Assessment of Factors Influencing Freight Mode and Carrier Selection: the Case of Packtra PLC Addis Ababa, Ethiopia

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Addis Ababa University


Due to an increasingly competitive market, companies forced to give due emphasis on determinants of freight transportation mode and carrier choice. Nowadays, having the best production system, producing with the best quality and offering to sale at the cheapest price are not enough to achieve competitiveness on the market. Business enterprises required to deliver their end-products to end-customers at the right time with the optimum way. Nonetheless, a delay of freight in transit is common problem for most land locked countries. Ethiopia, as one of these countries, is a victim of long transit periods coupled with additional transit charges. To this end, investigating and analyzing the factors contributing to the delay are worth of pondering. Hence, the purpose of this study was identifying factors influencing freight mode and carrier choice in the case of Packtra Plc, which is a company involved in the activities of inland logistic provision service in Ethiopia. The influence of important factors such as cost, time and reliability, safety and security, capacity, service, product nature, IT and managerial decision have been considered. The study has incorporated both primary and secondary source of data. The primary data was collected using 5 scale Likert’s scale questionnaire. Secondary data was collected using journal articles and internet website. Out of 70 total populations 61 valid responses were collected. The data was analyzed descriptively through the use of Statistical Packages for Social Studies (SPSS) version 20. Result is presented in tables. The study tried to focus on factors of influencing freight transport mode and carrier choice. Consequently, it has been revealed that transportation price, purchasing contract, reliability of on time delivery, reliability of on time pickup, and product characteristics related factors influencing freight transport mode and carrier selection of the Packtra. Among the factors, the issues of security are very important for the reliability and safe arrivals of goods. It is concerned with the wellbeing of the goods in transit. Companies should consider the issues of security seriously. However safety and security being considered least preferred determinants factors of freight mode and carrier choice factor



The Case of Packtra PLC