An educational presentation about modes of transport in logistics

1. Business English
Logistics & Transportation Engineering
Seminar : Modes of Transport in Logistics
By Youssef Serroukh
06/12/2011 ~ 13/12/2011
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2. Contents
1.1 Introduction
1.2 The Importance of Transport
1.3 Cargo Handling
1.4 Pros & Cons
1.5 Summary
Exercises
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3. What is Transport
Means by which a shipment is moved
from point 'A' to point 'B', such as by
air, rail, road, or sea.
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4. 1.1 Introduction
“...freight transportation is vital to the Nation's economy. At
any given moment, billions of dollars' worth of goods are
being moved by truck, train, ship, or barge, or held in a yard
for transport or distribution.”*
* Scott Johnson, Reliability in logistics is Key to global market, Public Road Magazine
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5. 1.2 The Importance of Transport
Transportation concerns the movement of products from a source—
such as a plant, factory, or work-shop—to a destination—such as a
warehouse, customer, or retail store. Transportation may take place via
air, water, rail, road, pipeline, or cable routes, using planes, boats,
trains, trucks. The goal for any business owner is to minimize
transportation costs while also meeting demand for products.
Transportation costs generally depend upon the distance between the
source and the destination, the means of transportation chosen, and
the size and quantity of the product to be shipped. In many cases, there
are several sources and many destinations for the same product, which
adds a significant level of complexity to the problem of minimizing
transportation costs. Indeed, the United States boasts the world's
largest and most complex transportation system, with four million
miles worth of roads, a railroad network that could circle the earth
almost seven times.
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6. 1.3 Cargo Handling
• Cargo handling is done through four means
of transport:
• 1 Roadways
• 2 Waterways
• 3 Railways
• 4 Airways
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7. 1.3.1 Roadways
• Cargo can’t be handled in every part of the country through railway.
• Roadways play a major role in handling cargo even in small town.
• Roadways transportation is done through Lorries/Trucks.
• There are a No. of lorries having different capacities.
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8. 1.3.2 Waterways
• Waterways is the cheapest means of transportation.
• Large volume of world trade is done through ships.
• Ships handle cargo from one country to other through sea.
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9. 1.3.3 Railways
• Railway play a major role in cargo handling.
• Railway handle cargo from sea port to various part of the country.
• Railway have special wagons to carry the cargo.
• Through Railway large volume of cargo can be handled in a short period
of time.
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10. 1.3.4 Airways
• Airways is the fastest but most costly means of transport.
• Through this means of transportation only valuable goods having less
volume can be transported.
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11. 1.4 Pros & Cons
Transportation is an important link of the logistics system.
Vehicles must have a number of necessary properties and satisfy
certain requirements in order to create innovative systems for
the collection and distribution of goods. Transport is a branch of
material production, transporting people and goods. Each of the
modes of transport has specific characteristics in terms of
logistics management, strengths and weaknesses, determine the
possibilities of its use in the logistics system.
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12. 1.4.1 Road
A very popular mode of transport used by suppliers and businesses to deliver
orders. Many transport companies provide scheduled delivery days and next day
delivery services, depending upon your needs. Goods can be packed/grouped in
box vans or in containers which are also used for sea transportation.
 Cost effective Transport subject to traffic delays
 Fast delivery Transport subject to breakdown
 Ideal for short distances, national Goods susceptible to damage
or mainland Europe through careless driving
 Ideal for transporting perishables Bad weather
(e.g. fruit and vegetables) Driving regulations can cause delays
 Easy to monitor location of goods
 Easy to communicate with driver
 Ideal for sending by courier
shortages to customers
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13. 1.4.2 Sea
Sea transportation is used by businesses for the delivery of goods from distant
suppliers. Most sea transportation is conducted in containers which vary in size.
Goods can be grouped into a container (LCL) or fill a container (FCL). Sea
tankers are used for bulk shipments of loose goods such as oil, grain and coal.
 Ideal for transporting heavy and Longer lead/delivery times
bulky goods Bad weather
 Suitable for products with long lead Difficult to monitor exact location of
times goods in transit
Customs and Excise restrictions
Could be costly
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14. 1.4.3 Rail
Businesses use rail transportation for the delivery of a wide range of goods
including post, coal, steel and other heavy goods.
 Fast delivery Subject to unforeseen delays
 Capacity Reliance on rail freight operator's
 Cost effective timetable
 Safe mode of transport Suppliers/customers are not always
 Reliable located near a rail freight depot and
delivery to/from the depot can be
costly and time consuming
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15. 1.4.4 Air
Airfreighting is commonly used by businesses for the delivery of goods from
distant suppliers. This mode of transport is useful to deliver products with short
lead times, fragile goods and products that are not bulky. Products in high
demand and in short supply may also be airfreighted in order to meet customer
demands. The bulk/value ratio will be a determining factor.
Flight delays and/or cancellations
 Fast delivery, usually between 24
and 48 hours Customs and Excise restrictions
 Customer is not kept waiting for Cost
order fulfilment
 Reduced lead time on supplier
 Improved service levels
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16. 1.5 Summary
Trucking: very flexible to your needs, but prone to accidents
Ocean: inexpensive, but slow
Rail: most economic land transportation, but limited in final
destinations
Air: moves at the speed of business, but with a cost
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18. 1- Match the different types of freight traffic (1-6) with the definitions (a-f).
1. Multimodal
2. Piggyback
3. Intermodal
4. Unaccompanied
5. Block train
6. Single-wagon
a. The driver does not stay with his road vehicle during transport by rail or ferry.
b. Goods are transported in the same loading unit or vehicle using different modes of transport.
The handling of the freight itself is not necessary when changing modes.
c. A single shipper uses a whole train which is run directly from the loading point to the
destination. No assembling and disassembling is required.
d. Carriage of goods by at least two different modes of transport, e.g. shipping by motor lorry and
aircraft.
e. Train is formed out of individual wagons or sets of wagons which have different origins and
different destinations.
f. Combines road and rail transport: whole motor lorries, trailers or swap-bodies are carried by
rail
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19. 2. Match the pictures of transport and handling equipment (a-f) with words (1-6)
1- Reach Stacker 2- Container ship 3- Swap-body 4- River barge 5-Tractor 6- LGV
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20. Thank you for your attention
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