Great Lakes carriers Provide services between ports on Great Lakes Lake ships

Great lakes carriers provide services between ports

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• Great Lakes carriers Provide services between ports on Great Lakes Lake ships tend to remain on lakes Some lake ships access Atlantic and Gulf coast ports via St. Lawrence Seaway • Coastal carriers Operate ocean-going ships and barges along Atlantic, Pacific and Gulf of Mexico coasts Moves large quantities of crude oil from Alaska ports to refineries along Pacific Coast • Intercoastal carriers Operate ocean going ships and barges between coasts Moves large quantities of oil from Gulf to Atlantic ports Competition • Moderate intramodal competition • Small number of carriers on e ach waterway system • Intense intermodal competition • With rail for dry bulk commodities (grain, ores, coal) Competition focused around central U.S. river system and the Great Lakes • With pipelines for oil and petroleum products Competition focused along coasts and Mississippi River system Operating and Service Characteristics • Principal competitive advantages • Low cost transport service for large volumes over medium to long distances • Relatively large carrying capacity • Fuel ef ficient Verspreiden niet toegestaan | Gedownload door M Alam ([email protected]) lOMoARcPSD|866183
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Operating and Service Characteristics • Principal competitive disadvantages • Speed of service Slowest mode for dry cargoes • Weather -related service disruptions Vulnerable to ice, flood, and drought conditions • Accessibility limitations • Packaging requirements for high -value goods • Service disadvant ages may add cost for user and create tradeoffs with low rate advantage • Commodities hauled • Water carriers well suited for low value-to-weight cargoes where transport rates are significant part of total delivered cost Equipment • Vessels • Have large openings into cargo holds to facilitate cargo loading and unloading • Watertight walls divide holds enabling carrying of multiple types of commodities • Largest vessel: tanker 18K – 500K ton capacity Used largely to transport petroleum • Barges – powerless vessel towed by towboat Used largely on inland waterways Low marginal cost to add barge to a tow Terminals • Functions • Facilitate intermodal transfers • Provide temporary storage in port area • Require significant capital investment • Facilities include ship loa ding/unloading equipment, land for storage, road and rail access • Most are publicly provided and operated • Some are owned by large bulk commodity shippers • Recen t improvements focus on mechanization Cost Structure • Relatively high variable, low fixed costs • Fixed costs: about 15% of total operating costs Nature provides ways Governments provide for improvements to rivers, canals, channels, locks, dams, terminals and ports • Variable costs: about 85% of total Water transport is not labor intensive (rail and pipelines are even less labor intensive) Carriers pay user charges for portion of publicly provided improvements Verspreiden niet toegestaan | Gedownload door M Alam ([email protected]) lOMoARcPSD|866183
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