Fig. 1.1 shows the percentage share of the global freight transport market carried by different methods of transport. [Figure 1.1] Use Fig. 1.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [1] Where goods/services are bought/sold/traded worldwide/internationally/globally between countries
2. [1] Waterways/river/canal
3. [1] Pipeline
4. [2] Answer = $108 bn
5. [1] Method 27% of $400 bn = 0.27 × $400 bn
6. [1] Air is expensive/ it is cheaper by other methods/modes/ways compared to other modes/or example such as road/rail/sea/increases costs/not cost-effective/not affordable
7. [1] Air has limited carrying capacity/less space to carry goods in bulk/more space on sea transport/other transport methods
8. [1] Not suitable for bulky goods compared to sea transport/weight restrictions
9. [1] Not suitable for certain products e.g. dangerous goods or example such as explosives
10. [1] Not suitable for fragile goods easily damaged
11. [1] Trans-shipment is needed/less flexible as most airports located outside cities/near markets
12. [1] There may be delays due to bad weather
13. [1] Environmental concerns pollution/high carbon footprint
14. [1] Documentation can be complex
15. [1] Some goods are not urgent example/better to use sea/rail/road
16. [1] Yes · can save a business time money which can be then used elsewhere in the business
17. [1] less packaging can be assembled quickly
18. [1] means less weight
19. [1] results in less manpower involved
20. [1] saving labour costs
21. [1] and more packages leaving the premises
22. [1] less packaging can mean quicker stacking of goods
23. [1] and more warehouse space to store more products
24. [1] saving warehouse costs
25. [1] less material used in packaging equals less waste in landfills
26. [1] more packaging means more vehicles to transport the goods leading to environmental damage negative externalities pollution
27. [1] No - less packaging may mean that it is insufficient/not secure
28. [1] needs to be strong enough to protect/preserve/secure the product from handling/heat/dirt to reach the destination safely/to be safe
29. [1] otherwise there will be an increased risk of damage/breakages
30. [1] example, such as fragile goods leading to reduced sale price and less profits
31. [1] less packaging may be unattractive to consumers
32. [1] customers leaving poor reviews
33. [1] less customer satisfaction leading to less demand for a business's goods
34. [1] need to prevent losses and reputation/brand image being affected
35. [1] The transport document that shows the freight charged for goods is a bill of lading.
36. [1] Businesses search for sustainable transport solutions to save money.
37. [1] Being close to transport links enables retailers' customers to easily transport/carry bulky goods
38. [1] If it is a physical retailer that relies on footfall, they are likely to receive more passing trade as customers have easier access to the shops/waiting at bus/rail stations so increasing sales
39. [1] Retailers need to have access to a variety of transport methods to ensure that the items are not left too long in the shop taking up too much storage space/perishable goods stay fresh
40. [1] Large retailers can gain supplies from regional distribution centres who are located near major road networks
41. [1] It is more efficient/saving costs so increasing profits
42. [1] Reduces delays/speedier to receive send supplies
43. [1] Easier for customers to use click and collect service increasing customer loyalty
44. [1] Good transport links help to widen job-search area for employees so that they are happier to commute to work/improves access for employees/easier for retail staff to travel to work
45. [1] Good transport links can encourage retailers to locate near each other and share services
46. [1] Ecommerce stores will benefit being near to road networks for more efficient delivery of goods
47. [1] However, competition may be more important than transport links as customers might buy at rival shops
48. [1] However, proximity to suppliers might be more important to obtain stock quickly.
49. Evaluation: Being near to transport links is clearly an important location factor for retail stores and logistics. However, many people prefer to drive to shops. If this is the case, retailers need to be sure that there is enough parking available. Other location factors such as competition, income levels, security and availability of labour are also important to retailers.