1. Business Logistics Management 6. Transport Fundementals

2. Importance of an Effective Transportation System Greater competition Economics of scale Reduced prices

3. Greater Competition

4. Economics of Scale

5. Reduced Prices

6. Service Choice and their Characteristics Service choice –Rail, Trunk, Water, Pipe, Air Price Transit time Variability Loss and damage

7. Price

8. Transit Time

9. Variability Weather Traffic congestion Number of stops Consolidate shipments

10. Single Service Choice Rail Truck Air Water Pipeline

11. Rail Mid- hauler – 720 miles Slow mover – 22mile/hr Low/Mid-valued products - material CL and LCL Mid-shipment Variability is low

12. Truck Short hauler – 274-646 miles Fast mover – 60-80 mile/hr Mid- valued products – semifinished or finished products TL and LTL Small shipment Variability is low Door to door service

13. Air Very long hauler – 1300 miles Very fast mover – 600 mile/hr High- valued products –products with high time constraints Mid- shipment Variability is high

14. Water Mid/Long hauler – 550-1775 miles Mid- mover – 50-70 mile/hr Mid- valued products –products with low time constraints Very large shipment Variability is middle

15. Pipeline Long hauler Very slow mover – 3-4 mile/hr Very low- valued products – material Large shipment Variability is very low

17. Intermodal Service Rail and Trunk Rail and Water Rail and Air Rail and Pipeline Truck and Air Truck and Water Truck and Pipeline Water and Pipeline Water and Air Truck and Water

18. Trailer and Flatcar

19. Containerized Freight

20. Agencies and Small Shipment Services Freight forwarders Shipper`s association Transport brokers

21. International Transportation Physical plant

22. Agencies and Services

23. Transport Cost Characteristics Variable and Fixed Costs –Distance and Volume Common or Joint Costs

24. Variable and Fixed Costs

26. Cost Characteristics by Mode Rail Water Air Pipeline

27. Rail

28. Pipeline

29. Rate Profiles Volume related rates Distance related rates –Uniform, Proportional, Tapering, Blanket Demand related rates

30. Uniform

31. Proportional

32. Tapering

33. Blanket

34. Demand Related Rates

35. Line-haul Rates By product

36. Class Rates By shipment size

37. Other Incentive Rates By Route Miscellaneous Rates –Cube Rates –Import-Export Rates –Deferred Rates –Released Value Rates –Ocean Freight Rates