UNIVERSITY OF KWAZULU-NATAL
WESTVILLE CAMPUS
SCHOOL OF MANAGAMENT, IT and GOVERNANCE
SPECIAL TOPICS IN SUPPLY CHAIN MANAGEMENT: 2020
SCMA 311
INDIVIDUAL ASSIGNMENT: ESSAYS
NAME : Slondiwe
SURNAME : Mkhize
STUDENT NUMBER : 218001424
TURNITIN : 0%
1
Contents
INTRODUCTON......................................................................................................................................3
Strengths and Limitations of motor carriers..........................................................................................4
Limitations of motor carriers.................................................................................................................5
Strategies to reduce the effect of escalating fuel prices........................................................................6
CONCLUSION.........................................................................................................................................6
2
Motor Carriers
Question 3
INTRODUCTON
Road is the most common means of transport today and several improvements have occurred
to this mode of transport. Transportation plays a big role in the process of conversion of
resources into useful goods as transport holds a connective role. Business logistics is
instituted by planning all transport functions that move goods in order to minimize cost and
maximize service offered to customers (Clerides, S, 2015). According to Nathon (2016) for
there to be a demand for transport a demand for products or services to be transported has to
exist. Trucks have been the dominant mode of transport in the transportation of surface
goods. Nathon (2016) later observed that when motor carriers were introduced around the
1930s, the trucking industry faced significant improvements and intermodal transportation
was later on introduced.
Intermodal transport is known to be a moderately new mode of transport and has developed
from existing modes of travel. Intermodal transport only participates in the transportation of
intermodal freight unit services and storage. Rail carriage has long been replaced by road
transport as it is the most used form of transport in South Africa. Specific primary products
such as timber, agricultural products, fish and semi-finished goods are transported by road
freights on long hauls. Transportation by road is known to be versatile and more fragile than
any other forms of transport because of the various road networks it travels. Since it can offer
door to door services in close to any destination it is a dominant mode of transport
particularly in South Africa With road freight carriage, clients are promised reliable services
with little to no damage of their goods or products in transit. It usually provides faster
services and reliable delivery as road freight transportation usually operate on a scheduled
timetable. The result is reliable transit times. The core of this paper is strengths and
limitations of motor carriers and management strategies to reduce the effect of escalating fuel
prices.
3
Strengths and Limitations of motor carriers
Like all modes of transportation, motor carriers have strengths and limitations which
will be discussed below (Teresa, M, 2010).
1.1 Strengths of moto carriers
1.1.1 Less capacity outlay
Motor carriers in the form of road transport use less capital then other
modes of transport. The cost of operating in roads is more inexpensive and
the amounts charged for the use of roads is cheaper as government and
local authorities construct roads. Additionally, small shipping provides
customers with lower inventory carrying costs.
1.1.2 Door to door services
The main advantage of motor carriers is that it offers door to door services
or warehouse to warehouse services. This reduces expenses of loading or
unloading and cartilage.
1.1.3 Rural area services
Motor carriers are favorable for people that reside in rural areas as carriers
can carry goods or people to and from rural areas as other modes of
transport may not be able to serve or be of assistance. Urban areas and
rural areas are now able to exchange goods through motor carriers.
1.1.4 Flexibility of services
Motor carriers are flexible as its routes, timings and individual
requirements can be adjusted and changed without major trouble. Motor
carriers can also be loaded and unloaded faster than other carriers.
1.1.5 Saving in packing out
Goods transported in motor carriers need little or no packing in several
cases. The packing process of motor carriers is less complicated.
4
1.1.6 Rapid speed or transit time
Motor carriers are deemed faster than other modes of transport such as
railways and water carriers. While there are other modes faster than motor
carriers, these modes are restricted by less frequent schedules and limited
access.
Limitations of motor carriers
1.1.7 Small carrying capacity
A limitation of motor carriers is that some carriers are limited and carry
less of commodities. Motor carriers are usually disadvantaged because of
the over-all weight of cargo and dimensions that vehicles cannot exceed
established by the government and highway departments. Legislation
limits dimensions and gross mass of motor carriers
1.1.8 Seasonal nature
Intemperate weather conditions can impact on the reliability of operations
especially in countries with inclement weather conditions such as fog,
snow and hail. Motor carriers are negatively affected unfavorable weather
conditions as they are prone to road accidents and limits to travelling
because of bad weather conditions. Motor carriers are not reliable as other
modes of transport in extreme weather conditions as roads become unfit
and unsafe to travel on and use.
1.1.9 Breakdowns and accidents
The public roads of South Africa are shared amongst different modes of
transport. This results in risks or safety and security and unanticipated
delays. Motor carriers have more chances of breakdowns and accidents
then other mode of transport. For example, if a truck carrying hazardous
goods is involved in an accident, road closure may occur which may last
hours and inconvenience other cars which may possibly result in other car
accidents. Motor carriers are also vulnerable to theft and hijacking
therefore motor carriers are not safe.
1.1.10 Unsustainable for long distance
5
Motor carriers are unsustainable and costly for the transportation of cheap
or bulky goods for long distances as it is slow in speed. This may result in
high consumption of fuel.
Strategies to reduce the effect of escalating fuel prices
Oil prices are important macroeconomic variables as high oil prices lead to great
amount of damage on the world economy. Many nations including South Africa are
faced with increased inflation rates due to steady rising oil prices. Consequently,
higher inflation rates have overwhelming impacts on production and consumers that
eventually lead to differences between importing and exporting oil in certain countries
Fuel has become a scarce resource forcing countries around the world to develop
alternative energy for the maintenance of their economic activities. There is an
obvious strong relationship between the demand of energy and prosperity. For
example, existing energy infrastructure depends on the development of the standard of
living of people. In order to maintain economic progress worldwide, economic
experts should look at the manner in which they distribute, create and utilize energy.
This will reduce the effect of escalating fuel prices (Teresa, 2010)
South African experts should invest in intervention in energy generation. Even whilst
the country struggles to make a breakthrough in solar, wind, geothermal and related
energy sources, experts should reinvent traditional sources to utilize the sources
efficiently and reduce the effects of rising fuel prices.
CONCLUSION
The petrol and diesel supply of South Africa has grown during the past 12 year.
Consequently, supply was outcasted by demand halfway through this period which
led to an increase in imports to satisfy the consumption of the country. The increase in
demand was caused by an increase in the domestic economy. The government’s
6
intervention was to ensure sustainability in the petrol sector. Government, businesses
and labor are collaborating and implementing the National Development Plan to assist
economic growth and job creation which will lead to the increase in the demand for
fuel.
REFERENCES
Clerides, S (2015) the effect of standards and fuel prices on automobile fuel economy an
international analysis, Energy economic 2658
Nathon, P. (2016), “Inventing our energy future”, pages 8-15
Teresa, M (2010) “Food and Fuel Prices Recent Developments Macroeconomic Impact, and
Policy Responses? international monetary fund
