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Automobile Transport – Find Out More Helpful Info

25 February 2010 172 views No Comment

AUTOMOBILE TRANSPORT

The automobile transport is an essential element of production and services. Jointly with labor, capital and land transportation determines the production economics and is taken into account in any economic decisions. The sender determining the ways and means of transportation has to evaluate the transportation cost and services quality which would later affect the products price.

Transportation cost is the price presumed by transporting company to cover company’s expenses on its creation, functioning and development. In USA the cargo automobiles (trucks) are the most universal and convenient mean of cargos delivery for it demands lesser starting capital as compared to planes, ships or trains. Though this advantage is somewhere decreased by operation cost.

Trucks disadvantages caused by two factors. First, the cost of 1 ton cargo delivery is higher than with any other means of transportation excluding airplanes. It is because to deliver large cargos by automobiles you have to put more labor, gas and more trucks in it. Besides, 90% of transportation cost is currents assets paid immediately as gas expenditures and drivers salary. For example the share of this expenditures in aviation, ships and trains is about 70% so, trains are able to displace truck at longer distances providing the same services.

At the same time automobile transport beats the other transportation means in flexibility, i.e. service quality. This advantage is based on easy “door-to-door” cargos delivery by any routes, high speed and delivery comfort and reliability. The comfort delivery refers to USA routes that in joint length beat the railway system by 20 times (in rest of the world this ratio is the same or higher). You also can drive a truck to any enterprise or house and by train you can come only to spots with rails. Airplanes, sea and river ships and even piping transportation that operates on special routes with complicated terminals have the same limitations so trucks are able to easily deliver your cargo to the receiver who is hundreds kilometers away. In theory aviation is the fastest delivery way but airplanes may land only to airdromes and in any case to deliver a cargo to the plane you have to have a truck. So, planes are more useful only for really long distances. Trains also over speed trucks at long distances but the same you have to have a truck to deliver your cargo to train station. Besides many railways got lots of sorting stations that hold your cargo for a while and in the end the trucks are still able to deliver a cargo faster.

Most of times the reliable delivery in time is more important than transportation speed for most businessmen prefer their products to be delivered just at specified date and time. And the qualified transporting companies guarantee that for short and same for long distances.

The advantages mentioned let the truck companies displace railways in early 30s and created the strong competition on automobiles transport market.

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