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Ten Global Trends Impacting North American Rail Freight Distribution. Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue.
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Ten Global Trends Impacting North American Rail Freight Distribution Jean-Paul RodrigueAssociate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue
A Shift from Derived to Integrated Transport Demand The nature of distribution has changed From push to pull logistics Transportation and distribution jointly planned Container yard, Port of Yantian, China
Commodity Chains and Added Value High Globalization R&D Sales / Service Marketing Branding Added value Distribution Design Concept Manufacturing Logistics Low Commodity chain
From Push to Pull Logistics Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Freight flow Manufacturer Manufacturer 3PL Distributor Distributor Customer Returns / Recycling Point-of-sale data Customer Push Pull
The “China Effect” has Profoundly Changed Global Freight Distribution The location of production has changed Global production networks Shift in the world’s commercial balance APL Distribution Center, Shenzhen, China
Sectors of American Imports of Asian Goods Through Maritime Container Shipping, 2004 (in TEUs)
Significant Imbalances in Trade and Freight Distribution Imbalanced freight flows The empty container problem Empty trucks waiting to enter China, Hong Kong
Balance of Containerized Cargo Flows along Major Trade Routes, 1995-2006 (in millions of TEUs)
Containers Handled by the Port of Vancouver, 1997-2006 (in TEU)
Private Global Freight Operators The value capture of global supply chains Global port holdings & 3PL Positioning of intermodal assets Gaining a foothold in major gateways “Maersk Sealand” Locomotive, Landers Yard (NS), Chicago
Port Terminal Operations Inland Modes and Terminals Distribution Centers Commodity Chain The Value Capture Process along Commodity Chains Maritime Services Port Holding Port Authority Port Services Inland Services Vertical Integration Horizontal Integration Maritime Shipping
Redefinition of the Maritime / Land Interface Port regionalization Inland terminals Rail integrated with port operations “Emma Maersk”, 12,500 TEU, Rotterdam, Netherlands
Intermodal Integration is Still in its Early Stages Expansion and diffusion to new markets Advanced containers Container waiting to be loaded, Shenzhen, China
World Container Traffic, 1980-2005, and Guesses for up to 2020
Higher Costs for Inland Freight Distribution Peak oil Congestion Modal shift Chassis waiting to be picked, Corwith Rail Yard, Chicago
World Annual Oil Production (1900-2005) and Peak Oil (2010 scenario)
Transmodal Operations: The Next Frontier in North American Rail Distribution Advanced rail terminals Higher throughput Translisft crane, NS Rutherford yard, PA
Thruport: Full and Hybrid Configurations Full Hybrid (2-1)
Time Factors more Embedded Within Rail Operations Improving the velocity of freight Rail distribution as an element of supply chains UPS Willow Springs Distribution Center, Chicago
Speed barrier Transshipment Pull Logistics Logistical threshold Containerization Push Logistics Shipment Logistics and the Acceleration of Freight
Logistical Improvements, Manufacturing Sector, 1960s to 2000s
The American Economy is Essentially Bankrupt Debt and asset inflation Misallocation of capital Currency leverage Future growth expectations compromised “Flipper Central”, Phoenix, Arizona (or any neighborhood near you)
The “Perpetual Motion” Machine: The Dynamics of the World’s Most Significant Trade Relationship USD $ for goods Interest Rates Unemployment Goods Borrowing Investment Bonds (IOUs) Asset Inflation Debt Reserves $ for bonds United States China USD