O Level Commerce Chapter 9: Transport

Topic 1: Transport and its types

Transportation is the movement of people and goods from one location to the other.

Importance of Transportation in chain of distribution

 Transport is a means of making contact between two distant points allowing the movement
of goods to be distributed to shops and raw materials to the producer and delivery of goods
to the consumer
 It reduces the need of capital tied up in stock as goods can be obtained quickly.
 It enables people to get to work to help produce goods/services
 It extends the market for goods/services to the global economy
 People are not confined to their immediate areas as transport allows trade to take place on
a wider scale as goods are of no use unless they reach where they are needed.

EXAM QUESTIONS

EQ # 1

Using the diagram in Figure explain why

transport is important in the production of iron
ore? (4)

Types of Transport

Road Transport

Advantages:

 Cheap for shorter distances.

 Quick for shorter distances.
 Door to Door delivery.
 Minimum documents involved.
 It is flexible.
 Round the clock availability.

Disadvantages:

 Expensive for long distances and heavy loads.

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 Slow for long distances.

 Effected by topography.
 Effected by climate.
 Effected by weather conditions.
 Effected by traffic congestions.
 Creates pollution

Transport International Routier (TIR)

TIR indicates the load has been checked and sealed

by customs officials.

Exporter of high value goods use Transport

International Routier because shipment can be
made in sealed vehicles across borders

EQ # 2

Many of the small-scale retailers own some form of road transport.

Explain two advantages to a small-scale retailer of using road transport. [4]

Rail Transport

Examples:

 Passenger train
 Goods train

Advantages:

 Cheap for long distances.

 Fast over long distances.
 Can carry bulky goods e.g. coal
 Not effected by traffic.
 Reduces pollution created by heavy goods vehicles
 Special transporters may be provided for different specialized items.
 Especially suitable for low value and high volume cargo
 Environmental benefit reduces CO2 emissions

Disadvantages:

 Involves documentation.
 Need for loading and unloading cargo many times.
 Trains can not go any where.
 Move only according to schedule.
 High costs for short distances and small quantities.

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 Located out of cities so depends on road transportation.

 High capital cost of maintenance of tracks and trains.

Air Transport

Advantages:

 Speedy
 Safe handling of cargo.
 Not effected by topography.
 Less packing requirement.
 Especially suitable for high value and low volume cargo.
 Used for urgently required goods.

Disadvantages:

 Expensive.
 Effected by weather conditions.
 Have constraints as far as carrying of cargo is concerned.
 Limited space.

EQ # 3

Wahab Enterprises is a large export business dealing in a wide range of goods.

Why does Wahab Enterprises use air transport to send goods to customers in other countries? [3]

Sea Transport

Advantages:

 It is cheap per unit of cargo for longer distances.

 Highly suitable for bulky cargo.
 Refrigerating and other facilities are available.
 Containerization is possible.
 Not effected by topography.

Disadvantages:

 Very slow
 Very rigid
 It is affected by weather conditions
 A lot of documentation
 Lot of handling of cargo is involved
 Extra cost for insurance and packing

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Main Types of Ships

 Ro-Ro Ferry (ship specialises in carrying motor vehicles)

 Tanker
 Bulk carrier
 Cruise liner
 Container ship
 Cargo liner
 OBO ship

EQ # 4

You work in the Head Office of a large company mining iron ore. The company has operations in several
countries.
The company trades with China and Japan. It transports its iron ore by ship to these countries. Explain why
it uses ships. [4]

EQ # 5

Three airlines operate within a country where distances are very great. They transport people and freight.
(a) Explain why air transport is important within this country. [6]
(b) Suggest one other way in which heavy freight might be moved in this country. Give reasons for your
choice. [4]

Pipe Line Transport

 Suitable only for gases and liquids

 Operational costs are minimum
 Heavy capital costs
 Require favorable gradient
 Security hazards
 Leakage problems

Advantages:

 Pipelines are cheap to operate and usually take a direct route

 A continuous flow is guaranteed as long as the machinery is working
 Pipelines have a high capacity
 They are not affected by weather
 There is less pollution of the atmosphere compared to using many road tankers
 They are a safe mode of transporting flammable commodities such as petrol and gas

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Disadvantages:

 Pipelines are expensive to construct and repair

 If one part of the pipeline is damaged, the whole pipeline may be out of action
 Pipelines are usable only for a limited range of commodities mainly liquids

Waterways transport

Waterways include canals, rivers and lakes. Waterways are more important in some countries than
in others. They may connect inland lakes such as Great Lakes in Canada and USA.

Advantages:

 Suitable for carrying bulk cargoes of low value products such as coal, oil, sand, bricks and
grain
 Barges are very fuel efficient so saving on the costs of transport
 They can be loaded at the site of the ship and off load where the product is to be used.
 The use of waterways saves the costs of using other methods of transport such as road
transport that may be more expensive

Disadvantages:

 Slow method of transportation

 Waterways are not available everywhere
 Some canals or rivers may freeze over in winter and so be unusable
 There is also the high cost of maintenance of canals

Circumstances for air transportation

 Its customers may require goods quickly.

 Its customers may be at a long distance.
 The goods moved are able to bear the high cost of air transport.
 The goods moved are lightweight.
 The goods moved are perishable.
 The goods are moved in small quantities.
 There is an airport near.
 Sea/road/rail transport is not suitable (1 mark only).
 Safe form of transport.
 Simpler documentation.

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Reasons to use road transport rather than by rail

 Usually faster over short distances

 Can go directly to the door of customer no need for transshipment
 It can be flexible does not follow a timetable
 There is less theft as under the supervision of the driver
 There is less damage as less handling involved
 Rail transport may not be available in some countries/areas
 It can take a variety of loads such as abnormal loads in different types of road vehicles
 The building of motorways/highways has speeded up road haulage
 Advertising on vans can be seen by passers-by

Reasons to use sea rather than road for the transport of goods

 For bulky goods requiring larger carriage space that might need many journeys
 by too many road vehicles making it very expensive
 Over long distances such as Brunei to England especially when countries are separated by
water
 When goods not urgently required example it would be cheaper to use sea transport
 For heavy goods

Discuss the transport methods in the following situations

(i) Tea to be sent from India to South Africa

Sea as tea is bulky, not wanted urgently so slow transport suitable and is containerized

(ii) Flowers to be sent from Kenya to Canada

Air as flowers are a perishable item and are urgently needed so fast transport is needed

Factors affecting choice of mode of Transportation

 Cost e.g. air transport is expensive

 Quantity of goods to be carried e.g. bulky goods can be carried by rail
 Nature of goods to be carried e.g. are they perishable
 Urgency e.g. spare parts can be sent by courier
 Security needed (1) may require supervision
 Safety issues may use own transport rather than using another carrier
 Distance road is often used for short distances
 Convenience usually the easiest one available
 Need for transshipment need for integration of the transport
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 Location some countries do not have railways

 Reputation/reliability of carrier so deadlines are kept/arrive in good condition

Own Transport

Many businesses use their own transport to move goods from one place to another place.

Advantages of own transport:

 Goods are better supervised so less theft

 Flexible as no fixed timetable so transport available at short notice
 Pick up times can be arranged
 Save costs
 Advertising can be done on the sides of the vehicles
 It is more economic if there are regular loads of sufficient quantities
 Less documentation is needed when own transport used
 Can be hired out to other firms when not needed to obtain extra income

Logistics

Logistics describes the management of the flow of goods from production to consumer.

Developments and latest trends in Transportation

 development of integrated freight transport using standard-sized containers

 express road routes reducing travelling times between cities
 mass rapid transit (high-speed transport of a large number of people in city areas)
 more airports and air routes giving more opportunities to travel abroad

EQ # 6

Figure shows information about Ahmad and his commercial activities.

Ahmad owns a van. Explain the advantages to Ahmad of owning his own transport. [4]

EQ # 7

AG Services is a company specialising in refuse collection and recycling.

AG Services needs to replace some of its trucks. It is considering the following two options:

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 leasing the trucks

 buying the trucks.
Discuss both options. Which option would you recommend? Give reasons for your recommendation. [6]

EQ # 8

Wahab Enterprises is a large export business dealing in a wide range of goods. It hires trucks to move
goods within the country and uses air transport to send goods to customers in other countries.
(a) Is it better for Wahab Enterprises to hire trucks rather than own trucks? Give reasons for your answer.
[6]

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Topic 2: Containerization

 Containerization is a system of freight transport for use

in sea shipping or air cargo planes that has reduced the
transport costs of moving thousands of different goods
across the globe.
 Containers have standardized dimensions.
 Containerization has been a catalyst for globalization.
 A container can be handled anywhere in the world and
ships, port equipment etc. adjusts to handling them with
optimum efficiency and with big economies of scale
 Manufacturers can optimize their packaging to fit into a
container and thus lower the unit cost of transportation
 By lowering the costs of trade containerization has encouraged specialization and the
expansion of global supply chains.

Advantages:

 Increased speed of loading and off-loading

 Quick movement of cargo.
 Faster turn-around of ships at ports.
 Protection of cargo from being damaged.
 Saving on packing cost.
 Lesser chances of cargo being lost.

Disadvantages:

 Expensive to own, Capital cost increases.

 Dependence on skilled labor.

Reasons for increased use of containers

 Safe
 Can carry in large quantity
 Time saving
 Inexpensive
 Helpful in international trade

EQ # 9

Much freight is moved around the world in bulk carriers, in tankers and inside containers.
Between neighbouring countries, ro-ro ferries are often used to move freight.
(a) Giving examples of the types of goods carried in each, explain what is meant by:
(i) bulk carriers [3]
(ii) tankers. [3]

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(b) Explain three reasons why the transport of goods inside containers has increased. [6]
(c) Describe the advantages and disadvantages of using ro-ro ferries for the transport of freight between
neighbouring countries. [8]

EQ # 10

A company based in Country X imports coffee from Brazil and then exports it to other neighbouring
countries. Explain two reasons why the coffee is moved using containers. [4]

EQ # 11
(a) Explain two functions of transport. [4]
(b) (i) Mrs Banda needs to send a consignment of 5000 tracksuits from Hong Kong to
London. She could use air freight or sea transport.
Which method would you recommend? Give reasons for your answer. [6]
(ii) What additional information would you need to make a more informed recommendation? [2]
(c) Explain why Mrs Banda should use a container to transport the tracksuits from Hong Kong to London.
[4]
(d) How would a forwarding agent assist Mrs Banda with sending this consignment? [4]

EQ # 12

The pie chart in Fig. 2 shows the number of

service stations Galaxy Petroleum owns and
the number of service stations that it operates
as franchises.
Galaxy Petroleum moves its products using
both roads and railways.
State two factors Galaxy Petroleum would
consider when choosing which of these two
methods of transport to use. Give reasons for
each of your choices. [6]

EQ # 13

Big Bloom Ltd is a well-established public limited company growing flowers for the home market. The
company plans to sell to retailers in neighbouring countries.
Explain the factorsBig Bloom Ltd should consider when deciding on methods of transport to use for
sending flowers to neighbouring countries. [6]

EQ # 14

BZ Chem is a manufacturer of chemicals, selling in many markets.

Discuss the factors that would be most important to BZ Chem when choosing a method of transport to
carry chemicals from its factory to a seaport ready for export. Give reasons for your answer. [6]

Chartered Transport

 A vessel/truck/plane is available to the trader on chartered basis by paying a certain

amount.
 Trader can then cover a certain distance or voyage according to his own schedule.
 The agreement signed with the owner is called ‘charted party’.
 Chartering is available on voyage and time basis.

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Topic 3: Port Authority

Port is a place where international traders import and export goods.

There are three types of port

1. Sea port
2. Air port
3. Dry port

Responsibilities of port authority

 to provide warehouses
 providing security for goods and passengers
 To provide navigation facilities and to control air and sea traffic.
 To maintain air traffic control tower/light house.
 To maintain run ways/berths/docks.
 Fueling of planes/ships.
 Provision of supplies to the planes/ships before departure.
 Signing agreement with other port authorities on variety of issues.
 Maintenance of planes/ships before departure.
 Providing facilities to passengers and traders.
 Security arrangement.
 Permits to motor boats/light air planes.
 Providing hanger facilities/wet or dry docks.

Facilities at Port

 Passenger lounges.
 Fire extinguisher.
 First aid.
 Internet facility
 Café.
 Shopping area.
 Banks.
 Transportation.
 Offices of air line companies.
 Hotel reservation offices.
 Warehouses.

EQ # 15

(i) Name two services provided at airports for passengers. [2]

(ii) Name two services provided at airports for handling freight. [2]

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EQ # 16

Describe two services that the port would provide for the exporting of products such as iron ore. (4)

EQ # 17

How do port authorities assist this company to send its iron ore by ship? [4]

EQ # 18

Mr Tan is a trader in Singapore. He imports goods from countries in South East Asia and sells to customers
in Singapore.
Singapore is a Freeport.
(i) Explain what is meant by a Freeport. [2]
(ii) What are the advantages to Mr Tan of using a Freeport? [2]

EQ # 19

BZ Chem is a manufacturer of chemicals, selling in many markets.

State two services offered at seaports and explain why they are important to BZ Chem. [4]

EQ # 20

Most goods traded between countries are sent by sea or by air.

(a) (i) Name one product more likely to be sent by sea than by air. [1]
(ii) Name one product more likely to be sent by air than by sea. [1]
(b) Explain why some products are more suitable for transport by air than by sea. [4]
(c) What improvements made to air transport in the last few years have helped to make transport of goods
by air more competitive with sea transport? [6]
(d) How would a cold storage warehouse assist international trade? [4]
(e) When goods arrive in a country they usually have to be transported to where they will be used. Explain
why an importer might prefer to use road transport rather than rail transport? [4]

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Topic 4: Transport Documents

1. Bill of lading
2. Consignment note
3. Airway bill

1. Bill of Lading

 A Bill of Lading is an important

document used when transporting goods
by ship/sea
 Acts as a document of title (it means
that the holder of the bill can claim the
goods when they hand it over at the
destination port)
 It allows buyer to collect goods
 It is a contract of carriage setting out
terms of transporting goods
 It acts as a receipt
 It acts as proof that shipper has received goods that freight charges have been paid and gives
details of goods carried whether clean/dirty.
 It is negotiable document

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Information contained in BOL

 Name of shipping company

 Name of ship
 Port of shipment
 Description of goods
 Signature of ship’s master
 Name/Address of consignor
 Name/Address of consignee
 Date of issue of bill of lading
 Number of packages/containers
 Freight charged

2. Consignment Note

Issued by: Trucking Company (Goods forwarder).

Information: Quantity and description of goods being dispatched.
Purpose: Evidence of contract

 It indicates the description of goods

 It is an evidence of contract of carriage but not negotiable
 It is not a document of title
 It is a receipt of goods

3. Airway bill

Issued by: Airway Company

Purpose: used in air transport

 Document used when goods are sent by air

 gives information about the consignment
 acts as an advice note
 evidence of a contract of carriage
 may be used as a receipt
 it is not a document of title (The delivery of goods is not dependent upon the presentation of
the air waybill as the goods are delivered to the named consignee at destination airport)

Information contained in Airway bill

 Name of airline company/carrier

 Name/Address of shipper
 Name of departure/destination airport
 Description/weight of goods carried

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 The quantity of items sent

 The freight charges
 Evidence/signature of goods received
 Name/address of consignee/carrier’s agent

Difference between Airway bill and bill of lading

 It is used when goods are sent by air.

 Air waybill is not a document of title, the delivery of goods is not dependent upon presentation
of the air waybill
 Possession of the air waybill does not mean that the person can sell the goods and does not
give ownership.

Similarities between Airway bill and bill of lading

 Act as an advice note showing all the information of goods carried

 Act as contract of carriage showing proof that goods are accepted
 Act as a receipt as proof of goods carried
 It gives information such as description of goods/freight charges

EQ # 21
Many businesses worldwide use road, rail, air and sea transport to move goods.
(a) State two advantages of rail transport compared with road transport for moving goods. [2]
(b) (i) The use of rail transport has declined in some countries. Explain two reasons for this decline. [4]
(ii) Identify two developments in rail transport in some countries in recent years. [2]
(c) State two services provided at airports for the handling of goods. [2]
(d) Explain the importance when exporting goods of:
(i) a bill of lading [2]
(ii) an air waybill. [2]
(e) A business based in Singapore wishes to export a consignment of books to the USA. It could use either
air transport or sea transport. Discuss the advantages of each. Which should the business choose? Give
reasons for your choice. [6]

EQ # 22
Rahman Enterprises Ltd owns an import/export business. The business is based in Singapore and handles a
wide variety of goods.
(a) Explain why Rahman Enterprises Ltd would use air transport to export office machinery and use sea
transport to move sand and timber. [4]
(b) In connection with air transport, explain the terms:
(i) charter flights. [2]
(ii) air waybills. [2]
(c) How would a port authority assist Rahman Enterprises Ltd’s business? [4]
(d) Rahman Enterprises Ltd is considering buying its own air cargo plane instead of hiring planes from
airlines. Discuss the arguments for and against this proposal. Mentioning any additional information, you
would require, recommend a suitable course of action. [8]

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EQ # 23
A clothing manufacturer in Hong Kong is going to send a consignment of his products to an overseas
buyer, using a container. He has not yet decided whether to use air or sea transport for this consignment.
(a) Explain two reasons for using containers to send the clothing abroad. [4]
(b) Name a trade document issued by the carrier to the exporter when goods are sent by air transport. [1]
(c) (i) Name a trade document issued by the carrier to the exporter when goods are sent by sea transport.
[1]
(ii) State two purposes of this trade document. [2]
(d) Explain three factors that the manufacturer should consider when deciding whether to use air transport
or sea transport for this consignment. [6]
(e) The clothing manufacturer has always found overseas buyers himself.
Should he now consider using an intermediary such as an export merchant?
Give reasons for your answer, mentioning any additional information you might need to help you decide.
[6]

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MULTIPLE CHOICE QUESTIONS

7. Which document enables the importer to
1. For what is railway transport most suitable? claim possession of goods on their arrival?
A the carriage of goods between towns near A air waybill
each other B bill of lading
B the delivery of small, light goods over long C documentary credit
distances D insurance policy
C the international carriage of perishable goods
D the long distance carriage of bulky goods 8. Which types of goods are most suited to air
transport?
2. Which product may be transported by A heavy and bulky goods
container ship? B heavy goods of low value
A cars C light goods of high value
B coal D light goods of low value
C furniture
D oil 9. Which method of transport is shown in the
diagram?
3. What advantage does sea transport have over
air transport?
A bulk loads
B faster delivery
C faster turnaround of goods
D less risk of damaged goods

4. Why might a trader prefer to use rail rather

than road for transporting goods in bulk?
A Rail transport involves less handling of
goods. A air cargo
B Rail transport is cheaper over long distances. B container ship
C Rail transport is faster over short distances. C freightliner
D Rail transport is more flexible. D tanker

5. What name is given to a ship where vehicles 10. Which document is used as evidence of a
may be driven on and driven off? contract when goods are transported by sea?
A cargo liner A advice note
B container ship B air way bill
C ro-ro ferry C bill of lading
D tanker D delivery note

6. The transport of goods has recently been 11. Why is the transport of goods by sea
made easier by generally cheaper than using air freight?
A express road routes in many countries. A Cargo can be carried in bulk.
B increased checks by customs officials. B Cargo handling is reduced.
C more detailed inspections of railway C Insurance costs are lower.
networks. D Less packing is required.
D the reduction of facilities at many airports.

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12. What is meant by the container revolution 18. What is an advantage of the containerisation
in the transport of goods? of goods in sea transport?
A different methods of packaging goods A avoidance of customs duty
B refrigerated trucks and ships B carriage of all types of goods
C roll-on, roll-off ferries C faster turn-around of ships at ports
D sealed, standard-sized boxes which can be D quicker unpacking of goods at docks
moved quickly
19. A consignment note is used when
13. Which of the following is not a purpose of A cargo is transported by ship.
the bill of lading? B goods are carried by the supplier’s vehicle.
A contract of carriage C goods are delivered by hired transport.
B document of title D payment is required before despatch of
C receipt for goods goods.
D request for payment
20. What would an exporter not consider when
14. Which form of transport has the advantage choosing a suitable form of transport to carry
of low operational costs? his goods?
A air A the cost of transporting the goods
B pipeline B the duty payable in the importer’s country
C road C the quantity of goods to be exported
D sea D the time within which the products are
required
15. A car assembly plant in Singapore would
like to import 1000 motor vehicle kits from 21. What is the advantage of using containers in
Japan. What advantage would there be from transport?
containerising this consignment? A ability to carry any cargo
A The consignment does not need to be B faster turn-around
inspected by customs officials. C fixed timetables
B The goods cannot be lost while in transit. D need for special handling equipment
C The kits are carried in conveniently small
quantities. 22. Which statement applies to an air waybill?
D The warehousing costs are reduced. A acts as a contract
B gives title to the goods
16. Which is not the responsibility of a port C is a negotiable instrument
authority? D made up of four copies
A collecting customs duties
B dredging the harbour 23. Which advantage does air transport have
C providing re-fuelling facilities over road transport?
D providing unloading equipment A Bulk goods may be carried.
B It is cheaper over short distances.
17. Road transport is preferred to rail transport C It is quicker over long distances.
when D There is no packaging of goods.
A goods are easily damaged.
B heavy goods are transported in bulk.
C long distances are involved.
D the weather is bad.

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24. The picture shows a roll-on, roll-off ferry What is most likely to be transported by this
method?
A food
B fruit
C machinery
D sand

29. Consignment notes are used when

delivering goods by
A container ships.
What is the advantage of using this type of ship B independent transport firms.
to move goods? C manufacturer’s own trucks.
A Goods can be transhipped without unpacking. D pipelines.
B It is suitable for sending low value goods in
bulk. 30. Which service is provided to an air freight
C The goods cannot be lost in transit. company by an airport authority?
D There is no need for customs officers. A collection of customs duties
B duty free shopping
25. Which service is provided by a port C hire of aircraft
authority? D warehousing of goods
A collecting revenue for the government
B inspecting immigration documents 31. What name is given to a ship where vehicles
C maintaining the docks may be driven on and driven off?
D supervising bonded warehouses A bulk carrier
B cargo liner
26. What is the main reason for the increase in C container ship
the use of road transport? D roll-on roll-off ferry
A Express road routes are available in many
countries. 32. The diagram shows the total volume of
B It can take loads of any shape or size. freight moved within a country by various
C It offers fixed timetables. forms of transport.
D Transhipment is required for delivery.

27. What is a function of a port authority?

A collecting customs duties
B controlling movement of prohibited goods
C hiring out ships
D providing re-fuelling facilities

28. The diagram shows a barge / bumboat.

How much freight is moved using road

transport?
A 60 m
B 80 m
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C 160 m 38. Which is an advantage of rail over road

D 240 m transport for loads carried over long distances?
A Fuel costs per unit are less.
33. Which are the two most suitable forms of B Goods are more secure.
transport for carrying flowers from a farm in C Small loads may be carried cheaply.
Kenya to a shop in Paris? D There are rail links to all local areas.
A air and rail
B rail and road 39. What has been an effect of the increased use
C road and air of containers for transporting goods?
D sea and road A greater need for warehousing
B higher labour costs
34. The diagram shows a system for C more damage to goods
transporting goods. D quicker customs clearance

40. For which of the following would delivery

by air transport be suitable?
A a bulk consignment of oil from the Middle
East to Japan
B a large quantity of iron ore from Australia to
Which transport system is shown? Japan
A bulk carrier C spare parts of a machine to be sent from
B containerisation London to Cape Town
C ferry D the daily delivery of perishable goods to a
D tanker nearby town

35. What is a responsibility of a port authority? 41. What is a disadvantage of containerisation?

A collecting customs duty A Freight charges are low.
B compiling statistics showing the pattern of B Mechanised handling of containers saves
trade time.
C providing office space and warehouses C Risk of theft is reduced.
D supervising the movement of imports and D Specialised handling equipment is needed.
exports
42. Which service is provided at both seaports
36. Which service is provided by a port and airports for the handling of international
authority? cargo?
A collecting revenue for the government A car hire
B inspecting immigration documents B customs inspection
C maintaining the docks C navigational lights
D supervising bonded warehouses D runways

37. Which function is performed by airport 43. Which method of transport would be used
authorities? to send oil from an inland well to a port located
A collecting import and excise duties 500 km from it?
B guarding against smuggling A pipeline
C operating immigration control B rail
D providing security for goods and passengers C road

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D waterway 50. What is an advantage of using containers

for the transport of exported goods by road and
44. What is meant by ‘a bill of lading is a quasi- sea?
negotiable instrument’? A high insurance costs
A Goods do not belong to any one person. B no export documentation
B Goods have been paid for and collected. C non-payment of customs duties
C Ownership of the goods is transferable. D quicker turnaround
D The importer has claimed the goods.
51. Which service is not provided by a logistics
45. What is a responsibility of a port authority? company?
A checking the movement of people coming A advertising
into and going out of the country B packaging
B maintaining runways and hangars for aircraft C transport
C providing office space and warehouses D warehousing
D supervising the movement of imported and
exported goods 52. What is an advantage of containerisation in
sea transport?
46. Which large ships are specially designed to A avoidance of customs duty
carry bulk liquids? B carriage of one type of product at a time
A cargo liners C fast turnaround of ships at ports
B container ships D quick unpacking of goods at docks
C ferries
D tankers 53 The Bill of Lading is an export document
used when goods are transported by
47. What is an advantage of containerisation in A air.
sea transport? B rail.
A avoidance of customs duty C road.
B carriage of any type of product D sea.
C fast turnaround of ships at ports
D quick unpacking of goods at docks 54 Which methods of transport are most likely
to be used to transport oil from Australia to
48. Faster deliveries of goods are being made Singapore?
because of A canal and sea
A bigger trucks. B pipeline and sea
B longer express road routes. C rail and pipeline
C increased bulk loads. D road and air
D more traffic lights.
55 Which factor plays a part in the increasing
49. What is an advantage of sea transport for volume of air freight that is being transported
carrying goods in bulk? worldwide?
A low carriage costs A availability of larger aircraft
B low packing charges B fluctuating aviation fuel prices
C safety C increased international terrorism
D speed D increased tourism

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56 Which airport facility is likely to be the most 61 Why is sea transport used widely for the
important to a business exporting goods through carriage of goods?
an airport? A Insurance charges are low.
A currency exchanges B Little packaging is required.
B duty free shops C Low value cargo can bear the transport
C lifting gear charges.
D luggage handling D Theft and damage are prevented by
containerisation.
57 Which mode of transport is the most flexible
for the delivery of goods to a factory? 62 Which document must be completed before
A air freight goods can be exported by sea?
B cargo ship A bill of exchange
C goods train B bill of lading
D truck C consignment note
D delivery note
58 A company mining diamonds in South
Africa uses air transport to carry the diamonds 63. An advertisement includes the following
to Sydney, information.
Australia.
The decision to use air transport in this case is
influenced by the fact that
A aeroplanes carry heavy goods.
B diamonds are valuable enough to afford the
freight charge.
C diamonds require a lot of packaging.
D no insurance charges are made for carrying
diamonds.
What does the advertisement refer to?
59 How might the construction of new roads to
A containers
avoid town centres affect the efficiency of road
B railway freight wagons
transport?
C regional distribution centres
A It controls the over-speeding of cars and
D warehouses
vans.
B It increases the carrying capacity of delivery
64. The chart shows the tonnage of goods
vehicles.
delivered within a country using various types
C It lengthens the journey time of trucks.
of transport.
D It reduces delays and traffic congestion.

60 Which service is offered to passengers at an

airport?
A currency exchange
B maintenance services
C refuelling
D warehousing

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What is the tonnage moved direct from door to Which commodity is most likely to be
door? transported from one place to another using a
A 12 million tonnes container?
B 36 million tonnes A coal from Australia to South Africa
C 48 million tonnes B crude oil from Venezuela to Canada
D 144 million tonnes C flowers from Kenya to France
D toys from Hong Kong to the UK
65 Which service do passenger airlines provide
to improve their efficiency? 70. What is a port authority responsible for?
A no limit on cabin luggage A collecting custom duties
B online check-in facilities B enforcing immigration rules
C private lounge facilities C providing loading and unloading facilities
D wide range of in-flight refreshments D supervising bonded warehouses

66 What is a feature of rail transport? 71. The table shows the percentage (%) volume
A being available everywhere of freight moved.
B being cheap over short distances
C carrying large loads
D delivering from door-to-door

67 What is an advantage of containerisation?

A all types of goods can be carried
B goods are unpacked at ports
C goods have to be inspected by customs
D increased speed of loading and off-loading

68 What is mass rapid transit (MRT)?

A a fast inter-city rail passenger service The total tonnage moved is 500 million.
B an integrated transport system using standard- What tonnage is delivered directly to people’s
sized containers houses without a change of transport?
C express road routes such as A 15 m
motorway/autoroute B 150 m
D high-speed transport of a large number of C 200 m
people in city areas D 500 m

69. The diagram shows a container used in 72. What is the best way of transporting 100 kg
transport. of gold from a mine in South Africa to a
jeweller in Hatton Garden in London?
A by air, sea and road
B by rail, air and rail
C by road, air and road
D by road, air and sea

73. The diagram shows a way of moving goods.

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D The load should be inspected at border

crossings.

77. Why are some airports located by the sea?

A to improve security
B to increase scenic beauty
C to provide ample parking space
D to reduce danger from crashes

78. What describes the management of the flow

Which form of sea transport is shown in the
of goods from production to consumer?
picture?
A logistics
A cargo ship
B mass rapid transport
B container ship
C regional distribution
C roll-on, roll-off ferry
D sustainability
D tanker
79.What is the best way to transport 20 kg of
74 Which service is provided at both seaports
gold jewellery from a jeweller in Hong Kong to
and airports for the handling of international
a jeweller in London?
cargo?
A by air, sea and road
A car hire
B by road, air and rail
B customs inspection
C by road, air and road
C quays
D by road, air and sea
D runways
80. Which product would a container ship be
75. Which type of ship specialises in carrying
used to transport?
motor vehicles?
A furniture
A bulk carrier
B live animals
B cargo liner
C newspapers
C OBO ship
D urgent medical supplies
D Ro-Ro ferry
81. How may some goods ordered on the
76. The picture shows a container on a truck.
internet be delivered to customers’ homes?
A drones
B hovercraft
C ferry
D railway

82. What is the benefit of using roll-on, roll-off

(Ro-Ro) ships to transport freight across sea
What do the letters TIR indicate? channels?
A The load has been checked and sealed by A Bulk commodities are easily loaded and
customs officials. unloaded.
B The load may be dangerous in the event of an B Containers can be stacked on ships.
accident. C Containers may be transferred quickly from
C The load must be carried using safe lorries to ships.
international routes.

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D Lorries do not have to unload cargo in transit. C Temperature controlled containers are not
required.
83. Which function is performed by airport D The goods require sophisticated loading
authorities? equipment.
A collecting import and excise duties
B guarding against smuggling
C operating immigration control
D providing security for goods and passengers

84. What does a bill of lading show?

A clearance by customs
B invoice number
C name of airline
D name of ship

85. The chart shows how some goods are

delivered and how some people travel in a
country.

Which percentage of the modes of travel are

used to carry people?
A 53%
B 61%
C 64%
D 71%

86. Why should an exporter of high value goods

use Transport International Routier (TIR)?
A Free warehouse facilities are provided at
ports.
B Shipment can be made in sealed vehicles
across borders.

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