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Motor Carriers Ch 3 - Coyle Bardi Novack pp. 95-126

Motor Carriers Ch 3 - Coyle Bardi Novack pp. 95-126. Dr. Mark Maggio. MC Industry Significance. The only door-to-door mode 86% Total freight bill (2002) 28% of the ton-miles share 2 million employees 442 billion revenue miles Characterized by: Generally continually decreasing costs

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Motor Carriers Ch 3 - Coyle Bardi Novack pp. 95-126

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  1. Motor CarriersCh 3 - Coyle Bardi Novack pp. 95-126 Dr. Mark Maggio

  2. MC Industry Significance • The only door-to-door mode • 86% Total freight bill (2002) • 28% of the ton-miles share • 2 million employees • 442 billion revenue miles • Characterized by: • Generally continually decreasing costs • Generally continually increasing productivity

  3. Types of CarriersIndustry Structure • For-hire carriers, Private Fleets • Truckload and Less-than-Truckload • Competition, ease of entry and exit • LTL • Link & node networks • Terminal activities, Break-bulk, Trade Unions • Cross-dock activities • Role of congestion and logistics • TL • Line haul • J-I-T implications

  4. Other types of carriers • Small Package Carriers • Heavy LTL • Bulk Haulers • Pneumatic tank (powders, granules, crystals, dust) • Liquid bulk • Gravity flow & dump body fleet • Special Rigging O-S, O-W carriers • Drayage operators • HH goods carriers • Drive away carriers

  5. Types of Commodities • Dry goods and clothing • Food, meats, reefer (cold or frozen) • Building Materials • Lumber, wall board cabinets, steel, bricks • Cement, Concrete, bricks • Manufactured Goods, Motor Vehicles • Rolls steel, rolls paper • Petroleum: Oil, Gasoline, Diesel • Haz Mat, Chemicals • Mining products, Ores, Stone, Sand

  6. Sector Characteristics • Many small carriers in TL • 586,000 carriers • 81% have 6 or fewer trucks • LTL High Fixed Costs-Major Consolidation • Hub and Spoke Systems • 8-12 carriers • Yellow: 20% market share nationally • PUD  line haul PUD p. 99

  7. TL Sector • Effects of Deregulation • Effects of Hours of Service changes • Log book: Record of Duty Status • Effects of competition • Some consolidation • JB Hunt • Schneider National

  8. Operating Divisions of Carriers • Dry Van (box) division • Reefer division • Flat bed • Bulk • Tank division • Step decks and drop decks • Expedited division (go fast) • Most carriers have a Brokerage division • Brokering loads • Brokering trucks • 3d party or 4th party operations

  9. Why do carriers have Logistics Operations? • Cover fixed costs • Including overhead • Profit • Differential rates of ROI • Automated load and truck posting services (DAT) • It’s a non-asset-based business • But some shippers will want you to have asset-based business to decrease risk & improve responsiveness • Allows carrier to go after shippers that need such services • Re-positioning equipment – balancing lanes

  10. Commodities that Truck loses to Rail • Coal • Grain • Petroleum • Chemicals • Automobiles • Paper products • Lumber • Mining products, limestone • I-M Container traffic

  11. Competition among MCs • Vigorous Competition since 1980 • Ease of entry and exit, some sectors with low capital requirements • Operating authority, insurance issues • Competition based on: • Rates • Service – trucking • Service – other • Service – spec equipment acquisition

  12. MC Service Characteristics • Door to door • Can serve any location • Speed of delivery (few or no nodes) • Smaller shipment sizes • Why this is beneficial • Why this this is disadvantageous • Inventory on wheels • Loss and damage relatively low

  13. Equipment Types in MC p. 105 • Power units and Trailers • Straight Truck • Semi-tractor trailer (articulated config) • Doubles • Triples • Dog and Pups • 28’, 45’, 48’, 53’ trailers • Yard dog, Yard Goat • Dolly, Chassis

  14. Special Vehicle Types • Reefers • Open top • Flatbed (stakes) • Side-kit trailer • Curtain-side trailer (rag top) • High cube box • Tanks • Auto rack - automobile • Livestock hauler - Bull rack

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