Know the Importance Advantages of Road Transport
One of the three primary modes of Transport Is land. The other two are sea and air. As far as road transport is concerned, it is more often referred to as road freight transport than other road transport. The road transport of goods is transit goods through a road network made by trucks in general.
What is road transport?
The person who transports the goods is called the transporter. The latter is therefore specialized in the transport of goods. However, the profession of the transporter has encountered over the years changes depending on some criteria. These criteria are generally the invention and the evolution of the things transported the invention, and the development of the means of transport. It also depends on the socio-economic data or the market requirements and the regulations of the activity and the profession.
In particular, it should be noted that in terms of road transport of goods, the latter is found in the logistics chain. Thus, the interlocutor can conclude that when he calls upon carriers who are part of logistics providers, they find in single contract storage, packaging, handling, packaging, and other services. Currently, in the transport of goods, it is more often a freight question than anything else. This is indeed stipulated in transport law under the term road charter. It is more often freight than anything else.
It is more often freight than anything else. This is indeed stipulated in transport law under the term road charter.
Importance of road transport
You should know that when it comes to transporting goods instead, reference is made to road charter. Road charter is, in this case, a convention that says that a company is the intermediary of another by giving the latter the disposal of a road vehicle to transport goods. Of course, in this kind of case, the commodity is no longer named as such but then uses the name freight. The whole transaction is that a shipper is going to send a request to a charterer.
In turn, the latter will ensure the organization of transport and take care of the administration and the legal documents to be provided. He will also supervise the entire transport operation from the place of loading to the latter’s destination.
You should also know that a charter has a price. This price varies according to several criteria, even if, in general, it is defined by the distance that the Carrier will have to cover. It is also necessary to consider the transport’s urgency, the weight, the size, and the volume of the goods to be transported. All this, of course, is done without forgetting the mode of transport that the interlocutor wishes.
It occurs when the shipper, usually the Exporter, has enough load to contract the full truck depending on the unit’s capacity, generally between 24 to 26 MT.
Truck with Consolidated Load
In this case, the truck is consolidated with a load of several shippers or exporters. Its consolidation procedures are carried out by the Carrier or by an intermediary, usually a Freight Forwarder Agent or Freight Forwarder Agent.
It takes place when trucks and/or trailers are transported on ferries. This service is better known as auto transhipment (Roll-On / Roll-Off) and is provided in most developing regions, for example, from the Middle East, East, and West Africa to Europe; and from Central America, South America, and the Caribbean to the United States.
If we compare it with maritime or air modes, Road Transport have lower fixed costs for the following reasons:
• The Carrier does not own the road on which it is travelling.
• The truck is a small economic unit.
• Operations at cargo terminals do not require expensive equipment.
• The labor costs for loading and unloading trucks are much lower than those for trains, ships, or aircraft.
Variable costs, on the other hand, tend to be high since users pay for the construction of the roads and their maintenance through gasoline taxes, tolls, and taxes per km/weight.
The costs of road transport are distributed between the terminal fees and the transport costs. It is possible to affirm that the terminal prices, cargo pick-up, and delivery, plus platform handling, storage, billing, and collection, represent between 15% and 25% of total freight costs. These expenses, calculated on the value per MT, vary smoothly when the office’s size is below 1,000 to 1,500 kilos, which is a minimal burden. For shipments greater than 3,000 kilos, the cost decreases substantially since the collection and delivery are more comfortable than smaller size loads.
Mobilization costs represent between 50% and 60% of the total cost. It is not possible to state with all certainty that the price per unit in road transport is indirectly proportional to the distance or the volume of the load. However, total costs decrease directly proportional to shipment size and distance, since terminal expenses and other fixed costs are spread over more ton-kilometers, although not as significantly as in the case of transportation by rail.
Everyone should know about the importance of road transport, from the government of the day and whatever color it is, to the last citizen.
But the truth is that this importance is obvious. It is only seen as an inexhaustible source of financing for governments and atypical results for shippers, distributors, operators, etc., without leaving the investor. It performs the work with little or no profitability.
And when does road transport become relevant, because when the savvy on duty realizes that it is the tool to achieve their ends even if this means its use to be able to paralyze a country in defense of their interests.
Curiously, those who think about it are those same unions against the driver being able to return home to take their non-daily breaks. They are the same as thinking about transport to call a strike to help them achieve their end because, for some, the end always justifies the means. In road transport, they have the perfect government, but not to fix the problems of the sector they use, and where they also plan to use transportation that circulates on the French roads to their destinations in Europe.
Anyway, and although in Spain we had until recently a union that recognizes that there is a real problem to solve with the drivers and their return home, it is no less accurate than neither that nor anyone else does anything to make that happen.
For that reason and because of their absolute forgetfulness, they should never think of using it as a tool to achieve their ends, and they have nothing better for it.
Advantages of Road Transport
Before citing the advantages of road transport, it should be noted that the transportation of goods by road has experienced an expansive stage in our country in recent years and the sector continues with the positive growth trend. This is due to the multiple benefits that this type of transport entails for many kinds of companies.
The road is the fastest and most efficient option for transporting goods for short or medium distances. For example, by train, you have to travel a more significant number of kilometers usually.
One of the advantages of road transport that other types of vehicles cannot compete with is the possibility of loading merchandise at the door of the sending company and unloading it right at the warehouse of the destination company.
If we compare it with other forms of transport, road transport entails a lower outlay or investment since, as a general rule, it uses public roads and does not need to pay for infrastructure such as train tracks, ports, airports, etc. In addition, the acquisition of a truck is cheaper than that of means of maritime or air transport.
Transportation by airplanes, trains, or ships has a predetermined schedule that is unlikely to be modified. Therefore, in the face of urgent shipments, road transport allows time flexibility that hardly any other form of transportation will do.
Adaptable to all types of goods
In some cases, such as air transport, the possibility of transporting certain types of goods that are considered dangerous is restricted. On the other hand, road transport has a greater probability of adapting to this type of goods.
Location and monitoring in real-time
In addition to the advantages of road transport, advances in logistics have also had a very positive influence on the sector’s growth in recent years. Thanks to the transport or fleet management software program and thanks to the GPS service, among many others, it is possible to know at all times and in real-time where each merchandise is being moved is located. This allows acting much faster in the event of any incident.
This type of transport has the significant characteristic of serving as interconnection with other means of transportation, being, on occasions, a complement to them. Currently, its condition has been experiencing improvements due to the technological reach of our markets.
This is how the Automatic Vehicle Location System (AVL), for the control of the truck fleet, is currently replaced by GPS Systems, which by allowing the exact location of the load units, enable users to have better management of loads and reduce fuel costs because trucks do not deviate from their routes. There are no claims due to loss, damage, or deterioration of the cargo they transport.