Bulk cargo and General cargo for Exports


Bulk cargo and General cargo for ExportsThe demand for transport services is a derived demand. The derived demand is dependent upon the nature of goods traffic in international trade. If the demand for a commodity more, the relative nature of that goods traffic becomes more. The internationally traded goods, dependent on the nature of traffic, are divided into three groups. The groups are: Rush Cargo, Bulk Cargo and General or Non-Bulk Cargo. In respect of Rush Cargo, speed is the most important consideration in deciding the choice of transport. So, such cargo is always sent by air.

Bulk Cargo
, by its very nature, can he carried and stored in large quantities. Their market demand does not frequently change. These commodities are free from new product developments as competitors. Their design does not undergo change. The threat of obsolescence does not exist. Deterioration and depreciation are not significant. Their cargoes are low unit value. If they are transported and warehoused in large quantities, their incidental transportation and warehousing costs per unit would be low. The commodities having these characteristics are food grains, coal, fertilisers, petroleum products and liquefied gas etc. The bulk cargo is divided into two categories, viz., Dry Bulk (e.g., food grains) and Liquid Bulk (e.g., petroleum products and oil).

General Cargo
comprises manufactured, semi-manufactured, processed, semi-processed goods and materials. Examples are textiles, engineering goods, leather products, pharmaceuticals, spices, tobacco and marine products. In contrast to bulk cargo, these are not carried and warehoused in bulk quantities due to susceptibility of fast changes in their demand due to greater changes in fashion, design, style, technology, season etc. They are carried in small quantities in cases, packages, parcels, bales etc. Their per unit cost is also, high and so they can bear higher per unit transportation and warehousing costs.


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