Reasons and Goals of the Elaboration of First Cost Calculation
Method The reason of the elaboration of first cost calculation method is that the current
common practice for the calculation of the transport fee of a transport task only based on the
rough estimation of the transport managers. The transport manager has to give a quotation for the
fee of transportation after receiving of a client order for a given transport task. In this case thee
price estimation is based on specific transport costs obtained from analysis of the transport data
history, which could result in false fee calculation. Therefore the offered transport fee of a given
transport task can be lower than the own first cost or can be much higher than that. If the price
offer for the transport task is lower than the first cost of the transport trip, profit will not be
realized for the transport company. If the bid for the transport task is higher than the first cost the
fee of the transport trip would be higher than the market price, so the company would not be
competitive, and would not realize income. The first cost of a given transport task has to be
calculated in order to define a precise transport fee.
Characteristics and Advantages of Road Freight Transport The ratio of road transport in
Europe is 78 % of the total freight volume (Fig. 1). The road transportation mode is economical
mainly in local or regional scale, but it is widely used for long distances due to its other
advantages. Road transport has many advantages compared to other transportation modes:
relatively cheap transportation mode, high density of road network, shorter transport time,
flexible in routing and time scheduling,
provides door-to-door service,
high level of
adaptation to the demands of customers,
low risk of damage of goods during the
transportation. There is a tendency to intensify cooperation between different transportation
modes (road, rail, water and air) and the volume of intermodal transportation is increased. The
aim of the cooperation and coordination of transportation modes is to realize more economic and
fast transport chains. The advantages and synergies between the different methods can be
utilized, while at the same time the disadvantageous can be eliminated.
One of the most important aims of intermodal transportation is to reduce the volume of
road transport, which can decrease the environmental pollution, traffic jams and accidents.
Despite of cooperation efforts it can be forecasted that the volume of road transport will increase
in the future, as a consequence road transport will be the most significant transportation mode.
Therefore in the future every production companies and service providers will put great
emphasis on the optimization of transportation and reduction of transport costs
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