Page 587 - Business Principles and Management

Unit 6

and jewelry. Air shipments are very important for
items needed in emergencies, such as medicine and
blood, parts for machines needing quick repairs, or
important documents.
Increasingly, businesses are shipping large and
bulky items on special cargo planes designed for easy
loading and unloading. Regional air freight terminals
are being constructed so products can be moved
PHOTO: © GETTY IMAGES/PHOTODISC. with passenger travel. As rapid and efficient trans-
rapidly into and out of airports without interfering

portation becomes more important to businesses and
consumers, more products are being shipped by air,
even though the cost is higher. People pay more for the
transportation that meets their requirements.

OTHER TRANSPORTATION METHODS
Water transportation (ocean, lake, and river) is the
slowest method of transporting goods. However, it is
How does containerization also the cheapest for bulky goods, such as coal, iron ore, oil, lumber, grain, and
improve shipping services?
cotton. Those are the principal items transported by water. Many products that
are produced in large volume for international markets, such as automobiles
and large pieces of equipment, are shipped across the oceans. At any large har-
bor on a coast you can see hundreds of types of products being loaded and un-
loaded from ships.
In the United States, as well as in many other countries, networks of thou-
sands of miles of pipelines have been built. Pipelines mostly transport petroleum
and natural gas. In many countries, however, pipelines are important methods of
moving water for irrigation and human consumption.
One way to improve shipping services is through containerization. Products are
packed in large shipping containers at the factory and are then shipped by a num-
ber of transportation methods before being unpacked. The containers can easily be
loaded and unloaded from trucks to rail cars, ships, and cargo planes, and back to
trucks. This method reduces the amount of product handling and product damage.

CHECKPOINT
Compare the three principal methods of transporting products.

Product Handling

Lost, late, or damaged products are of little value to customers. Product handling
is an important part of the distribution process. Most products are handled sev-
eral times on their way from producer to consumer. Each time a product is handled
adds to the cost of distribution, increases delivery time, and increases the chances
that damage will occur. Businesses evaluate their product-handling procedures to
find ways to improve the process. Improvements may include more secure pack-
aging, more efficient procedures for packing and unpacking, and better equipment
for handling and storing products.

574