1. Transportation and Logistics Class 2, 2014 Transportation Modes

2. U of T Infrastructure Study: Portland  Time Congested: 65 %  Excess Fuel Consumption: 34 Mil Gal  Total Delay (Person Hours): 40 Mil  Truck Congestion Cost: $265 Mil  Cost Per Peak Auto Commuter: $ 830 2009 Data (latest available)

3. Global Competitiveness  World Economic Forum Annual Report  2008: U.S. #1  2010: U.S. #4  2011: U.S. #5  2012: U.S. #7  2012 Top 10: Switzerland, Singapore, Finland, Sweden, Netherlands, Germany, U.S., UK, Hong Kong, Japan Criteria: Legal and Admin Framework, Mgmt of Public Finance, Bureaucracy, Corruption, Transparency

4. Logistics Management  Transportation Modes  Truck  Rail  Air  Marine  Pipeline  Intermodal

5. Logistics Management  Warehousing and Distribution  Number of DC’s  Locations  Inventory Levels  Inventory Locations  Delivery Routing  Logistical Forms  Private  Public  Third Party

6. Third Party Logistics Firms  Freight Forwarders  Customhouse Brokers  Shippers’ Cooperatives  Freight Brokers  Parcel Delivery  Air Express  3PLs (4PLs)  Others  USPS, Bus, Cab

7. Carrier Types  Common Carriers  Asset Based  NVOCC  Contract Carriers  Private Carriers  Exempt Carriers

8. Intermodal Transportation  Containers  Chassis  Rail Car  Flatcar  Container Cars  Container Ships  Barges  Trailers  Flatcar  Ro-Ro Vessels  Barges  Standardization

9. Intermodal Transportation Standardization  Container Sizes  Standard 20’ and 40’  44’ Refrigerated  48’  New 53’  Stacking Mechanisms  Container Lifting  Interconnection  Pallets  Chassis  Ship container slots  Double Stack Rail Cars  Container Handling  Dockside Cranes  Container Yard  Top Lifters  Straddle Carriers

10. Transportation Modes  Air  High Value  Time Sensitive  Highest Cost  Lowest Total Volume

11. Transportation Modes  Truck  Goes Almost Anywhere  Flexible  Second Highest Cost  Second Highest Total Volume

12. Transportation Modes  Rail  Bulk Commodities  High Density  Coal, Ores  Grains  Steel  Lumber  Middle Cost  Highest Total Volume

13. Transportation Modes  Water  Ocean  Bulk  Container  VLCC  River / Coastwise  Tug & Barge  Next Lowest Cost  Next Lowest Volume

14. Waterways  America’s 26,000 miles of inland waterways:  Move 600 million tons/year.  Indirectly involve 800,000 jobs.  Transport $100 billion in interstate and international trade

15. Comparison The cargo capacity of a standard inland barge: = 15 railcars = 60 trucks

16. Transportation Modes  Pipelines  Any Liquid or Liquefiable Products  Oil  Gas  Coal  Chemicals  Lowest Cost  Middle Volume

17. Intermodal Transportation  Containers  Barges  Trailers  Flatcar  Ro-Ro Vessels  Bulk Carriers

18. Logistical Cost Factors  Inbound Raw Material  RM Inventory Costs  In-Plant Logistics  Finished Goods Inventory Costs  Documentation Costs  Packaging  Loading  Line-haul Transportation  Security Costs  Customs Clearance  Local Transportation  Unloading  Unpacking  Material Handling  Inventory Costs  Pull/Pack/Ship  Local Transportation to Final Customer 

19. Transportation Issues  Bill of Lading  Freight Bill  Freight Claim (Loss or Damage Claim)  FOB Point  INCO terms  Consolidation  Combine Inbound and Outbound Vol  Break Bulk  Demurrage  Detention  Transload Facilities

20. Traffic Management  Manage Inbound and Outbound Transportation Requirements  Track Rates and Commodity Classifications  Choice of Mode  Carrier Selection  Routing and Scheduling  Consolidation  Track and Trace  Custom Equipment  Manage Carrier Relationships

21. Rate Determination  Weight/Density  Truckload (T/L), LTL, Minimum Weight  Distance  Product Description/Fragility  Rate Breaks  Fuel Surcharge  Cubic Volume  Accessorial Charges

22. Transportation Pricing  Carrier Pricing  Class Rates  Commodity Rates  Contract Rates  FAK Rates  Seller Freight Pricing  Zone Pricing  Basing Point Pricing

23. Comparing Modes  Each transportation mode satisfies specific needs in carrying goods across the country and around the world.  Each mode has distinct advantages over others in certain areas.

24. Questions, Comments, Observations, Conclusions, Arguments?