1) What issues should a logistic manager consider in trying to select a mode of transportation? The issues that a logistic manager should consider when they select a transportation mode are the follow: • Cost versus Speed • Packing expense versus risk of damage • Flexibility versus dependability • Railroad freight traffic in peak season ( some countries consider more important the passenger transportation than freight) • Infrastructure (bad infrastructure raise the prospect of accidents) • Criminal risk of some countries • Inadequate warehouses facilities 2) How can a government directly influence a carrier operation?

Government regulates most of the trucking; transport between the countries, in most cases in the domestic transportation is deregulated. The exception for the international transportation is driven by the economic alliances like bilateral agreements. Also due to the importance of transportation in the economy, some carriers are government owned and controller. The main reason is the Image Projection for example, Air and ocean carriers give an image projection to the world about progress and technical expertise, and this is attractive for the other nations. ) How can a government indirectly influence a carrier operation : Some countries have transportation companies that are private (No government ownership) in this cases Government imposes regulations that in a indirect way controls how the business is operated.

For example • Prices, serving new markets, routes abandonment, service frequency, or customer service may require government approval before they can be implemented. • Roads, bridges, airports, ports, some rail lines are generally built and maintained by government at some level. Transport services as air traffic control, weather forecasting, dredging, navigation aids are provided by government. • Governments enact laws related with air, noise and water pollution • Safety laws related to operator qualifications and hours of duty, maximum vehicle weight and length, air traffic control procedures and others. • Transportation security for example ISPS International Ship and Port Facility Security Code. AIS Automatic Identification System, C-TPAT Custom-trade partnership against terrorism. 4) Briefly describe the concept of deregulation as it applies to transportation.

Deregulation refers to a government decision to permit market forces to replace strict controls and operating procedures. This means that these free market forces are permitted to govern how transport resources are allocated the prices carriers charge and the services that they offer. 5) Briefly describe the concept of cabotage why it is a such a sensitive subject to transport firms: When a nation joins other countries and form multinational economic organizations, the deregulation become an issue due to it’s complex.

I mean is complex when a country wants to do business with a country that is not part of the organization, when this happens international haulers are free to adjust their fleet capacity in line with market demands and set prices accordingly. It’s a sensitive subject because the transportation company makes business without different organizations that doesn’t belong to the deregulated ones. 6) Does privatization lead in competitiveness in transportation? Defend you answer: Our answer is NO; Deregulation is becoming more important than privatization.

Deregulation is more common globally due to the alliance between countries. Private companies cannot compete in a deregulated market; Private companies in transportations are not attractive to investors. 7) Differentiate between multimodal and intermodal transportation movement. How are they the same? How are they different from each other? Intermodal transportation is the movement of a shipment from origin to destination utilizing two or more different modes of transportation. Multimodal transportation is same concept. That can be the same due to both are using multiple modes of transportation. ) What national goals might be governments rely on their transportation system to meet? The Intermodal transportation should be improved in all countries. This will help in the competitiveness and also could attract foreign investment for factories and other business. Improvements in Services and maintenance in airports, bridges, roads, train rails, ports etc. These services affect in a indirect way the transportation in the countries. Government need to improve them and give the adequate maintenance every time. 9) Why are companies operating larger and larger container ship?

What benefit do they provide to the steamship lines? To shippers? What are the risks associated with operating such a large vessel? The companies are operating larger ships due to the growing need for capacity. the benefit for the steamship lines is the they can have more customers, and they can reduce the operation cost due to instead of need two ships they will need just one. For the shippers they could have the complete material in less time. They freight is cheaper, The risk is that sometimes the vessel is too big and it could have some limits to ride in rivers, ports etc.