Module 5: Transportation & Freight Fundamentals
- Compare the major modes of transport: road, rail, air, and sea
- Understand basic Incoterms like FOB and CIF
- Identify last-mile delivery challenges in African markets
Each transport mode trades off cost and speed differently: sea freight is the cheapest way to move large volumes over long distances but is the slowest, air freight is the fastest but most expensive, and road and rail serve as the backbone for most inland and regional distribution. Incoterms are standardized international trade terms that define who is responsible for shipping costs, insurance, and risk at each stage of a shipment — for example, FOB (Free on Board) means the seller's responsibility ends once goods are loaded onto the shipping vessel, while CIF (Cost, Insurance, Freight) means the seller also covers insurance and freight to the destination port. Last-mile delivery — the final leg from a distribution hub to the customer's door — is often the most expensive and complex part of the entire supply chain, and this is especially true in many African markets where inconsistent street addressing, traffic congestion, and uneven road infrastructure in some regions require logistics companies to innovate with solutions like rider networks, pickup points, and GPS-pin-based addressing.
1. Under FOB (Free on Board) terms:
2. Which transport mode is generally the fastest but most expensive?
3. Why is last-mile delivery especially complex in many African markets?