5 Factors to Consider in Selecting Mode of Freight Transportation
There are four key modes of freight transportation available for the movement of goods across Australia: aviation, maritime, rail and road.
Each transportation mode affects operational and logistical decisions, and each mode's performance is influenced by variables such as distance, topography, capacity, loading procedure and duration, and fuel consumption.
In Australia, the freight task has been largely catered by road and rail transportation modes, but for the purposes of this article, we will examine maritime transportation modes as well.
In selecting the most effective option to transport commodities, there are five essential factors to look at:
5 Factors to Consider in Freight Mode Choice
- Potential for Goods Damage
- Transit Time
- Cost of Transport
- Fuel Efficiency
- Levels of Safety
1) Potential for Goods Damage
The key factors which influence the potential for damage to goods include movement and acceleration forces. Freight containers experience the greatest acceleration forces during handling at the terminal or depot and during transfers at rail yards.
At sea, rolling and pitching tend to create steady acceleration forces. By comparison, rail and road modes tend to produce irregular acceleration forces, such as when braking, cornering, starting up the engine, hoisting and lowering, and when trains pass over rail switches.
A study in New Zealand calculated that vertical acceleration levels exceeding 10m/s2 generate enough force to raise a container off the ground, potentially causing significant damage to the goods inside upon landing.
2) Transit Time
A study conducted on freight transports between Sydney and Perth found the average door-to-door transit time for each of the following transport modes:
Road = 2-4 days
Rail = 7 days
Maritime = 10-14 days
Related: How to Achieve Harmonious Compliance with SOLAS Weight Verification Requirement
3) Cost of Transport
Contributing factors to the cost of each freight transportation mode include fuel, manpower, accidents, vehicle and equipment maintenance, regulatory compliance, accidents, profitability targets, and market share.
From 1996-2012, Australia rail transportation experienced the highest cumulative increase in freight rates.
4) Fuel Efficiency
In a New Zealand study, maritime freight transport was found to be slightly more efficient in fuel consumption and CO emissions when compared to rail. Meanwhile, both maritime and rail transport modes surpassed the fuel efficiency of road transport by around 50%.
To achieve this efficiency, however, 500 containers would need to be transported per maritime vessel and 40 containers per train.
5) Levels of Safety
According to Safe Work Australia, road freight transport accounts for the majority of serious claims and fatalities in Australia's transport, postal, and warehousing industries. More specifically, trucks -- which make up only 2.5% of vehicles on the road -- contributed to around 20% of all road fatalities in Australia.
Having reviewed the five factors of mode choice, there are some clear benefits and deficiencies with each transportation mode:
One conclusion that can be made is that where time is not a top priority, maritime shipping offers the greatest of benefits, especially with the coming implementation of the IMO/SOLAS Container Weight Verification Legislation. In Australia, regulation and public sentiment are increasingly in favor of rail and maritime transportation modes as danger from and traffic caused by road transport are becoming more observable.
Aside from the factors mentioned above, the types of cargo needed to be transported will also influence the choice of freight transport mode. In trying to solve the problem of frequent damage to goods during transport, it might be due time to consider utilising another freight transportation mode. One further manageable factor in reducing product damage, cost, and personnel injury is examining and perhaps transforming how cargo is handled and loaded into the container.
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Statistical data are focused on Australia and New Zealand, with some data based on specific transport routes.
*The IMO/SOLAS Weight Verification Legislation aims to increase safety in the maritime freight transportation mode, which is one of the key freight transportation modes discussed in this post.