Better scheduling and use of vehicle capacity More efficient and reliable

Better scheduling and use of vehicle capacity more

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Better scheduling and use of vehicle capacity More efficient and reliable vehicles Increased cost competition due to deregulation Involves different types of shipments Direct truck – Shipment made with no stops Less than truckload (LTL) – Smaller shipment combined with other loads Modes of Transportation – Rail Has limited distribution Natural monopolies- railroad actually owns the tracks Mass movement of low valued goods Large capacities Railroads are “natural monopolies” Seven Class I railroads Four “majors” – BNSF, Union Pacific, CSX, Norfolk Southern Two carrier types: Linehaul freight carriers- long distances Shortline carriers- less than 500 miles trips, goes to individual locations
Modes of Transportation – Air High-valued, time-sensitive products- low weight Best for low weight-to-value ratio products Fastest for fast delivery over long distances Broad service range 88 air cargo carriers (22 major ones) Combination carriers – both passengers and supplies Air cargo carriers Modes of Transportation – Water Lowest costs and large capabilities Major facilitator of international trade 81% international freight movement Best for high weight-to-value products Mass movement of bulk commodities Low-valued (domestic shipment) High-valued (international shipment) Cost effectively move large quantities Petroleum, coal, iron ore, chemicals etc. Container ships Bulk carriers- oddly shape loads- pallets Tankers- liquids Roll-on, roll-off (RO–RO) vessels- rolling vehicles in the ship Modes of transportation – Pipeline Unique mode of transportation as the equipment is fixed in place and the product moves through it in high volume. Use to ship liquids such as oil and gas Three primary types 1. Gathering lines- the picture example- look at slide 2. Trunk lines 3. Refined product pipelines Mass movement of liquids and gasses Multiple liquids or gasses can be transported within a single pipe: Pig – a plug that separates liquids within a pipe Multimodal/Intermodal Transportation Use of two or more different modes in movement- several modes of transportation back to back Greater accessibility and overall cost efficiency Facilitates global trade
Development of standardized containers that are compatible with multiple modes. Containerized freight Hauls only the container. Eliminates the dead weight of understructure and wheels of a trailer. Standardized containers allow flexibility. Multimodal/Intermodal Categories Rail & Truck (Piggyback, Trailer-On-Flatcar (TOFL)) Rail & Water Rail & Air Rail & Pipeline Truck & Water (Fishyback) Truck & Air (Birdyback) Truck & Pipeline Water & Pipeline Water & Air Air & Pipeline Note: Can have more than two modes. Transport Management Decisions Owning versus Outsourcing Company Owned Transportation Effective when demand is high and stable to predictable markets- gallery furniture Good for maximizing flexibility within a stable geography Outsourced Common Carriers

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