gsc 5600 5-8
Covered hopper:
A hopper car with a roof designed to transport bulk commodities that need protection from the elements.
Common carriers
__________ are required to serve the general public upon demand, at reasonable rates and without discrimination
line haul vehicles
__________ are used to haul freight long distances between cities
Tl carriers
___________ provide service to shippers who tender sufficient volume to meet the minimum weights required for a truckload shipment
long run economies of scale - motor carriers
not significant in TL motor carrier segment some degree in the LTL segment through greater use of indivisible inputs such as terminals, management specialists, and information systems
cost structure: operating ratio
operating expenses/operating revenue) X 100 LTL motor carriers - between 93-96 TL motor carriers - low to mid 80s
567 Non-Class I Rail Carriers
regional lines local lines ( including those that provide only switching and terminal service)
- Oligopolistic competition of motor carriers
Ltl - significant investment in a network of terminals Special equipment carriers - larger investments in equipment and terminals than general fright Large, national tl carriers - significant capital investment for scale and geographic scope of operations
o 7 Class-I Rail Carriers
examples: BNSF, Canadian National, Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern, Union Pacific
Intermodal Competition (Rail & Pipelines)
- o Railroad Dry bulk commodities (grain, ores, coal) Focused around central US river system and the Great Lakes o Pipeline Bulk liquids (petroleum, chemicals) Focused along the Gulf, Atlantic, and Pacific coasts & Mississippi River system
Significance of the Airline Industry
- $199.7 billion of operating revenues generated by for-hire air carriers in 2013. - 99.2 percent of total operating revenue miles came from passenger transportation during August 2013 to July 2014. - 93.1 billion revenue ton-miles transported by air carriers between June 2013 and May 2014 - 589,151 people employed in the air carrier industry in June 2014
Operating and service characteristics: LTL operation recap - motor carriers
- 1: the LTL carrier collects the shipments at the shipper's dock with a PUD vehicle - 2: PUD vehicle returns to a PUD or break-bulk terminal - 3: at the terminals, the packages are sorted by their final destination - 4 the shipments are loaded into 28 ft, 48ft, or 53 ft trailers for line haul - 5: the trailers are unloaded at another break bulk terminals, then sorted and reloaded into a PUD vehicle for delivery
Significance of Pipelines
- 21 percent of total US freight ton-miles was moved via pipelines in 2009. - 910 billion ton-miles of US freight were moved via pipelines in 2009. - 4 percent of the total intercity transportation revenues earned by pipelines in 2012. - 152,000 miles of oil pipelines in 2012 - 1,566,000 miles of natural gas pipelines in 2012
Significance of motor carrier industry
- 9.4 bill tons transported by motor carriers in 2012 - 65.5% total domestic movements by motor carriers in 2012 - 6.9 million people employed in the motor carrier industry in 2011 - 397.8 bill miles traveled by motor carriers for business purpose in 2010
Market Structure airlines
- A relatively large number of airline companies exist, but a small number (10) account for more than 90 % of the total revenue.
airline industry.
- Both private (predominantly passenger movement) and for-hire carriers operate as part of the ________
Intermodal (Piggyback) Services
- Designed to increase service levels to intermodal customers. - Largely segregated from regular freight, with dedicated intermodal trains running on regularly scheduled departures and priority operating schedules. - Directed to non-bulk, manufactured products. - Competes directly with truckload (TL) service, but some TL carriers are also major customers.
Passenger Service Pricing
- Discount Pricing. The price of seats on different flights and the price of the same seat on a particular flight can vary due to: o Competition o Time and day of departure/return o Level of service (e.g. first class, coach) o Advance ticket purchase
Operating and Service Characteristics: Commodities Hauled
- Domestic water transport is an important mode for the movements of low-value-to-weight bulk commodities (liquid and dry).
railroad industry
- Dominant mode from 1850s to World War II, playing a pivotal role in US economic development - Domination begins to wane after 1920 due to: o Public funding for roads, inland waterways, and air transport o Changes in economy and shipper service-related needs o Financial plight and economic regulation
Current Issues water ways
- Drug and Alcohol Abuse •Pre-license and pre-employment testing of seamen. •Random testing of seamen during employment. - Port Development •Competitive economic vs. public concern for environment •Growth of multicarrier alliances & larger ship deployment
Track Abandonment
- Early over expansion - Increased competition between modes - Railroad bankruptcies - Some tracks were taken over by smaller railroads. - Alternative uses for land
line haul vehicles
- Federal/ state maximum weight limits (size (length) and density of freight) o Cargo carrying capacity
Cost structure pipelines
- Fixed costs: High proportion of fixed costs o Right of way ownerships o Pumping stations and terminal facilities o Key fixed cost elements: property taxes, amortizations of depreciation, return to investors, and preventative maintenance. - Variable costs: Low proportion of variable costs o Pipelines do not operate vehicles that are frequently a major source of variable expense. o Key variable costs Labor costs - Low due to the high level of automation. Cost of fuel for the power system.
All cargo Air taxi Commuter Charter international
- For Hire o Type of service
Oil Pipeline Network
- Gathering lines - Crude trunk lines - Finished product trunk lines
Terminals (Airports)
- Government (state and local) invest and operate airports and airways. - Certain airports in the carriers' scope of operation become hubs, similar to the motor carrier's break-bulk terminal. - Air carriers pay for the use of the airport through: - Airport terminals provide services to passengers, such as restaurants, banking centers, souvenir and gift shops, and snack bars. - Users pay a tax on airline tickets and air freight charges.
railroad industry
- Improved price and service competitiveness after economic deregulation (The Staggers Rail Act), continuing to be a vital part of US economy today
Development of the Airline Industry
- In 1903, Wilbur and Orville Wright made their first flight and sold their invention to the federal government. - In 1908 the development of air transportation began. The use of airplanes for mail transport marked the beginning of the modern airline industry .
Pipelines Development of Pipeline Industry
- In 19th century, pipelines were originally used to feed other modes of transportation, e.g. railroads or water. - In early 20th century, most pipelines were owned by large oil companies that often used them to control the oil industry. - After WWII, pipelines were ordered to operate as common carriers (the Champlin Oil Case)
Operating and service characteristics: Equipment's - motor carriers
- In most cases, equipment represents the largest operating asset that a carrier maintains
constraints pipelines
- Limited responsiveness due to slow speed - Limited geographic flexibility - Limited variety of products carried
strengths pipelines
- Low service rates - Low loss and damage rates - Warehousing function (3-5 mph) - High delivery dependability
Rates: Measures of Operating Efficiency
- Major and national airlines use a hub approach to their service, which contributes to operating efficiency. - Important measures of operating efficiency o Operating ratio = (Operating Expense ¸ Operating Revenue) ´ 100 o Load factor = (Number of passengers ¸ Total number of seats) ´ 100
FHWA Vehicle Classifications
- Motorcycles - Passenger cars - Pickups, vans - Buses - Single unit 2 axle trucks - Single unit 3 axle trucks - Single unit 4 or more axle trucks - Single trailer 3 or 4 axle trucks - Single trailer 5 axle trucks - Single trailer 6 or more axle trucks - Multi trailer 5 or less axle - Multi trailer 6 axle - Multi trailer 7 or more axle
pipeline pricing
- No classification system used due to limited number and specialization of commodities. - No differential pricing due to nature of operations (one-way movement, limited geographic coverage, limited variety of products) - Rates quoted on a per barrel basis o Point-to-point or zone-to-zone o Minimum shipment sizes (tenders) required
Commodities Hauled
- Non bulk cargo: notable trend toward movements of intermodal containers and trailers, carrying high value finished products - Bulk cargo: (examples: coal, farm products, chemicals, nonmetallic minerals) more than 74 percent of total rail carloadings in 2012 involved the movement of bulk materials
non-oil companies.
- Ownership of pipelines by oil companies has continued to the present, but some oil pipelines are now owned by _______
Recent Emphasis on Equipment and Technology
- Reduce Damages - Reduce In transit delays - Improve back office services
Current Issues Facing the Airline Industry
- Security o Administrative agencies: Department of Homeland Security & Transportation Security Administration (TSA) o Security-related initiatives: Passenger & luggage screening, carry-on limitations, and screening of freight carried on passenger airlines - Technology ÙSophisticated equipment and programs facilitate high speed transport o Automated information processing programs o Air traffic control system - Safety o Accident rates o Substance abuse
Fleet composition
- Significant increases in average capacity of rail cars. - __________ shifted from the accommodation of manufactured commodities to bulk goods.
Unit Train Services
- Specialized, one commodity trains used frequently for coal and grain shipments. - Run on priority service schedules from origin to destination, with no stops in-transit. - Shippers often own rail cars. - Advantage: Improved overall car utilization - Disadvantage: Empty backhauls
Overview of the Water Transport Industry: Market Structure
- The domestic for-hire water carrier industry consists of a limited number of relatively small firms, with 584 vessel operators in service in 2011. - Share by numbers of vessels 2012 o Great lakes 1% o Mississippi and gulf intracoastal 78% o Other coastal 21% - Rank by operating revenues for hauling domestic freight o Inland (rivers and canals) o Coastal o Great lakes
Development of Water Transportation
- The first principle form of long distance freight and people transport, played an important role in the early development of the United States and settlements. - Continued to be the most important and efficient form of transportation available until the railroads were developed in the mid-18th century. - Today, water transport remains viable for the movement of basic raw materials, and plays a primary role in global commerce transportation.
Overview of the Pipeline Industry: Ownerships and Type of Carriers
- The for-hire carriers dominate the pipeline industry. o Private carrier 10% o Common carrier 90% - Owners of pipelines o Individual, vertically integrated oil companies. o Jointly owned pipeline companies. o Others Railroads Independent oil companies Other industrial companies
Significance of Water Transportation
- The relative importance of water carriers' in the US transportation system declined somewhat over the past decade due to shift from manufacturing- to a service-based economy, and a supply chain emphasis on speed. - 905 million Short tons carried by domestic water carriers in 2012. - 499,748 Ton-miles of total US freight carried by domestic water carriers in 2011. - 3.85% Of the total expenditures of for-hire transportation included in GDP was accounted for by water carriers. - 63000 People employed for water transportation in 2010.
Equipment - Types of Aircrafts
- There are several different sizes of airplanes in use, from small commuter planes to huge, wide-body, four-engine planes used by the nationals. - Example: Delta Airlines Fleet
airline travel
- Today, ________ is a common form of transportation for long-distance passenger and freight travel, especially when time is of the essence
The domestic water carrier system
- _______ can be classified in terms of inland carriers (rivers, canals, and Great Lakes) and coastal/inter-coastal carriers.
The airline industry
- _______ is dominated by revenue from passenger service.
Pipeline service
- _______ is relatively slow with limited accessibility, but very reliable (little or no loss and damage).
Ship terminals
- _______ require significant capital investment. - Most ports and terminals are publicly provided and operated. - Large bulk commodity shippers may own and operate private terminals. - Recent improvements focus on the mechanization of materials-handling systems.
Airline's
- ________ cost structure is highly variable in which fuel and labor costs are important elements.
Airlines
- ________ face limited intermodal competition, but intense intramodal competition in terms of pricing and service.
Pipelines
- _________ are very specialized in terms of the commodities that they carry, primarily oil and oil products, natural gas, chemicals, and coal.
Pipelines
- _________ have high levels of fixed cost because of the heavy investment necessary in infrastructure.
short run economies
- __________ of plane size and utilization are significant in the air carrier industry.
slip seat and sleeper team
- an alternative to the use relay terminal
types of water carriers
- for hire o exempt o regulated common contract - private
Operating and service characteristics: relay terminals
- freight is never touched services performed: - one driver substitutes for another who has accumulated the maximum hours of service (11 hours after 10 consecutive hours off duty)
city straight vehicles
- has the cargo and power unit combined in one vehicle - is approximately 20 - 25 ft long with a cargo unit 15-20 feet long - "loaded to ride" - use of small trailers (28 ft) for pick up/deliver in the city and for line haul
Current Issues Facing the Railroad Industry
- substance abuse - energy - technology - small railroads - local drayage'
safety, technology, undercharge claims, and financial stability.
-A number of current issues face motor carriers, including ____
Operating and Service Characteristics: General Advantages - Motor Carriers
-Accessibility (door to door service) -Speed (transit time) -Universal modal connector -Carrying capacity (inventory levels and service frequency) -Loss and damage (relatively damage free)
- Hopper car:
A freight car with the floor sloping to one or more hinged doors used for discharging bulk materials.
private carriers
-Provide service to industry or company that owns/eases vehicles -Do not charge a fee, but incur cost -Transport commodities for hire as exempt for hire carriers
Fore hire carriers
-Provide services to public -Charge a fee for the service
public provision of highways.
-The cost structure of motor carriers is dominated by variable costs largely due to______
Air carriers
-_________ have an advantage in providing time-sensitive, long-distance movement of people and small shipments of high-value and/or perishable freight.
- Air carriers pay for the use of the airport through
: o Landing fees o Rent and lease payments for space o Taxes on fuel and airline tickets o Aircraft registration taxes
- Intermodal Competition: airlines
: o Limited competition from other modes for long distance (800+ miles) trips in both passengers and freight markets.
gondola
A freight car with a flat bottom, fixed sides, and no top used primarily for hauling bulk commodities.
Flatcar:
A freight car with no top or sides used primarily for TOFC service, and movements of machinery and building materials
Refrigerated car:
A freight car with refrigeration equipment for temperature control
Monopolistic Competition
A large number of relatively small firms with relative freedom of entry and exit due to limited capital requirement.
Oligopolistic competition
A small number of relatively large firms with some degree of capital constraint for entry
Rail Mergers
A total of 28 and 50 unifications overall have taken place during the past 30 years. As a result, small number of carriers own majority of track and carry majority of rail freight. - Capacity expansion - Side by side mergers - End to end mergers
1:oil and oil products - 2:natural gas - 3:coal and coal products - 4:chemicals
Commodities Hauled - Pipelines are limited in the markets they serve and commodities they can haul. - Pipelines are the only mode that are unidirectional with no backhaul. -
Cost Structure and Air Service Pricing
Cost Structure: High Variable and Low Fixed Costs - Variable costs 80%. o Fuel costs (34%) and labor costs (25%) are major elements of operating costs. o Operating costs vary by different types of aircraft used. - Fixed costs 20 % o Low fixed-cost structure is attributable to publicly provided airways and terminals.
Contract carriers
Dedicated carriage over dedicated regular routes
motor carrier industry
Dominant mode of freight transportation today
Cost Structure of the Railroad Industry
Fixed Costs: High proportion of fixed costs Variable Costs: Vary substantially with traffic volume Semi variable costs: Include maintenance of rights-of-way, structures & equipment
Common carriers
Further classified by the type of commodity authorized to haul
Short-run Economies of Scale
Given the high fixed costs, railroads operate under conditions of increasing returns until capacity is reached. Per-unit costs decline as fixed costs are spread out over an increased number of units.
railroad industry
High fixed costs, low variable costs
railroad industry
High investments/equipment, track
Fixed Costs:
High proportion of costs - Right of way ownerships - Terminal facilities (e.g. freight yards, terminal areas and sidings) - Equipment (especially locomotives) and various types of rolling stock
railroad industry
High-value chemicals, long-haul but large commodities
railroad industry
In competition with motor carriers; shippers of bulk products
Semi variable costs:
Include maintenance of rights-of-way, structures & equipment - Necessitated by exposure to weather rather than use. - Often deferred during financial difficulties.
conjunction
Local carriers and intercity carriers often work in _______
railroad industry
Low-value, high-volume bulk commodities
abandonments
Most ________ involve duplicate track after mergers, both rural branches and mainlines.
freight transportation
Motor carriers steadily replaced railroads as the mode of choice for________
City straight trucks
Normally smaller than line haul vehicles and are single units
Intramodal Competition - railroad industry
Reduced intramodal competition due to mergers, with selective competition between railroads serving the same geographic region.
current issues of motor carriers
Safety o Importance: - FMCSA rules for motor carrier safety fitness inspections - Safety impact on profitability o Key issues -Labor safety - Alcohol and drug abuse - Drivers hours of service and fatigue - Vehicle size and weight Technology o Importance - Enhance management control - Enable timely communications - Enhance environmental safety in HazMat movement o Key technology - Satellite technology and GPS systems - Electronic on board recorders (EOBRs) LTL rates o Importance - Shippers must exercise caution because federal oversight and enforcement is greatly diminished o Key issues - Limited anti trust immunity - No tariff filing requirements Financial Stability o Importance - Carrier financial stability is now an important aspect of carrier selection o Key issues - High operating ratios (exceeding 95%) are indications of financial plight and low competitive rates - Recurring problem of overcapacity
railroad industry
Small number of large carriers
tank car
Specialized car used for the transport of liquids and gases
- Boxcar:
Standardized roofed freight car with sliding doors on the side used for general commodities (plain); can be specially modified (equipped) for specialized merchandise, such as automobile parts. .
Development of motor carrier industry
Started around world war 1, when converted automobiles were used for pickup and delivery in local areas
interstate system of highways
The ___________ developed from the 1950s to 1991
Intermodal Competition: - railroad industry
The major source of competition in the industry, particularly from the motor carrier industry for non-bulk traffic.
•Oligopolistic Industry:
The pipeline industry has a small number of very large carriers that dominate the industry. o High startup costs (capital costs) o Existence of the economies of scale o Complex procedural requirements for entry and associated legal costs o Dominance of large oil companies (20 major integrated oil companies control about two-thirds of crude oil pipeline mileage)
- Differentiated Oligopoly -
There are a small number of very large railroads. o Few market areas are served by multiple railroads
- stem time - peddle time
Two elements of peddle run
private and for hire
Types of Air Carriers Air Carriers
-Motor carrier industry (for hire/private) -Under fore hire ( local/intercity) -Under local (exempt) -Under intercity (common, contract, exempt)
Types of motor carriers
line haul vehicles
Usually a tractor trailer combination of three or more axles
Variable Costs:
Vary substantially with traffic volume - Labor cost o Largest element o Multiple labor unions o Outdated work rules - Fuel and power costs o Second largest o More productive & fuel efficient locomotive
-Motor carriers
______ can be for-hire or private carriers.
Water carriers
_______ have relatively low fixed costs because they use publicly provided right-of-way like motor carriers and airlines.
- Water carriers
_______ offer low-cost services, but their transit time is slow and can be interrupted by weather conditions. -
Contract carriers
_______ serve specific shippers with whom the carriers have a continuing contract
City straight trucks
________ are used within a city to provide pickup and delivery service
For-hire carriers
________ can be further classified as local vs. intercity, common vs. contract, regulated vs. exempt, general vs. specialized, and TL vs. LTL.
- Water carriers, railroads, and pipelines
________ compete for long-distance movements of bulk commodities.
the operating ratio
________ measures the percent of operating expenses to operating revenue
operating ratio
_________ is a measure of perating efficiency and a benchmark of financial viability
Ltl carriers
_________ provide service to shippers who tender shipments lower than the minimum truckload quantities
Specialized motor carriers
____________ haul a special commodity such as: -Odd sized and or heavy freight -Liquid products -Freight requiring controlled temperature -Hazardous materials
Intercity carriers
____________ operate between specifically defined commercial zones
Local carriers
____________ pick up and deliver freight within the commercial zone of a city
An exempt for hire motor carrier
____________ transports exempt (unregulated) commodities owned by others for compensation
The exempt commodities
_______________ usually include unprocessed or unmanufactured goods, fruits and vegetables, and other items of little or no value.
-The public provision of highways
______has played a major role in the development of the motor carrier industry.
-Advantageous service characteristics of motor carriers
accessibility, speed, reliability, frequency, and lower loss and damage rates.
pickup and delivery terminals (PUD):
also called satellite or end of the line (EOL) terminals, most commonly found in LTL hub and spoke system
refrigerated vehicles
cargo unit has controlled temperature
high cube
cargo unit is higher than normal to increase cubic capacity
break bulk terminals:
commonly found in the LTL hub and spoke system
railroad industry
competition: Price (intramodal) and service (intermodal)
railroad industry
ease of entry is low
Cost Structure:
fixed and variable cost
railroad industry
issues: Substance abuse, energy, technology, small railroads, and local drayage
The motor carrier industry:
large in numbers, small in size - US distribution of motor carriers in 2012 - 442, 338 total ( 90.5% of these carriers operate with 6 or fewer vehicles)
tank/liquid barge
largest type of vessel
railroad industry
market structure: Oligopoly/monopoly
dry barge
most common type of vessel
low
motor carrier costs have ____ fixed costs
high
motor carrier costs have ____ variable costs
economies of scale
motor carriers are regarded as having limited __________
relay terminals:
necessitated by the maximum hours of service regulation that is imposed on drivers
Terminals - Functions
o 1: Facilitate ship loading and unloading o 2: Facilitate intermodal transfers. o 3: Provide temporary storage in port area
- Gathering lines
o Bring oil from the fields to storage areas. o Relatively short distance movement o Small diameter laid on ground surface
- Cargo Service Pricing
o Cargo pricing is dependent mainly on weight and/or cubic dimensions. Other factors affecting cargo rates o Over-dimensional charge for low-density cargo (< 8 cubic ft.) o Special services (e.g. armed guards)
equipment decision
o Configuration: - Tractor. Axle (single, twin), engine, and drive train combinations - Trailer. Length (28ft, 45ft, 48ft, 53 feet) and type (dry van, refrigerated, ragtop, container, flatbed) o Position and deployment - More important in an LTL operation than in a TL operation
- small railroads
o Cost disadvantage o Usually not unionized o Financial assistance from local and state governments
- Capacity expansion
o Early rail mergers made to expand capacity to achieve large-volume traffic efficiencies and economies.
Economies of large scale operations
o Economies of density Achieved from having significant volume between an origin-destination pair. o Economies of scale Economies of scale for aircrafts and integrated communication network. The inability to inventory unused seats indicates existence of economies of scale for aircraft. Sufficient demand must exist.
- Improve back office services
o Elaborate information and communication systems for car ordering , billing, and car tracking
constraints of railroad industry
o Fixed rights-of-way impedes door-to-door service. o Through service prone to delays in delivery. o Relatively high percentage of goods damaged in transit.
airline strengths
o High terminal-to-terminal speed o Reliability (low transit time variation) o Low rates of damages
- Reduce Damages
o Improved suspension system o End-of-car cushioning devices o In-car force instrumentation packages o Quality certification program (M-1003)
- Intramodal Competition - airlines
o Intense competition among air carriers in terms of rates and service as driven by: New entrants in selected routes (markets) Market coverage expansion Excess capacity
strengths of railroad industry
o Large carrying capacity (few size or weight constraints). o Capable of handling almost any type of cargo. Railroads assume liability for loss & damage.
- Side by side mergers
o Later, side-by-side mergers made to strengthen financial position and reduce duplication.
airline constraints
o Limited accessibility. o Reduced frequency of flights. o High service rates. o Added access and terminal time and cost significant for short distances (under 800 miles).
- Intramodal Competition
o Limited competition among pipelines due to: Small number of companies Oligopolistic market structure Economies of scale & high fixed costs has led to joint ownership of large-diameter pipelines. High capital costs preclude duplication of facilities.
- Intermodal Competition
o Limited competition from other modes. o Water carriers are principal competitors due to competitive rates and costs, and type of commodities hauled.
Intra-modal Competition - water
o Limited degree of competition between water carriers due to the relatively small number of carriers in the industry.
strengths of water ways
o Low cost transport service for large volumes over medium to long distances o Relatively large carrying capacity o Fuel efficient
Fixed costs
o Low fixed-cost structure can be attributed in part to public aid in construction & maintenance of waterways. o Fixed costs include depreciation & amortization and general expenses.
- Cargo Competition
o Low transit time emphasis o Door-to-door service through contracts with motor carriers, or through own fleets of delivery vehicles. o Increased competition from surface carriers entering air cargo business. o Reduced passenger travel creates excess capacity and increased competition in cargo business.
- End to end mergers
o More recently, end-to-end mergers made to improve competitive position against other railroads, and against other modes.
- Crude trunk lines
o Move crude oil from gathering stations to tank farm or refineries. o Long distance movement o Large diameter laid underground surface
- Finished product trunk lines
o Move product from refineries to market area terminals o Long distance movement o Large diameter lines laid underground
- substance abuse
o Nature of railroad work (long hours, away from home & low supervision) leads to ________ o Employee assistance programs (EAPs)
- Coastal Carriers
o Operate ocean-going ships and barges along Atlantic, Pacific, and Gulf of Mexico coasts. o Move large quantities of crude oil from Alaska ports to refineries along the Pacific Coast.
- Inter-coastal Carriers
o Operate ocean-going ships and barges between East Coast and West Coast ports via the Panama Canal. o Move large quantities of petroleum, crude & refined between the Atlantic and Gulf of Mexico
- Great Lakes Carriers
o Provide services between ports on Great Lakes. o Lake ships tend to remain on lakes. o Lake ships can access Atlantic and Gulf coast ports via St. Lawrence Seaway (classified as a coastal operation).
- Alternative uses for land
o Rails-to-Trails Conservancy o Rail-banking program
local drayage'
o Scarce availability o High rates of services o Additional transit time
constraints water ways
o Speed of service (slowest mode for dry cargoes) o Vulnerable to ice, flood, and drought conditions o Accessibility limitations o Packaging requirements for high-value goods
- Reduce In transit delays
o Terminal improvements o Equipment redesign o Right-of-way improvements o Microprocessors for communications and signaling
- Service Competition
o The frequency and timing of flights on a route primary service competition. o Advertising used to differentiate services (e.g. amenities, frequent flyer programs). o No-frills service
- Trailer on Flatcar (TOFC)
o Transports highway trailers on railroad flatcars. o Combines line-haul efficiencies of rail with the flexibility of motor transport. o On-time deliveries, regularly scheduled departures, and fuel efficiency major reasons for growth.
- Container on Flatcar(COFC)
o Transports shipping containers on railroad flatcars. o Land-bridge operations key component of international trade. o Double-stack container trains greatly improves rail equipment and train productivity.
- Variable costs
o User charges (lock fees, dock fees, and fuel taxes) are variable in nature. o Not labor-intensive. o Major variable expenses are line-operating costs, operating rents, and maintenance.
Majors Nationals Regionals
o fore hire - Annual revenue
- location of terminals
o hours of service regulation o consideration of backhauls between terminals o market penetration and customer service desired
fixed and variable cost components of motor carriers
o low fixed costs the public investment in the highway system ability to increase/decrease number of vehicles in short periods of time and in small increments of capacity o high variable costs labor fuel maintenance highway user fees (fuel tax and vehicle registration)
number of terminals
o the degree of market penetration and customer service desired o terminal size vs. peddle run distance tradeoffs
Operating and service characteristics: break bulk terminals
provide an intermediate point where freight with common destinations from the PUD terminals is combined to facilitate higher utilization of vehicle capacity
pick-up and delivery (PUD) terminals
provide the pickup and/or delivery services for freight on peddle runs
pick-up and delivery (PUD) terminals
services performed - shipment consolidation and distribution operations - vehicle dispatch operations - other services i.e. Tracing, rating and billing, sales, claims
Operating and service characteristics: break bulk terminals
services performed: - shipment consolidation and dispersion (or break bulk) operations - long haul driver domiciles
viable and competitive
small scale operations are ________
high cube, refrigerated vehicles, tank trailer, flatbed, open top, dry van
special vehicles designed to meet special shipper needs of motor carriers
dry van
standard trailer or straight truck with all sides enclosed
number of terminals location of terminals
terminal management decisions of motor carriers
- technology
this is an Important enablers of services and operations
fedex
top freight airline
delta
top passenger airline
flatbed
trailer has no top or sides, used extensively to haul steel
open top
trailer top is open to permit loading through the top
7 class - I, 567 non class I
type of railroad carriers
line haul and city straight
types of Motor carrier vehicles
tank trailer
used to haul liquids like petroleum products
pickup and delivery terminals, relay terminals, break bulk terminals
what are the terminals of motor carriers
