trans sys chap20
TRANSCRIPT
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 1/18
Introduction to Transportation
SystemsJoseph M. SussmanJR East Professor Professor of Civil & Environmental Engineering and Engineering SystemsMassachusetts Institute of Technology
Cambridge, MA
1
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 2/18
PART II:FREIGHT
TRANSPORTATION
2
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 3/18
Chapter 20:
Ocean Shipping, InternationalFreight, and Freight
Summary
3
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 4/18
Ocean Shipping
Ocean Shipping Services: Bulk
Wet Bulk Dry Bulk
About 5% of the world’s freight billis for ocean shipping.
Ocean shipping has been called“The Enabler of the Global
Economy”.
4
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 5/18
Ocean Bulk
The ocean bulk market has some similaritiesto the TL market in the trucking industry. It
is a very volatile market; the freight rates anddemand for service may swing widely over the course of a few days.
It is an easy business to enter and exit in the
same way that truckload trucking is; you buya truck and you are in business, you buy aship and you are in business.
So you can easily get in and out, and thatleads to the chronic over-capacity andvolatility in that marketplace.
5
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 6/18
Other Ocean Bulk Shipping
Points Economies of Scale
Environmental Issues and RiskAssessment
Safety
6
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 7/18
The Liner Trade
Usually, for merchandise (as opposed tobulk), the cargo that an individual customer
has is not adequate to fill a ship. So, in the liner trade, as in LTL operations
and in merchandise trains, a customer shares the capacity with other customers,
and benefits from consolidation by sharingthe costs as well.
Container trade is an important example of the liner trade.
7
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 8/18
Liner Operation
U. S. D
C
A
BSmaller
E
Europe
Ship
B’
Figure 20.1 8
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 9/18
Economies of Scale
Economies of Scale in Shipping
Cost/ Container (at Capacity)
Ship Capacity(containers)
9Figure 20.2
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 10/18
Liner Decisions
Operating Speed and Cost
Service Frequency
Empty Repositioning of Containers
10
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 11/18
Intermodalism and
International Freight FlowsU.S./Europe Intermodal Services
EUROPE
Truck
Rail
Truck
Ship
Truck
U. S.
Rail
Truck
11Figure 20.3
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 12/18
International Trade PatternsASIA
PANAMA
CANAL
SOUTHAMERICA
NORTHAMERICA
EUROPE3
5
4
2
5
4
5
1
2
1) Europe -- U.S. (West Coast) via Panama Canal2) Europe -- U.S. (West Coast) via Mini-Land Bridge
3) Asia -- U.S. (East Coast) via Panama Canal
4) Asia -- U.S. (East Coast) via Mini-Land Bridge
5) Asia -- Europe via Land Bridge
12Figure 20.4
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 13/18
More International Trade
Patterns
ASIAWESTNORTH
AMERICA EUROPE
PANAMACANAL
SUEZ
6
COAST OFNORTHAMERICA
S.E.ASIA
CANALSOUTH
AMERICA
6) All water route from Southeast Asia to East Coast of U.S.
13Figure 20.5
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 14/18
Port Operations
Port Capacity Dredging Intermodal Productivity
14
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 15/18
LOS vs. Cost for Various
Freight ModesLOS
Wet and DryBulk Ships
Rail (bulk)
Container Ships
Rail
(merchandise)
Truck
Air
COSTS
15Figure 20.7
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 16/18
Freight Summary
The cost structure: relationship of fixed and variable costs;
The nature and ownershipstructure of the physical assets:
infrastructure, right-of-way,terminals, vehicles;
Technology;
The regulatory framework; and The structure of the market.
16
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 17/18
Some Key Freight Factors
Vehicle-Cycle
Vehicles and Infrastructure The Market
Operating Plans and Strategic
Plans
17
8/9/2019 Trans Sys Chap20
http://slidepdf.com/reader/full/trans-sys-chap20 18/18
The 30 Key Points
Think about the different modes andintermodal competition and how they
relate to our 30 key points. A goodexercise would be to study those keypoints and think about how they relate todifferent freight modes.
Think about the triplet: technology,systems and institutions, and how wedeal on all these dimensions to achieve
competitive modern freight transportationservices.
CLASS DISCUSSION
18