Modes of Transportation

1
Modes of Transportation

• By
• John Hancey
• Supply 361

2
Introduction

• ...freight transportation is vital to the
  Nation's economy. At any given moment, billions
  of dollars' worth of goods are being moved by
  truck, train, ship, or barge, or held in a yard
  for transport or distribution.
• Scott Johnson, Reliability in logistics is Key
  to global market, Public Road Magazine

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How Important is Transportation?

• Source Bureau of Transportation Statistics,
  February 2002

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How is this done?

• 6.3 million rail cars
• 25.2 million trucks
• Over 300 ships with the capacity of 2,000-5,000
  containers

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Purpose

• Evaluate the 4 main modes of Transportation
• Trucksemi-tractors
• Rail
• Ocean Carrier
• Air Carrier
• Industry Trend
• Exercise
• Summary

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Semi-Tractor
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Semi-Tractors

• U.S Department of Transportation defines a
  semi-truck as
• A commercial vehicle operating on the interstate
  highway system or divided highways to move
  material or people for compensation
• Generally, have 3 axlescommon configruation 10
  wheels
• Gross combination weight rating, of 4,536 kg
  (10,001 pounds) or more

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Semi-Tractor Segments

• Semi-tractors segments
• Single-axle, up to 20,000
• Tandem-Axle, up to 34,000
• Gross vehicle weight over 80,000
• Semi-Tractor lengths
• Minimum 24 and maximum 75 feet long

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Truck Transportation Evaluation

• Advantages
• Greater control of over delivery
  locations-flexible
• Less pilferage of goods
• Last mile service
• Disadvantages
• Increase traffic congestion
• Higher rate of traffic accident

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Railroad
www.freephoto.com
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Railroad

• Railroad is divided into 3 segments
• Light rail
• Rapid transit
• Freight train

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Railroad Evaluation

• Advantages
• Most efficient mechanized land transport
• Very safe
• Cheaper than trucking
• Greater load capacity

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Railroad Evaluation

• Disadvantages
• Rigid routing destinationsinflexible
• Multiple handlings of goodsleads to delays
• Expensive infrastructure
• Not suited for smaller loads or short distances

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Ocean Freighters
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Ocean Freighters

• Ocean Freighter segments
• Bulk Carrierscarry bulky and dry items, i.e.
  coal or grains
• Tanker Carriersdesigned to haul liquids, i.e.
  oil
• Container Carrierscarry cargo in truck size
  containers (TEU)

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Ocean Freighters

• Categorized by capacity or the canals a ship can
  travel through
• Handymaxsmallest carrier, less than 50,000 dwt
• Aframaxtankers between 75,000-100,000 dwt
• Suezmaxlargest carrier to pass through the
  canal, 125,000 to 200,000 dwt
• ULCClargest tankers with displacement between
  320,000 to 500,000 dwt

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Ocean Freighters Evaluation

• Advantages
• Cheap
• Very few accidents
• Best for dry and bulky itemssteel or oil
• Largest hauling capacity
• Most efficient hauler for fuel consumption

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Ocean Freighters

• Disadvantages
• Slow
• Bad for perishable or time sensitive goods
• Limited to water routes

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Air Freighters
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Air Freighters

• Large modified passenger planes that are used to
  carry freight. Most common models are the
  following
• Boeing 747, 737,
• Airbus A320, 340
• Airbus Beluga

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Air Freighter Evaluation

• Advantages
• Speed of delivery-best for time sensitive items
• Best for time defined deadlines
• Reduces traffic congestion
• Best for smaller and less bulky items
• Seamless integration of plane to truck delivery
  solution
• Disadvantages
• Very expensive
• Not for large bulky items
• Less carrying capacity than ocean transporters

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Industry Trend

• Intermodal
• Uses several types of transportations en route
• Uses a truck for pick-up and delivery, but the
  long haul uses either rail/ocean
• Utilizes each modes of transportations
  efficiencies

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Activity

• You have received a report that your companys
  new
• Gazogle toy is outselling the companys highest
• expectation in the mid-west region. Store
• managers in the mid-west are demanding another
• shipment of Gazogle before the holiday season to
• replenish their low inventory levels. As the
• companys logistic manager, you need to figure
  out
• the cheapest method to transport the Gazogle from
  the
• factories in China to Chicago. You must also
  ensure the toys
• reach the mid-west stores prior to the holiday
• season, which is 18 days away.

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Activity Cont.

• Compute the cheapest method and route to ship the
  toys from China to Chicago using any single or
  combination of modes of transportation and make
  sure the toys arrive before the holiday season.

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Activity Data

• Hint of Units Required means that several
  planes, trucks or railroad cars will be needed to
  transport the entire shipment.
• AssumeRailroad can deliver the goods to the
  final destination.

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Activity Solution
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Summary

• Truckingvery flexible to your needs, but prone
  to accidents
• Railmost economic land transportation, but
  limited in final destinations
• Oceaninexpensive, but slow
• Airmoves at the speed of business, but with a
  cost

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Final Thought

• quintessential requirement for succeeding in a
  global, just-in-time economy is the ability to
  plan trips, deliveries, and transactions down to
  hours and minutes.

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Readings

• Joseph OReilly, Panama Gold, Inbound logistics
  magazine, available at http//www.inboundlogistics
  .com/articles/features/0105_feature04.shtml
• Road Information Program, Americas Rolling
  Warehouse, available at www.tripnet.org/TruckingRe
  port020904.PDF
• Scott Johnson, Reliability in logistics is Key
  to global market, Public Road Magazine,
  www.findarticles.com
• Vineet Agarwal, Trucking has the advantage of
  last mile service, The Financial Express,
  available at www.financialexpress.com
• U.S. Department of Transportation, Bureau of
  Statistics
• Library of International Marine Organization,
  available at http//www.imo.org/imo/Library
• The Great Lakes St. Lawrence Seaway System - A
  Vital Waterway, available at www.greatlakes-seaway
  .com
• Tom Piatak, Carriers Corner, Inbound Logistics
  magazine, October 2002