TRANSPORT METHODS IN THE EUROPEAN UNION
ROAD is most often used to transport foodstuffs, agricultural products, manufacture. The advantages is delivery door to door, and the disadvantages are: pollution, noise, speed limits.
RAIL is widely used to transport primary and heavy secondary sector (metal products, ores and solid mineral fuels). The advantages are economic over low distances, and there is less pollution. The disadvantages is technical problems for long journey.
INLAND WATERWAYS this method is best for long and regular deliveries of bulky products such as, coal, still, chemicals, dangerous, substances and container goods. The advantages are very cheapest transportation, and transporting big quantity natural networked between France Germany and Benelux. The disadvantages are low speed and geographical limits.
SEA is a very cheapest method of transportation, transporting different type of cargo from small parcel to bulky cargo, uses containers. The disadvantages it is usually combined with other methods of transport (rail).
AIR this is suitable to transport goods for high value, perishable goods (electronic urgent spare parts, fruit and vegetables, live animals and medicines), the advantages is speed of delivery and the disadvantages are expensive, limits to container size and is combined with other method.
Intermodal transport refer to the transport of good to a combination at least two transport modes within the same transport chain. During there is no change in the container used. The major part of journey is by sea, rail, air, and is a short as possible, while initial and final part is by road. The advantages are door to door services and flexibility.
Intermodal transport is a tree step process: first the goods are picked up at a warehouse and loaded into a container them they are taken by road to the nearest rail, sea or air intermodal transport; there the container is loaded on a wagon a ship or a plane to the intermodal terminal nearest the final destination; at this terminal the container is transferred to a rail and delivery directly by road to the customer. Good have to be transferred to road for the final part of the journey, there for this transfers will be very short and efficient. The increasing use of container has facilitated intermodal transport. This metal boxes can be carried by lorry, rail, air and water an easily transport. Moreover they can be securely sealed often customs inspection and they will not inspection of to seal remains unbroken.
Freight Forwarders are companies which provide a wide range of services that facilitate the shipping of goods to the supplier to the customers. The forwarder can act as adviser, strategist, even freight carrier and can arrange for payment on goods. He may be asked to handle al the shipping responsibilities. Some of the larger forwarding companies even possess their own means of transport, usually a fleet of trucks, and will effect the actual transport of goods themselves.
Franchises are business organisations which are run by individual owners under the trade name of larger organisations. Franchising allows a person to run a small business with a lower risks of failure. This form of business has recently grown in popularity owing to the decline in employment in the manufacturing sector and the increase of popularity in the service sector and in self employment. The parties involved in this operation are the franchisee ( organisation which controls the products or services being sold) and the franchisor (the person running the outlet). He/she has to pay an initial licensing fee as well as a percentage of the profits to the franchisor. In return, the franchisee has the exclusive right for the sale of the product or services in his/her area. Moreover, he receives advice and help from the franchisor.
For entrepreneurs is important to insure goods because his invest the capital, that in case of loss, damage, or theft they will be adequately compensated.
Insurance developed in the 16 century when international trade mainly by sea developed in Europe, merchants gave some money to a common found in case of loss, they were compensated.
Insurance is based on the principle that a person pays some of money the premium which is put into an insurance found. The money of this found is needed to pay people who have a loss.
The policy is a written contract by which the insurer in return for a premium pays to a person the insured, a certain of money, called the sum insured when a stated event takes place.
Companies generally insured: themselves, their employees, their premises, and every thing in them during the working hours when goods leave the company warehouse to reach the buyers premises there is a special time of insurance for this type of risk.
OCEAN CARGO INSURANCE
It is very important to get cargo insurance because it protects you and your overseas customer in case of theft, loss or damage to your shipment. Bank usually require proof of insurance when payment is effected may by Letter of Credit. An all risks policy protects the goods from the warehouse at origin until they arrived at the destination warehouse. It is better if the exporter gets the insurance, because the buyer may neglect to insure or eject the goods as damaged, leaving the exporter with a financial interest in unclaimed goods. There are two obtaining insurance either trough an insurance broker specializing in this coverage or an insurance agent who handles your other business insurance.
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