Introduction into Logistics

Introduction into Logistics

PhD Natasha LutovinovaLogistics Lecturer

E-mail: [email protected]: G1.006

mailto:[email protected]

Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10th edition

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Introduction into Logistics Course Outline

12.05 Introduction

13.05 SCM Concept, Inventory

14.05 Demand Management, Warehousing Management

15.05 Transportation Management, International Logistics

16.05 Poster Session

CHAPTER 12

Transportation

5 - 6

Learning Objectives

To describe the role of freight forwarders and other specialists

To distinguish the five modes of transportation

To explain the trade-offs between the five modes of transportation

6 - 6

TransportationTransportation is the movement of goods and people between two points

Influenced by:

Transportation costs

Transportation modes used: air, motor carrier (truck), pipeline, rail, water

Packaging

Materials handling equipment (loading-unloading, shipping docks)

Order management methodology (maximum consolidation)

Customer service goals

Environmental considerations

7 - 6

Transportation

Transportation modes

Cost

Speed

Reliability

Capability (amount)

Capacity (volume)

Flexibility (ability to deliver a product to a customer)

8 - 6

Total cost approach

Inventory Transportation

Warehousing


Supply chain success requires transportation

Transportation costs are affected by location

Inventory requirements are influenced by mode

Packaging requirements are dictated by mode

Materials handling equipment and design of the docks are dictated by mode

Maximum consolidation of loads achieved with order-management technology reduces costs

Customer service goals influence carrier choice

9 - 6


Airfreight

Motor carriers (trucks)

Pipelines

Railroads

Water

10 - 6

11 - 6

Example of the capabilities of transport by ocean vessels:

12 - 6

http://www.youtube.com/watch?v=bokySqGdRhM&feature=fvsr

A ship on fire:

http://www.youtube.com/watch?v=i51q3hMr0nE&feature=related



Modes of transport rated according to criterion

(1 - best alternative; 5 = worst alternative)

Road Rail Water AirPipeli

ne

Speed 2 3 4 1 5

Flexibility/ Accessibility 1 3 4 3 5

Reliability 2 3 4 5 1

Capability 3 2 1 4 5

Frequency 2 4 5 3 1

Risk of damage 4 5 2 3 1

Cost 4 3 1 5 2

13 - 6

Transportation modesAirfreight

Line-haul (terminal-to-terminal movement of freight), belly freights

Consignees

Accessorial service

Dimensional weight (amount of space occupied in relation to actual weight)

Wearing apparel

Electronic equipment

Machinery and parts

Cut flowers and nursery stock

Auto parts and accessories

Fruits and vegetables

Photographic equipment

14 - 6

Aircraft freight capacity

15 - 6

Large Containers Used by International Airlines

17 - 6

18 - 6


Airfreight

Motor carriers

LTL (less-than-truckload)Too big to be handled manually, too small to fill a truck

LTL trucks carry shipments from many shippers

Most large firms are LTL carriers

Operations via terminals (consolidation)

(F)TL (truckload)

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Airfreight

Motor carriersLess-than-truckload (LTL) (continued)– Process– Local pick-up– Origin terminal used to load aboard line haul (Movement

of goods between cities)– Line haul to terminal near destination– Destination local delivery on smaller trucks– Consignee receives (the consignee is the person to

whom the shipment is to be delivered whether by land, sea or air)

(F)TL (truckload): 18 tons, 82 m3, 110 m3, 120 m3, 1300x2450x2500-3000 mm

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21 - 6


Airfreight

Motor carriers (fronthaul & backhaul transportation)

Pipelines

Excess capacity

Slurry systems (phosphate, limestone, copper concentrate, iron concentrate)

Pollution - Contamination

22 - 6


Airfreight

Motor carriers

Pipelines

23 - 6


Airfreight

Motor carriers

Pipelines

Railroads

Ton miles: the number of tons multiplied by the number of miles transported

Rail gauge: 1435 mm

1520 mm

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25 - 6


Airfreight

Motor carriers

Pipelines

Railroads

Water:

Deep Sea Shipping

Short Sea Shipping

Inland Shipping

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27 - 6

Transportation modes - waterShort Sea Shipping

Ports in Europe and in the Mediterranean that are

connected to Antwerp by ‘short sea’ water transport

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Transportation modes - waterInland shipping

Barge

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Ocean Shipping

Types of VesselsContainershipsRoll On-Roll Off (RO-RO) vesselsTankersParcel TankersTrampsSpecialized vesselsGeneral cargo

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31 - 6

1795, Benjamin Outram, Little Eaton Gangway

32 - 6

1955, Malcom McLean, 3.0x2.4x2.4

20′ co/heavy tested /duty container

40′ container

40′ high-cube

container

45′ high-cube container

48’ high-cube container

53’ high-cube container

metric metric metric metric

externaldimensions

length 6.058 m 12.192 m 12.192 m 13.716 m 14.6304 m 16.1544 mwidth 2.438 m 2.438 m 2.438 m 2.438 m 2.591 m 2.591 mheight 2.591 m 2.591 m 2.896 m 2.896 m 2.903 m 2.908 m

interiordimensions

length 5.710 m 12.032 m 12.000 m 13.556 m 14.44 m 15.994 mwidth 2.352 m 2.352 m 2.311 m 2.352 m 2.505 m 2.505 mheight 2.385 m 2.385 m 2.650 m 2.698 m 2.726 m 2.710 m

door aperture

width 2.343 m 2.343 m 2.280 m 2.343 m 2.493 m 2.493 mheight 2.280 m 2.280 m 2.560 m 2.585 m 2.691 m 2.597 m

volume 33.1 m³ 67.5 m³ 75.3 m³ 86.1 m³ 98.8 m3 108.6 mmaximumgross mass

30,400 kg 30,400 kg 30,848 kg 30,400 kg 30,480 kg 31,000 kg

empty weight 2,200 kg 3,800 kg 3,900 kg 4,800 kg 5,140 kg 5,550 kg

net load21700/28,200

kg26,600 kg 26,580 kg 25,600 kg 25,340 kg

Tested up to 31,000 kg

Twistlock

http://en.wikipedia.org/wiki/Metric_system

The world’s largest container vessel:MSC “Kalina”

Capacity: 13800 TEU

33 - 6

http://www.youtube.com/watch?v=ypyeOVCBSsE

34 - 7

1. «MSC Kalina», MSC, 13 800 TEU.2. «Emma Maersk», MAERSK, 11 000 TEU (Maersk Line declares 15500TEU)3. «CMA CGM Andromeda», 11 330 CMA-CGM, TEU 4. «COSCO America», COSCO, 10 062 TEU5. «CSCL Long Beach», China Shipping Container Line/CMA-CGM, 9572 TEU6.«Bremen Express», Hapag-Lloyd, 8749 TEU7. «NYK Adonis», NYK, 9300 TEU8. «MOL Creation», APL, 8100 TEU9. «APL Russia», APL, 7900 TEU10. «Hatsu Sigma», Evergreen, 7042 TEU

http://www.worldslargestship.com/

Handysize Class — 260—1000 TEUHandymax Class — 1000—1700 TEUFeeder Class — 1700—2500 TEUSub-Panamax Class — 2500—4000 TEUPanamax Class — 4000—7000 TEUPost-Panamax Class — 7000 −13000 TEUSuper-Post-Panamax Class/Е-class - 15500TEU Triple E-class — 18000TEU

http://ru.wikipedia.org/wiki/Emma_Maersk

Figure 15-1: Loading a Travel Trailer Aboard a RO/RO Vessel in the Port of Seattle

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Tanker

36 - 7

Bulk cargo

Transportation modes- water

37 - 6

World’s Largest ship: Knock Nevis

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http://upload.wikimedia.org/wikipedia/en/d/da/Knock_Nevis.jpg

39 - 6

Piggyback

40 - 6

41 - 6

Transportation Specialists

Freight forwarders

buy space at TL (truckload) rate and sell at somewhat less than LTL rate

pick-up and deliver; motor carriers or railroads do line-haul

function as transportation departments of small firms

may specialize in specific cargoes

42 - 6


Freight forwardersAir forwarders (consolidators)

– Consolidate shipments

– Tender to airlines in containers ready for loading

– Forwarders provide for retailing function

– Airline provides for wholesaling function

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Freight forwarders

Shipper’s associations

BrokersA facilitator who brings together a buyer and seller

May consolidate LTL shipments and then give to truckers, forwarders, or shippers’ associations

Parcel carriers

44 - 6

Parcel carrier / Courier service

45 - 6

Legal classification of carriers

Common carriers

Contract carrier

Exempt carriers

Private carriersPrivate transportation is when the shipper provides and operates his own equipment

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Private Carriers

– Private transportation is used when firms own and operate their own trucks, railcars, barges, ships, and/or airplanes.

– Private trucking provides• Improved level of customer service• Advertising on the trucks• May be less expensive

47 - 6

Transportation Regulation

Environmental regulation and restrictions

Safety regulation

Economic regulation

48 - 6

300 km by train

100 km by truck

6 km by air

500 km by water

Five litres of fuel transports one ton ……. km

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Documents

Introduction into Logistics