1 / 42

Trailer-on-Flat-Car (TOFC) Over the road trailers ride in special ... part of that space to companies needing to ship cargo. Shipping line is paid for space ...

Roberta
Download Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


    Slide 1: Stakeholders

    Who are yours?

    Slide 2:Your challenge is to develop a system with the ability to gather and analyze information allowing the organization to be responsive to the needs of each customer You must manage the system!

    Slide 3:Strategic Channel Intermediaries: Ports

    Port selection is a very important part of the international logistics strategy. Different ports often specialize in different types of shipments. Selecting the wrong port can add miles, time, and therefore cost to a shipment not appropriately routed. Overall door-to-door transit time and variability are important factors.

    Slide 4:Customer Service

    Providing the customer with what they need in a way that provides value to them Make them happy!!!! Who is your customer?

    Slide 5:Elements of customer service

    Dependability Time Convenience Communications Honesty Knowledge of who they are and what they do!!! What is important to them? How does your system improve these?

    Slide 6:Resource allocation

    The difficulty comes in tailoring each country’s customer service mix Cost vs. service

    Slide 7:Barriers to Customer Service

    Controllable factors Short term decisions vs. long term benefits Uncontrollable factors Customers/employees/service providers, etc.

    Slide 8:Customer Service Performance

    Always learning, always improving Know what your customers value and monitor the system you have in place to deliver it! “If you do not measure it you cannot manage it”

    Slide 9:“Make it easy for them to shop in your store” What are the customer service variables that must be addressed? Your project?

    Slide 10:Global Transportation

    The mode of transportation decided upon after evaluating the trade-offs must fit with the system Speed/Reliability/Flexibility/Cost/Security Profit Contribution

    Slide 11:The Transportation System

    The Role of Transportation Move the product Provide advantage— “on time low cost ??” Add value—Time and place Supply Chain management Logistics Transportation

    Slide 12:“Logistics managers are finding that they need to do much more in terms of conceptualizing, designing, and implementing logistics initiatives that may be effective globally” IT IS A SYSTEM!!!!

    John Coyle

    Slide 13:Modes of Transportation

    Water—Vessels, Barge Motor -- Trucks Rail Air Pipeline

    Slide 14:Rail-Air-Road-Water-Pipeline

    Cost vs. Speed Packaging vs. risk of damage Flexibility vs. dependability Product vs. mode Project: trade-offs, what are yours???

    Slide 15:Domestic Water Carriers

    Relatively low cost mode; do not own the rights-of-way; easy entry and exit. Typically a long distance mover of low value, bulk-type mineral, agricultural and forest products Low rates but long transit times Low accessibility but high capability

    Slide 16:Domestic Water

    Internal water carriers- rivers Great Lakes carriers Coastal carriers Intercoastal carriers Long Distance – Low Value – High Density

    Slide 17:Rail

    One can move a great deal of product vs. road or air Is it timely enough for your needs? Limited access points

    Slide 18:Rail

    Advantages Low rates Safety Reliability Disadvantage Accessibility Transit time Long distance- high volume

    Slide 19:Intermodal Transportation

    Refers to use of two or more modes of transportation cooperating on the movement of shipment by publishing a through rate. Logistics managers are looking for the best way to move shipments and these often attempt to take advantage of multiple modes of transportation, each of which has certain useful characteristics.

    Slide 20:Intermodal Transportation

    Cultural bias towards using only one mode and this makes change more difficult. Is this still true today??? Certain types have been fairly well developed, such as rail/water, motor/water, rail/motor, and motor/air.

    Slide 21:Intermodal Transportation: Containerization

    “Land bridge” concept may apply for international shipments where oceans are separated by a large land mass. For example, containers moving from Japan to Europe may dock at Long Beach, CA, transfer the containers to a railroad, and reload the containers onboard another ship in Norfolk, VA., continuing on to a European port.

    Slide 22:Intermodal Transportation: Piggyback

    Trailer-on-Flat-Car (TOFC) Over the road trailers ride in special rail cars. Takes advantage of motor flexibility and rail’s long haul economic advantage. Multiple service plans for shippers. Some railroads provide varying levels of service, differentially priced.

    Slide 23:Intermodal Transportation: RoadRailers

    Newest concept referred to as a “RoadRailer” Essentially a trailer that has been reinforced to ride on a rail bogey and be coupled together directly without first being placed on a rail flat car Saves weight and locomotive power and thus fuel for the railroad Special lower rates Motor competitive transit times

    Slide 24:Pipelines

    Advantages Low cost Not disrupted by weather Disadvantages Slow Capabilities Accessibilities Security???

    Slide 25:Motor Carriers

    Advantages Accessibilities Transit times Reliability Safe Disadvantages High cost Quantity? Shipment size/transit time vs. carrying cost

    Slide 26:Air

    Advantage Transit time Disadvantage Cost Accessibility Product must have a high weight to value ratio

    Slide 27:Carrier Selection Determinants

    Transport cost Transit time Reliability Accessibility Capabilities Security/Safety Tasks performed System constraints The cheapest freight does not necessarily mean the least landed cost

    Slide 28:Water

    Advantages Low cost Reliability Disadvantages Slow Accessibility

    Slide 29:Types of Service

    Liner ships Operate on a pre-established schedule with determined ports of call Tramp ships Operate wherever the market dictates

    Slide 30:Size of Vessels

    Dead-weight tonnage Definition The maximum weight that a ship can carry Since the ship also carries bunker and stores, the maximum weight that a ship can actually carry is lower than its dead-weight tonnage. Total capacity of ship expressed in long tons (2,240 pounds), or metric tons (2,204.6 pounds). The fuel that a ship carries on board and that it needs to travel is called bunkers

    Slide 31:Size of Vessels

    Gross and Net Tonnage Gross Tonnage The total volume of a ship’s carrying capacity, measured as the space available below deck, and expressed in hundreds of cubic feet. The Gross Tonnage is the basis upon which ships pay taxes or pay fees to transit through a canal. Only measures capacity below deck. Net Tonnage Obtained by subtracting the volume occupied by the engine room and the spaces necessary for the operation of the ship (crew quarters, bridge) from the gross registered tonnage.

    Slide 32:Size of Vessels

    Displacement Displacement tonnage The total weight of the ship, when fully loaded, measured by using the weight of the water being displaced. Light tonnage The total weight of the ship, when empty, measured by using the weight of the water being displaced.

    Slide 33:Handy: 20,000 - 35,000 tons. Handymax: 35,000 - 50,000 tons. Panamax: 50,000 - 75,000 tons. Suezmax: 75,000 -150,000 tons. Cape: 100,000-150,000 tons. Very Large BC: 150,000-300,000 tons. Ultra Large BC: 300,000-545,000 tons.

    Vessel Sizes (BULK)

    Slide 34:Ocean Going Vessels

    Types-- General Cargo, Bulk, Tanker, Container, RO-RO Size-Handy,Handymax, Panamax Capesize

    Slide 35:Non-Vessel-Operating Common Carriers

    Shipping companies that do not own ships An NVOCC purchases space on a ship and re-sells part of that space to companies needing to ship cargo. Shipping line is paid for space and weight whether or not the NVOCC resells the space (at a higher rate). NVOCC acts as a freight consolidator and aggregates Less-than-Containerload (LCL) freight into a full container.

    Slide 36:Columbia River / Egypt: 10,045 miles via Panama Canal 30 days + 2 days canal transit Total 32 days. Adelaide, Australia / Alexandria, Egypt: 7,675 miles via Suez Canal 23 days + 2 days canal transit Total 25 days.

    PNW versus SC Australia to EGYPT

    Slide 37:Major Canals

    Panama Suez

    Slide 38:Difference: 2,370 miles or 7 days 1 hour 17 minutes. Panamax: 7.0535 days x $10,000/day = $70,535. Fuel: 29 tons x $200/ton x 7.0535 days = $40,910. Total $111,445 / 60,000 tons = $1.86 per ton, 5 cents/bu.

    PNW versus SC Australia to EGYPT at Market Average

    Slide 39: Difference: 2,370 miles or 7 days 1 hour 17 minutes. Panamax: 7.0535 days x $50,000/day = $352,675. Fuel: 29 tons x $200/ton x 7.0535 days = $40,910. Total $393,585 / 60,000 tons = $6.56 per ton, 17 cents/bu.

    PNW versus SC Australia to EGYPT at Market Highs

    Slide 40:Delivered Cost Counts!

    Slide 41:Interesting Facts

    Bulkers typically run at 14 knots/hour, 336 miles/day. Burnes about 29 tons/day of fuel. 7,685 gallons per day.

    Handymax Historical Earnings

    Slide 42:Today, we are going to address an important issue. It is difficult to find a grain buyer that does not deal with freight in some way. Today, we are going to address an important issue. It is difficult to find a grain buyer that does not deal with freight in some way.

More Related