How can we curtail trade expenses travelling by sea ?class 10
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In a trade the cost of productions as well as freight expenses are completely dependent on, how much bulk production or bulk transport of goods and products are being done at a time.
- In traveling by sea, ships can carry goods in bulk more than any other means of transport, if any trade is done where bulk transport is needed, there will be a lot cost savings for that company.
- In a product there are two kinds of expenses present, one is the variable and other is fixed cost. In bulk transport, the fixed cost gets distributed, among many products, gradually decreasing the expenses of transport per unit of product.
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If you want to curtail your trade expenses then you can transport your goods by sea because moving cargo through ships is the most cost effective way to reduce operational cost of a business.
90% of the world trade business depends in the sea transportation, and after financial crisis in 2008, shipping companies reduce their operational cost for their customers.
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