Slide 1Learning ObjectivesTransportation: Key TermsTransportation: Key TermsTransportationTransportationTransportationOverview of Transportation InfrastructureTransportation Infrastructure (2006)Transportation Infrastructure (2010)Selecting Transportation ModesAirfreightAirfreightAirfreightAirfreightMotor CarriersMotor CarriersLTL CarriersLTL CarriersPipelinesPipelinesRailroadsRailroadsWaterWaterTransportation Mode ComparisonIntermodal TransportationSlide 28Intermodal TransportationIntermodal TransportationTransportation SpecialistsTransportation SpecialistsTransportation SpecialistsTransportation SpecialistsTransportation RegulationTransportation RegulationFederal Regulation of Transportation in U.S.Federal Regulation of Transportation in U.S.Federal Regulation of Transportation in U.S.Federal Regulation of Transportation in U.S.Federal Regulation of Transportation in U.S.Federal Regulation of Transportation in U.S.Legal Classification of CarriersLegal Classification of CarriersPrivate TransportationSlide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Chapter 12TransportationLearning Objectives•To provide an overview of transportation infrastructures in several countries•To identify the five modes of transportation and learn about their respective characteristics•To discuss intermodal transportation•To familiarize you with several types of transportation specialists•To learn how different types of regulation impact transportation•To identify the legal classification of transportation carriers© 2008 Prentice Hall 6-2Transportation: Key Terms–Accessorial service–Barge–Broker–Common Carrier–Consignee–Contract carrier–Container–Dept. of Transportation–Dimensional (dim) weight–Excess capacity–Exempt carrier–Freight forwarder–Intermodal transportation–Land bridge services–Less-than-truckload (LTL)–Line-haul–Lock–Parcel carriers–Piggyback transportation© 2008 Prentice Hall 6-3Transportation: Key Terms–Private carriers–Rail gauge–Shippers’ association–Slurry systems–Surface Transportation Board–TEU–Terminal–Ton miles–Transportation–Truckload (TL)–Unit load devices (ULD)–Department of Transportation (DOT)© 2008 Prentice Hall 6-4Transportation•Transportation is the movement of goods and people between two points.Transportation•Transportation influences or is influenced by the following logistics activities:–Transportation costs are affected by node 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 choice12-6© Pearson Education, Inc. publishing as Prentice Hall12-7Transportation•Five different types or modes of transportation include:–Air–Motor carrier (truck)–Pipeline–Rail–Water© Pearson Education, Inc. publishing as Prentice Hall12-8Overview of Transportation Infrastructure•Wide disparities in the various infrastructures exist between highly populated countries •Lack of infrastructure makes it difficult to use that mode domesticallyTransportation Infrastructure(2006)6-9Brazil China India UK USAir (runway > 10k ft.) 8 54 17 8 191Highway (paved, km) 95K 1448K 2411K 388K 4165KPipeline (oil, km) 5.2K 14.5K 5.6K 6.4K 244.6KBroad gauge rail (km) 4.9K 45.7K 0.5KStd gauge rail (km) 0.2K 71.9K 16.8K 227.7KNarrow gauge rail (km) 23.9K 14.4KWater (inland, km) 50K 124K 14.5K 3.2K 41KArea (km2) 8544K 9806K 3167K 244.8K 9162KTransportation Infrastructure(2010)6-10Brazil China India UK USAir (runway > 10k ft.) 7 63 21 9 189Highway (paved, km) 96K 3584K 3320K 394K 4375KPipeline (oil, km) 4.5K 20.1K 7.7K .7K 244.6KBroad gauge rail (km) 5.7K 52.8K 0.3KStd gauge rail (km) 0.2K 77.1K 16.2K 226.4KNarrow gauge rail (km) 22.9K .8K 8.5KWater (inland, km) 50K 110K 14.5K 3.2K 41KArea (km2) 8544K 9806K 3167K 244.8K 9162Khttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2053rank.htmSelecting Transportation ModesAttributes•Cost•Speed (transit time from pickup to delivery)•Reliability (consistency of delivery)•Capability (amount of different types of product)•Capacity (volume/weight can be carried at one time)•Flexibility (ability to deliver the product to customer)© 2008 Prentice Hall 6-11© Pearson Education, Inc. publishing as Prentice Hall12-12•Airfreight–Generally the fastest mode–Expensive–Accessorial service, if needed, adds cost and time–Best suited for high-value, lower-volume urgent, perishable or time-specific deliveries–Dimensional weight used for ratesAirfreightAirfreightAdvantages:•Speed (line-haul)Disadvantages:•Cost•Flexibility (need of accessorial service)•Limited capacity–Boeing 737: 10 tons; 777: 60 tons, 747: 100 tons–Airbus A-380: 150 tonsApplicable: high-value, low-volume© 2008 Prentice Hall 6-13© Pearson Education, Inc. publishing as Prentice Hall12-14•Examples of products that move by air:–Auto parts and accessories–Cut flowers and nursery stock–Electronic or electrical equipment, i.e. iPods–Fruits and vegetables–Machinery and parts–Metal products–Photographic equipment, parts, and film–Printed matter–Wearing apparelAirfreight© Pearson Education, Inc. publishing as Prentice Hall12-15•Airfreight reliability is problematic due to delays caused by:–Weather–Congestion and resultant delays with air passenger transportation (belly freight)Airfreight© Pearson Education, Inc. publishing as Prentice Hall12-16•Motor Carriers–Most important business user of the Interstate Highway System–Primary advantage is flexibility–Cost is generally lower when compared to airfreight–LTL vs. TLMotor CarriersMotor CarriersAdvantages:•Flexibility•CapabilityDisadvantages:•Cost (only cheaper than airfreight)•Limited capacity: 40 tons (Interstate Hwy)© 2008 Prentice Hall 6-17LTL Carriers•Less-than-truckload (LTL)–150 to 10,000 pounds–Too big to be handled manually, too small to fill a truck–LTL trucks carry shipments from many shippers–Prominent LTL carriers include:•ABF Freight System•FedEx Freight•UPS Freight•YRC (formerly Yellow Freight and Roadway)© Pearson Education, Inc. publishing as Prentice Hall12-18LTL Carriers•Less-than-truckload (LTL) (continued)–Process•Local pick-up•Origin terminal used to load aboard line
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