Fig. 1 shows the total value of freight moved by different methods of transport in home trade. [Figure 1.0] Fig. 1 Home trade freight. Total value of freight $Billion: Trucks: ~60 Billion Vans: ~40 Billion Goods trains: ~20 Billion Pipelines: ~10 Billion Other transport: ~10 Billion Use Fig. 1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [1] (a)(i) Flowers to a customer in the same town: van
2. [1] (a)(ii) Offshore oil to the mainland: pipeline
3. [2] (b)(i) $100bn (2)
4. [1] (b)(i) Method 60bn + 40bn (1)
5. [3] (b)(ii) Any 1 effect explained × 3 marks (1 mark for the effect plus 2 marks for explanation)
6. [3] (b)(ii) Air pollution/pollution (1) with burning of fossil fuels (1) releases carbon emissions/greenhouse gases into the air (1) contributing to global warming/negative externality (1) affecting the ozone layer (1) destroying the clean air (1) making breathing difficult/health problems (1)
7. [3] (b)(ii) Noise pollution/pollution (1) can impact on animals/humans (1) disrupting their communication/warning signals (1)
8. [3] (b)(ii) Traffic congestion (1) polluting the atmosphere (1) by using more petrol fumes/ smoke (1)
9. [1] (c)(i) Air
10. [1] (c)(i) Sea
11. [1] (c)(i) Canal
12. [1] (c)(i) Bicycle
13. [1] Note: Allow examples of methods such as cargo plane, oil tanker
14. [1] (c)(ii) Transport is a commercial service
15. [1] (c)(ii) A commercial document used in the home trade is a consignment note
16. [6] (d) Up to 2 marks for describing reasons for having its own fleet of vans to make deliveries
17. [6] (d) Up to 2 marks for analysing whether (or not) a business should have its own fleet of vans to make deliveries
18. [6] (d) Up to 2 marks for evaluating whether (or not) a business should have its own fleet of vans to make deliveries
19. [6] (d) Arguments for:
20. [6] (d) Provides direct contact with customers – leading to increased customer satisfaction
21. [6] (d) Goods are better supervised – so less theft
22. [6] (d) Delivery times can be flexible so no need to wait for someone else's vehicle
23. [6] (d) Advertising can be done on side of van – so can promote business
24. [6] (d) More economic if regular loads so saves money
25. [6] (d) Less documentation/paperwork needed so cutting down on administration
26. [6] (d) Vans can be hired out – enabling income to be earned
27. [6] (d) Specialised vans e.g. refrigerated vans can be bought – to meet business needs better
28. [6] (d) No rent paid to a third party – so the business will save money
29. [6] (d) Arguments against:
30. [6] (d) High capital cost – with possible interest being paid to the bank for a loan
31. [6] (d) High running costs – such as fuel/drivers wages/decreasing profit
32. [6] (d) Need to employ someone to manage the fleet – adding to costs
33. [6] (d) May be difficult to obtain return loads so the vans are underused
34. [6] (d) May be involved in accidents so unable to be used
35. [6] (d) Money spent on own transport could be spent better – such as on a new website
36. [6] (d) Example of evaluation: Overall, if business has the necessary finance available, it should purchase its own fleet of vans so to facilitate deliveries at any time and decrease the costs of leasing.