Economies of large volume
Systems of Freight Consolidation
Freight-forwarding
Hub-and-spoke transport systems

Economies of flow
Break-in-bulk freight system
Freight containerization

Other influences on Transport Costs
o Type of cargo
o Availability of competing modes of transport

Pricing Systems
Cost-plus pricing
Producer Pricing
1. FOB/CIF pricing (Free-on-board/Cost, insurance, and freight).
2. Uniform delivered pricing
3. base-point pricing

Assignment for Next TIme
Read pp. 322-341 Come to class with a basic understanding of the following concepts: telecommunications, end of geography myth, to what extent do telecommunications cause decentralization or decentralization?, teleworking, origins and growth of the Internet, broadband, digital divide, social implications, e-commerce, electronic data interchange.