Modes of Transportation

Modes of Transportation

1. Airlines
• Airlines are the fastest terminal-to-terminal mode of transportation
• They specialize in the movement of time-sensitive documents, perishable items, technical instruments, medical supplies, and high-valued products
• Airlines transport small volume shipments rather than large volumes, and packaged products rather than heavy, bulk commodities
  
2. Motor Carriers
• Motor Carriers are the most flexible major mode of transportation
• Motor carriage ranks as the second fastest mode of transportation, with the additional advantages of door-to-door flexibility and broad geographic coverage
• Classification based on sale:
• Class I: Annual Sales > 10 million dollars
• Class II: Between 3 and 10 million dollars
• Class III: < 3 million dollars
• Classification based on Truck Load
• LTL: Less than Truck Load
• TL: Truck Load
• LTL operations are costlier to establish
• LTL entities accept small packages; transport them to a consolidation facility; ship to another facility after consolidation; and finally, break it down before delivery
  
3. Pipelines
• Pipelines are fixed in place and the product moves through them
• Pipelines can move more tons in a single shipment than any other mode of transportation in the order of 30,000 to 2,500,000 tons
• Pipelines can transport product only in a liquid or gaseous state
• Example: Petroleum, Slurry (Solid materials suspended in liquids)
• Different types of liquids can be shipped through a pipeline at the same time, separated by a 'Batching Plug'
• The construction of a pipeline becomes cost-effective only when the high initial fixed cost can be spread over enough volume to keep the unit transportation cost competitive with other modes
  
4. Railroads
• Railroads haul high density, low-valued freight over long distances at rates lower than trucking and air, but higher than Water Carriers and Pipeline.
• Products commonly hauled on Railroads include coal, stone, sand, metals, grain, and automobiles.
• Railroads lack flexibility and high speed delivery in their standard operation
• Railroads have regained some freight lost to motor carriers through increases in 'Intermodal Operations'
• TOFC: Trailer on Flat Car
• COFC: Container on Flat Car
  
5. Water Carriers
• Water carriers dominate international transportation because of their cost structure and ability to transport large volumes
• Advantages:
• Long haul capabilities
• Low rates
• They have a broad range of products from ores and grains to coal and consumer goods
• Tankers carry liquid products like petroleum and crude oil
• Tankers measure 1500 feet long and 200 feet wide
• Standardized containers are loaded on to ships and shipped across the ocean to their destination
• A standard container measures either 8'x8'x20' or 8'x8'x40'
• 20' container is called TEU - Twenty Foot Equivalent
• Cost structure and volume levels of water carriers are such that they can charge very low rates
• Water carriers are relatively slow, unreliable and inflexible compared with other modes
• Classification of water carriers:
• Private or For-Hire
• Domestic or International
• The initial cost of the ship is significant, but the volume transported over the useful life of the ship is so large that the cost per unit is relatively low

Intermodal Transportation

• Intermodal Transportation is using more than one mode of transportation to move goods from origin to destination
• Growth in Intermodal Transportation is due to:
• Industry deregulation
• Global business expansion
  
• Applications of new techniques to improve intermodal processes

TOFC (Trailer on Flat Car)

• International transportation allows the shipper to take advantage of less expensive rail rates while maintaining the door-to-door capabilities provided by motor carriage
  

COFC (Container on Flat Car)

• Containers are taken from a ship with specialized cranes or forklifts and placed on a rail care or flatbed truck for surface transportation
• Many rail companies offer double stack cars which allow two containers to be transported on one trailer
• COFC service allows a shipper to transport goods over water and surface without having to waste time and money unloading and reloading trailers or railcars

RO-RO (Roll On - Roll Off)

• In roll on - roll off operations, a ship acts as a ferry for loaded trucks
• The truck drives on to the ship, the ship sails to the destination port, and the truck drives off the ship to deliver the goods

Lighter - Aboard Ships (LASH) are liners that carry barges previously loaded along an inland water way
International transportation uses 'Land Bridges' and 'Mini Bridges.'
Land Bridge is surface transportation between two water movements
Mini Bridges involve only a water - land move