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O-LevelCommerceTransport7100/22 · May/June 2012 · Q420 Marks

Many businesses worldwide use road, rail, air and sea transport to move goods.

  1. (a)State two advantages of rail transport compared with road transport for moving goods.[2]
  2. (b)(i)The use of rail transport has declined in some countries. Explain two reasons for this decline.[4]
  3. (b)(ii)Identify two developments in rail transport in some countries in recent years.[2]
  4. (c)State two services provided at airports for the handling of goods.[2]
  5. (d)(i)Explain the importance when exporting goods of: (i) a bill of lading[2]
  6. (d)(ii)(ii) an air waybill.[2]
  7. (e)A business based in Singapore wishes to export a consignment of books to the USA. It could use either air transport or sea transport. Discuss the advantages of each. Which should the business choose? Give reasons for your choice.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2012). The mark or mark type is shown in brackets.

  1. [2] (a) Any two advantages × 1 mark each:
  2. can carry very heavy and bulky loads/large quantities at one time
  3. may be faster over very long distances
  4. may be able to move quantity of containers with one train
  5. may provide direct access to/from ports to manufacturing areas
  6. may cause less air pollution than road transport
  7. may economise in the use of labour and so reduce costs for long journeys
  8. may be cheaper over long distances
  9. avoids traffic jams.
  10. Any other advantage.
  11. NB quicker/safer/cheaper = 0 marks unless qualified.
  12. Allow negative comment on road transport.
  13. [4] (b) (i) Any two reasons explained × 2 marks each:
  14. lack of investment in the railway system compared with other forms of transport
  15. rail transport not suitable for carrying small quantities of goods
  16. other forms of transport are needed from the railway station
  17. governments in some countries have favoured other forms of transport
  18. decline of industries dependent on railways e.g. iron and steel in some countries
  19. people may prefer to use their own transport e.g. cars as more flexible
  20. may be high cost of rail transport
  21. increased use of air transport.
  22. Any other relevant reason.
  23. [2] (b) (ii) Any two developments × 1 mark each:
  24. high speed trains linking major cities/bullet trains
  25. liner trains - special services for the transport of containers
  26. development of more routes
  27. modernisation programmes (improving trains)
  28. development of mass rapid transport systems e.g. MRT in Singapore
  29. driverless trains
  30. electrification.
  31. Any other relevant development.
  32. [2] (c) Any two services × 1 mark each:
  33. secure warehousing/bonded warehouses/cold storage
  34. container handling equipment
  35. lifting gear
  36. security
  37. trollies
  38. conveyor belts
  39. customs inspection facilities
  40. labour force.
  41. Any other relevant service.
  42. [2] (d) (i) Any two points × 1 mark each or one well explained point × 2 marks for each document:
  43. document of title – whoever has the bill of lading can claim the goods
  44. evidence of a contract
  45. advice note giving details of the goods carried (1 mark max)
  46. receipt for the goods taken on board the ship
  47. negotiable instrument – ownership can be transferred.
  48. Any other relevant point.
  49. [2] (d) (ii) Any two points × 1 mark each or one well explained point × 2 marks:
  50. advice note giving details of the goods carried by air (1 mark max)
  51. evidence of a contract of carriage
  52. used as a receipt
  53. may be used by customs to assess import duty.
  54. Any other relevant point.
  55. [6] (e) Level 2 (4-6 marks)
  56. Has discussed the advantages of both air and sea transport in the context of the export of a consignment of books and has given a reasoned recommendation. (If a candidate has discussed and recommended only one method of transport, award 4 marks max.)
  57. This Singaporean business could use either air or sea transport. If it uses air transport, the books will arrive quickly and so can go on sale quickly. The costs of air transport are, however, high as the books are likely to be heavy. They may not be needed too quickly – it depends what they are. They should, however, be well protected from damage and theft and are likely to be sent in a container specially designed for air freight. If the business uses sea transport, the books will take some time to arrive in the USA. They will need to be containerised and this will protect them from damage and theft. A large consignment can be sent or the goods could be sent with other goods in the same container. They would be packed at the depot in Singapore with customs clearance and could be transported in the container to their final destination in the USA. The costs of sending by sea are likely to be cheaper. The business would need to weigh up the importance of speed in relation to cost. It is likely that sea transport using a container would be the most economic means of transport.
  58. Level 1 (1-3 marks)
  59. Has commented on the use of air and/or sea transport for moving goods with little or no context with/without a recommendation.
  60. I recommend air transport. It is quick. There are aircraft available that travel between Singapore and the USA. Not so much packaging is required. They are likely to be safe. Sea transport is slow. The books may be damaged by water.

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About this question

Topic
Transport, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, May/June 2012 Paper 2 Variant 2, question 4.

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