Full Answer Section

• • Disruptions in supply chains due to pandemics or geopolitical events.

   

2. Transportation and Country Data:

• Trade by Mode of Transport: You can explore data on the volume of trade transported by different modes (road, rail, air, water, pipeline). This can reveal which modes are dominant for specific regions or countries.  
• Interesting Country Data: UNCTADstat allows you to analyze individual country data. You might find interesting facts like:
  • A country’s main trading partners.
  • The types of goods a country imports or exports the most.
  • The impact of trade agreements on a country’s trade patterns.

   

3. Volumetric Charging:

Volumetric charging is a freight pricing method based on the volume of cargo occupied rather than just its weight. This is because some lightweight items take up a significant amount of space, impacting transportation costs.  

4. Fixed vs. Variable Costs in Transportation:

• Fixed Costs: These are expenses that don’t vary with the amount of cargo transported, such as:
  • Infrastructure costs (e.g., roads, railways, ports, airports)
  • Vehicle or equipment depreciation
  • Terminal handling costs (e.g., loading/unloading)  
• Variable Costs: These expenses change with the amount of cargo transported, such as:
  • Fuel costs
  • Labor costs for drivers or crew
  • Tolls and other usage fees

Transportation Modes – Key Characteristics:

5. World Maritime Trade by Mode:

According to UNCTAD’s Annual Review of Maritime Transport (you can find it on the UNCTAD website), maritime transport remains the dominant mode for international trade, accounting for over 80% of global trade volume. Within maritime transport, bulk carriers handle a significant portion of goods like coal, iron ore, and grain, while container ships play a crucial role in manufactured goods trade.  

6. Factory Gate Pricing:

Factory gate pricing refers to the price a good is sold for at the factory where it’s produced, excluding transportation and other costs. This pricing method is often used in international trade contracts.  

7. The Belt and Road Initiative (BRI) and Shipping Routes:

China’s Belt and Road Initiative (BRI) aims to create a vast network of trade routes connecting China with other countries in Asia, Europe, and Africa. This initiative could potentially alter international shipping routes by:  

• Increasing trade flows between China and BRI countries.
• Leading to the development of new ports and infrastructure along BRI corridors.
• Shifting some trade volumes from traditional sea routes to land routes developed under BRI.

8. Advantages of Port Strings:

Standardization of shipping containers allows companies like Cosco and Maersk to operate port strings. These strings involve calling at a series of ports in a specific order on a fixed schedule. Advantages include:

• Efficiency: Optimized loading and unloading schedules minimize turnaround times in ports.  
• Reliability: Customers can expect consistent arrival and departure times at each port.
• Economies of scale: Filling ships to capacity on a predictable route reduces costs per container.

9. Security Gaps in Intermodal Transport:

The UNCTAD article “Intermodal Transport Security: Need for an Integrated Approach” highlights security vulnerabilities in each transportation mode:

• Road: Theft, hijacking, cargo pilferage (theft of small quantities).
• Rail: Similar to road, with additional challenges of trespassing and tampering with tracks.
• Air: Theft, unauthorized access to cargo areas, potential for using air cargo for smuggling contraband.