p02 basic modes of transportation
Post on 07-Apr-2018
224 Views
Preview:
TRANSCRIPT
-
8/6/2019 P02 Basic Modes of Transportation
1/29
Basic modes of transportation
Rail
MotorPipeline
Air
Water
-
8/6/2019 P02 Basic Modes of Transportation
2/29
Mode of Transport - Railway
Once the dominant mode of transportation duringWWII Currently faces intense competition from other modes of
transportation
Focus on hauling heavy weight, low value, or bulkcommodities.
Most commonly used to transport:
Farm productsChemicals
Transportation equipments
Coal
-
8/6/2019 P02 Basic Modes of Transportation
3/29
Railway TransportationAdvantages
Large carrying capacity to handle large-volume movement of low-value
commodities over long distance.
Capable of carrying a wide variety of
products E.g. Raw materials such as coal, lumber
or low-valued manufactured products
such as paper and wood products
Tankers freight train carry liquid product
such as oil
Liability for Loss and Damage usually
assumed by the railroads.
Reliability and safety are improving and aregenerally good.
Disadvantages
High set up cost.
Fixed rights-of-way Provides differing degrees of
service completeness (needother mode to complete door
to door service). Each railroad serves specific
region resulting in multiplehandling from one railroad toanother.
Accessibility can be a problem.
Transit times are spotty andgenerally long
-
8/6/2019 P02 Basic Modes of Transportation
4/29
Mode of Transport - Motor
Motor carrier started to pick up industry that
railroads unable to support economically
(small shipments over short distance).
Consists of for-hire and private carriers.
Two major service:
1.Truckload (TL)
2.Less than truck load (LTL)
-
8/6/2019 P02 Basic Modes of Transportation
5/29
Motor TransportationAdvantage
Low cost of entry.
Do not need to own their rights-
of-way.
High accessibility -can offer door-
to-door.
Transit times faster than rail or
water.
Various volume/size can be
offered to customers The availability of global
positioning technology (GPS)
enhance the visibility of
movement and increased ofsafety.
Disadvantage
Low capital investment means
more players come to the market
resulting in intense competition
for the operators.
Reliability can be affected greatlyby weather.
Relatively high cost compared to
rail and water carriers.
More labor intensive
Tradeoff with faster service
-
8/6/2019 P02 Basic Modes of Transportation
6/29
Mode of TransportWater Carriers Typically a long distance mover of low value, bulk-type
mineral, agricultural and forest products. Note: In shipping, distance is typically measured in nautical
miles (NM), with speed in knots (in miles/hr)
Speed (knots) = Distance (NM) / Time (hours)
Competes with railroads for the movement of bulkcommodities (such as grains, coal, ores).
Compete with pipelines for the movement of bulk
petroleum products and chemicals.
Vessels can operate according to a fixed schedule, calledliner vessels, or only when it is chartered (or hired) fromthe ship operator, thus called tramp vessels
-
8/6/2019 P02 Basic Modes of Transportation
7/29
Type of Water CarriersContainer ships
Tankers
RO-RO (Roll on-Roll off)LASH(Lighter Aboard Ship)
Bulk Carriers
LNG/LPG Carriers
-
8/6/2019 P02 Basic Modes of Transportation
8/29
Types of Water Carriers
-
8/6/2019 P02 Basic Modes of Transportation
9/29
Types of Water Carriers
-
8/6/2019 P02 Basic Modes of Transportation
10/29
Types of Water Carriers
-
8/6/2019 P02 Basic Modes of Transportation
11/29
Water Transportation
Advantage
Relatively low cost
provides easy entry
and exit. Do not have to own
rights of way
Provide low rates totransport bulky
products
Disadvantage
Low accessibility
Slow movement
Due to todays
environmental concerns,
ports are having trouble
keeping pace with theaccelerated
developments in global
trades.
-
8/6/2019 P02 Basic Modes of Transportation
12/29
Mode of transport - Pipeline
Relatively unknown to the general public
Very limited in the type of commodities they
can haul. Rampant (a lot of) oligopoly practice due to
the limited number of pipeline companies.
Faced serious competition from water carrier(low price).
-
8/6/2019 P02 Basic Modes of Transportation
13/29
Pipeline TransportationAdvantage
Low rates.Very good loss and
damage record.
Provide warehousing function
due to the slow movement (3-5 miles per hour).
High dependability, few transit
time variability.
Relatively unaffected byweather and mechanical
failures.
Products are able to move
24/7/365.
Disadvantage
Limited range of productsthus is not suitable forgeneral transportation.Mostly used for gases and
liquid such as oil, waterand natural gas.
Accessibility is very low.
Very high set up cost.
Mostly privately ownedand if not, the industry isoligopolistic in nature
-
8/6/2019 P02 Basic Modes of Transportation
14/29
Method of Transportation - Air Constitutes the newest and the fastest method for
transporting cargo
Note: Similarly as in shipping, distance travelled for
aircraft is typically measured in nautical miles (NM)
Any of the air carriers can carry air freight although
some haul nothing but freight.
Can be segmented into for-hire carriers and private
carriers (usually to transport company personnel).
Well-suited to carrying valuable, fragile and
perishable cargoes.
-
8/6/2019 P02 Basic Modes of Transportation
15/29
Types ofAir Carriers
All Cargo Airlinepoint-to-point service for air freight forwarders
Integrated CarriersOperate door to door freight transportation networks
Combination CarriersCarries passengers and cargo
Air Parcel PostProvided by the postal service of a country
-
8/6/2019 P02 Basic Modes of Transportation
16/29
Types of Air Carriers
All-cargo airline (Freighters) Provide point-to-point service for air freight forwarders,
either as common carriers or under guaranteed-space
agreements
E.g. Polar Air Cargo, SIA Cargo, Lufthansa Cargo
Some others, like Atlas Air and Air Transport
International, primarily operate aircraft on a contract
basis for other airlines
-
8/6/2019 P02 Basic Modes of Transportation
17/29
Types of Air Carriers Integrated carriers (Express carriers)
Operate door to door freight transportation networksthat include own cargo aircraft, delivery vehicles,sorting hubs, and advance info systems to provideinternational delivery service
E.g. FedEx, UPS, DHL
Combination Carrier
Carries passengers and cargo Primarily offers point-to-point services on wholesale
basis
Relying on Freight Forwarders for pickups, delivery,
sales to shippers and customer service
-
8/6/2019 P02 Basic Modes of Transportation
18/29
Types of Air Carriers Air Parcel Post
Provided by the postal service of a country and is
designed to handle small packages.
The postal service contracts with an air carrier to pickup and deliver the item from one country to another.
-
8/6/2019 P02 Basic Modes of Transportation
19/29
Air TransportationAdvantage The major advantage is
speed.
Air-service dependability
can be rated as good
under normal operating
conditions.
Has a distinct advantagein terms of loss and
damage
Enjoy limited competition
from other modes
Disadvantage Rates are highest.
Much affected by weather
condition
Due to the large numbers
of air carriers, the
competition amongst air
carriers is very intense. Low accessibility thus
usually combined with
other modes.
-
8/6/2019 P02 Basic Modes of Transportation
20/29
-
8/6/2019 P02 Basic Modes of Transportation
21/29
-
8/6/2019 P02 Basic Modes of Transportation
22/29
-
8/6/2019 P02 Basic Modes of Transportation
23/29
-
8/6/2019 P02 Basic Modes of Transportation
24/29
-
8/6/2019 P02 Basic Modes of Transportation
25/29
-
8/6/2019 P02 Basic Modes of Transportation
26/29
-
8/6/2019 P02 Basic Modes of Transportation
27/29
-
8/6/2019 P02 Basic Modes of Transportation
28/29
-
8/6/2019 P02 Basic Modes of Transportation
29/29
top related