1. Transportation

2. Importance Transportation accounts for 8.7% of US GDP
Value of US transportation assets - $7 trillion
Employment
4.3 million people
9% of US civilians
US Dept. of Transportation

3. 5 modes of transportation
Motor Carriers
Railroads
Air Carriers
Water Carriers
Pipelines

4. Modes of transit Motor carrier Expensive Largest mode in terms of:
Most of the freight weight is moved by motor carriers
Most used mode in the US
Strengths
Fast delivery
Can go anywhere
Delivers on time
Items are secure
Drawbacks
Expensive

5. Motor Carriers
Carry most goods that we use for at least part of their journey.
They are limited as to the size of items they can carry.
They can literally go anywhere.
Types of products they carry: food and consumer goods (electronics, clothing, cleaning supplies, etc.). Think about your local store – everything comes on a truck.

6. Types of vehicles
Line-haul vehicles
City straight trucks

7. Special vehicles
Dry van Open top Flatbed

8. Special vehicles
Tank trailer
Refrigerated vehicle

9. Special vehicles
High cube
Liquefied gas
Automobile

10. Modes of transit Railroad Strengths Drawbacks
Largest mode in terms of distance and weight moved
Strengths
High ability to move anything
Moderate speed
Delivers items when promised
Low cost
Drawbacks
Not everyplace has a railroad

11. Railroads Generally ship bulk items such as coal, grain, gravel
Moves large bulky equipment
Can move food but it needs to be items that are not particularly perishable as railroads take a long time to travel (speeds of around 20 to 40 mph) and a long time to unload.

12. Modes of transit Air cargo carriers Strengths Drawbacks
Smallest mode in terms of weight moved
Strengths
Very fast
Delivers on time
Safely delivers items
Drawbacks
Very expensive
Airports are not available everywhere

13. Air Carriers
Products can be carried only on planes that carry only cargo or it can be carried in the belly of a passenger plane.
Most items shipped on planes are either very expensive so that the cost of air freight will not impact the demand for the products or of a time sensitive nature such as a perishable item like fresh fruit or flowers that need to be delivered quickly.

14. Modes of transit Water Carriers Strengths Drawbacks
Divided into Ocean going, Coastal, Lake, and River (Inland) Segments
Includes cruise industry
Panama and Suez canals play important roles
Strengths
Low cost
Can haul pretty much anything large and bulky
Drawbacks
Goods are not protected
Very slow
Not everyplace has access to a waterway

15. Water Carriers
Ocean going carriers can move consumer goods from manufacturers in China on container ships.
In the US ships usually move petroleum, gravel, grain, and coal.

16. Modes of transit Pipeline Strengths Drawbacks
3rd largest transportation mode in terms of freight movement behind Rail and Truck
Strengths
Very cheap
Safe
Delivers on time
Drawbacks
Generally only moves oil and natural gas
Very slow (3 to 5 mph)
Only located in certain parts of the country and can’t move around

17. Intermodal transportation
Use of two or more modes of in the movement of freight from its origin to destination
Ocean and Rail
COFC (container on a flat car)
Truck and Rail
TOFC (trailer on a flat car)

18. International importance
Rise in global trade for US businesses
Imports
Global outsourcing
Exports
US is world’s 2nd largest exporter of merchandise
US is world’s largest exporter of commercial services
Value of US foreign trade - $5.0 trillion