1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 17

6-2 Transport Choices CR (2004) Prentice Hall, Inc.   Primary intercity carriers  Air  Truck  Rail  Water  Pipe   Coordinated services  Piggyback  Birdyback  Fishyback   Small shipment carriers  UPS  Federal Express  Postal services  Bus Package Express   Agents  Freight forwarders  Shipper associations   Others  Autos  Bicycles  Taxis  Human  Electronic

6-3 Importance of Modes CR (2004) Prentice Hall, Inc. By Products Hauled  Air --very high-valued, time sensitive products  Truck --moderately high-valued, time sensitive products. Many finished and semifinished goods  Rail --low-valued products including many raw materials  Water --very low-valued products moved domestically, high-valued if moved internationally  Pipe --generally limited to petroleum products and natural gas

6-4 Importance of Modes (Cont’d) By Volume Moved Percent Transportation of total mode volume Railroads 36.5% Trucks 24.9 Inland waterways 16.3 Oil pipelines 22.0 Air 0.3 Total CR (2004) Prentice Hall, Inc.

6-5 Performance Overview Relative Costs of Performance CR (2004) Prentice Hall, Inc. Price, Mode ¢/ton-mile Rail 2.28 Truck Water 0.74 Pipeline 1.46 Air 61.20

6-6 Legal Classification  Common carriers  Contract carriers  Private  Agents Documentation  Bill of lading  Freight bill  Freight claims  Damage, Loss & Delay Claims  Overcharge Claims  Free trade zones  Documentation  Modes International Transportation CR (2004) Prentice Hall, Inc.

6-7 Foreign (Free) Trade Zone CR (2004) Prentice Hall, Inc.