North american logistics 483 would benefit from

This preview shows page 510 - 512 out of 537 pages.

North American logistics 483 would benefit from economies of scale in addition to the untapped port capacity. Inbound logistics An important characteristic of North American logistics is the imbalanced traffic, a reflection of the negative trade balance that has endured in the United States since the 1990s. For instance, of the total value of trade handled in 2007 by American maritime gateways, imports accounted for a staggering 73 per cent. The structure of global trade thus impacts heavily on the operations of North American gateways that are essentially a system dealing with the intricacies of inbound logistics. North American retailers account for a substantial share of containerized imports, mostly involving finished consumption goods bound to major inland freight distribution centres. The largest importers, such as Wal- Mart, Home Depot, Target, Sears, Costco, Ikea and Lowe’s, are all mass (Big Box) retailers relying on high-volume and low-margin goods, which are dominantly produced abroad. It is worth mentioning that about 60 per cent of all Chinese trade surplus with the United States is the outcome of American-owned firms operating in China and importing their output in the United States. Exporters show a completely different profile and thus completely different supply chains. A major category of containerized Whirlpool Wal-Mart 0 200,000 400,000 Importers 600,000 800,000 Target Home Depot Sears Holding Dole Food Costco Wholsale Lowe’s LG Group Philips Chiquita Heineken Ikea Ashley Furniture General Electric Jarden Samsung Red Bull Nike JC Penney Newport Chintemational America Chung Nam 0 200,000 400,000 Exporters 600,000 800,000 Weyerhaeuser Cargill Koch Industries International Paper Dow Chemical Dupont Potential Industries Procter & Gamble Meadwestvaco Cedarwood-Young Archer Daniels Midland BASF Delong ExxonMobil JC Horizon Denison CGB Enterprises Sims Metal Management Figure 28.2 American foreign trade by maritime containers, 2008 (in TEUs)
Image of page 510

Subscribe to view the full document.

484 Global logistics exports concerns recycled products with exporters such as America Chung Name, Potential Industries or Cedarwood-Young. Other major exporters include forest and paper products (eg Weyerhaeuser, Inter- national Paper), agribusiness (eg Cargill, Archer Daniels Midland) and chemicals (eg Dow, Dupont). Two important logistical functions are linked with inbound logistics: transloading and empty container repositioning. Transloading involves the transfer from one load unit to another, which can be a complex task if the load units are significantly different. Repositioning involves making a container available for export activities once its import function has been fulfilled. If export cargo is unavailable, for example due to trade imbalances, then the container needs to be repositioned globally, which comes at a cost. There are several causes that may favour container trans- loading, which tends to take place in the vicinity of port terminals or inland (satellite) terminals (see Table 28.1).
Image of page 511
Image of page 512

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern