Conditions Affecting Transport Costs

ConditionFactorExamples
GeographyDistance, physiography, accessibilityShipping between France and England vs. shipping between France and the Netherlands
Type of productPackaging, weight, perishableShipping coal
Shipping flowers or meat
Economies of scaleShipment sizeA 777 compared to 737 (passengers)
Post-Panamax compared to Panamax (freight)
Trade imbalanceEmpty travelTrade between China and the United States
InfrastructureCapacity, limitations, operational conditionsThe Interstate
ModeCapacity, limitations, operational conditionsA bus compared to a car
Competition and regulationTariffs, restrictions, safety, ownershipThe European Union, The Jones Act