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Transportation and Logistics
Class 2, 2014
Transportation Modes
U of T Infrastructure Study: Portland
Time Congested: 65 %Excess Fuel Consumption: 34 Mil GalTotal Delay (Person Hours): 40 MilTruck Congestion Cost: $265 MilCost Per Peak Auto Commuter: $ 8302009 Data (latest available)
Global CompetitivenessWorld Economic Forum Annual Report
2008: U.S. #1 2010: U.S. #4 2011: U.S. #5 2012: U.S. #7
2012 Top 10: Switzerland, Singapore, Finland, Sweden, Netherlands, Germany, U.S., UK, Hong Kong, Japan
Criteria: Legal and Admin Framework, Mgmt of Public Finance, Bureaucracy, Corruption, Transparency
Logistics ManagementTransportation Modes
Truck Rail Air Marine Pipeline Intermodal
Logistics Management Warehousing and Distribution
Number of DC’s Locations Inventory Levels Inventory Locations Delivery Routing
Logistical Forms Private Public Third Party
Third Party Logistics FirmsFreight ForwardersCustomhouse BrokersShippers’ CooperativesFreight BrokersParcel DeliveryAir Express3PLs (4PLs)Others
USPS, Bus, Cab
Carrier Types
Common Carriers Asset Based NVOCC
Contract CarriersPrivate CarriersExempt Carriers
Intermodal TransportationContainers
Chassis Rail Car
Flatcar Container Cars
Container Ships Barges
Trailers Flatcar Ro-Ro Vessels Barges
Standardization
Intermodal Transportation Standardization
Container Sizes Standard 20’ and 40’ 44’ Refrigerated 48’ New 53’
Stacking Mechanisms Container Lifting Interconnection
Pallets
Chassis Ship container slots Double Stack Rail
Cars Container Handling
Dockside Cranes Container Yard
Top Lifters Straddle Carriers
Transportation ModesAir
High Value Time Sensitive Highest Cost Lowest Total Volume
Transportation Modes
Truck Goes Almost Anywhere Flexible Second Highest Cost Second Highest Total Volume
Transportation ModesRail
Bulk Commodities High Density
Coal, Ores Grains Steel Lumber
Middle Cost Highest Total Volume
Transportation Modes
Water Ocean
Bulk Container VLCC
River / Coastwise Tug & Barge
Next Lowest Cost Next Lowest Volume
Waterways
America’s 26,000 miles of inland waterways:
Move 600 million tons/year. Indirectly involve 800,000 jobs.Transport $100 billion in interstate and
international trade
ComparisonThe cargo capacity of a
standard inland barge:
= 15 railcars
= 60 trucks
Transportation ModesPipelines
Any Liquid or Liquefiable Products Oil Gas Coal Chemicals
Lowest Cost Middle Volume
Intermodal Transportation
ContainersBargesTrailersFlatcarRo-Ro VesselsBulk Carriers
Logistical Cost Factors
Inbound Raw Material RM Inventory Costs In-Plant Logistics Finished Goods
Inventory Costs Documentation Costs Packaging Loading Line-haul
Transportation Security Costs
Customs Clearance Local Transportation Unloading Unpacking Material Handling Inventory Costs Pull/Pack/Ship Local Transportation to
Final Customer
Transportation IssuesBill of LadingFreight BillFreight Claim (Loss or Damage Claim)FOB Point INCO terms
ConsolidationCombine Inbound and Outbound VolBreak BulkDemurrageDetentionTransload Facilities
Traffic Management Manage Inbound and Outbound
Transportation Requirements Track Rates and Commodity Classifications Choice of Mode Carrier Selection Routing and Scheduling Consolidation Track and Trace Custom Equipment Manage Carrier Relationships
Rate DeterminationWeight/Density
Truckload (T/L), LTL, Minimum WeightDistanceProduct Description/FragilityRate BreaksFuel SurchargeCubic VolumeAccessorial Charges
Transportation PricingCarrier Pricing
Class Rates Commodity Rates Contract Rates FAK Rates
Seller Freight Pricing Zone Pricing Basing Point Pricing
Comparing ModesEach transportation mode satisfies
specific needs in carrying goods across the country and around the world.
Each mode has distinct advantages over others in certain areas.
Questions, Comments, Observations, Conclusions,
Arguments?