4.6 Summary
Transportation is an essential and integral part of the Global Value Chain. Transportation is beneficial for society and helps in the globalization of the world economy. That is why it plays a vital role in human life, companies, suppliers and distributors. Demand for transport depends on a party wishing to move goods or freight efficiently and effectively from one point to another. Modes of transportation are classified into the following types: road, rail, air, water, pipeline. Moreover, intermodal or multimodal shipping refers to a combination of different types of transportation to move goods from origin to destination (Faramarzi & Drane, n.d.).
A typical example is a combination of truck/ship/train (Faramarzi & Drane, n.d.). Intermodal transportation has excellent advantages, such as reducing the time and the chance of freight damage, flexibility, and secure goods flow. In addition, the containerization system improves productivity, reduces time, and increases delivery time to meet customer expectations and satisfaction. The goal is to ship the goods as efficiently as possible (Faramarzi & Drane, n.d.). A greater share of Canada’s merchandise trade has been transported by sea and air, and relatively less by roads and rail (Tapp, 2016).
Transports add value in international supply chain management by reducing transportation time, and as a result, supply chain costs and frees up time on other areas of the supply chain. The vital key role in deciding the freight shipment is the cost factor. Transportation adds value to the global value chain for many aspects such as reducing time delivery, efficiency, reliability, flexibility, increasing visibility, transparency, and enhancing customer satisfaction and service. The international Transport Networks consist of shipping routes worldwide and container ports connecting many countries and continents for moving goods and freights. Routes include Trans Mongolian and Trans-Siberian railways as well as Northern Sea and Commercial Maritime routes and Air Freight Hub (Mangan & Lalwani, 2016, p.114). Companies need to select the proper transport and route for moving their goods. Without transportation, businesses cannot exist.
