the
and capital movement of labour and capital such as equipment, furniture, etc.

Impact on Sales Fast, efficient, safe, reliable and cost effective transportation helps
increase total sales of a product and the profits. The reputation also
improves when goods are supplied on time

Effective sourcing of Some raw materials and parts from the best and most competitive
materials suppliers may be located far away. An effective transport system can
move these inputs quickly and in a cost effective manner

Security of supply An effective transport network creates security of supply to businesses

when supplies can arrive safely and on time

Importance of Transport in domestic, regional and foreign trade

● Goods need to reach places in the distribution chain at the right time, and products need to
reach consumers promptly
● Workers need efficient transport to get to work and back on time
● Consumers need efficient transport to conduct shopping and business
● CARICOM has focused on developing air, land and sea and waterways
● Online shopping has also affected the pattern,demand and use of transport
● Books, music, video games and films can now be streamed in digital format over the
internet, without distributing physical goods
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