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Business Studies Notes on Air Transport & Containerization

Air Transport & Containerization

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Transport: Air Transport & Containerization

Transport is the physical movement of people and goods from one place to another.
It helps bridge the gap between producers and consumers hence creating place utility.


Read More On:
  1. Introduction to Transport
  2. Land Transport
  3. Water Transport
[Click on the links above to read more on Modes of Transport]

Air Transport

- This refers to the movement of goods, people and documents by aircrafts.
- Aircrafts/ aeroplanes are the units of carriage and air the way.
- The terminals include airports and airstrips.
- Aeroplanes are fast compared to other means of transport i.e. they are the fastest means of transport.
- They are therefore suitable for transporting urgently required goods like drugs and perishable goods Such as flowers over long distances.
- Aircrafts may be classified as either passenger planes or cargo planes.
- Passenger planes transport people from one place to another.
- On the other hand, cargo planes transport light cargo to the required destinations.
- Aeroplanes may be fitted with special facilities for handling special goods.
- Aeroplanes are expensive to acquire and to maintain. Their operations may also be affected by weather conditions.

Kenya Airways, Air Transport - Business Studies Form Two

Kenya Airways Aeroplane (Image by - Courtesy)

Advantages and Disadvantages of Air Transport

Advantages of Air Transport

  • There is less handling of goods on the way since aeroplanes may move direct to the final destinations.
  • The way does not require construction or maintenance as it is natural and free.
  • Planes can move through places where other means cannot, such as over the earth poles and across high mountains/ planes are not hampered by physical barriers.
  • Have efficient interconnections between airlines all over the world which makes it convenient
  • Suitable for long distance travellers especially from one continent to another
  • Very fast therefore suitable for transporting perishable and urgently required goods.
  • Chartered planes can be used to reach remote areas.
  • The movement of air-crafts is smooth therefore suitable for transporting fragile goods such as glassware and eggs.
  • Passengers are given the highest degree of comfort and personal attention making it the most comfortable means of transport.

Disadvantages of Air Transport

  1. Causes noise pollution
  2. Air fields are not available in all places
  3. Cannot be conveniently used to carry heavy and bulky goods
  4. Expensive to acquire and maintain air-crafts
  5. Requires highly trained manpower e.g. air traffic controllers, pilots e. t. c
  6. Unfavorable weather conditions such as fog, mist and heavy rains may cause delay
  7. It is an expensive means of transport in terms of freight charges
  8. Not suitable for transporting inflammable goods such as cooking gas and petrol
  9. In case of accidents results are catastrophic/ accidents are rare but fatal.
  10. Has limited carrying capacity that should not be exceeded.
  11. It is not flexible.
  12. Most airfields/ terminals are located some distance away from town/ city centers and therefore require transport or railway links that are affected by jams occasionally causing delays.
  13. Recent hijackings by terrorists have made air transport an insecure means especially for transporting valuables.

Containerization

- This is a recent development in transport.
- It refers to the packaging of goods in standardized 'box like' containers designed for use in transporting cargo.
- The containers are mainly made of metal though a few are made of wood.
- They can either be hired or bought from firms that provide them.
- The hired containers are returnable to the owner after the goods have been transported.

containers at a sea port - Business Studies Form Two

containers at a sea port (Image by - Courtesy)

- Containers are designed in a way appropriate to transport goods by ships, train, lorry or by air.
- To safeguard the goods against risks such as theft and unfavorable weather conditions the containers are sealed immediately after goods have been packed.
- The sealed containers are then transported up to the final destination where they are off-loaded.
- The consignee can then break the seal.

- Goods can be transported in containers as Full Container Load (F.C.L) or as Less Container Load (L.C.L).
- Full container load applies where the container is filled with goods belonging to one person.
- In FCL, goods are delivered to the consignee intact.
- On the other hand, less than container load applies where a container is filled with goods belonging to several consignors.
- This may be the case where a single consigner does not have enough goods to fill a container.
- When such a container reaches the destination, it is opened and the various consignees take their goods.

- There are special handling facilities for loading and offloading containers onto and from the units of carriage.
- Apart from the container depot at Mombasa, Kenya Ports Authority (K.P.A) has established inland container depots referred dry ports.
- An example of a dry port is found at Embakasi in Nairobi. The establishment of dry ports aims at relieving congestion at the sea port.
- It also aims at making handling of cargo easier and efficient for inland importers and exporters.When containers are off loaded from ships at Mombasa, they are loaded into special container trains called railtainer which transports them by railway to the inland container depot at Embakasi.
- Containers can also be transported by specially designed trucks between the ports or from the port to consumer’s destination.

Advantages and Disadvantages of Containerization

Advantages of Containerization

  1. Minimizes the risks of loss or damage of goods as containers are sealed at source
  2. Containers are lifted with devices which make movement and handling easy
  3. Saves time and labour in loading and off-loading due to use of machines
  4. Containers sealed at source in presence of customs officials may not be opened until they reach their final destination. This reduces delay.
  5. Special containers are available for goods requiring special attention like chemicals.
  6. Insurance costs are relatively low as risks are less
  7. Space is saved when containers are used as opposed to when individual items are packed in the carrier.
  8. Can carry large quantities of cargo if packed well.
  9. Containers are tough structure, which offer protection to sensitive and fragile goods.

Disadvantages of Containerization

  1. They are expensive and this increases the cost of transporting goods
  2. Contributes to unemployment since it is capital intensive
  3. Not suitable for transporting small quantities of goods.
  4. Requires special handling equipment which may be expensive
  5. May not be suitable for goods with irregular shapes.
  6. Training labour force is long and expensive.
  7. They may be used to smuggle illegal goods.
  8. The large trucks used on the road increase road damage and may increase accidents.

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