Answer to Question #150684 in Macroeconomics for Fuwo

Question

How does manufacturing industry benefit when using water transport

Answer 1

Benefits of water transport to manufacturing companies.

1.     Transportation using water is relatively cheap as compared to other modes like air, rail, or by road. The manufacturing company that uses water transport is likely to incur considerably lower overhead cost on transportation.

2.     Water transport is most suitable for bulky goods. Raw materials and finished products are conveniently transported in bulk at economical expenses.

3.     Manufacturing companies that adopt water transport are less exposed to such risks as the loss of commodities to accidents.  

4.     Disruption such as floods and severe rains to other means of transport that is, air, road, and air do not affect water transport. Manufacturing companies using water transport realize approximately ninety percent successful voyages related to weather calamities.  

5.     Water transport links many states around the globe and can be regarded as flexible in international trade compared to roads and railway. Manufacturing companies can access the international market through transportation through seas, oceans, rivers, or lakes within the borders of countries.