Exercise 1: Answer the questions - Tài liệu tham khảo | Đại học Hoa Sen

Exercise 1: Answer the questions
1. What are some of the advantages and disadvantages of air transport?
Advantages of Air Transport:
Speed: Air transport is the fastest mode of transportation, especially for long-distance travel. It
significantly reduces travel time compared to other modes like road or sea transport.
Global Connectivity: Air transport provides global connectivity, linking cities and countries across the
world. This is crucial for international trade, business, and tourism.
Accessibility: Airports are located in major cities and towns, making air travel accessible even in remote
areas. This accessibility contributes to the development of those regions.
Time Efficiency: Air transport offers quick boarding and disembarking procedures, minimizing the time passengers spend at airports.
Safety: Modern aviation has a strong safety record. Stringent regulations, advanced technology, and
continuous training contribute to the safety of air travel.
Disadvantages of Air Transport:
Cost: Air travel can be expensive, especially for certain routes. High operating costs, fuel prices, and the
need for advanced technology contribute to the overall expense.
Environmental Impact: Air transport has a significant environmental impact, contributing to air
pollution and greenhouse gas emissions. The aviation industry is actively working on developing more eco-friendly technologies.
Weather Dependency: Flights can be affected by adverse weather conditions, leading to delays,
cancellations, or diversions. This can disrupt travel plans and cause inconvenience to passengers.
Limited Cargo Capacity: While air transport is excellent for passengers, its cargo capacity is limited
compared to other modes like maritime transport. This can be a constraint for transporting large quantities of goods.
2. Why do some buyers prefer FOB terms?
FOB terms are often used in international trade agreements, and some buyers prefer them for several reasons:
Cost Control: FOB terms provide clarity on the point at which the buyer assumes responsibility for the
goods and related costs. This allows buyers to have better control over transportation costs and choose
their preferred shipping methods, carriers, and routes.
Risk Management: FOB terms specify the point of transfer of risk. Once the goods are loaded onto the
vessel (or other agreed-upon transportation), the risk of damage or loss shifts from the seller to the buyer.
This clarity can be advantageous for buyers concerned about the safety of their goods during transit.
Choice of Freight Forwarder: Buyers under FOB terms have the flexibility to select their own freight
forwarder, giving them control over the logistics of the shipment. This can be advantageous when buyers
have established relationships with specific freight companies or want to negotiate better shipping rates.
Faster Shipments: Buyers can expedite the shipping process and have more control over the timing of
shipments. This is particularly important for businesses with time-sensitive inventory requirements or
those participating in just-in-time manufacturing.
3. Discuss the transport options open to importers in your country
In a general sense, importers in many countries typically have access to a combination of the following transport options: Sea Freight: 
Overview: Sea freight, or maritime transport, is a common choice for importing goods in large
quantities or bulk. It involves the transportation of goods via cargo ships. 
Advantages: Cost-effective for large shipments, suitable for bulky or heavy goods. 
Considerations: Longer transit times compared to air freight, but often more cost-efficient. Air Freight: 
Overview: Air freight is the fastest mode of transportation, suitable for time-sensitive or high-
value goods. It involves transporting goods via aircraft. 
Advantages: Speedy delivery, ideal for perishable or time-critical goods. 
Considerations: Generally more expensive than sea freight, limited capacity for large or heavy shipments. Road Transport: 
Overview: Road transport involves the use of trucks or lorries for moving goods overland, either
within the country or across borders. 
Advantages: Flexibility, accessibility to a wide range of locations, suitable for short to medium distances. 
Considerations: Subject to road conditions, traffic, and border crossings. Rail Transport: 
Overview: Rail transport is an option for overland transportation of goods using trains. It is often
used for intercontinental or domestic transport in some regions. 
Advantages: Suitable for transporting large volumes of goods over long distances, energy- efficient. 
Considerations: Limited accessibility to certain locations, may require additional road transport for door-to-door delivery.
Exercise 2: Which mode of transport? CARGO Transport mode Reasons Regular deliveries of Sea Freight
- Scrap metal is typically heavy 10,000t scrap metal and not time-sensitive. Sea (Darwin to Kobe) freight is suitable for bulk shipments, offering cost-
effectiveness for large volumes. - Low urgency, as scrap metal shipments usually do not require expedited delivery. - Sea freight would likely be more cost-effective due to the lower cost per ton for
transporting bulk cargo by sea. - Reasoning: Because scrap metal is heavy and not time- sensitive, sea freight is the preferred mode. Sea freight is cost-effective for bulk shipments, and the lower
urgency makes the longer transit time acceptable.
- Live animals, such as day-old chicks, require fast transportation to ensure their
well-being. Air freight provides the quickest delivery.
- High urgency, as live animals need prompt and safe delivery.
- Air freight would be higher in cost due to the need for 2500 day -old chicks Air Freight specialized handling and (Antwerp to Algiers) quicker transit. - Reasoning: Since day-old chicks require prompt and safe
delivery, air freight is the most
suitable option. The higher cost
of air freight is justified by the urgency and the need for specialized conditions during transportation. - Air-conditioning units are
relatively heavy and can tolerate
longer transit times. Sea freight
is cost-effective for transporting bulky items. - Moderate urgency, as air-
conditioning units may not be as time-sensitive as perishable goods. 50 air-conditioning units - Sea freight would likely be Sea Freight (Milan to New Delhi) more cost-effective due to the lower cost per cubic meter for bulky cargo by sea.
- Reasoning: As air-conditioning units are heavy and not highly
time-sensitive, sea freight is a suitable option. The cost- effectiveness of sea freight aligns with the moderate urgency of the shipment. Materials for training Air Freight
- Training materials may include
time-sensitive content, and air
freight offers quick and reliable transportation. - Moderate to high urgency, depending on the schedule of the training course. - Air freight may be higher in course (London to
cost, but the urgency justifies Maputo) the expense. - Reasoning: Since training materials may have time-
sensitive content, air freight is
preferable for quick and reliable
transportation. The moderate to high urgency justifies the potentially higher cost.
- Beef is a perishable item but
can tolerate longer transit times with proper refrigeration. Sea
freight is cost-effective for large shipments. - Moderate urgency, as
perishable goods require timely but not necessarily immediate delivery. 1200t beef (Auckland to - Sea freight would likely be Sea Freight Nairobi) more cost-effective due to the
lower cost per ton for bulk cargo by sea. - Reasoning: Because beef is perishable but can tolerate
longer transit times with proper
refrigeration, sea freight is a cost-effective option. The moderate urgency aligns with
the suitability of sea freight. 3 diesel locomotives Sea Freight - Diesel locomotives are heavy (Marseilles to Gabon) and can be transported using roll-on/roll-off vessels. Sea
freight is suitable for large and heavy cargo. - Low urgency, as the delivery
of locomotives may be part of a long-term project. - Sea freight would likely be more cost-effective for transporting heavy machinery. - Reasoning: Because diesel locomotives are heavy and not urgently needed, sea freight
using roll-on/roll-off vessels is a suitable and cost-effective
option for their transportation. - Platinum is a high-value and
precious metal, requiring secure and fast transportation. Air freight provides quick and secure delivery. - High urgency, given the high value and importance of the cargo.
- Air freight would be higher in 2 kg platinum (London to Air Freight
cost, but the security and speed Riyadh) justify the expense. - Reasoning: As platinum is a high-value and precious metal
with high urgency, air freight is the most suitable option for
quick and secure transportation.
The higher cost is justified by the urgency and the need for secure handling. E. Extension activities
Enhancing Cargo Transport Efficiency in Vietnam: A Comprehensive Review of Sea and Air Transportation
Opening Paragraph: This report aims to critically examine the current state of cargo transportation in
Vietnam, with a specific focus on sea and air transport. As essential components of international trade, the
efficiency of transporting goods plays a crucial role in the economic development of the nation. This
report will provide an overview of the existing situation, focusing on main cargo categories—bulk and
general cargo (unitized/non-unitized). Additionally, it will assess current facilities and provide
recommendations for potential improvements in handling equipment, unloading speed, and transshipment processes.
Background: Existing Situation: In Vietnam, the transport of goods by sea and air is fundamental to
supporting international trade. Bulk goods, such as raw materials and large shipments, are commonly
transported by sea, leveraging the cost-effectiveness of maritime vessels. General cargo, encompassing
both unitized and non-unitized goods, is often transported by air for its speed and efficiency. The existing
facilities include a network of seaports and airports equipped to handle a diverse range of cargo types.
Recommendations: Improvements to Handling Equipment, Speed of Unloading, and Transshipment:
1. Enhanced Handling Equipment:
Recommendations: Invest in modern and efficient handling equipment, including cranes, forklifts, and
conveyor systems, to streamline the unloading process at both seaports and airports.
Background to Recommendations: Outdated or insufficient equipment can lead to delays and
inefficiencies, impacting the overall supply chain. Upgrading to state-of-the-art machinery ensures smoother operations.
2. Speed of Unloading Procedures:
Recommendations: Implement training programs for personnel involved in cargo handling to enhance
efficiency and reduce unloading times. Prioritize the development of optimized unloading processes.
Background to Recommendations: Inefficient unloading procedures can result in delays and increased
costs. By investing in training and optimizing workflows, unloading times can be significantly reduced.
3. Transshipment Improvements:
Recommendations: Develop centralized transshipment hubs that integrate seamlessly with existing
transportation infrastructure. Implement technology-driven solutions for real-time tracking and coordination.
Background to Recommendations: The lack of centralized transshipment hubs and inadequate technology
integration can lead to bottlenecks and inefficiencies. Centralized hubs and technology solutions enhance
coordination and reduce transit times.
Action: What Could Be Done as a First Step: As a first step, it is recommended to conduct a
comprehensive audit of existing handling facilities and procedures at major seaports and airports in
Vietnam. This audit should identify bottlenecks, inefficiencies, and equipment shortcomings.
Subsequently, a phased plan for upgrading handling equipment, implementing training programs, and
developing transshipment hubs can be devised. Engaging stakeholders, including government bodies,
private enterprises, and logistics providers, is essential to garner support and resources for these initiatives.
In conclusion, optimizing cargo transport by sea and air in Vietnam requires a strategic approach
involving infrastructure upgrades, personnel training, and technological advancements. By implementing
the recommended improvements, Vietnam can enhance its competitiveness in the global trade landscape,
ensuring timely and efficient movement of goods.