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1、CHAPTER8 Transportation TransportfunctionalityandparticipantsFromregulationtoafreemarketsystemTransportationmodalstructureSpecializedtransportationserviceTransportationeconomicsandpricingTransportationmanagementDocumentationProductpricingandtransportation Overviewoftransportation Transportfunctional
2、ityandparticipantsFromregulationtoafreemarketsystemTransportationmodalstructureSpecializedtransportationserviceTransportationeconomicsandpricingTransportationpricingDocumentationProductpricingandtransportation Overviewoftransportation ProductmovementisthemovementofinventorytospecifieddestinationsRes
3、trictiveelement in transitinventoryis captive usuallyinaccessibleduringtransportationFlexibleelement inventorycanbedivertedduringshipmenttoanewdestinationTransportationconsumestime financial andenvironmentalresourcesTransportationismorethan60 ofthecostoflogisticsOneoflargestconsumersofoilandgasinUSI
4、mpactstrafficcongestion noiseandairpollution Transportfunctionalityprimarilyconsistsofproductmovementservices Transportalsofunctionsasstorageservicesforproductswhileinavehicle In transitinventoryiscaptiveinthetransportsystemManagersstrivetoreducein transitinventorytoaminimumProductcanalsobestoredinv
5、ehiclesatoriginordestination trailers trucks railcars etc UsuallymoreexpensivethantraditionalwarehousingMustpayrentalordemurragechargesonvehiclesusedforstorageDiversionoccurswhenashipmentdestinationischangedafteraproductisintransit Twofundamentaltransportprinciples Economyofscaleisthecostperunitweig
6、htdecreasesasthesizeoftheshipmentincreasesAtleastuntilyoutotallyfillthecarryingvehicle CostdecreasesbecausethefixedcostofthecarrierisallocatedoveralargerweightofshipmentEconomyofdistanceisthecostperunitweightdecreasesasdistanceincreasesOftencalledthetaperingprincipleLongerdistancesallowfixedcostofth
7、ecarriertobespreadovermoremiles loweringthepermilechargeGoalistomaximizethesizeoftheloadanddistanceshippedwhilestillmeetingserviceexpectations Transportparticipants ShipperConsignee Receiver CarrierandAgentsGovernmentInternetPublic Majorrelationshipsamongtransportationparticipants Figure8 1Relations
8、hipAmongTransportationParticipants ShipperandconsigneehaveacommoninterestinmovinggoodsfromorigintodestinationwithinagiventimeatthelowestcostCarriersdesiretomaximizetheirrevenueformovementwhileminimizingassociatedcostsAgents brokersandfreightforwarders facilitatecarrierandcustomermatchingGovernmentde
9、siresastableandefficienttransportationenvironmenttosupporteconomicgrowthPublicisconcernedwithtransportationaccessibility expense andstandardsforsecurity safetyandtheenvironment Roleandperspectiveofparticipants TheInternetnowprovidesthevitalcommunicationslinksbetweenthetransactionalparticipants shipp
10、er carrier consignee ReplacingphoneandfaxtechnologiesWeb basedenterprisesprovideinformationmarketplacesFreightmatchingFuel equipment partsandsuppliespurchases RoleoftheInternetintransportation TransportfunctionalityandparticipantsFromregulationtoafreemarketsystemTransportationmodalstructureSpecializ
11、edtransportationserviceTransportationeconomicsandpricingTransportationpricingDocumentationProductpricingandtransportation Overviewoftransportation Transportationstructure Consistsofrights of way vehicles andcarriersoperatingwithinfivebasicmodesAmodeidentifiesbasictransportationmethodorformRailHighwa
12、yWaterPipelineAir Table8 1TheNations FreightBill billions Table8 2Domesticshipmentsbymodeandvolume Source U S FreightTransportationForecaststo2021 AmericanTruckingAssociation Inc 2010 p 25 Table8 3Domesticshipmentsbymodeandrevenue Source U S FreightTransportationForecaststo2021 AmericanTruckingAssoc
13、iation Inc 2010 p 25 Railmodehashistoricallyhandledthelargestnumberofton mileswithincontinentalUS Trackmileagehasdeclinedbyoverhalfsince1970TrafficshiftedfrombroadrangeofcommoditiestohaulingspecificfreightintrafficsegmentsCarloadIntermodalContainerNewtechnologiesincludearticulatedcars unittrainsandd
14、ouble stackcars TruckmodehasexpandedrapidlysincetheendofWorldWarII Nearly1millionmilesofhighwaysinU S KeybenefitsincludeSpeedoftransitAbilitytooperatedoor to doorMoreefficientthanrailforsmallshipmentsovershortdistancesDominatefreightmovesunder500milesandfrommanufacturingtowholesalerstoretailersManyc
15、ompaniesruntheirowntruckfleetsaswell e g WalMart Percentageofton mileshasstayedbetween19and30 since1960 sRanksbetweenrailandtruckinfixedcostRightofway canalsandrivers maintainedbyFederalgovernment WatermodeistheoldestformofUStransportdatingbacktothebirthofournation Havethehighestfixedcostandlowestva
16、riablecostofallmodesUniquetransportationmodeCanoperate24hoursaday 7daysaweekNoemissionsNoemptycontainerorvehicletoreturnNotflexible andlimitedtoliquidsandgases Pipelinemodeaccountsforabout68percentofallcrudeandpetroleumton milemovementsinUS Accountsforonly1 ofintercityton milesFastestofallthemodesFixedcostis2ndlowestbutvariablecostsareextremelyhighMostproductsair shippedhavehighvalue highpriorityorextremeperishability Airmodeisthenewestandleastutilizedtransportmodeforfreight Comparisonoffixedand
