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Chapter 12. Moving Freight

Chapter objectives covered in CE361: By the end of this chapter the student will be able to:. Chapter 12. Moving Freight. Describe the role of freight movement in the economy Explain why certain commodity tend to move on specific transport modes

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Chapter 12. Moving Freight

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  1. Chapter objectives covered in CE361: By the end of this chapter the student will be able to: Chapter 12. Moving Freight Describe the role of freight movement in the economy Explain why certain commodity tend to move on specific transport modes Calculate the power needed to move a train (only this one is covered in CE361), propel a ship, and send oil through a pipeline (12.2 – 12.6) Conduct an energy analysis for freight transportation modes (12.7 not covered) Not all elements of the topics 3 and 4 above are covered in CE361. Only the topic related to the power needed to move a train will be covered in CE361.

  2. Freight Movement and Commodity • Anything that is not moving people is considered “freight movement.” • Commodity = • A product of agriculture & mining • An article of commerce • Something useful or valued • Logistics = the flow of goods to and from companies: movement vs. holding (warehousing) Click the figure above to get to this guide. Chapter 12

  3. 12.1 Freight – The Movement Behind Economic Well-Being Chapter 12

  4. 12.1.1 Logistics or Physical Distribution • The cost of transport (including inventory holding costs – time related costs) can account for as much as 20% of the sale price of a given consumer products. • Warehouses vs. Distribution Centers • Distribution Centers can reduce space for in-store inventory • Just-in-time method – reduce warehousing but increase truck traffic (for distribution) Chapter 12

  5. 12.1.1 continued • The traffic manager seeks the best strategies for: • Moving raw materials to his manufacturing plant • Storing goods en route or maintaining an inventory • Moving the finished product to the market. Chapter 12 This figure was removed from the 2nd edition.

  6. 12.1.2. Regional Trade Promotes Economic Growth • Example 12.1: People want less expensive products – the reason why trade takes place (see the link right below the link to the course notes PP file in the Schedule page of the course website for today.) Chapter 12

  7. 12.1.3 Commodity Flow Data Chapter 12

  8. Transportation of dry-bulk commodities (p.12.7) • Because of their excellent price structure for hauling bulk freight, rail and barge share a major amount of the movement of dry-bulk commodities, mainly coal and grain. • Trucks are used for short-distances, usually for delivery from a rail yard to a receiver that does not have rail access. Chapter 12

  9. 12.1.4 Factors Affecting Freight Mode Choice • Cargo type • Cargo value • Perishable goods • Cargo size, weight, or density • Reliability • Access, Flexibility, and Terminal Requirements • Cost structure and rates • Length of haul • Energy use Someone in a logistics company or department compare these factors to pick the right mode(s). Chapter 12

  10. Moving Freight • Trucks (12.2) • Railroads (12.3) • Barges and waterways & the Great Lakes (12.4) • International shipping and US ports • Oil and gas pipelines (12.5) • Moving freight by air (12.6) Chapter 12

  11. 12.2 Moving Freight by Truck Terms related to trucks: • “Weight out” = reach their gross weight limit • “Cubed out” = reach their volume limit • A fifth wheel = the device on the truck that connects with the semi-trailer Tractor-trailer: $140K!/one unit Chapter 12

  12. 12.3 Moving Freight by Rail Railroads comeback: • Higher efficiency/productivity • Lower price • Still higher rate of return The Staggers Act of 1980: deregulated the railroad industry. See the AAR Freight Traffic Data To be covered by a separate lecture. Chapter 12

  13. 12.4 Moving Freight by Barges on Inland Waterways “The inland waterway system consists of 26,000 miles of navigable rivers and canals within the U.S.” “The inland waterway system opens the coalfields of West Virginia to the ports on the Gulf of Mexico.” Chapter 12

  14. US Waterways Chapter 12

  15. 12.4 International Shipping and U.S. Ports Locks and Dams: The Panama Canal Great site to learn about the Panama Canal History: http://www.canalmuseum.com/ Chapter 12

  16. 12.4 International Shipping and U.S. Ports (continued) • In 1998: 750 billion tons of freight imports, 400 billion tons of freight exports • In 2001: All freight modes, $925 billion imports, $600 billion exports; mode shares are 30% air, 30% land, 40% water. • The water mode’s $600 billion share was split into $165 exports versus $435 imports Chapter 12 Table 12.10 Top 10 US Water Ports (1st Edition)

  17. 12.4 Relative Cargo Capacity of Three Freight Modes Each truck needs a driver. Labor cost is high. Hence, commodities carried by trucks have to have higher dollars per ton-mile costs. Chapter 12

  18. 12.5 Oil and Gas Pipelines The Alaska Pipeline – from Prudhoe Bay to Valdez 800 miles Click this website to see a short video: https://www.youtube.com/watch?v=N4_92Fim34Q Chapter 12

  19. 12.5 Movement of Oil (continued) • About 94% of the movement of oil is by water or pipeline. Chapter 12

  20. Why were Hurricane Rita’s Damages so Serious to Oil Distribution? Gulf coast ports handle the majority of oil import and distribution. Hurricane Rita, 2005 Chapter 12

  21. 12.6 Moving Freight by Air “… Not so much for the tonnage that is carried but for the speed at which it moves.” • Smaller & more valuable • Time is major factor • More care needed Chapter 12

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