Learning Block 1: Business and Economy

Transportation and logistics industry

Field involving movement and storage of goods.

Flow of freight

Management of diverse product shipments.

Logistics

Coordination of goods movement and storage.

Coordinating deliveries

Organizing shipments from various suppliers.

Managing fleet operations

Overseeing vehicle logistics for trucking companies.

Ensuring security

Protecting valuable goods during transit.

Balancing efficiency and cost-effectiveness

Optimizing operations while minimizing expenses.

Coordinating with multiple carriers

Working with various transport companies for shipments.

Inbound logistics

Transporting goods from suppliers to warehouses.

Outbound logistics

Delivering products from warehouses to customers.

Reverse logistics

Managing returns, recycling, and waste disposal.

Time and place utility

Linking supply chain components across distances.

Production delays

Holds in manufacturing due to logistics issues.

Customer expectations

Standards for timely and accurate deliveries.

Unique handling requirements

Specific care needed for different product types.

Global networks

International connections for supply chain efficiency.

Roles in transportation

Includes planners, dispatchers, and security experts.

Analogy to movie industry

Comparison of transportation roles to film production.

Critical to global supply chains

Essential for effective international trade operations.

Professional roles

Diverse jobs beyond just vehicle operation.

Transportation Sector Growth Rate

22% job growth expected from 2012 to 2022.

Transportation Infrastructure

Includes 4 million miles of public roadways.

Railway Mileage

Over 160 thousand miles of railway in the U.S.

Waterway Mileage

25 thousand miles of navigable waterways available.

Pipeline Mileage

1.7 million miles of pipelines for various liquids.

Public Airports

Approximately 5,100 public airports in the U.S.

Derived Demand

Transportation demand depends on marketplace product demand.

Economic Impact on Transportation

Transportation market changes with consumer demand fluctuations.

2008-2009 Economic Crisis

12.2% decline in trade reduced transportation services demand.

Transportation Spending Decline

20.8% drop in U.S. transportation spending from 2008-2009.

Less-than-Truckload (LTL) Service

Demand fell nearly 30% during economic downturn.

Truckload (TL) Revenues

Declined by 4.4% during the economic crisis.

Rail Carload Volume

Dropped 18% during the economic downturn.

Air Cargo Traffic Decline

Air cargo traffic decreased by 11.3% globally.

Ocean Carriers Capacity

Carriers eliminated excess capacity due to demand drop.

Post-Recession Recovery

Transportation industry improved after 2010 global recovery.

Worldwide Trade Growth

13.5% growth in trade expected in 2010.

U.S. Business Logistics Costs

Total costs rose to $1.39 trillion in 2013.

GDP Growth Correspondence

Logistics costs increased with 2.5% GDP growth.

Transportation Sector Growth

Grew 2% with revenue gains across modes.

Railroad Sector Revenue Growth

Increased by 3.6% due to intermodal transportation.

Freight Transportation Statistics

Motor carriers moved 9.4 billion tons of freight.

Water Cargo Sector Improvement

Water cargo performance rose by 4.5% in 2013.

U.S. Exports by Water

Water carriers transported 78% of U.S. exports.

Regulated Industry

An industry controlled by government agencies.

Fare Controls

Government-set prices for transportation services.

Rate Controls

Government regulations on pricing structures.

Route Controls

Government restrictions on transportation routes.

Deregulation

Removal of government controls in an industry.

Air Passenger Travel

Travel by air for passengers.

Freight Modes

Various methods of transporting goods.

Economic Growth

Increase in the production of goods and services.

Population Growth

Increase in the number of people in an area.

Transportation Systems

Infrastructure for moving people and goods.

Innovative Technologies

New methods improving efficiency in transportation.

Modernizing Facilities

Upgrading transportation infrastructure and equipment.

Competitive Market

An environment where multiple companies vie for business.

Consumer Benefits

Advantages gained by consumers from competition.

Cost-Effective Operations

Running businesses efficiently to minimize costs.

Commuter Airlines

Airlines providing services in less-dense markets.

High-Volume Markets

Areas with large numbers of passengers or goods.

Long-Haul Routes

Flights covering long distances.

Shorter Routes

Flights covering shorter distances.

Lower Airfares

Reduced prices for airline tickets post-deregulation.

Industry Innovation

New ideas and improvements in transportation sectors.