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Transportation and Logistics

Transportation and Logistics. Class 2, 2014 Transportation Modes. U of T Infrastructure Study: Portland. Time Congested: 65 % Excess Fuel Consumption: 34 Mil Gal Total Delay (Person Hours): 40 Mil Truck Congestion Cost: $265 Mil Cost Per Peak Auto Commuter: $ 830

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Transportation and Logistics

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  1. Transportation and Logistics Class 2, 2014 Transportation Modes

  2. U of T Infrastructure Study: Portland • Time Congested: 65 % • Excess Fuel Consumption: 34 Mil Gal • Total Delay (Person Hours): 40 Mil • Truck Congestion Cost: $265 Mil • Cost Per Peak Auto Commuter: $ 830 2009 Data (latest available)

  3. Global Competitiveness • World Economic Forum Annual Report • 2008: U.S. #1 • 2010: U.S. #4 • 2011: U.S. #5 • 2012: U.S. #7 • 2012 Top 10: Switzerland, Singapore, Finland, Sweden, Netherlands, Germany, U.S., UK, Hong Kong, Japan Criteria: Legal and Admin Framework, Mgmt of Public Finance, Bureaucracy, Corruption, Transparency

  4. Logistics Management • Transportation Modes • Truck • Rail • Air • Marine • Pipeline • Intermodal

  5. Logistics Management • Warehousing and Distribution • Number of DC’s • Locations • Inventory Levels • Inventory Locations • Delivery Routing • Logistical Forms • Private • Public • Third Party

  6. Third Party Logistics Firms • Freight Forwarders • Customhouse Brokers • Shippers’ Cooperatives • Freight Brokers • Parcel Delivery • Air Express • 3PLs (4PLs) • Others • USPS, Bus, Cab

  7. Carrier Types • Common Carriers • Asset Based • NVOCC • Contract Carriers • Private Carriers • Exempt Carriers

  8. Containers Chassis Rail Car Flatcar Container Cars Container Ships Barges Trailers Flatcar Ro-Ro Vessels Barges Standardization Intermodal Transportation

  9. Intermodal Transportation Standardization • Container Sizes • Standard 20’ and 40’ • 44’ Refrigerated • 48’ • New 53’ • Stacking Mechanisms • Container Lifting • Interconnection • Pallets • Chassis • Ship container slots • Double Stack Rail Cars • Container Handling • Dockside Cranes • Container Yard • Top Lifters • Straddle Carriers

  10. Transportation Modes • Air • High Value • Time Sensitive • Highest Cost • Lowest Total Volume

  11. Transportation Modes • Truck • Goes Almost Anywhere • Flexible • Second Highest Cost • Second Highest Total Volume

  12. Transportation Modes • Rail • Bulk Commodities • High Density • Coal, Ores • Grains • Steel • Lumber • Middle Cost • Highest Total Volume

  13. Transportation Modes • Water • Ocean • Bulk • Container • VLCC • River / Coastwise • Tug & Barge • Next Lowest Cost • Next Lowest Volume

  14. Waterways • America’s 26,000 miles of inland waterways: • Move 600 million tons/year. • Indirectly involve 800,000 jobs. • Transport $100 billion in interstate and international trade

  15. Comparison The cargo capacity of a standard inland barge: = 15 railcars = 60 trucks

  16. Transportation Modes • Pipelines • Any Liquid or Liquefiable Products • Oil • Gas • Coal • Chemicals • Lowest Cost • Middle Volume

  17. Intermodal Transportation • Containers • Barges • Trailers • Flatcar • Ro-Ro Vessels • Bulk Carriers

  18. Inbound Raw Material RM Inventory Costs In-Plant Logistics Finished Goods Inventory Costs Documentation Costs Packaging Loading Line-haul Transportation Security Costs Customs Clearance Local Transportation Unloading Unpacking Material Handling Inventory Costs Pull/Pack/Ship Local Transportation to Final Customer Logistical Cost Factors

  19. Bill of Lading Freight Bill Freight Claim (Loss or Damage Claim) FOB Point INCO terms Consolidation Combine Inbound and Outbound Vol Break Bulk Demurrage Detention Transload Facilities Transportation Issues

  20. Traffic Management • Manage Inbound and Outbound Transportation Requirements • Track Rates and Commodity Classifications • Choice of Mode • Carrier Selection • Routing and Scheduling • Consolidation • Track and Trace • Custom Equipment • Manage Carrier Relationships

  21. Rate Determination • Weight/Density • Truckload (T/L), LTL, Minimum Weight • Distance • Product Description/Fragility • Rate Breaks • Fuel Surcharge • Cubic Volume • Accessorial Charges

  22. Transportation Pricing • Carrier Pricing • Class Rates • Commodity Rates • Contract Rates • FAK Rates • Seller Freight Pricing • Zone Pricing • Basing Point Pricing

  23. Comparing Modes • Each transportation mode satisfies specific needs in carrying goods across the country and around the world. • Each mode has distinct advantages over others in certain areas.

  24. Questions, Comments, Observations, Conclusions, Arguments?

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