HOC 7 transportation

transportation

the momevent of products from one location to another in the supplyy chain

• significant supply chain cost (up to 20% pf total production cost)

• major determinant of quick delivery service for some companies

modes of transportation

• rail transportation

• air transportation

• waterway transportation

• pipelines

• road transportation

rail transportation : most suitable for

• long distance transport of large quantities

• products with low value and high density

rail transportation :

• natural oligopoly due to high entry costs

• low accessibility (prehaul and endhaul transport needed)

• long transportation times due to consolidation

soorten rail transportation

• traditional container train

• piggyback transportation

• double stack container transportation

air transportation : most suitable for

• emergency shipments and perishable goods

• products with high value to weight ratio

air transportation :

• highly concentrated in limited number of carriers

• low accessibility

• fast but very expensive due to high variable costs

→ 65.6 million tonnes of cargo are transported by air every year

→1% of globally traded volume of goods, but 1/3 of the total global value

waterway transportation : most suitable for

long-distance transportation of large quantities

bulk products with low value, container transportation

waterway transportation :

inetrcontinental transportation, short-sea shipping or inland shipping

cost efficient mode thanks to large volumes, but very slow

low accessibility (prehaul and endhaul transportation needed)

pipelines : most suitable for

transport of products in liquid form (eg oil, gas)

pipelines :

high capital costs, but economical use and long lifetime

limited accessibility

road transportation : most suitable for

small point to poiont shipments

manufactured commodities with high value

road transportation :

competitive environment with many relatively small firms

high accessibility and reliability

flexible but expensive

transportation costs

fixed costs : infrastructure, terminals ect

variable costs : fuel, wages, maintenance

external costs

noise, congestion, global warming ….

• heavy goods vehicle,

• then containership

• barge

• goods train

intermodal transportation

• at least two modes in a single transport chain

• goods do not change container

• the largest part by rail or waterway transportation

• the shortest possible prehaul and endhaul by road transportation

intermodal transportation ; sustainability

reduces emissions, energy consumption, congestion ext

intermodal transportation

hub-and-spoke network with connected hubs

many stakeholders involved → requires coordination