What is Transport?
Transportation is the movement of people and goods from one place to another. It plays a vital role in the economy by conveying people, surplus goods, and services to areas of scarcity.
The Transport Contract
A transport contract is an agreement between the owner of the goods and the carrier for the transportation of goods, creating obligations for both parties. The owner must pay the agreed price and is responsible for any damage caused by their own negligence, while the transporter must deliver the goods to their destination and is liable for any damage caused by their negligence during transportation.
Documents That Prove Transportation
The amount charged for carrying goods by water is called freight, and for sea transport, the contract between owner and carrier is called a contract of affreightment. A bill of lading proves the contract when the goods don’t occupy the ship’s full capacity; a charter party is used when the goods occupy the full capacity. Lay days are the extra time allowed by the ship owner for loading and discharging. Inland and road transport agreements are mostly verbal.
Importance of Transport to the Economy
- Increases national unity and ties.
- Increases market size by moving goods and labour to other regions and countries.
- Develops resource-poor areas by linking them to prosperous ones.
- Enables division of labour and specialisation.
- Creates employment (drivers, loaders, mechanics, etc.).
- Assists trading, creates “place utility”, and improves the standard of living.
- International trade is not possible without transportation.
Factors Determining the Choice of Transport
- Nature of the good: light goods often go by air; heavy goods by sea or rail.
- Urgency: air transport suits urgent deliveries.
- Distance: air suits long distances; road suits shorter ones.
- Cost: the cheapest suitable option is usually preferred.
- Time and perishability: perishable goods need the fastest means available.
- Value of the good: highly valuable goods need safer means, like air transport.
- Quantity of goods to be transported.
An efficient transport system depends on its flexibility, regularity, punctuality, minimal time wasted, and easily accessible terminals.
