Introduction to Freight Transportation Unit 1: Defining the Freight System

What do we mean by Freight Transportation The safe and efficient movement of goods and products that society uses on a daily basis Something we often take for granted. We expect – to have our store shelves fully stocked – to be able to order almost anything online and have it delivered days later – to have our garbage taken away regularly Freight transportation can also be described as: – Goods movement – City logistics

Benefits of Freight Transportation Ease of life – we have access to the goods we need and want to make our lives better; we don’t have to just rely on products produced locally Impact on the economy – more than 10 million jobs in the US are related to freight transportation (2007); 18.6 billion tons of goods worth $16.5 trillion moved through the US in 2007

Adverse Impacts of Freight Transportation Safety issues - 4,229 deaths and 90,000 injuries related to trucks in 2008 Environmental issues - 33% CO2 emissions (2009) from transportation; over 30% from freight-related sources Societal issues – congestion, noise

The Framework for a National Freight Policy “The United States freight transportation system will ensure the efficient, reliable, safe and secure movement of goods and support the nation’s economic growth while improving environmental quality.” 5

Freight System Users: those who are moving goods or facilitating the movement of goods – Shippers – Carriers Infrastructure: physical structures which goods move on/in – Roads/Rails – Terminals – Vehicles (trucks, trains, planes, ships) Managers: entities which operate and manage infrastructure – DOTs – Terminal operators

Relationship to Supply Chains The freight transportation system is a component of supply chains Enterprises versus systems Individual actions versus aggregate actions Enterprise costs versus social costs

Banana supply chain Within the United States we consume roughly four million tons of bananas. That is about 29 pounds of bananas per person per year! That’s a lot of bananas!

Banana Supply Chain Bananas only grow in humid tropical areas, for example Central America Once picked, bananas need to be sold in 20 days They are fragile and easy to smush

Bananas Bananas are picked daily Then packed in 40 pound corrugated boxes Roughly one thousands of boxes can be loaded into a refrigerated container Containers are loaded onto ships 24 to 48 hours after the bananas are picked Temperatures in the containers are maintained at 58 degrees F

Banana Supply China Most bananas travel by ship into the US Stored in specifically designed reefer containers with modified atmospheric conditions to slow the fruit ripening process Once they arrive in the US, the containers are loaded onto refrigerated trucks The bananas move from ship to wholesaler at a terminal market Then to retailers (grocery stores)

So, Bananas… Are not grown here Need special handling Travel on at least 2 modes Need to be transshipped at least 3 times Must be sold in 20 days But We can get them year round They are in almost every grocery store And they cost less than a dollar a pound!

Modes Ways in which freight can move – Air – Surface/Land Rail Road Pipeline – Water

Trucking Typology Long-Haul Typically multi-day trips Fleet optimization and tracking common Drayage Truckload carriers Typically less than 400 miles Owner-operators Urban Pick-up and Delivery Small package size Short trip distances Employee drivers Use routing and communication software Regional LTL and Truckload Many commodity specific carriers Owner operators and employee drivers *consistent with WSDOT freight office

Land Use and Infrastructure Management Strategies If possible, separate from residential and commercial land uses If possible, separate from traffic from pedestrian and bicycle modes Urban pick-up and delivery Can’t separate from non- industrial land uses and transportation Must address conflicts with pedestrian and bicycle activity Must address shared roadway uses Long-Haul/Regional/Drayage

Additional Factors Perishability and value Schedule negotiations with shippers/receivers Industry schedule constraints Absolute shipment size Hazardous materials

Introduction to Freight Transportation We will cover Defining the freight systems Contemporary issues Stakeholders and incentives Freight Performance Measures Policy and Impacts on Performance Aggregate Modeling Fleet Modeling