12.1 Transportation influences, or is influenced by, many logistics activities such as the fact that transportation costs are directly affected by the location of plants, warehouses, vendors, retail locations, and customers. Inventory requirements are influenced by the mode of transport used and the transport mode influences the packaging required as well as the materials handling equipment. Customer service goals influence the type and quality of carrier and carrier service selected by the seller.
12.2 An individual country’s topology, economy, infrastructure and other macro environmental factors influence a country’s transportation system. Because an increasing number of shipments are ...view middle of the document...
12.7 There is no need for vehicle operators and little likelihood of work stoppages by operating employees. The lack of vehicles also means that transportation is one way and the lack of a backhaul reduces potential excess capacity issues. In addition, pipeline’s lack of vehicles means that it is the most reliable form of transportation because there are not vehicle-related disruptions and pipelines are virtually unaffected by adverse weather conditions. However, the lack of vehicles means that the relevant product must be forced through the pipeline and this means that pipelines tend to be the slowest form of transportation.
12.8 Slurry systems allow bulk commodities to become liquefiable by grinding the solid material to a certain particle size, mixing it with a liquid to form a fluid muddy substance, pumping that substance through a pipeline, and then decanting the liquid and removing it, leaving the solid material. While water is the most common liquid used in slurry systems, other liquids can be used.
12.9 There is a level of market domination in railroading that creates limited service and pricing options for potential customers. US railroads have exhibited rather uneven reliability in recent years in part because of severe weather conditions that have destroyed and damaged many miles of track. Railroads present an interesting paradox in the sense that they are not the “best” or “worst” on any of the attributes such as capability, capacity, cost, and so on.
12.10 Drought creates problems because when water levels drop below acceptable levels, barges are forced to reduce their loads or barge traffic might be halted altogether, situations that require alternate means of transportation. Icing closes bodies of water and prevents year-round operations. With flooding, there is too much water and while the disruptions from flooding tend to be shorter than those associated with drought, any disruption negatively impacts transportation reliability.
12.11 Inland water transportation is relatively inexpensive to users, particularly when compared to rail and truck transportation. Moreover, many different kinds of products can be carried and of the modes with vehicles, inland water transportation offers the greatest capacity (volume that can be carried at one time).
12.13 Freight forwarders operate as agents that act as consolidators of freight. They function by consolidating shipments from small shippers, buying transportation in volume rates, and then charging shippers a rate somewhere between the non-volume rate and the volume rate. The forwarder may offer pickup and delivery services, but not line haul service. In addition, forwarders can specialize by handling domestic or international shipments; by handling surface or air shipments; by handling certain products (e.g., garments).
12.14 Shippers’ associations perform basically the same functions as surface and airfreight forwarders, except shippers’ associations do not operate as...