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Logistics ManagementLSM 730
Dr. Khurrum S. Mughal
Lecture 17
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Transport Choices
CR (2004) Prentice Hall, Inc.
· Primary intercity carriers - Air - Truck - Rail - Water - Pipe
· Coordinated services - Piggyback - Birdyback - Fishyback
· Small shipment carriers - UPS - Federal Express - Postal services - Bus Package Express
· Agents
- Freight forwarders - Shipper associations
· Others
- Autos - Bicycles - Taxis - Human - Electronic
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Importance of Modes
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By Products Hauled
· Air--very high-valued, time sensitive products · Truck--moderately high-valued, time sensitive
products. Many finished and semifinished goods · Rail--low-valued products including many raw
materials
· Water--very low-valued products moved domestically, high -valued if moved internationally
· Pipe--generally limited to petroleum products and
natural gas
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Importance of Modes (Cont’d)
By Volume Moved
Percent Transportation of total mode volume Railroads 36.5% Trucks 24.9 Inland waterways 16.3 Oil pipelines 22.0 Air 0.3 Total 100.0
CR (2004) Prentice Hall, Inc.
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Performance Overview Air generally fast over long distances and a fair
degree of relative variability
Water is very slow and moderately reliable
Pipe is very slow but reliable
Truck is moderately fast and reliable
Rail is slower and less reliable than truck
Relative Costs of Performance
CR (2004) Prentice Hall, Inc.
Price, Mode ¢/ton-mile Rail 2.28 Truck 26.19 Water 0.74 Pipeline 1.46 Air 61.20
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Legal Classification
· Common carriers· Contract carriers· Private · Agents
Documentation · Bill of lading· Freight bill· Freight claims· Damage, Loss & Delay Claims· Overcharge Claims
· Free trade zones· Documentation· Modes
International Transportation
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Foreign (Free) Trade Zone
Products from abroad
Products to foreign markets
No duties paid
Cus
tom
s
To domestic markets
Duties paid
Manufacturing and/or storage
Duty free zone
Products from abroad
Products to foreign markets
No duties paid
Cus
tom
s
To domestic markets
Duties paid
Manufacturing and/or storage
Duty free zone
CR (2004) Prentice Hall, Inc.
