1、Contemporary LogisticsTwelfth EditionChapter 12TransportationLearning Objectives(1 of 2)12.1 To compare and contrast transportation infrastructures in several countries12.2 To identify the five modes of transportation and learn about their respective characteristics12.3 To discuss intermodal transpo
2、rtation12.4 To describe several types of transportation specialistsLearning Objectives(2 of 2)12.5 To explain how different types of regulation impact transportation12.6 To identify the legal classification of transportation carriersTransportation(1 of 4)Transportation The actual,physical movement o
3、f goods and people between two pointsTransportation(2 of 4)Transportation influences or is influenced by the following logistics activities:Transportation costs are affected by the location of the firms plants,warehouses,vendors,retail locations,and customers Inventory requirements are influenced by
4、 mode of transportation used Transport mode selected influences packaging,and carrier classification rules dictate packing choiceTransportation(3 of 4)Transportation influences or is influenced by the following logistics activities:Type of carrier used dictates a manufacturing plants materials handl
5、ing equipment and the design of receiving and shipping docks Order-management philosophy that encourages maximum consolidation of shipments between common points enables a company to give larger shipments to its carriers and take advantage of volume discounts Customer service goals influence the typ
6、e and quality of carrier and carrier service selected by the sellerTransportation(4 of 4)Five different types,or modes,of transportation include:Air Motor carrier(truck)Pipeline Rail WaterComparing and Contrasting Transportation Infrastructure Wide disparities in the various infrastructures exist be
7、tween highly populated countries Lack of infrastructure makes it difficult to use that transportation mode domesticallyTable 12.1:Infrastructure Statistics in Several CountriescvSource:The World Factbook,www.cia.gov,2016.Transportation Modes(1 of 16)The attractiveness of a particular mode depends on
8、 the following attributes:1 Cost Speed Reliability Capability Capacity Flexibility1Drawn from David J.Bloomberg,Stephen LeMay,and Joe B.Hanna,Logistics(Upper Saddle River,NJ:Prentice Hall,2002),Chapter 7.Transportation Modes(2 of 16)Airfreight Generally the fastest mode for shipment exceeding 600 mi
9、les Expensive Accessorial service,if needed,adds transportation cost and time Best suited for high-value,lower-volume urgent,perishable,or time-specific deliveries Dimensional weight used for ratesTransportation Modes(3 of 16)Airfreight Examples of products that move by air:Auto parts and accessorie
10、s Cut flowers and nursery stock Electronic or electrical equipment(e.g.,iPods)Fruits and vegetables Machinery and parts Metal products Photographic equipment,parts,and film Printed matter Wearing apparelTransportation Modes(4 of 16)Airfreight Reliability is problematic due to delays caused by:Conges
11、tion and resultant delays with air passenger transportation(belly freight)Weather(e.g.,fog,snow,thunderstorms)Transportation Modes(5 of 16)Motor carriers Most important business user of the Interstate Highway System Primary advantage is flexibility Cost is generally lower when compared to airfreight
12、 Less-than-truckload(LTL)versus truckload(TL)Transportation Modes(6 of 16)Motor 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 Operate through a system of terminals Prominent LTL carriers in
13、clude:ABF Freight System FedEx Freight UPS Freight YRC FreightTransportation Modes(7 of 16)Motor carriers Less-than-truckload(LTL)Process From each terminal small trucks go out to customers,delivering and picking up shipments Shipments are taken to a terminal where loaded to line-haul trucks Line-ha
14、ul to terminal near destination Shipments loaded to smaller trucks for local deliveryTransportation Modes(8 of 16)Motor carriers Truckload(TL)Focus on shipments less than 10,000 pounds Exact weight depends on the product Close to the amount that would physically fill a truck trailer Possible that la
15、rge shipments from several customers can be consolidatedTransportation Modes(9 of 16)Motor carriers Truckload(TL)Prominent TL carriers include:J.B.Hunt Schneider National Swift Transportation Werner EnterprisesTransportation Modes(10 of 16)Motor carriers Truckload(TL)Process Shipments tend to move d
16、irectly from the shippers location to the consignees locationTransportation Modes(11 of 16)Pipelines Only mode without vehicles No need for vehicle operators Transportation is one way Most reliable modeTransportation Modes(12 of 16)Pipelines Tend to be the slowest mode Accommodates only liquid,lique
17、fiable,or gaseous products Capable of transporting large product volumes High fixed costs,but relatively low cost per unit due to large product volumeTransportation Modes(13 of 16)Railroads U.S.dominated by four freight carriers:Burlington Northern(west of the Mississippi)CSX(east of the Mississippi
18、)Norfolk Southern(east of the Mississippi)Union Pacific(west of the Mississippi)Domination can limit service and pricing optionsTransportation Modes(14 of 16)Railroads Neither“best”or“worst”on any of the six attributes Superior to air,motor,and pipeline,but inferior to water in ability to transport
19、different kinds of products Less flexibility than motor carriers,but more when compared to air,water,and pipelineTransportation Modes(15 of 16)Railroads Superior to air and motor with regards to volume,but inferior to pipeline and water Less expensive than air and motor,but more expensive than pipel
20、ine and water Faster than pipeline and water,but slower than air and truckTransportation Modes(16 of 16)Water Somewhat unreliable Drought Icing Aging lock system Slow average speeds Relatively inexpensive Focuses on lower value bulk commodities handled by mechanical means Many different kinds of pro
21、ducts can be carried Carries greater volumes than rail or truckIntermodal Transportation(1 of 4)Intermodal transportation Refers to transportation when using a container or other equipment that can be transferred from the vehicle of one mode to the vehicle of another mode without the contents being
22、reloaded or disturbed22This definition comes from Barton Jennings and Mary C.Holcomb,“Beyond Containerization:The Broader Concept of Intermodalism,”Transportation Journal 35,no.3(1995):513.Intermodal Transportation(2 of 4)Intermodal transportation Two or more modes work closely together to utilize a
23、dvantages of each mode while minimizing their disadvantages Example:Piggyback transportation Trailer-on-flatcar Container-on-flatcarIntermodal Transportation(3 of 4)Containers Moved by mechanical devices(e.g.,container crane)Provide significant reduction in freight handling costs Are interchangeable
24、 among rail,truck,and water carriersIntermodal Transportation(4 of 4)Containers Airfreight containers(unit load devices,or ULDs)are designed specifically for fuselage Are measured by TEUs(20-foot equivalent unit)Allowed for land bridge servicesFigure 12.1:Various Types of Intermodal Surface Containe
25、rsSource:Ports of the World,14th edition,CIGNA Property&Casualty Companies.Transportation Specialists(1 of 6)Freight forwarders Two types of domestic freight forwarders:Surface Air Exists by offering a service to shippers that must use LTL rates because they do not generate enough volume to use TL r
26、ates Typically offers pickup and delivery service but does not perform the line-haul service(done by motor carriers or railroads)Transportation Specialists(2 of 6)Freight forwarders Give volume discounts to customers shipping large quantities of freight at one time TL rates less than LTL rates becau
27、se Shipper loads the goods,and consignee unloads trailer The load goes directly from shipper to consignee without passing through terminals Paperwork,billing,and other administrative costs are little more for a 25,000-pound shipment than for 250-pound shipmentTransportation Specialists(3 of 6)Air fo
28、rwarders Consolidate shipments Tender to airlines in containers ready for loading Forwarders provide retailing function Airline provides wholesaling function Shippers associations Similar to air and freight forwarders but are not-for-profit organizations Primarily focused on achieving the lowest rat
29、es for membersTransportation Specialists(4 of 6)Brokers Companies that look to match a shippers freight with a carrier to transport it Can handle both LTL and TL Those handling LTL shipments consolidate them and then give to motor carriers,freight forwarders,or shippers associations If handling TL s
30、hipments,brokers retain a carrier and receive a portion of transportation chargesTransportation Specialists(5 of 6)Third-party logistics companies(3PLs)Find clients with complimentary transportation needs to maximize equipment utilization Should reduce transportation costs to clientsTransportation S
31、pecialists(6 of 6)Parcel carriers Parcels are packages weighing up to 150 pounds Parcel carriers are companies that specialize in transporting parcels Parcel carriers include:U.S.Postal Service Retail Ground United Parcel Service(UPS)FedEx Express Greyhound Package ExpressTransportation Regulation(1
32、 of 8)The five modes are influenced by federal,state and local government regulations Examples:Mandatory retirement age for pilots in U.S.Placement of lighting on truck trailers Regulation Costs money Needs to be codified Is enforced by government agenciesTransportation Regulation(2 of 8)Level and d
33、egree of regulation varies from country to country For example,industrialized countries tend to have more stringent transportation equipment emissions regulations when compared to those of less industrialized countries Logisticians must understand:Relevant transportation regulations Cost and service
34、 implications of regulationsTransportation Regulation(3 of 8)Environmental regulation Environment Protection Agency(EPA)is the federal regulatory agency established to protect human health and the environment Current concerns include:Noise and air pollution Resource conservationTransportation Regula
35、tion(4 of 8)Safety regulation Department of Transportation(DOT)is the federal agency responsible for transportation safety regulations for all five modes Federal Aviation Administration(FAA)has primary responsibility for air transportation safety Federal Motor Carrier Safety Administration(FMCSA)is
36、focused on reducing crashes,injuries,and fatalities involving large trucks and busesTransportation Regulation(5 of 8)Safety regulation Office of Pipeline Safety(OPS)is responsible for safety considerations for natural gas and liquid pipelines Federal Railroad Administration(FRA)has primary responsib
37、ility for safety in the U.S.railroad industry U.S.Coast Guard(USCG)has three broad roles associated with marine(water)transportation:Safety Security StewardshipTransportation Regulation(6 of 8)Economic regulation Refers to control over business practices and activities such as entry and exit,pricing
38、,service,accounting and financial issues,and mergers and acquisitions Regulation began in the 1870s due to a belief that transportation companies would not act in the publics best interest without government regulation33Donald V.Harper,Transportation in America,2nd ed.(Englewood Cliffs,NJ:Prentice H
39、all,1982),Chapter 19.Transportation Regulation(7 of 8)Economic regulation Resulted in two key economic regulatory bodies:Interstate Commerce Commission(ICC)Civil Aeronautics Board(CAB)Transportation Regulation(8 of 8)Economic regulation Deregulation began in the 1970s CAB was eliminated in 1985 ICC
40、was legislated out of existence in 1995 A new agency,the Surface Transportation Board(STB),was created Economic deregulation has allowed greater freedom with respect to pricing and service optionsLegal Classification of Carriers(1 of 3)Transportation carriers are classified as either:For hire Common
41、 Contract Exempt PrivateClassification is important because different levels of economic regulation are applicable to different carriersLegal Classification of Carriers(2 of 3)For-hire carriers Common carriers Serve the general public Contract carriers Offer specialized service to customers on a con
42、tractual basis No obligation to serve the general public or to treat customers on an equal basisLegal Classification of Carriers(3 of 3)For-hire carriers Exempt carriers Exempted from economic regulation due to legislation Private carriers Companies whose primary business is other than transportatio
43、n and provide their own transportation service Also exempt from economic regulationKey Terms(1 of 3)Accessorial service Barge Broker Common carrier Consignees Contract carrier Department of Transportation(DOT)Exempt carriers Freight forwarders Intermodal transportation Land bridge servicesKey Terms(
44、2 of 3)Less-than-truckload(LTL)Line-haul Lock Parcel carriers Piggyback transportation Private carriers Rail gauge Shippers associations Slurry systems Surface Transportation Board(STB)Twenty-foot equivalent unit(TEU)TerminalsKey Terms(3 of 3)Ton miles Transportation Truckload(TL)Unit load devices(ULDs)
