How do different modes of transportation (truck, rail etc.) affect transportation costs?
How do different modes of transportation (truck, rail etc.) affect transportation costs?
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Answer
✓ different modes of transportation affects transportation costs. Because, the cost(fixed and variable), depends on the infrastructure, loading and unloading, speed of the vehicle, fuel, packaging and storage, and volume of Products transported from one place to another, etc. A rail transportation have greater fixed cost, but less variable costs and it can transport huge amount of Products or materials. But, it takes time to deliver. Truck transport has fuel prices according to the distance and the limited loading and handling is serious issue when considering truck or road transportation. Whereas, cargo or ship(marine) transportation is costly it has various dock bills, insurance, bill of lading, etc which is different from other transport mode. So these all elements constitute different prices of transportation.
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How do different modes of transportation (truck, rail etc.)
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