420 likes | 683 Views
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 ...
E N D
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 customerYou 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 EarningsSlide 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.