Terminal activities, Breakbulk, Trade Unions. Crossdock a

1
Motor CarriersCh 3 - Coyle Bardi Novack pp.
95-126

• Dr. Mark Maggio

2
MC Industry Significance

• The only door-to-door mode
• 86 Total freight bill (2002)
• 28 of the ton-miles share
• 2 million employees
• 442 billion revenue miles
• Characterized by
• Generally continually decreasing costs
• Generally continually increasing productivity

3
Types of CarriersIndustry Structure

• For-hire carriers, Private Fleets
• Truckload and Less-than-Truckload
• Competition, ease of entry and exit
• LTL
• Link node networks
• Terminal activities, Break-bulk, Trade Unions
• Cross-dock activities
• Role of congestion and logistics
• TL
• Line haul
• J-I-T implications

4
Other types of carriers

• Small Package Carriers
• Heavy LTL
• Bulk Haulers
• Pneumatic tank (powders, granules, crystals,
  dust)
• Liquid bulk
• Gravity flow dump body fleet
• Special Rigging O-S, O-W carriers
• Drayage operators
• HH goods carriers
• Drive away carriers

5
Types of Commodities

• Dry goods and clothing
• Food, meats, reefer (cold or frozen)
• Building Materials
• Lumber, wall board cabinets, steel, bricks
• Cement, Concrete, bricks
• Manufactured Goods, Motor Vehicles
• Rolls steel, rolls paper
• Petroleum Oil, Gasoline, Diesel
• Haz Mat, Chemicals
• Mining products, Ores, Stone, Sand

6
Sector Characteristics

• Many small carriers in TL
• 586,000 carriers
• 81 have 6 or fewer trucks
• LTL High Fixed Costs-Major Consolidation
• Hub and Spoke Systems
• 8-12 carriers
• Yellow 20 market share nationally
• PUD ? line haul ? PUD p. 99

7
TL Sector

• Effects of Deregulation
• Effects of Hours of Service changes
• Log book Record of Duty Status
• Effects of competition
• Some consolidation
• JB Hunt
• Schneider National

8
Operating Divisions of Carriers

• Dry Van (box) division
• Reefer division
• Flat bed
• Bulk
• Tank division
• Step decks and drop decks
• Expedited division (go fast)
• Most carriers have a Brokerage division
• Brokering loads
• Brokering trucks
• 3d party or 4th party operations

9
Why do carriers have Logistics Operations?

• Cover fixed costs
• Including overhead
• Profit
• Differential rates of ROI
• Automated load and truck posting services (DAT)
• Its a non-asset-based business
• But some shippers will want you to have
  asset-based business to decrease risk improve
  responsiveness
• Allows carrier to go after shippers that need
  such services
• Re-positioning equipment balancing lanes

10
Commodities that Truck loses to Rail

• Coal
• Grain
• Petroleum
• Chemicals
• Automobiles
• Paper products
• Lumber
• Mining products, limestone
• I-M Container traffic

11
Competition among MCs

• Vigorous Competition since 1980
• Ease of entry and exit, some sectors with low
  capital requirements
• Operating authority, insurance issues
• Competition based on
• Rates
• Service trucking
• Service other
• Service spec equipment acquisition

12
MC Service Characteristics

• Door to door
• Can serve any location
• Speed of delivery (few or no nodes)
• Smaller shipment sizes
• Why this is beneficial
• Why this this is disadvantageous
• Inventory on wheels
• Loss and damage relatively low

13
Equipment Types in MC p. 105

• Power units and Trailers
• Straight Truck
• Semi-tractor trailer (articulated config)
• Doubles
• Triples
• Dog and Pups
• 28, 45, 48, 53 trailers
• Yard dog, Yard Goat
• Dolly, Chassis

14
Special Vehicle Types

• Reefers
• Open top
• Flatbed (stakes)
• Side-kit trailer
• Curtain-side trailer (rag top)
• High cube box
• Tanks
• Auto rack - automobile
• Livestock hauler - Bull rack