THE HISTORY OF OCEANIC TRANSPORTATION
Water is one of the oldest methods of transport. Around the eighteenth century, larger farms in the American colonies began to form and produce crops such as tobacco, rice, wheat, indigo, and cotton which were marketable in Europe. This started a trade of these goods with Europe for items such as linens, ink, and finished products. Ocean vessels were used to transport the bulk goods from the colonies and return with the goods from Europe. The goods from the American colonies were considered low-value goods whereas the goods from Europe were considered high-value goods. Therefore the trades produced a much higher return on investment (ROI) per vessel trip. This was the beginning of global oceanic transport …show more content…
A major contributing factor to the low cost of oceanic transport is that it requires little to no construction or maintenance. The cost of transporting by water is significantly less than other modes of transport. For transporting bulky goods over long distances, transport by water is the best option as there is less chance of breakdowns or accidents and also it has more flexibility and can be contoured to meet individual needs.
Although there are numerous advantages to water transport, there are disadvantages as well. The first disadvantage is that transportation by waterways is slow. This would make other modes of transport more attractive if time is an important factor, which with today’s transition to just-in-time logistics strategies, is of paramount importance. Another disadvantage is the limitations imposed by the limited areas served by deep canals and rivers. Transportation by water is essential to foreign trade.
Types of overseas …show more content…
Demand is a major factor that affects trade and the chosen mode of transportation required to move goods. Demand is affected by economic factors. As incomes rise, customers purchase more items and have a tendency to spend more per item, i.e. customers purchase more expensive items. Punctuality and reliability are considered more important for valuable commodities. Part of the value of an item, from a customer’s standpoint, is the amount of time that it takes to get the item(s) in the customer’s hand. Customers expect to receive items in a very short period of time. In today’s society, which thrives on instant gratification and real-time applications, delivery time has a major influence on purchasing
Water is one of the oldest methods of transport. Around the eighteenth century, larger farms in the American colonies began to form and produce crops such as tobacco, rice, wheat, indigo, and cotton which were marketable in Europe. This started a trade of these goods with Europe for items such as linens, ink, and finished products. Ocean vessels were used to transport the bulk goods from the colonies and return with the goods from Europe. The goods from the American colonies were considered low-value goods whereas the goods from Europe were considered high-value goods. Therefore the trades produced a much higher return on investment (ROI) per vessel trip. This was the beginning of global oceanic transport …show more content…
A major contributing factor to the low cost of oceanic transport is that it requires little to no construction or maintenance. The cost of transporting by water is significantly less than other modes of transport. For transporting bulky goods over long distances, transport by water is the best option as there is less chance of breakdowns or accidents and also it has more flexibility and can be contoured to meet individual needs.
Although there are numerous advantages to water transport, there are disadvantages as well. The first disadvantage is that transportation by waterways is slow. This would make other modes of transport more attractive if time is an important factor, which with today’s transition to just-in-time logistics strategies, is of paramount importance. Another disadvantage is the limitations imposed by the limited areas served by deep canals and rivers. Transportation by water is essential to foreign trade.
Types of overseas …show more content…
Demand is a major factor that affects trade and the chosen mode of transportation required to move goods. Demand is affected by economic factors. As incomes rise, customers purchase more items and have a tendency to spend more per item, i.e. customers purchase more expensive items. Punctuality and reliability are considered more important for valuable commodities. Part of the value of an item, from a customer’s standpoint, is the amount of time that it takes to get the item(s) in the customer’s hand. Customers expect to receive items in a very short period of time. In today’s society, which thrives on instant gratification and real-time applications, delivery time has a major influence on purchasing