Q.1) WHT IS TRANSPORTATION COST STRUCTURES?

There are four basic costs associated with transportation; a) fixed cost b) variable cost c) joint cost d) common cost. A) FIXED COST: It does not vary with a change in output, at least for a given period. E.g.: capital invested in trucks, tractors, carriers etc. B) VARIABLE COST: It varies with change in output. It goods are taken for long distance, it increases and vice-versa. e.g.: fuel costs, maintenance costs, tyre replacement costs etc.

FIXED COST

VARIABLE COST

TRANSPORTATION COST STRUCTURES

JOINT COST

COMMON COST

C) JOINT COST: It is the cost when the production of one product or service requires the production f another product or service. e.g.: when a truck goes from point A to B, there is an unavoidable cost of joint cost from A o B. D) COMMON COST: These costs cannot be directly associated with any one shipment, if the carrier is carrying more than are shipment. e.g.: if a carrier carrying three shipments, breaks down and RS. 5000 is incurred, to repair it. How much of this cost is allocated to each shipment.

Q.2) WHAT IS INTER-MODAL TRANSPORT?

Inter-modal transportation:
a. PIGGY-BACK: In piggyback service, a motor carrier trailer or a container is placed on a rail flat car and transported from 1 terminal to another. b. ROAD-RAILERS OR TRAILERS-TRAINS: They combine motor and rail transport in a single piece of equipment. The trailer has both rubber truck tires and steel rail wheels. Over highways, tractor power units transport the trailers in the normal way but instead of placing the trailer on a flatcar for rail movement, the wheels of the trailer are retracted and the trailer rides directly on the rail tracks. c. FISHY-BACK: There are two types: 1) train-ship & 2) container-ship They utilize waterways for transportation cargoes. It involves loading of truck trailer/railcar/container in to barge or ship for line-haul movement. d. BIRDY-BACK: It is a combination of air & truck movement.

INTERNATIONAL INTER-MODAL DISTRIBUTION SYSTEM: a. LAND BRIDGES: It is a service in which foreign cargo crosses a country and route to another country. b. MINI-LAND BRIDGES: Mini-land Bridge is a special case of land bridge where foreign cargo originates or terminates at a point within the same country. c. MICRO BRIDGE: It is a relatively new service being provided by ports in contrast with mini-bridge. This service provides door-to-door rather than port- to- port transportation.

LAND BRIDGES

MINILAND BRIDGES

MICRO BRIDGE

INTERNATIONAL INTER-MODAL DISTRIBUTION SYSTEM

MEANING: Inter-modal transportation is using more than one mode of transportation to move goods from origin to destination. Growth in intermodal movement can be attributed to several circumstances including industry deregulation, global business expansion and new techniques to improve intermodal process. The transportation helps the consignor to take the advantage of each mode of transport and to reduce his cost. For e.g.: transporting automobiles, the trailer on flatcar (TOFC) may start with a motor carrier. The freight is loaded into a semitrailer and driven to a railway station from where the trailer is placed on a flat railcar. The railroad transports the shipment across the country to its rail destination. When the railcar arrives at its destination, a motor carrier takes the semitrailer to the receiver. This type of intermodal transportation allows the shipper to take advantage of less expensive rail rates while maintaining the door-to-door capabilities provided by motor carriage. Such intermodal transportation is also used when water transport and road transport combines or rail and road combine etc. to deliver the goods to the customer at less expensive rates.

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