'Intermodal Transportation - The Center For Logistics

Intermodal
Transportation
Curriculum for
Secondary
Education
Pilot Study
Prepared by:
Dr. Tulio Sulbaran

Dr. Mohammad Rahman
Dr. MD Sarder
Dr. Chad Miller
Center for Logistics, Trade, and Transportation (CLTT)
The University of Southern Mississippi
Ms. Cole Bernstein

The Irwin Brown Company
Ms. Jennifer Steele
UPS
Mr. Stuart McAvoy
UPS
Under the Supervision of:
Dr. Lemond Irvin

Mississippi State University
Mr. Brad Skelton
Mississippi Department of Education

Intermodal Transportation
Curriculum for Secondary
Education
Pilot Study
Prepared by:
Dr. Tulio Sulbaran

Dr. Mohammad Rahman
Dr. MD Sarder
Dr. Chad Miller
Center for Logistics, Trade, and Transportation (CLTT)
The University of Southern Mississippi
Ms. Cole Bernstein,

Ms. Jennifer Steele
UPS
Mr. Stuart McAvoy
UPS
Dr. Lemond Irvin

Mississippi State University
Mr. Brad Skelton
Mississippi Department of Education

Intermodal Transportation Curriculum for Secondary Education

- Pilot Study
The University of Southern Mississippi (Southern Miss) – Center for Logistics, Trade and
Transportation (CLTT) and the Mississippi State University - Research Curriculum Unit (RCU) are
partnering to develop an “Intermodal Transportation Curriculum for Secondary Education” as a
pilot study. This project is a part of state initiative to increase awareness of intermodal transportation
education among k-12 stakeholders. This project offers a customized 2-day Technical Workshop for
selected k-12 teachers developed by the CLTT at Southern Miss. The Mississippi Department of
Education and Government are asking the state’s Centers for Logistics Excellence to organize
knowledge building workshop for high school teachers to participate, prepare and dissipate relevant
and practical knowledge on logistics concepts, transportation and intermodal facility to k-12
students.
In this workshop the participants will discuss intermodal facility as a state of the art transportation
center interface that combines different mode of transportations (rail, ship, truck and barges) in one
place to facilitate direct transfer of freights between the modes, which is an important milestone for
21st century economy and trade promotion. This is a fascinating project that will bring important
knowledge into the classroom for our children’s bright minds for them to engage and benefit from
this important sector for Mississippi
The CLTT designed six interactive workshop modules where teachers will work with university
faculty and industry practitioners to prepare lesson plans to implement in the classrooms. The
workshop is designed to provide basic understanding of fundamental concepts of intermodal
transportation, career opportunities and the importance of intermodal education, freight forwarding
and international shipments, modal selection process and transportation decisions, successful
handling of intermodal operations and transportation rules, regulations, and their combined impact
on Mississippi’s global competitiveness.
This educating the educators’ project will serve as a stepping stone and has the potential to create a
future generation of intermodal transportation experts to perform challenging jobs in the industry.
This pilot project is designed not only to educate but also to motivate K-12 teachers to design and
implement intermodal transportation curriculum among their students through project based
learning.
Following is the workshop schedule:
http://www.usm.edu/cltt 3

Table 1: Workshop Schedule:

Intermodal Transportation Curriculum for Secondary Education
Day 1: Monday 22nd October, 2012 (8:00 am to 4.30 pm)
• Welcoming workshop participants

Mr. Skelton
• Introduction of speakers & organizers Dr. Lemond
Introduction • Scope, outline, and expectation of the 8.00 – 8.30 am
Dr. Sulbaran
workshop
• Understand basic concepts of intermodal
system; definition: intermodal shipment.
• Understand the historical development of
today’s intermodal system
Part I:
• Understand the components of intermodal
8.30 – 10.00 am
Module 1: transportation – networks, infrastructures,
Fundamentals of equipment, etc.
Break:
Intermodal • Understand Containerization & Unit Loads 10.00 -10.15 am Dr. Sarder
Transportation • Know the current state of intermodal Dr. Miller
transportation practice in the world, US, and Part II:
in Mississippi 10.15 – 11.30 am
• Understand relation between economic
development and intermodal growth
• Know the trend and career prospect of these
professionals
• Understand the importance of logistics &
Module 2: Career intermodal transportation education for K12 Dr. Cleckler
Opportunities & students Dr. Rahman
Importance of • Understand the role of educators to prepare 11.30 – 12.30 pm
Dr. Sarder
Intermodal a generation of these professionals Dr. Miller
Education for K12 • Get familiar with the educational and Dr. Sulbaran
Students training resources available in this discipline
• General benefits associated with intermodal
systems
A Passion for
Intermodal Working Lunch Break 12.30 – 1.30 pm Mr. Frallic
Transportation
• Understand the terms used in international

shipping – Incoterms 2011
• Get familiar with various documents related
to international shipping
Part I:
Module 3: Freight • Know how to prepare – Bill of Lading, 1.30 – 3.00 pm
Forwarding & Letter of Credit etc.
• Learn about the process of international Mrs.
International Break:
shipments Bernstein
Shipments 3.00 – 3.15 pm
• Learn about supply Understand the
procedures of modal selection chain channel Part II:
members such as 3PL, 4PL, customs 3:15 – 4.30 pm
brokers, freight forwarders, etc. and their
roles in intermodal operations

Day 2: Tuesday 23rd October, 2012 (8:00 am to 4.30 pm)

• Know common types of intermodal
transportation, roles, and their services.
• Know mechanized loading equipment /
technology Part I:
Module 4: Modal • Understand performance rating analysis 8.00 – 10.00 am
Selection Process & of modes and cost impact.
Transportation • Understand the procedures of modal Break: Dr. Rahman
Decisions selection and trade-offs (cost) analysis . 10.00 – 10.15 am
• Constraints to the development of
intermodal system. Part II:
• Risk and security management in 10.15 – 10.45 am
intermodal transportation.
Module 5: Successful • Understand the real life intermodal
Handling of operations at UPS or Port of Gulfport Mrs. Steele
10.45 – 12.15 pm
Intermodal from the CEO of the port or Manager of Mr. McAvoy
Operations @ UPS UPS
Lunch Break 12.15 – 1.15 pm
• Evaluate the impact of transportation

policy on intermodal operation and Part I:
economic development 1.15 – 2.45 pm
Module 6:
• Rules and regulation of Rail, Motor
Transportation
Carrier, Air and Ocean Shipping Industry Break:
Rules, Regulations,
• Shippers and Carriers Duties, HazMat 2.45 – 3.00 pm
& Their Impacts Dr. Miller
movements, etc.
• Introduction to transportation geography
Student Project • Discuss sample class project ideas/plans

Dr. Sarder
Ideas & Concluding for K12 students Hands-on Exercise
Dr. Rahman
Remark • Summarizing lessons learned 3.00 – 4.30 pm
Dr. Sulbaran
Leadership and Speakers

Dr. Tulio Sulbaran The University of Southern Mississippi
Dr. Mohammad Rahman The University of Southern Mississippi
Dr. MD Sarder The University of Southern Mississippi
Dr. Chad Miller The University of Southern Mississippi
Dr. Valerie Cleckler The University of Southern Mississippi
Dr. Lemond Irvin Mississippi State University
Mr. Brad Skelton Mississippi Department of Education
Bruce Frallic (Retired) Gulfport-Biloxi International Airport
Mrs. Cole Bernstein Irwin Brown Co
Mrs. Jennifer Steele UPS
Mr. Stuart McAvoy UPS
6 http://www.usm.edu/cltt

Introduction
Center for Logistics, Trade and Transportation
Intermodal Transportation Curriculum for

Secondary Education – Pilot Study
Introduction to Intermodal
Transportation
WORKSHOP
October 22 & 23, 2012 - Trent Lott Center, University of Southern Mississippi
Prepared By:
Dr. Tulio Sulbaran, Dr. Mohammad Rahman, Dr. MD Sarder, & Dr. Chad Miller
Center for Logistics, Trade, and Transportation (CLTT) - The University of Southern Mississippi
Ms. Cole Bernstein Ms. Jennifer Steele Mr. Stuart McAvoy

The Irwin Brown Company UPS UPS
Dr. Lemond Irvin & Mr. Brad Skelton
http://www.usm.edu/cltt
Introduction of CLTT Leadership
Dr. Tulio Sulbaran Dr. MD Sarder Dr. Chad Miller Dr. M. Rahman
Director CLTT Assistant Director CLTT Assistant Director CLTT Affiliated Faculty
9
1
CLTT Industry Advisory Council
Practitioners Guest Speakers
Ms. Cole Bernstein Ms. Jennifer Steele Mr. McAvoy Stuart Mr. Bruce Frallic
UPS Former Director
The Irwin Brown Company UPS
GP-Biloxi Int. Airport
Partner Institutions
Guest
Dr. Lemond Irvin Mr. Brad Skelton

Curriculum Research Unit - MSU Mississippi Department of Transportation
10
2
Partner Institutions
Guest
Participant
Expectations?
Center for Logistics, Trade and
Transportation – Preamble
Overview
CLTT at Southern Miss was created as the result of
an integrated effort of industry, government and
Southern Miss.
The CLTT provides a competitive advantage to

industry and government agencies through its
multidisciplinary activities in Logistics, Trade and
Transportation.
The CLTT mission is to respond to the Gulf-region

government and industry stakeholders’ need for the
creation and dissemination of practical, cutting-
edge, interdisciplinary knowledge and technologies
to advance logistics, trade and transportation;
foster economic development; and promote an
integrated freight system within the Americas
11
3
Center for Logistics, Trade and
Transportation – Web Page
Workshop Outline / Modules
• Introduction
Monday
• Module 1: Fundamentals of Intermodal Transportation
• Module 2: Career Opportunities & Importance of Intermodal
Education for K12 Students
• Module 3: Freight Forwarding & International Shipments
• Module 4: Modal Selection Process & Transportation Decisions
Tuesday
• Module 5: Successful Handling of Intermodal Operations @ UPS
• Module 6: Transportation Rules, Regulations, & Their Impacts
• Student Project Ideas & Concluding Remark
12
4
Modules Structure
At the completion of this module students
Big Idea: should be able to:
– .
– .
– .
– .
Lecture Duration: – .
– .
What is Logistics Transportation?
It is the efficient movement of goods from the origin to the destination.
Efficient means –
¾ Right place/person
¾ Right time
¾ Right product
¾ Right condition &
¾ Right price
13
5
Its not a single activity rather a process.
Can be also Categorized as:
(1) Strategic tasks, (2) Tactical tasks, and (3) Operational tasks
Sample logistics transportation tasks:
1. Route Planning establishes the
route the truck will take to make its
deliveries. The trade‐off is one of
time and expense against
commitments to the customer.
2. Load Planning is arranging the shipments within the truck to minimize
handling. For example, one might organize on a first‐off last‐loaded model.
3. Truck Servicing assures that the truck is fueled and otherwise properly
prepared for the trip.
4. Movement is the physical movement of the truck along the planned route.
5. Delivery puts the product in the buyers hands. This would require, in the
case of this LCD television, a signature (delivery receipt) from the buyer.
14
6
Layers of Logistics Transportation
¾Transportation consists of many layers.
¾ Transportation managers find the best

ways to align the strength and weakness of
these various layers to provide high quality,
low cost service to the customers.
Cost of Logistics Transportation
¾Transportation is but one of

the components of cost that
needs to be considered in
providing the level of service
desired by the customer at a
price the customer is willing to
pay.
¾ It is highly related with other

components.
15
7
Cost of Logistics Transportation
¾One should not,
therefore, think
that the decision
as to which
transportation
mode to use is
simply based on
transportation
costs alone. It is
more complex
than that.
Transportation Modes
¾Five Major Modes of Transportation
¾The reason for different modes is related to the commodities to be
transported, the distances to be covered, the capacity (Wt, Vol.) required,
the speed required, and the geography that intervenes in the
transportation.
16
8
Modal Comparison
¾Students’ Project Idea: Tell them to identify 10 characteristics of each mode.
Modal Comparison
17
9
Questions?
Thanks
18
10

Module 1

MODULE 1: Fundamentals of
WORKSHOP
Prepared By:
Module 1: Learning Outcomes

Big Idea: Provide should be able to:
students with
basic knowledge – Identify, assess and define transportation issues
of intermodal – Understand and define intermodal transportation
transportation, its and its various components
impact on
economy, and its
– Understand unit load concepts and how
importance in the containerization helps intermodal operations
state and in the – The importance of mode selection on cost and
US. customer service (Module 4; Student Projects)
– Get familiar with current state of Intermodal practice
Lecture Duration:
Three 40 minutes
in the US and in the Sate of Mississippi
sessions (2 hours) – Assess and comprehend the impact of
intermodalism on transportation and economy
21
1
Learning Sessions
Session I: Basic concepts of logistics and transportation

network, definition: intermodal transportation
Session II: Intermodal infrastructure, historical
development of today’s intermodal system
Session III: Components of intermodal transportation networks,
infrastructures, equipment, etc.
Session IV:Containerization & Unit Load concepts
Session V: Current state of intermodal transportation practice in
the world, US, and in Mississippi
Session VI: Relationship between economic development and
intermodal growth
Session I:
Basic concepts of logistics and transportation
networks, Intermodal transportation
22
2
Transportation Network
typically a network of transportation is equipment and infrastructure which

permits either vehicular movement or flow of goods. It consists of –
Nodes (facility locations or terminals) - Nodes are junction points of links.

Links (shipment flows or routes) - Links are the connections between the nodes
of a network.
Layers of Networks
Physical Network: The actual path that the product takes from origin to
destination. Basis for all costs and distance calculations –typically only
found once.
Operational Network: The route the shipment takes in terms of decision

points. Each arc is a specific mode with costs, distance, etc. Each node is
a decision point.
Strategic Network: A series of paths through the network from origin to

destination. Each represents a complete option and has end to end cost,
distance, and service characteristics.
23
3
Physical Network
Operational Network
24
4
Primary Activities within Operational

Networks
Loading/Unloading
Line-Haul/ Back-Haul
Local-Routing (Vehicle Routing)
Sorting

Networks
25
5

Networks
Strategic Network
26
6
Direct Network
Shipping from origin to destination without transshipment
Hub & Spoke Network

Shipping from origin to destination using transshipment point
27
7
Direct Vs. Hub Network
Hub Advantages
28
8
Hub Advantages
Hub Disadvantages
29
9
Bypassing Operations
Heavy load
Reliability & low cost
Time constraints
Pre packed or block load
Cross docking
Routing Alternatives
Students’ Project Idea: Will be discussed on Oct 23
30
10
Session II:
Historical development of intermodal system
Historical Perspective of Intermodal

Transportation
“Intermodal Transportation” term was first used in 1960s when the
trailer-sized containers began transforming the way freight is
packed and loaded on the trucks and ships
Pre-intermodal age:
Some of the earliest containers were those used for shipping coal on the
Bridgewater Canal in England in the 1780s.
Wooden coal containers used on railways go back to the 1830s on the

Liverpool and Manchester Railway.
In 1841 Isambard Kingdom Brunel introduced iron containers to move

coal from the vale of Neath to Swansea Docks.
31
11

Transportation
The Early Ages (1914 - 1954)
World War I: a 10-ft container named “Trinity Freight Unit” was developed
that could be carried by any mode of transportation
1936-1950: Intermodal transportation system that can be carried by Truck and

Rail, introduced by Benjamin Franklin Fitch

Transportation
Development of Conventional Service (1954 - 1980)
1950: A new standardized steel Intermodal container based on
specifications from the United States Department of Defense began to
revolutionize freight transportation.
1954: “The New Haven decision” promoted trailer-train transportation
1956: Introduced Containerization by Malcom McLean
1970: The truck-trailer-sized containers were becoming the standard
cargo boxes for surface transportation.
1972: Southern Pacific railroad and Sea-Land introduced a new service
called “landbridge” which integrated land and water transportation
modes
32
12

Transportation
Expansion of Intermodal Freight Transportation (1980 - today)
1980: significant growth of double stack service

1981: double stack container car by Southern Pacific
railroad
1984: introduction of longer inland container
By end of 20th century, containers were carrying 95% of
inter-continental cargos.
Section III:
Intermodal infrastructure, components of
intermodal transportation, equipment, etc.
33
13
It should be evident by now that each of the modes, and its accompanying
infrastructure and equipment, have strengths and weakness relative to the
nature of the service desired. As one moves from local services through
regional, national, and international services, one is tempted to deploy those
modes on that section of the service where their strengths prevail and their
weaknesses can be overcome.
The idea being that by combining the modes – intermodal – one can
provide a level of service that satisfies the customer at a cost less than using
a single mode. Of course, in some cases, a particular modal opportunity does
not exist.
34
14
Intermodal service is about combing the modes, the networks, the
infrastructure and equipment into an optimally priced integrated service
offering, and managing that offering in a seamless fashion, such that
provides a competitive advantage to the customer as well as the service
provider.
“The concept of transporting passengers and

freight on two or more different modes in such a
way that all parts of the transportation process,
including the exchange of information, are
efficiently connected and coordinated.”
Gerhardt Muller, Eno Transportation Foundation
A Hypothetical Example
35
15
Limitations:
Capital intensive
Demands close coordination and cooperation among participants
Key Issues:
Standardization of equipment
Sophisticated communications
Amodal Transportation
The movements of passengers or freight within the same mode of

transport.
Although "pure" Amodal Transportation rarely exists and an intermodal

operation is often required (e.g. ship to dockside to ship), the purpose is to
insure continuity within the network.
“Transfer made between vehicles of the same mode.”

Intramodal Operation
Also known as “Transmodal Operation”
36
16
Multimodal Transportation
“The carriage of goods by at least two different modes of transportation”
A set of transport modes offering connections between a set of origins and

destinations. Although intermodal transportation is possible, it does not
necessarily occur.
It can be intermodal transportation if two or more different modes are

used in such a way that all parts of the transportation process, including the
exchange of information, are efficiently connected and coordinated.
Efficiency of Intermodal Transportation
The efficiency of intermodal rests on two key principles.
The Physical Interface: The ease and speed with which the freight is
transferred from mode to mode with no loss of or damage to the freight in
the transfer process.
The Information Interface: The ease and speed with which the freight is
transferred from mode to mode is dependent upon the ease and speed with
which the information is transferred from mode to mode. As
a rule, freight should not move without its associated information.
37
17
Transportation Infrastructure & Equipment
The network is generally considered to be infrastructure in as much as the

links and nodes are, in most cases, in a fixed position and representative of
significant long-term investment.
Equipment is what operates on the network and provides the

transportation service.
Like infrastructure, equipment represents assets, but it is movable and

representative of less-significant and shorter-term capital investment.
Equipment is further classified as primary (e.g., truck) if it is used to

directly provide the transportation service, or secondary (e.g., a fork lift) if it
is used in support of the primary equipment.
Truck - Infrastructure
The destination for the truck may

be the shipper, the consignee, a
warehouse or distribution center, a
rail terminal, and an ocean terminal.
A characteristic of large-sized DCs

is that they are often located next to
a high-capacity link.
The red band represents a large

number of doors which allow trucks,
which have backed up to the doors,
to load and unload freight. Distribution Center
http://www.supervalu.com/sv-webapp/images/media_library/Distribution_Center_Arial_view.jpg [February 22, 2007]

38
18
This dock happens to

have three bays. Trucks
back into position and
the freight is unloaded
into the consignee’s
receiving area.
Loading Dock
http://recap1.princeton.edu/recap/loading.JPG [February 22, 2007]

Here is a 20-foot (TEU

or Twenty-foot
Equivalent Unit) in
position at
a dock.
Trucks that have a rail

or ocean terminal as a
destination generally
pick-up or deliver
containers.
Container on Chassis and Positioned at the Dock
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/img/roadcontainer.JPG [February 22, 2007]

39
19
The principal links in truck transportation

range from complex super highways to country
dirt roads.
Super Highway
http://www.chbe.gatech.edu/current/resources/Photos/Atlanta%20Photos/interstate%20traffic%20by%20tech.jpg [Feb 22, 2007]

Trucks of every size and shape are

used to provide transportation service
over every sort of highway and road
imaginable (and some that can’t be
imagined).
Dirt Road
http://imagecache2.allposters.com/images/LPIPOD04/BN631_2003.jpg [February 22, 2007]

40
20
Truck - Equipment
Primary
To most of us, trucking

equipment is defined by
the 18 wheeler at one
end of the spectrum.
18 Wheeler
http://wvs.topleftpixel.com/photos/2006/07/18_wheeler_clouds_01pc.jpg [February 22, 2007]
Truck - Equipment
Here is a picture of a
container chassis used for
TEUs.
Container Chassis
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/img/roadcontainer.JPG [February 22, 2007]

41
21
Truck - Equipment
Secondary
Most trucks, such as shown in previous figure

-18 Wheeler, are not loaded by manual means,
but rather by means of the ubiquitous forklift.
The forklift comes along, places its tines into

the slots that you see at the bottom of the
pallet, lift the pallet slightly above ground and
moves it to where it need to go.
Palletized Freight on a Forklift
http://www.iqsdirectory.com/info/fork-lift-trucks/images/fork1.jpg [February 25, 2007]

Water - Infrastructure
Water port provides services

like loading, unloading, cross
docking, temporary storage,
connectivity, etc to shippers and
carriers.
Port of Oakland, California, USA
http://www.fotosearch.com [February 19, 2009]

42
22
Water - Infrastructure
The ocean is, of course, the link that

ties the nodes together.
It is not just a matter of sailing off, but

a rather more complicated selection of
routes based on a number of factors.
Some of these factors are predictable;
channel depth, ship beam, surrounding
ship traffic, demand from containerized
service.
The Sea
http://www.angelfire.com/art3/bloodwings/stuff/thumbnails/400x300/ocean-storm.jpg [February 25, 2007].

Water - Equipment
Primary
‘It’s longer than the
Eiffel Tower is tall, wider
than the width of a
football field and it can
officially
hold 11,000 20-foot-
long shipping
containers, though some
suggest it can pack in
even more.
Emma Maersk
Gregory Richards, "Emma Maersk May Be as Big as a Cargo Ship Can Get," The Virginian-Pilot August 23, 2006.
43
23
Water - Equipment
Secondary
The side loader takes

the container from a
stack and lowers it onto
a special chassis
and power unit (hostler)
combination that will
then move the container
elsewhere in the
terminal.
Side loader and Hostler
New York Container Terminal, http://nycterminal.com/gallery/yard_operations/DSCF0021 [February 25, 2007]

Water - Equipment
The crane is one of the

most critical of the
secondary pieces of
equipment associated
with the maritime
mode. The crane will lift
the container from the
bomb cart and place it
in position on the ship.
Ship and Crane
New York Container Terminal, http://nycterminal.com/gallery/vessel_operations/DSCF0054 [February 26, 2007]

44
24
Water - Equipment
Now the job the crane

operator, if loaded the
container aboard the
ship, is to place the
container in a cell
position as called for by
a load plan. You can see
two empty cell positions
to the right in the
Figure.
Containers aboard the Ship

New York Container Terminal, http://nycterminal.com/gallery/vessel_operations/DSCF0117 [February 26, 2007]
Rail - Infrastructure
The principal node for the rail mode of

transportation is the railway yard.
Railway yards are generally at the

intersection of major railway lines (links)
and serve the role of
intramodal (rail to rail) interchange of
railway cars. They also serve to facilitate
the intermodal (e.g., rail to
Ocean) interchange of shipments.
Railway Yard
http://www.transsib.ru/Photo/Bran/zs-inskaya1.jpg [February 26, 2007]
45
25
Rail - Infrastructure
Track provides the links essential to rail mode

of transportation.
Public or Private
Railway Track
http://www.deepbluesclub.org.uk/photos/RailwayTrack.jpg [February 26, 2007]

Rail- Equipment
The rail car is the asset

that carries the freight
for the customer.
Here two 40-foot

(FEU) containers are
stacked in a well-car.
The well-car lowers the
center of gravity for the
load and improves the
clearance distances
between the top of the
containers and any
Double-Stacked Containers in a Rail Well-Car
structures
above the rail.
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/img/doublestackrail.JPG [February 26, 2007]
46
26
Rail - Equipment
Railway cars are then

coupled together into
trains.
The trains need to

have power attached.
Two locomotives are

at the head of the train
in this figure.
Railway Locomotives
http://pantransit.reptiles.org/images/1996-07-28/bn_gp30-railroad.png [February 26, 2007]

Air - Infrastructure
Airport facilitates faster

movement of goods. It works
as a hub for companies such
as UPS, FedEx.
Public or Private
Heathrow Airport Terminal 5
http://www.e-architect.co.uk/london/heathrow_terminal_5.htm [February 19, 2009]

47
27
Air - Infrastructure
Sky is not unlimited!
Follow some specific

routes.
The most flexible

routes.
Sky Route
http://www.faa.gov[February 19, 2009]

Air - Equipment
Primary
Passenger planes
Cargo planes
Chartered planes
Public planes
Private planes
Airplane on Runway
www.fotosearch.com [February 19, 2009]

48
28
Air - Equipment
Secondary
Aviation cargo loader
Conveyer belts
Conveyer chains/plates
Aviation Cargo Loader
www.omegaaviation.com/.../cargo_loader_jcpl.html [February 19, 2009]

Intermodal Handling & Transfer

In the past, pallets were a common
management unit, but their relatively small
size and lack of protective frame made their
intermodal handling labor intensive and prone
to damage or theft.
By the early 1930s about three days were

required to unload a rail boxcar containing
13,000 cases of unpalletized canned goods.
With pallets and forklifts, a similar task could
be done in about four hours.
Palletized Freight on a Forklift
http://www.iqsdirectory.com/info/fork-lift-trucks/images/fork1.jpg [February 25, 2007]

49
29

Better techniques and management units
for transferring freight from one mode to
another have facilitated intermodal transfers.
Early examples include piggyback (TOFC:

Trailers On Flat Cars), where truck trailers are
placed on rail cars, and LASH (lighter aboard
ship), where river barges are placed directly
on board sea-going ships. Double stacked
containers are known as COFC: Containers On
Flat Cars.
Double-Stacked Containers in a Rail Well-Car
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/img/doublestackrail.JPG [February 26, 2007]


Piggy bird is applied to air transportation
Piggibirding Space Shuttle “Discovery” on Boeing 747
http://www.nasa.gov/returntoflight/crew/ferryflight.html [accessed on September 18, 2012]

50
30

The major development undoubtedly has been the container, which
permits easy handling between modal systems. Containerized traffic has
surged in recent years, underlining its adoption as a privileged mean to ship
products on international and national markets.
Containers have become the most important component for rail and
maritime intermodal transportation.
Containers permit the mechanized handling of cargoes of diverse types and

dimensions that are placed into boxes of standard sizes. In this way goods
that might have taken days to be loaded or unloaded from a ship can now be
handled in a matter of minutes (Slack 1998).
Section IV:
Understand Containerization & Unit Load concepts
51
31
What is Unit Load Concept?
A basic principle of material handling is the concept

of unit loads.
A unit load is one that can be stored or moved as a
single entity at one time, such as a pallet, container or
tote, regardless of the number of individual items that
make up the load.
The main advantage of using unit loads is the ability
to handle more items at one time. This reduces the
number of trips, handling costs, loading and
unloading times as well as product damage.
Containerization
A large standard size metal box into which cargo is packed for shipment
aboard specially configured transport modes. It is designed to be moved with
common handling equipment enabling high-speed intermodal transfers in
economically large units between ships, railcars, truck chassis, and barges
using a minimum of labor.
The container serves as the unit load and provides complementarily

between freight transportation modes.
52
32
Containerization
Characteristics
Airtight, Stackable, Lockable
International ISO Sizes (8.6’ x 8’)
TEU (20 ft)
• Volume 33 M3
• Total Payload 24.8 kkg
FEU (40 ft)
• Volume 67 M3
Domestic US (~9’ x 8.25’)
53 ft long
• Volume 111 M3
Containerization
There are many sizes of containers

available but the most prevalent
container size is however the 40
foot box, which in its 2,400 cubic
feet which carry on average 22 tons
of cargo.
Carrying Capacity of Containers

Source: adapted from Robert C. Leachman (2005)
Global Fleet of Containers, 2000

Source: UNCTAD (2000) Review of Maritime Transport
53
33
Containerization
In the United States, a large
amount of domestic containers of
53 foot are also used. Containers
are either made of steel (the most
common for maritime containers)
or aluminum (particularly for
domestic) and their structure
confers flexibility and hardiness. 53” Fleet Domestic Containers
Source: Photo: Dr. Jean-Paul Rodrigue
1000 TEU X
US Containerized Trade with Asia, 1996-2007

Source: UNCTAD, Review of Maritime Transport.
Advantages of Containers Use
Flexibility of usage: It can transport a wide variety of goods

ranging from raw materials (coal, wheat), manufactured
goods, and cars to frozen products. There are specialized
containers for transporting liquids and perishable food items
in refrigerated containers called "reefers“.
Costs: Relatively to bulk, container transportation reduces

transport costs considerably, about 20 times less.
20-Foot Tank Containers

Source: Photo courtesy of Gary and Matt Hannes,
The Intermodal Container Web Page
54
34
Advantages of Containers Use
Standard transport product : A container can be manipulated anywhere

in the world as its dimensions are an ISO standard.
Speed: Transshipment operations are minimal and rapid. A modern
container ship has a monthly capacity of 3 to 6 times more than a
conventional cargo ship. This is notably attributable to gains in
transshipment time as a crane can handle roughly 30 movements (loading
or unloading) per hour. Port turnaround times have thus been reduced from
3 weeks to less than 24 hours.
Warehousing: The container limits the risks for goods it transports
because it is resistant to shocks and weather conditions. The packaging of
goods it contains is therefore simpler and less expensive.
Security: The contents of the container are anonymous to outsiders as it
can only be opened at the origin, at customs and at the destination.
Disadvantages of Containers Use

Site space requirements: Containerization implies a large consumption of
terminal space. A containership of 5,000 TEU requires a minimum of 12
hectares of unloading space.
Infrastructure costs: Container handling infrastructures, such as gantry
cranes, yard equipment, road and rail access, represent important
investments for port authorities and load centers.
Stacking: The arrangement of containers, both on the ground and on modes
is a complex problem. LIFO only.
Empty travel: On average containers
will spend about 56% of their 10-15 years
lifespan idle or being repositioned empty.
Either full or empty a container take the
same space on ship, truck or train.
Container Usage during its Life-Span

http://www.interasset.com/docs/AssetManagementWP.pdf
55
35
Intermodal Selections
Selection of intermodal transportation is not a pick and choose issue rather

a complex decision making that enables efficient movement of people and
goods.
There is a relationship between transportation costs, distance, customer

preference, and modal choice that has for long been observed.
Will be covered tomorrow!
Students’ Project Idea: Let students find the best selection among various
scenarios.
Section V:
Know the current state of intermodal transportation
practice in the world, US, and in Mississippi
56
36
State of Intermodal Practice - US
The American economy

stretches across a continent
with links to the world,
drawing on natural resources
and manufactured products
from many locations to serve
markets at home and abroad.
More freight is moving
greater distances as part of
far-flung supply chains among
distant trading partners.
Source: Freight Facts – Federal Highway Administration,

November 2011
What are we moving?

The top 10 commodities by weight are comprised entirely of bulk products
and accounted for 65 percent of total tonnage but only 16 percent of the
value of goods moved in 2007.
The top 10 commodities by value accounted for 58 percent of total value
and only 13 percent of all tons.
Source: Freight Facts – Federal Highway Administration, November 2011
57
37
Freight moves across the continent through intermodal transportation

system.
Source: http://ntl.bts.gov/lib/jpodocs/repts_te/5497.pdf
58
38
The U.S. transportation system moved, on average, 52 million tons worth

nearly $46 billion each day in 2007
U.S. has a huge transportation infrastructure that facilitate efficient
intermodal transportation
US Intermodal Infrastructure
59
39
US Intermodal Infrastructure - Road
Plays an important role in

US intermodal
transportation
Provides max point to
point coverage
Long-haul freight truck
traffic in the United States
is concentrated on major
routes connecting
population centers, ports,
border crossings, and
other major hubs of
activity
US Intermodal Infrastructure - Road
Selected routes carry a

significant concentration of
trucks, either as an absolute
number or as a percentage
of the traffic stream.
Nearly 6,000 miles of the
NHS carry more than 8,500
trucks per day on sections
where at least every fourth
vehicle is a truck.
Source: Overview of US Freight Transportation Systems, 2007
60
40
US Intermodal Infrastructure - Rail
Most prevalent mode of

transportation for coast to coast
movement
The classic forms of rail intermodal
transportation are trailer-on-flatcar
and container- on-flatcar, and these
are spread throughout the United
States.
Coals and chemicals are the top two
commodity transported by train
US Intermodal Infrastructure - Rail
The largest
concentrations are on
routes between Pacific
Coast ports and Chicago,
southern California and
Texas, and Chicago and
New York.
Nearly 6,000 miles of the
NHS carry more than
8,500 trucks per day on
sections where at least
every fourth vehicle is a
truck.
61
41
US Intermodal Infrastructure - Water
The sea ports and inland ports in the US are the gateways of maritime transportation.
There are about 353 US Ports
US has limited inland waterways – Primarily Mississippi river
Source: Overview of US Freight

Transportation Systems, 2007
US Intermodal Infrastructure - Water
The Ports of Los

Angeles and Long
Beach together
handle about 38
percent of all
container traffic at
water ports in the
United States.
White Gulf Coast
ports are handling
the most bulk
materials.
62
42
US Intermodal Infrastructure - Air
US airports are
playing an important
role in expedited
freight delivery for
critical and high
value products.
There are 433

Airports in the US.
US Intermodal Infrastructure - Air
The three most

important U.S. airports
that handle all-cargo
aircraft are Memphis,
Anchorage, and
Louisville.
Memphis and Louisville
are major hubs for
FedEx and the United
Parcel Service.
Anchorage is a major
international gateway
for trade with Asia.
63
43
US Intermodal Infrastructure – Pipe Line
The U.S. has

more than 2
million miles of
pipelines
operated by over
3,000
companies.
Transport mostly
Gas and
Petroleum.
US Intermodal Infrastructure –
Intermodal Facilities
The United States
has about 2,270
intermodal rail
facilities able to move
freight from rail to
trucks
20% of these
facilities handle a
significant intermodal
volume. The rest are
local facilities fulfilling
specific industrial,
resources or
manufacturing needs.
Source: Intermodal Transportation in North America - Dr. Jean-Paul Rodrigue, 2009
64
44
Intermodal Terminals
The development of containerization and mechanized intermodal

equipment in the 1960s was the starting point in the emergence of a more
efficient intermodal rail system, particularly in the 1980s when double-
stacking rail cars entered in service.
Although20% of these facilities handle a significant intermodal volume.
The rest are local facilities fulfilling specific industrial, resources or
manufacturing needs.
Memphis BNSF Intermodal Terminals

- Plant Tour
65
45
Intermodal Transportation in MS
Strategic Location of MS can be a factor for its intermodal growth

24 hours delivery can cover 55% of US market
Panama Canal expansion can play a big role
Modes of Transportation for Shipments

Originating in Mississippi
Mode of Transportation Percent of value
Truck 76.5
Air 0.3
Rail 4.0
Port of Gulfport
Water 5.3
Pipeline 4.4
Multiple modes 7.5
Parcel, U.S.P.S. or courier 4.2
Other and unknown modes 2.1
Total 100.0
Port of Pascagoula
http://www.bts.gov/publications/commodity_flow_survey/2007/state_summaries/html/mississippi.html
66
46
MS Transportation System
Infrastructure
All public roads: 73,498
miles
Interstate: 685 miles
Road bridges: 16,672
Class I railroad tracks:
2,011 miles
Inland waterways: 873
miles
Public use airports: 82
Source: Mississippi Blueprint Report 2011
Source: Mississippi Blueprint Report 2011
67
47
Intermodal Transportation Impact on U.S.
Our nation’s economic

strength and
competitiveness depends
on a safe, efficient,
sustainable and secure
freight transportation
system.
In addition to serving the
population and economy
by moving goods, freight
transportation adds to the
national economy by
providing jobs for millions
of people.
Intermodal Transportation Impact on U.S.
The American economy

depends more and more
on producers and
customers all over the
world.
In terms of economic
impact, freight
transportation is an
important part of logistics
costs. The trends in
logistics expenditure for
business are shown in the
figure.
68
48
Session VI:
Understand the relationship between
economic development and intermodal growth
Transportation and the Economy

Efficient Transportation
Infrastructure Investment
Increases, Transportation Capacity, Efficiency Reliability

and Level of Service
Business Expansion
Transportation Costs Savings Transit Time Savings (Relocation and Restructuing)
(Reliability Improvement)
Increased Productivity
Increased Competitiveness
Source: Economic Effects of Transportation: The

Freight Story
http://ops.fhwa.dot.gov/freight/freight_analysis/impro Increased Economic Growth
ve_econ/appa.htm#exhibit1
69
49
Modal Contribution to Economic

Opportunities
Source: adapted from HOP Associates (2005) "Time, mobility and economic growth", http://www.flexibility.co.uk/issues/transport/time-mobility.htm
Freight-Based
Economic Development (FBED)
• Economic development (ED) is the management of public-
private investment collaborations to facilitate sustainable
growth in the economy as typically measured by job creation,
increased citizen wealth, a greater tax base, and improved
quality-of-life.
• FBED is the management of public-private transportation

infrastructure investments that led to sustainable growth in
the economy as typically measured by job creation, increased
citizen wealth, a greater tax base, and improved quality-of-
life.
Discussion Question: How would you define economic development?
70
50
Economic Benefits
• Retention & Expansion of Existing Businesses: Businesses

directly benefit when goods can be shipped faster, or at lower
cost.
• Attracting News Businesses: Business will locate where they

can ship faster, or at lower cost
• Create Jobs in Transportation and Logistics Businesses:
Discussion Question: What kind of jobs are there in transportation and

business?
Jobs, Pays, and Education Level

Median
Occupation Hourly Education Level
Earnings
Truck Drivers, Heavy and HS and Short-term on-the-
$17.58
Tractor-Trailer job training
Freight, Stock, and HS and Short-term on-the-
$10.22
Material Movers job training
Shipping, Receiving, and HS and Short-term on-the-
$12.67
Traffic Clerks job training
Transportation, Storage, College Degree
and Distribution $29.73
Managers
Moderate-term on-the-job
Locomotive Engineers $24.29
training
71
51
Freight Oriented Development

• An area that consolidates manufacturing, warehousing,
distributing, and freight forwarding operations in a location
with ready access to a multimodal transportation network
Freight Facility in Minneapolis, MN Freight Facility in Birmingham, AL

Source: http://www.intermodaltransportation.com/minneapolis-intermodal- http://www.roadways.co.uk/news/birmingham-intermodal-freight-
transportation.html terminal-w10-clearance.html
Discussion Question: Can you name any places that are doing this?
Example: Elwood, Illinois
• Developer: CenterPoint Properties

• Total Investment: $1 billion
• Site Size: 2,200 acres
• Employment: 8,000 jobs
• Total Building Space: up to 12 Source: http://www.centerpoint-prop.com/downloads/CIC-Elwood08.pdf
million square feet

• Tenants: BNSF Railroad, Wal-Mart
Stores (3.4 million sq. ft. complex),
Inc., DSC Logistics, Georgia Pacific,
Potlatch, Sanyo Logistics, Partners
Warehouse, California Cartage,
Maersk
• Freight: BNSF Logistics Park (770
acres), link to UP, link to Interstates
55 and 80
72
52
Freight Villages
• A freight village is a
defined area within which
all activities relating to
transport, logistics and the
distribution of goods.
• Popular in Europe
• Discussion Question: What

types of companies might
locate in freight village?
http://www.envisionfreight.com/factsheets/index.html%3Fid=association_activities.html
Intermodal and Logistics Parks
73
53
Logistics Park Exercise
• Give the students a simple map and ask them to design an

intermodal and logistics park
• The basic map should include rail lines and a highway
• Have them design a park that includes:

– 5 warehouses from their favorite retailers
– A railroad facility to load and unload containers
– Roads for trucks to get from the terminal to the highway
– Other businesses of infrastructure that they like
Aerotropolis
• a combination of an
international airport, a
city built around the
airport, air cargo
facilities, and business
hub.
• Examples in the U.S.

include Memphis,
Miami, and Dallas-Fort Source: http://www.ils.unc.edu/~rigoli/index.html
Worth Discussion Question: Would you like to live in an

aerotropolis?
Further Reading: Kasarda, John D., and Greg Lindsay. 2011. Aerotropolis: the way we'll live next. New York:
Farrar, Straus and Giroux
74
54
Transit-Oriented Economic
Development
• Also known as Transit Oriented Design, or TOD, it is the
creation of compact, walkable communities centered around
high quality train systems. This makes it possible to live a
higher quality life without complete dependence on a car for
mobility and survival.
• Light Rail for
passengers
• Portland’s Pearl
District
Discussion Question: How
walkable is your home town? Source: http://mithun.com/projects/project_detail/lexis_on_the_park/
What will economic development and

intermodal growth look like in the future?
Salt caravan
Source: http://www.reuters.com/article/2007/02/21/us-mauritania-
caravan-idUSL162118220070221
Source: http://www.feoamante.com/FeoNews/articles/FireFly/images/serenity_1152.jpg
Modern Container Ship

Source: http://www.marineinsight.com/marine/types-of-ships-
marine/what-are-cargo-ships/
75
55
Questions?
Thanks
76
56

Module 2

MODULE 2: Career Opportunities & importance of
Intermodal Education for K12 Students
WORKSHOP
Prepared By:

To motivate students to learn career
Big Idea: opportunities & intermodal education :
Motivate
– Clear understanding of the role of educators to
students to
pursue this prepare a generation of these professionals
discipline with – Familiarity with the educational and training
ROI, job growth, resources available in this discipline
and national – Awareness of the best practice models of K12
need.
curriculum
Lecture Duration: At the completion, students should be able to:
Two 45 minutes
– Know the trend and career prospect of these
sessions (1.5
hours)
professionals
– Understand the importance of logistics & intermodal
transportation education
79
1
Learning Sessions
Session I: Trend and career prospect of these professionals
Session II: Importance of logistics & intermodal transportation

education for K12 students
Session III: Understand the role of educators to prepare a generation of

these professionals
Session IV: Get familiar with the educational and training resources
available in this discipline
Session V: General benefits associated with intermodal systems
Session I:
Trend and Career Prospect of Logistics
Transportation
80
2
Trend and Career Prospect of

Logistics Transportation
Logistics and Transportation is the lifeblood of nation’s
economy
Now a days companies no longer compete in terms of
production but how efficiently manage their logistics
Time & Place Utility: efficient logistics can improve the time & place
utility way over the value of products
US Military Logistics: without the efficient & timely deployment of
resources, the war could be catastrophic
Food Logistics: Food shortages are seldom about a lack of food - there
is plenty of food in the world - the shortages occur because of the
inability to get food where it is needed and the inability of the hungry
to afford it.
Industry Trends: Logistics Transportation
The transportation, distribution, and logistics industry contributes to about

5.1 million jobs in the U.S. economy and makes up more than 380,000
establishments with $198 billion in wages.
The U.S. Bureau of Labor Statistics projects employment in the industry to
expand by 1.9% annually between 2010 and 2020.
Factors contributing to industry growth include globalization and
continued growth in the importation of products produced overseas.
Imports and exports are doubling
every ten years and containerized
cargo is estimated to increase by
more than 350 percent by 2020.
Sources: U.S. Bureau of Labor Statistics, Arizona Department of Commerce, Minnesota

IMPLAN Group, States’ Career Clusters Initiative (SCCI), and the Maricopa Community Colleges
Center for Curriculum Transfer and Articulation.
81
3
Industry Profile: Logistics Transportation
In all, transportation, distribution, and logistics contain 30 sub-sectors

engaged in the movement of goods, information, and people.
Nationwide, 4.5% of firms fall into transportation, distribution, and
logistics, while the sector accounts for 4.5% of employment and 4.1% of
wages.
Truck transportation makes up the largest percentage of employment
(28.0%), followed by automotive repair and maintenance (17.4%),
warehousing and storage (12.4%), couriers and messengers (11.3%),
support activities for transportation such as ports, airport, and cargo
handling (11.2%), and air transportation (9.5%).
Sources: U.S. Bureau of Labor Statistics, Arizona Department of Commerce, Minnesota

IMPLAN Group, States’ Career Clusters Initiative (SCCI), and the Maricopa Community Colleges
Center for Curriculum Transfer and Articulation.
Industry Profile: Logistics

Transportation
82
4
Salary: Logistics Transportation
According to the findings of our 27th Annual Salary

Survey, those workers who were able to keep their
logistics and supply chain positions saw a slight salary
gain over the past 12 months.
The median salary index moved from $85,000 to
$88,000 in our 2010 results, analysts suggested that
companies were finally in a position to reward
professionals with a modest, but sustainable raise.
This trend continues in 2011 as the median salary now
rings in at $90,000
http://www.logisticsmgmt.com/article/27th_annual_salary_survey_ready_to_move_up%20
Dr. Theodore P. Stank, Bruce Chair of Excellence in

Business, University of Tennessee, says that supply
chain professionals still need to be proficient at
managing the core functions, such as transportation,
warehousing, inventory management, and reverse
logistics—but within the context of this broader supply
chain process.
“For transportation to make that needed impact in an
integrated supply chain, managers need to become
proficient at making smart decisions on four different
levels—long-term strategies, lane operations, mode and
carrier selection, and dock operations,” he says.
http://www.logisticsmgmt.com/article/27th_annual_salary_survey_ready_to_move_up%20
83
5
According to Stank, a lot of

new jobs are moving to the
South and Southeast as a
prolonged shift in
manufacturing takes hold.
“At the same time, the
quality of life is improving in
these parts of the country,
and many of our top cities
are more affordable for
raising a family while
building a career.”
Industry Employment & Growth
http://www.billshrink.com/blog/8660/sector-by-sector-employment-in-america/
84
6
Industry Employment & Growth
National & Local Demand
National Need
Collaborative nature of job
Manufacturing at US
Businesses compete logistically
Regional Need
Production & supply chain based
Life Cycle contract at Ingalls Shipbuilding
Freight Village at North Mississippi
Impact of Panama Canal expansion
85
7

Table: Average Annual Openings - Information by Occupation
2008-13 Average Annual Openings
TX LA MS FL Gulf Coast
Focus Occupation States
Construction/Civil engineers 1,423 123 91 182 881 2,691

Transportation and material- moving machine and 643 93 82 172 438 1,436
vehicle operators
Construction/Civil engineering technician 554 47 33 86 211 904
Logisticians 456 29 18 58 194 709

Occupation Title
Environmental engineers 218 20 17 42 138 501
Transportation workers, Industrial 181 11 8 35 121 345
Transportation inspectors 146 11 7 18 45 232

Environmental engineering technicians 109 5 3 18 39 191
TOTAL1 (T1) 3,731 339 259 612 2,067 7,008

Award < 2 years 143 0 - 11 60 214
Associate's 81 8 19 1040 342 1490
Bachelor's 1100 222 96 279 977 2674
Degrees awarded
Master's 421 26 10 60 376 893
Doctor's 84 16 - 8 61 169
TOTAL2 (T2) 1829 272 125 1398 1816 5440
% Shortages (by T1 and T2) 50.98 19.76 51.74 -56.22 12.14 22.37
Source: Department of Education, for Education

Statistics: Integrated Postsecondary Education Data System (IPEDS)
86
8
So, Why Logistics Transportation Profession?
≫ &
Job availability & security
Direct contribution to national economy
Not about the money – higher job satisfaction
Where do our graduates work?
87
9
Session II:
Importance of logistics & intermodal transportation
education
Importance of Logistics
1. Impact on the domestic and global economy

Logistics facilitates market exchanges, provides a major source of employment, and is
a major purchaser of assets and materials.
In the process of these activities, organizations in the United States spend nearly $800
billion on logistics each year—up from $678 billion in 1990.
Nearly three times the combined annual revenues of General Motors, IBM, and
Proctor & Gamble! Worldwide, more than $1.4 trillion is spent annually on logistics
and the amount will grow with the continued expansion of the global marketplace.
In US economy The costs associated with logistics functions were more than 10
percent of GDP in 2007 (Wilson 2008).
88
10
Importance of Logistics (cont.)
2. Facilitate the success of activity:

• Logistics greatly impacts the activities associated with any endeavor with efficient
flow of materials, human resource and information.
• It’s not only related with production of goods but also with other activities.
• As an example, More than $25 million was spent on logistics for the Summer
Olympic Games in Atlanta, Georgia. During the Games, more than 1,200 logistics
staff members were needed to receive, set up, resupply, and recover assets at 143
competition venues, training facilities, and other sites.
Importance of Logistics (cont.)
3. Importance to human survival:

The logistics system provides the continuous availability of food, water, medicine, and
other key materials that people need to survive. A prime example is the food you
ate at your last meal.
It’s very likely that the materials used to prepare that meal came quite a
distance…perhaps from the other side of the planet!
In order for that meal to fulfill your needs, you were dependent on logistics
professionals to provide safe storage and transportation of those items.
4. Cost effectiveness:
The logistics management works to distribute the desired goods at a affordable price
with cost-effective means of distribution locally and globally.
89
11
Importance of logistics and intermodal

transportation education:
1. Career opportunity:
Logistics professionals manage and coordinate activities in this global pipeline to
ensure an effective and efficient flow of materials and information from the time a
need arises until it is satisfied and beyond. Some of the many activities involved in
logistics include:
• customer service
• warehousing
• inventory control
• transportation materials handling
• forecasting
• purchasing
• strategic planning
From the largest automobile manufacturers to the smallest zipper producers, any
company that purchases and/or sells products has a need for logistics professionals
to manage the flow of product and information locally, nationally, and internationally.

transportation education: (cont.)
2. Meet the challenge of Dynamic and complex market:
The technological applications and concepts of network management are
rapidly changing. Moreover, with the increase of global trade the methods
affiliated with intermodal transportation becomes complex. It focuses on the
technical issues, such as cargo handling technologies, vehicles, information
and communication technologies, and infrastructure networks. So the
professionals need to become more methodical, intercultural, requires social
and analytical skills.
3. Efficient and safe movement of products:

The intermodal transportation requires integration with different modes and routes
with using sophisticated technology and heavy machinery. So adequate knowledge
on material handling, scheduling, network planning and safety measures are very
much necessary for the people allied with logistics and intermodal transportation.
90
12
4. Competency improvement to transportation decision:
As shown in the figure below, professional and methodical competencies are vital
g ,p p
for working at front and mid level.
Leadership
Strategic Top Social competence
Management
Problem solving
Tactical Mid management Analysis, optimization
Methodical improvement
Operational Front line Technical know-how

Work method
So education on logistics and intermodal transportation is really necessary to improve
the competence.
5. Emerging discipline of education:
As a discipline of supply chain management; Logistics and intermodal
p pp y g ; g
transportation continues to evolve at a rapid pace.
Bowersox (2008) argued that logistics is an academic discipline and should be
acknowledged as such. It has an integrated body of knowledge with theories and
constructs that explain interrelationships, which has provided a framework for
understanding and prediction.
The Marketing Education Resource Center recently updated the marketing
Th M k ti Ed ti R C t tl d t d th k ti
curriculum and omitted distribution and logistics from the marketing cluster
because these fields had taken on an identity of their own and now are recognized
as separate business functions (Ciancio et al. 2007, 15‐16).
91
13
Session III:
Understand the role of educators to prepare
a generation of these professionals
Understanding the Role of Educators
1. Teachers as learners:
“Who dares to teach must never cease to learn” – John Cotton Dana.
It's important for teachers to stay current on research and continuing their
education. The world is an ever changing entity, and teaching outdated
information is unacceptable.
3. Become a facilitator:
In the past, teachers were considered a students main source of knowledge.
Thanks to modern leaps in technology and communication, a teacher’s role
has evolved. Recently, teacher’s have felt the need to become a facilitator
rather than a lecturer; setting goals and organizing the learning process
instead of regurgitating information.
92
14
Understanding the Role of Educators

cont…
1. Technology is Empowering:
As technology advances so does the professional world. It is crucial for
teachers get up to speed with current technology and reflect that change in
the academic world. The Technology and Methodology taught in the class
room should reflect what is being used in the professional environment.
Session IV:
Get familiar with the educational and
training resources available in this discipline
93
15
Educational And Training Resources
1. Department of Transportation:
This programs goal is to provide students an opportunity to obtain a paid
work experience while attending school.
Students are eligible if they are enrolled in a high school, technical or

vocational school, 2-year or 4-year college or university, or graduate or
professional school.
Benefits of this program include the opportunity to gain work experience

related to their field of study, eligibility for non-competitive permanent
employment with DOT, flexible work schedules, health insurance, and life
insurance.

(cont’d..)
2. National Highway Institute (NHI):

NHI was established in 1970 to provide training resources to customers,
partners, and learners in every State and to upgrade the knowledge and
skills of transportation personnel engaged in the planning, design,
construction, operation, and maintenance of our surface transportation
system.
NHI’s goals are to train the current and future transportation workforce,
and effectively and quickly transfer knowledge to and among
transportation professionals.
94
16

(cont’d..)
3. Federal Highway Resource Center:

The Federal Highway Resource Center offers training and expert assistance
in a variety of technical, communication, and financial areas directly
related to the transportation industry.
The training offerings are designed to advance the strategic goals and
objectives of the FHWA by providing high-level technical assistance to
FHWA Division Offices, State Departments of Transportation, Metropolitan
Planning Organizations, local agencies, as well as other customer
segments throughout the United States.

(cont’d..)
4. Transportation and Civil Engineering (TRAC) Program

Provides hands-on education in science, math, social science, and
technology education classes for students’ grades five through twelve,
which inspires students to pursue careers in transportation.
The TRAC program engages students in real world problems by sending

professionally developed transportation curriculum in the form of TRAC
PACs to participating schools.
Each TRAC PAC meets national standards of learning, and includes

equipment, software, and supplies for hands-on activities related to
various transportation topics and disciplines.
95
17

(cont’d..)
5. International Road Federation (IRF)

Established in 1948, IRF is a nongovernmental, not-for-profit organization with the
mission to encourage and promote development and maintenance of better, safer,
and more sustainable roads and road networks.
Working together with its members and associates, IRF promotes social and
economic benefits that flow from well-planned and environmentally sound road
transport networks
6. More Programs/Training
More information about training opportunities and programs for students
can be found at: http://www.fhwa.dot.gov/transprogcat/#dot_wide_programs
Session V:
Best Practice Models of Logistics Transportation
Education for K12
96
18

Education for K12
The CLTT is a partner in CFIRE

consortium of $7 million US DOT grant.
It has 11 partner institutions who are
engaged in various educational initiatives
to promote and educate K20 stakeholders.
Many of their effective programs are
directed to K12 students and teachers.

Education for K12
Education Initiatives for K-12 Stakeholders
Freight for Children Video Contest: CFIRE will establish and sponsor a
competition to find the best amateur short video that makes children
aware of career options in freight-related transportation.
Freight Transportation Session at Camp Badger: Camp Badger is a

weeklong summer program that brings 250 8th and 9th graders per year
to the UW-Madison campus and introduces them to careers in science
and engineering.
97
19

Education for K12 (cont’d..)
Education Initiatives for K-12 Stakeholders (continued…)
Girls Experiencing Engineering (GEE): UM will continue to support GEE, a

fast-paced, interactive summer program for middle school and high school
girls. The GEE program increases the number of girls pursuing careers in
STEM fields.
Transportation Engineering Careers (TREC): The TREC program at UM,

increases the number of students pursuing careers in transportation by
offering high school students an opportunity to increase their awareness
and interest levels regarding existing and potential opportunities in the
field.

Lac Courte Oreilles Tribal College Summer Transportation Institute: The

Transportation and Logistics Research Center at the UW-Superior
provides instruction, learning materials, tours, and student assistance
for this FHWA-funded institute for students in grades 7-12.
Rail and Intermodal Transportation Exploration: This week-long

program for students in grades 9-12 is designed to create awareness and
stimulate interest in the area of rail and intermodal transportation.
98
20

UAH Summer Transportation Institute Program: The Summer

Transportation Institute (STI) enrolls 35 students in grades 9-12. STI
creates awareness and stimulates interest in high school students to
take advantage of the opportunities that exist in the transportation
industry along with life skills training.
Toledo Maritime Academy: Partners at UT will continue to support

activities at the Toledo Maritime Academy, a Charter school for grades
5-12. CFIRE will sponsor field trips for hands-on experience as part of
the nautical and marine curriculum.
Wisconsin Regional Future City Competition: This program

engages students in grades 6-8 in a competition that highlights STEM
education and encourages visionary thinking.
Great Lakes Maritime Transportation Teacher Institute: The

Institute provides K-12 educators with an understanding of maritime
transportation—its history, current operations, and future challenges—
that will facilitate teachers’ ability to develop standards-based lessons for
their science, math, social studies, and language arts classes.
99
21
Module 2e: Best Practice Models of Logistics

Transportation Education for K12
Multimodal Freight Transportation Teacher Institute: Partners at MTU

will design a 2-credit course that focuses on multimodal freight
transportation—traffic networks, rail yards, ports, seaborne container
yards, operations, and management of intermodal freight terminals and
distribution facilities (marine, rail, air, trans-modal).
Transportation Education Teacher Workshop Series for Urban

Detroit Teachers: CFIRE will leverage MTU’s close working
relationship with the Detroit Public Schools and Detroit Math & Science
Center to design and deliver a series of three one-day workshops during
the school year in order to reach under-represented K-12 students and
teachers.
Module 2e: Best Practice Models of Logistics

Transportation Education for K12
Online Clearinghouse of K-12 Lesson Plans and Resources: Recognizing

the importance of reaching young students, CFIRE and its partner
universities have developed several innovative programs for K-12
students and teachers.
Family Transportation Event Model For K-6 Students and Families:

Another new and innovative activity is the development and
implementation of a Family Transportation event for K-6 students and
families.
100
22
Questions?
Thanks
101
23

Working Lunch
10/11/2012
A Passion for Intermodal

Transportation
WORKSHOP
Prepare By:
Bruce Frallic
Adjunct Assistant Professor, Embry-Riddle Aeronautical University
Former Airport Director, Gulfport-Biloxi International Airport
Former Executive Committee Member, Mississippi Coast Foreign Trade Zone, Inc.
Transportation
9 Why am I here today?
9 What is my message?
9 What is the common denominator?
9 Who helped me?
105
1
10/11/2012
Transportation
9 Unlocking The Inter‐modal Relationship
9 Planting The Seed Of Inter‐modal Knowledge
9 Identifying The Resources Available
9 Communicating The Value Proposition
Transportation
9 Unlocking The Inter‐modal Relationship
9 Planting The Seed Of Inter‐modal Knowledge
9 Identifying The Resources Available
9 Communicating The Value Proposition
106
2
10/11/2012
Thank you
107
3

Module 3

MODULE 3: Freight Forwarding and

International Shipments
WORKSHOP
Prepared By:
Ms. Cole Bernstein

1. Describe the basic business activities and related terms used

in international shipping.
2. Discuss the various documents related to international
shipping
3. Learn about the process of international shipments.
4. Understand supply chain logistics providers such as 3PL, 4PL,
customs brokers, freight forwarders
5. Role of Logistic providers in intermodal operations
111
1
Learning Sessions
Session 1: Understand the terms used in international shipping

Session 2: Get familiar with various documents related to
international shipping
Session 3: Know how to prepare – Bill of Lading, Letter of Credit
etc.
Session 4: Learn about the process of international shipments
Session 5: Understand supply chain logistics providers such as
3PL, 4PL, customs brokers, freight forwarders,
Session 6: Role of Logistic providers in intermodal operations
Session 1:
Understand the terms used in international
shipping – Incoterms 2011
112
2
Trade Terms
• INCOTERMS are a set of three-letter standard trade terms most

commonly used in international contracts for the sale of goods. It is
essential that you are aware of your terms of trade prior to
shipment.
• Responsibilities of buyer and seller need to be negotiated.
• Trade terms used as a short hand for assigned responsibilities and

allocating when the risk passes from one party to another.
• Most commonly used in International Trade but can be used for

Domestic Movement of goods
INCOTERMS 2012
INCOTERMS 2012
EXW EXWORKS (PLACE OF DELIVERY)
FCA FREE CARRIER (PLACE OF DESTINATION)
CPT CARRIAGE PAID TO (PLACE OF DESTINATION)
CARRIAGE AND INSURANCE PAID (PLACE OF DESTINATION)

CIP
DAT DELIVERED AT TERMINAL (PORT OF DESTINATION)
DAP DELIVERED AT PLACE (PLACE OF DESTINATION)
DDP DELIVERED DUTY PAID (PLACE OF DESTINATION)
MARITIME-ONLY TERMS
FCA FREE CARRIER (PLACE OF DELIVERY)
CFR COST AND FREIGHT (PORT OF DESTINATION)
CIF COST, INSURANCE & FREIGHT (PORT OF DESTINATION)
FAS FREE ALONGSIDEE SHIP (PORT OF SHIPMENT)
FOB FREE ON BOARD (PORT OF SHIPMENT)
113
3
Trade Terms: E & F Terms
EXW – Ex works: The seller's only responsibility is to make

the goods available at the seller's premises.
– The buyer bears full costs of moving the goods from there to
destination.
– Risk shifts to buyer when goods made available by seller at named
location.
FCA – FREE CARRIER (… named place of delivery)
– The Seller delivers the goods, cleared for export, to the carrier
selected by the Buyer.
– The Seller loads the goods if the carrier pickup is at the Seller’s
premises.
– From that point, the Buyer bears the costs and risks of moving the
goods to destination.
Trade Terms: C Terms
CPT – Carriage paid to: The seller pays for moving the goods
to destination.
– Risk shifts to buyer when goods are transferred to the first carrier.
– Buyer must procure own insurance.
CIP – Carriage & insurance paid to: The seller pays for
moving the goods to destination.
– Risk shifts to buyer when goods are transferred to the first carrier.
– Seller must purchase cargo insurance; buyer can claim on policy.
114
4
Trade Terms: D Terms (I)
DAT – DELIVERED AT TERMINAL (… named terminal at port or

place of destination)
– The Seller delivers when the goods, once unloaded from the arriving
means of transport, are placed at the Buyer’s disposal at a named
terminal at the named port or place of destination.
– “Terminal” includes any place, whether covered or not, such as a
quay, warehouse, container yard or road, rail or air cargo terminal.
– The Seller bears all risks involved in bringing the goods to and
unloading them at the terminal at the named port or place of
destination.
Trade Terms: D Terms (II)
DAP – DELIVERED AT PLACE (… named place of destination)

– The Seller delivers when the goods are placed at the Buyer’s disposal
on the arriving means of transport ready for unloading at the names
place of destination.
– The Seller bears all risks involved in bringing the goods to the named
place.
DDP – DELIVERED DUTY PAID (… named place)

– The Seller delivers the goods -cleared for import – to the Buyer at
destination.
– The Seller bears all costs and risks of moving the goods to destination,
including the payment of Customs duties and taxes.
115
5
Maritime-Only Terms
• CFR – Cost & freight: The Seller clears the goods for export
and pays the costs of moving the goods to destination.
– The Buyer bears all risks of loss or damage.
• CIF – Cost, insurance & freight: The Seller clears the goods
for export and pays the costs of moving the goods to the port
of destination.
– The Buyer bears all The Buyer bears all risks of loss or damage.
– The Seller, however, purchases the cargo insurance.
Maritime-Only Terms (cont’d..)
FAS – FREE ALONGSIDE SHIP (port of shipment)

– The Seller delivers the goods to the origin port.
– From that point, the Buyer bears all costs and risks of loss or damage.
FOB – FREE ON BOARD (port of shipment)

– The Seller delivers the goods on board the ship and clears the goods
for export.
– From that point, the Buyer bears all costs and risks of loss or damage.
116
6
Load Export Move Unload Load at Move to Unload
Center Move
for Logistics, Insur-
Trade and Import
Transportation
on Docs to Port From Port Port of at Port to ance Docs &
Truck of Truck Import of Final Duties
Export Import Dest.
EWR Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller Buyer
DAT Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer
CIF Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Measurement of damages in CIF

contract
• Seaver v. Lindsay : U.S. rule: damages measured by the
market price of the goods at the port of shipment on that
date
• Sharpe & Co. v. Nosawa & Co.: English rule: damages
measured at date and location of delivery
117
7
Session 2:
Get familiar with various documents
related to international shipping
Documentation
• Invoice- typically the bill of sale that includes a detailed

description of the items, price/value, terms of sale
(INCOTERMS), names & address of buyer and seller
• Packing List- a detailed list of what the shipment includes-
often which items are in which packages.
• Bill of Lading- this details the shipping information like parties
involved, steamship name and voyage, number of packages,
weight and measure as well as gives title of the merchandise
to a specified party.
• Financial Documents- Letter of credit, Documentary Transfer
Agreements, Payment Terms
118
8
Bill of Lading
• A document of title issued by a carrier to a shipper upon

receiving goods for transport; also serves as receipt for goods
delivered and contract of carriage.
• A negotiable bill of lading dictates that the carrier will only
release the cargo once they have received an original bill of
lading that has been endorsed by the consignee.
• The endorsement is similar to signing the back of a check
when you are depositing it to the bank.
• Express Bills of Lading cannot be used in a documentary
transfer type of financial relationship because the goods have
already been pre-released to the buyer/consignee
Documents
• Documentary Sale:
– Buyer is required to pay upon presentation of NEGOTIABLE
DOCUMENT OF TITLE by seller
– Document of title: evidences ownership of goods: dock
receipts, warehouse receipts and bills of lading
– Documents transfer ownership of goods, while goods may
stay with bailey
– Negotiability: ability of document to be transferred legally
from one party to another in return for value
• Control of the documents = Control of goods
119
9
G B
Japanese American
Importer A Exporter
Sales Contract
CIF Japanese Port
Documents Against Payment
C
E
F
Collecting Exporter’s U.S.

Bank D Bank
F (Remitting Bank)
A. Sales contract calls for documentary sale

B. Documents prepared - export license obtained - goods delivered to carrier
C. Negotiable bill of lading, insurance policy, certificates of origin, invoice with
draft attached presented to remitting bank
D. Documents forwarded for collection through International banking system
E. Documents presented for negotiation on payment
F. Payment remitted and exporter’s account credited
G. Importer claims goods and makes entry
• Letter of Credit
– A negotiated agreement between buyer and seller about the terms
and conditions that must be met for money to transfer for the
purchase of goods.
– This is a bank document and the banks of the parties involved are the
ones who must sign off on the deal.
• Like all financial transactions, this one still has risks.
• Letter of Credit Assessment

– One of the critical roles a Freight Forwarder can play is to look over
the Letter of Credit to see if the transportation terms can be met.
120
10
Session 3:
Know how to prepare – Bill of Lading,
Letter of Credit etc.
Key Terms in Documents
• Parties:
– Exporter/Seller- party with original ownership of the goods.
– Consignee/Buyer- party who is purchasing and receiving the goods.
– Forwarding Agent- Freight Forwarder
– Notify Party/Intermediate Consignee- Often the Customs Broker.
– Bill To Party- If different from the Consignee.
– Related Parties- this may effect the declared value of the goods.
• Reference Numbers & Terms
– Invoice #’s, PO #’s, File #’s should be on the invoice for reference.
– Transportation Terms (FCL/LCL), INCOTERMS & Payment Terms should
all be outlined as well on the Invoice
121
11
Key Terms in Documents (cont.)
• Cargo:
– Marks & Numbers- the boxes in your shipment may be marked in a
specific way with seal #’s etc.
– Number of Packages- usually expressed in cartons, barrels, etc
– Description of Commodities in Schedule B detail- detailed description
of goods being shipped
• Schedule B is a number assigned to a commodity that helps keep track of
what is being exported. It can also assist in import classification.
– Gross Weight & Measurement- most commonly expressed in
kilograms (kg) and cubic meters (cbm).
• Metric weights and volumes are standard in international trade.
– Packing Lists should have detailed information about what cargo is in
what package. This is critical if you are splitting up a shipment
between multiple delivery locations.
Key Terms in Documents (cont.)
• Carrier Information:
– Exporting Carrier- steamship/airline vessel
– Booking Number- carrier reference number
– Port of Loading- port of origin where goods are loaded onto the vessel.
– Port of Unloading- destination port though may not be the original
port of arrival.
– Dates- sailing dates/date of export.
– Type of move-LCL or FCL
– Terminal information- specific warehouses or piers
• Financials:
– Declared Value- what the goods are worth at time of sale.
– All charges for tax, shipping, packaging may be listed on invoice, but
customs values are only for the goods themselves.
122
12
Electronic Data Interchange (EDI)
• Trade documents filed electronically

• Faster transmission; parties can track goods and
adjust documents as necessary; reduce preparation
of multiple copies
• Security issues:
– Digital signature laws should help
– Unauthorized access problem
– Liability issues
– Lack of standardization for electronic documents
Session 4:
Learn about the process of international
shipments
123
13
Beginning the Transportation Process
• Range of Complexity • Importing vs. Exporting

– Email – Paperwork & Permits
– FedEx/small box – Freight Costs
– Large package
– 40’ Container • Control of the Goods
– Project Cargo – INCOTERMS help
determine the contract
between the buyer and
seller for the movement
of the goods.
Types of Contracts:
Shipment and Destination
• Shipment Contract: Contract calls for seller to ship

goods by carrier, but not to deliver goods to named
location
– Most common in international trade
– Presumption in favor of shipment
– Risk of loss passes when goods handed to carrier
• Destination Contract: Contract calls for seller to
deliver goods to particular destination
– Greater responsibility on seller
– Risk passes when goods tendered to buyer at destination
124
14
Risk of loss under contracts
• Shipment contract: risk • Destination contract: risk

passes when goods are passes when goods are
given to the first carrier given to buyer at
• Presumption of shipment destination point
contract if not specified
Before You Buy (or Sell)
• Sourcing
– Free Trade Agreements
• Shipping Lanes
– Moving things over land is expensive.
– Traditional lanes provide lower costs.
• Permits & Restrictions
– There are 10 categories of restricted items for export from the US.
• Most have to do with military use, technology and crowd control.
– In addition to US restrictions, foreign governments have their own
requirements:
• Used items
• Vehicles
• Meat
125
15
Plan the Transit
• Size of Cargo
• Delivery Location
– To determine the best method
of transportation: – Single or multiple deliveries?
– Inland trucking/rail/barge?
• How much/how fast?
– Carrier delivery or separate
• How heavy/fragile
firm?
• Method of Shipping
– ↑ ↑ • Cargo Insurance
• Time Restraints – Determine from INCOTERM
who is responsible for cargo &
– Contract agreements therefore how much insurance
• Letter of Credit terms coverage you need.
Freight Forwarding
• Book Shipment
– Contracts with Steamship Lines
– Work with NVOCC’s on LCL shipments.
– Charter a vessel for commodity shipments.
• Coordinate Movement of Goods

– To and From the Ports
• Ensure that the cargo gets to each of its destination points.
• Create Export Documentation

– Shippers Export Declaration- tells the US Government what is being
sent, the parties involved and the quantity.
• This information is how we get trade statistics.
126
16
Loading the Cargo for Sailing
• Importer Security Filing (ISF)

– US Customs Security Measure
• Right now ISF’s are only required for US Ocean imports.
• Europe has a similar filing but only for carrier, not importer.
– 24 hours before sailing
• Ensuring the Cargo Loads
– Capacity Issues
• Container weight is something that is watched carefully as it affects not
just steamships but highways, truckers, and the railroad.
– Delays & Limited Sailings
• Certain destinations may have limited sailings so the cargo will be
transloaded from one vessel to another so the containers are aggregated.
• Weather, politics and infrastructure can all affect the movement of goods.
Sailing & Tracking
• Tracking the Cargo

– Be alert for unplanned stops.
• Cargo may be rerouted for some reason or be mistakenly delivered
to the wrong port.
• Keeping updated on the status of your container can help get your
cargo moved faster and combat human error.
– Know when the cargo arrives & make sure it is picked up
on the other end.
• Even if your responsibility only lies in getting the goods on a vessel,
knowing your cargo has been picked up and cleared through
Customs can ward off unexpected liability.
127
17
Government Agencies
• Documentation
– Other government agencies may require additional documents or
certain codes to be submitted on the customs import or export forms.
• Permits
– Agencies like ATF may require permits to be filed before a shipment
can be imported/exported to prove the legality of the sale.
• Inspections
– US Customs, USDA & FDA are the most common inspectors of cargo.
Often the bills for the storage are charged to the party who is paying
the local charges.
• Payment of Duties, Taxes & Fees
– This can be done directly by the importer/exporter or through the
Customs Broker.
Delivery
• Delivering the cargo can bring up a number of

considerations:
– Warehousing
• Split Shipments
• Labeling/Packaging
– Multiple Delivery Locations
– Commercial vs. Residential
• Many trucking companies do not deliver or pick up cargo from residential
addresses.
• Loading dock speciation's may be different from the trucker’s equipment.
– Specialized Equipment
• Lift gates, fork lifts, and other equipment may be required for the
unloading of cargo.
128
18
Final Verification
• Check goods upon delivery:

– Accurate shipment
– Damages
– Happy customer
• Check total charges for the goods including

transportation:
– Make sure you made the profit you wanted/expected from the sale
even with all of the charges, expected and unexpected.
– Transportation costs must factor into your profit margin or you may be
losing money.
Session 5:
Understand supply chain logistics
providers such as 3PL, 4PL, customs
brokers, freight forwarders,
129
19
Classifying Logistics Companies
• Providers of logistics services grown both in scale and services

• Own account transportation:
– When a company provides its own transport services
• Logistics service providers:
– Freight carriers: e.g. hauliers, trucking companies, train companies,
airlines, shipping companies
– Freight forwarders: make bigger transportation arrangements.
– NVOCC (non-vessel-owning common carrier)

• Consolidate smaller shipments – ‘Groupage or Consolidated shipments’
• Form full container load collecting shipments from various consignees.
Classifying Logistics Companies (contd..)
Logistics Service Providers

• Couriers: developed in 1980s and 1990s
– Respond to immediate delivery of products
– Works within and between large urban areas and service organizations
• Integrators: includes FedEx, United Parcels Service (UPS)
– Offer a seamless (i.e. integrated) end-to-end service from consignor (Sender)
to consignee (receiver)
– National and International (global)
– ‘Tack and Trace’ freight as products move along transport chain
• Agencies: follow NVOCC concepts
– A number of individual companies combine together to form an agency to
gain buying power and reduce freight transport rates.
130
20
Third Party Logistics (3PL)
• Distinguishing LSPs and 3PLs:

– Any company provides logistics services are defined as logistics service
providers (LSP)
– LSPs that provide multiple logistics services, often in an integrated

fashion, are the Third Party Logistics (3PL) companies
• Third Party Logistics providers are like general contractors for your freight-
they hire and coordinate multiple LSP’s.
Notes:
• Many companies do not perform their own logistic activities.
• Therefore, it needs to find service providers and select criterion to
choose a particular service provider.
Third Party Logistics
• Some services provided by 3PL:

– Transportation – often using multiple modes
– Warehousing – include capacity for seasonal, other fluctuations
– Pick and Pack – picking multiple different Stock Keeping Units (SKUs)
and packing these into a single unit.
– Vendor Managed Inventory – acts as a distribution point.
– Customs Clearance – associated with regulatory requirement,
hazardous goods clearances.
– Managing Reverse Logistics – managing repair and return
– Critical Parts Distribution – automotive spares, medical tech
131
21
Third Party Logistics
• Some services provided by 3PL:

– Transportation – often using multiple modes
– Warehousing – include capacity for seasonal, other fluctuations
– Pick and Pack – picking multiple different Stock Keeping Units (SKUs)
and packing these into a single unit.
– Vendor Managed Inventory – acts as a distribution point.
– Customs Clearance – associated with regulatory requirement,
hazardous goods clearances.
– Managing Reverse Logistics – managing repair and return
– Critical Parts Distribution – automotive spares, medical tech
Fourth Party Logistics (4PL)
• 4PL - new concept emerged

– Called companies total outsource solutions
– 4PL is a supply chain integrator that assembles and
manages the resources, capabilities and technology of its
own organization, with those of complementary service
providers, to deliver a comprehensive supply chain
solution (Accenture, 1996)
• Incredibly Useful - outsourcing companies (if company that outsource

some of its recourses
• 3PL + Managing resources, capabilities and technologies etc.
132
22
Session 6:
Role of Logistic providers in intermodal
operations
Rise of Intermodal Logistics
• The growing flows of freight are the main reason to promote

Intermodal transportation in order to find large turnover
capacity, speed and safe transportation
• The rise of intermodalism is due to emergence of technology
and management requirements for freight such as containers,
swap bodies, pallets or semi-trailers.
• Logistics Service providers, 3PL and 4PL promote intermodal
transportation due to increasingly complex needs of the
supply chain
• Business utilize the benefits that intermodalism provide
133
23
Logistics Providers and Intermodal

Transportation
• Vast array of information processing / logistics changes due to
globalization and international trade
• Many Logistics Companies offer a complete line of
international shipping and documentation service, integrate
with intermodal transportation
• Intermodal also has changed the way manufacturing
companies operate and do business.
– Prompt services from start to finish

– Individually tailored service vices
– High turn over due to containerization
• The reliability of distribution measured in terms of the

availability of the ordered goods and the frequency at which
orders are correctly serviced in terms of quantity and time.
• The flexibility of distribution in terms of possible adjustments

due to changes in the quantity, the location or the delivery
time.
• The quality of distribution concerns the condition of

delivered goods and if the specified quantity was delivered
134
24
Logistic Services
Warehousing Import Documentation
Kitting Consolidation Services
Assembly Insurance Program
Pick and Pack Door to Door Service
Customs Clearance
Distribution (B2B)
Electronic ABI transmissions
Fulfillment (B2C) FDA, USDA Processing
Media Replication Letter of Credit
Worldwide Shipping Personal Effects Entry
Reverse Logistics Tracking Capabilities
Specialized Classification
Returns
Questions?
Thanks
135
25

Module 4
MODULE 4: Modal Selection Process

and Transportation Decision
WORKSHOP
Prepared By:
`
At the completion of this module
Big Ideas: students should be able to:
Physical distribution
aspects of intermodal Intermodal system definition, and its
transportation and importance and constraints
mode selection Common types of intermodal transportation
Understand performance rating analysis of
Lecture Duration: modes and cost impact
Six sessions: 60 min
One Case study: 20 min
Transportation mode selection process
Mechanized loading equipment / technology
Intermodal risk and security management
Case Study: Analysis of measuring cost.
139
1
Learning Sessions
Session I: Intermodal system definition, its importance,
and constraints
Session II: Common types of intermodal transportation
Session III: Understand performance rating analysis of
modes and cost impact
Section IV: Transportation mode selection
Session V: Mechanized loading equipment / technology
Section VI: Intermodal risk and security management
Case Study: Analysis of measuring cost
Session I:
Intermodal System, definition, and importance of
Intermodal System
140
2
Intermodal System, definition
• There are a number of descriptions about what constitutes an
‘Intermodal System’ or ‘Intermodal Transportation Facility’.
– Intermodal facility is a “state of the art” transportation interface that
combines difference mode of transportations in one place.
• According to the ‘American Public Transit Association’,
– ‘Intermodal (multimodal) is those issues or activities, which involve or
affect more than one mode of transportation, including transportation
connections, choices, cooperation and coordination of various modes.
Intermodal Terminal
Intermodal System
Combines several
modes of
shipping‐truck,
water and rail
Key component is
containers
Source: http://www.avantetech.com/products/shipping/intermodal
141
3
Importance of Intermodal Facility
• Grown considerably with increased use of
containers
• May be the only option for global trade Currently,
• More convenient for shippers – one entity, transportation
one entry alone accounts for
approximately
• Key issue – exchange of information to 62.8% of every
facilitate transfer between different modes dollar spent on
logistics in the
– The United States spent 7.8 percent of its total United States
GDP on logistics expenses in 2009.
– The number rose to 8.3 percent of GDP in 2010
– From 1.08 trillion to $1.2 trillion, increase from
2009 to 2010.
Importance of Intermodal Facility
According to Council of Supply
Chain Management Professionals
(CSCMP), 2011.
Intermodal deals with 17% of
revenues, which is second only
to coal: 23%
Intermodal provides labor
efficiency and fuel efficiency
(50% savings over truck)
Downsides: inadequate speed,
and reliability
142
4
Benefits of Intermodal Process
Collaborative planning, forecasting,
and replenishment create greater
economies of scale
Internet‐based exchange of data
and information
Significant decrease in inventory
levels and costs and
More efficient logistics
Focus on core competencies
Features of Intermodal Terminal
Access to railroad and Provision for loading/unloading
highway system railcars
Area, configuration, and Box storage (long term or
topography of site temporary)
Cost to acquire site and Vehicle storage
provide infrastructure (railcars/trailers/chassis)
Adjacent land uses Check‐in/check‐out control
Proximity to customer Vehicle and box
base servicing/repair
Ability to accommodate Security and lighting
future growth Office and administration
Local support Information systems
Vehicle scales
143
5
Constraints of Intermodal facility
Following could be the limitations associated with promoting
intermodal
• Physical
– Inadequate existing infrastructure.
– Poor coordination of loading and unloading activity;
– Differing rail gauges.
– Lack of land availability in close proximity to major ports, highways
and rail access routes.
Constraints of Intermodal facility
• Institutional
– Conflicting customs and immigration procedures
– Institutional blockages to the free flow of transit vehicles and cargo in
the hinterlands;
– Lack of coordination between different levels of government.
• Personnel and Private Sector
– Limited number of available trained personnel
– Lack of private sectors participation
– Lack of growing private sectors to increase road haulage
144
6
Session II:
Common types of intermodal transportation
Common Transportation Modes
Mode of
transport:
Air
Road
Water
Rail
Pipeline!
Growth in U.S. Domestic Freight by Mode
1980 – 2004 (Ton‐Miles)
145
7
Freight Mode Capacity
VLCC: very‐large
crude carriers
Common Intermodal Freight Transfer
Road to
Port
Factory Road Port
Road to Rail
to Road
Factory Road Inter Modal Rail Inter Modal Road
Road to Rail
to Port
Factory Road Inter Modal Rail Inter Modal Port
146
8
Transportation by Air
Advantages
Most expensive and fastest mode of freight transport
Lightweight, small packages <500 lbs,
Reliable, less theft
Cost Component
Fixed cost low (Airport infrastructure)
Variable cost high (fuel, maintenance, security)
Limitation
Limited capacity
Other transport modes required to take freight
to‐and‐from airports
Transportation by Water
Ocean, inland waterway system, coastal waters
Advantages
Carrying large volumes of freight
primary means of international shipping
Dominant in global trade
Very large loads at very low cost
Cost Component
Fixed cost is medium (vessels, handling equipment, terminals)
Variable cost is low (Economies of scale)
Limitation
Limited to certain geographic areas
Quite a slow mode
Other transport modes required to take freight to‐and‐
from airports
147
9
Transportation by Rail
Advantages
Low‐value, high‐density, bulk products, raw materials
Good on speed, Dependability,
Capability to move larger quantities of freight
Move commodities over large distances
Cost Component
Fixed cost is high (equipment and facilities)
Variable cost is relatively low (fuel, maintenance, security)
Limitations
Not as economical for small loads,
Slower, less flexible than trucking
Limited situations (Rail line, stations limited)
Transportation by Road
Advantages
Extremely flexible, Good on speed,
Consignor to consignee connectivity is universe
Significant fraction of the goods moved
– Truckload (TL) (Low fixed cost, but imbalance between flows)
– Less than truckload (LTL) (Small lots / Hub and spoke system)
Cost Component
Fixed cost is Medium (Road, bridges)
Variable cost is low (Fuel, maintenance, security etc.)
Limitations
Capability to move relatively smaller quantities per
freight
148
10
Transportation by Pipelines
Primarily for crude petroleum, petroleum products, natural gas
Advantages
Dependability is excellent
Best for large and stable flows
Source: http://stakebuzz.com
Cost Component
Fixed cost is high (land occupancy, construction and installation)
Variable cost is relatively low (routine maintenance,
inspection/security
Limitations
Used only in very limited situations
Transportation Model Comparisons
Mode Fixed cost Variable cost Traffic composition

Rail Medium Low bulk food, mining, heavy
manufacturing
Road Medium Low consumer goods,
medium/light mfg
Water Medium Low bulk food, mining,
chemicals
Air Low High high‐value goods, rush
shipments
Pipe high low petroleum, chemicals,
mineral slurry
149
11
Session III:
Understand performance rating analysis of
modes and cost impact
Physical Distribution
Physical
Supply
Products moving from
supplier to
manufacturer
“inbound”
Physical
Distribution
Products moving from
manufacturer to
customers
“outbound”
150
12
Channels of Distribution
• Company may deliver directly to
Channel distribution customers
“Any series of firms or
individuals that • Use other companies or individuals to
participates in the
deliver goods
flow of goods and
services from the raw
material supplier and • Intermediaries
producer to the final
user or consumer.” – Wholesalers (agents)
– Transportation companies (warehousers)
APICS 11th Edition
Dictionary
Channels of Distribution
Transaction channel
negotiate, sell,
contract
concerned with the
transfer of ownership
(and money)
Distribution channel
concerned with the
delivery of goods or
services
151
13
The Way Materials Move
Depends on:
– Channels of distribution being used
– Types of markets served
• Geographic dispersion
• Number of customers
– Physical characteristics of the product
– Volume/quantity of products
– Type of transportation available
Transportation Mode Performance
Freight Value Added
Freight Value Freight Tons Ton‐Miles to GNP
($ billions) (billions) (millions) (billion $)
Mode in 2002 in 2002 in 2002 in 2009
Air (includes 563 6 13 61.9
truck and air)
Road 9,075 11,712 1,515 113.1
Rail 392 1,979 1,372 30.8
Water 673 1,668 485 14.3
Pipeline 896 3,529 688 12.0
Multimodal 1,121 229 233
152
14
Relative Operating Characteristics
Section IV:
Transportation mode selection
153
15
Transport Selection Decision
Carrier Selection Determinants:
– Costs
– Transit time and reliability
• Can be a competitive advantage
• Lowers customers’ inventory costs
– Capability
– Accessibility
– Security
Carrier Selection Determinants and User Implications
Determinants User Implication

Transport costs Landed costs
Transit time Inventory, stockout costs, marketing
Reliability Inventory, stockout costs, marketing
Accessibility Transit time, flight costs
Capability Physical / marketing needs
Security/Safety Inventory, stockout costs
154
16
The Pragmatics of Carrier Selection
– Transit time reliability
– Negotiated rates
– Consolidating shipments among a few carriers
– Financial stability
– Sales rep
– Special equipment
Source: Edward J. Bardi and T. S. Raghurathan, "Motor Carrier Selection in a Deregulated Environment," Transportation
Journal 29, no. 1 (Fall 1989), 4-11.
155
17
Transportation costs
• Fixed Costs
Vary by flexibility – the costs that do not change with the
and operating cost volume moved
• buildings, equipment, land
Ways
road, water, air
Terminals
• Variable Costs
where goods are – Costs that change with the volume
loaded or unloaded moved
• fuel, maintenance, wages
Vehicles
equipment used to
move goods
Transportation Costs
• Ways
Other costs – Land, water, road, space, how goods are moved
(fixed or variable) – May be owned by the operator (railroad tracks),
• operated by the government (roads, canals) or
Maintenance • River, ocean etc.
Administration
Fuel • Terminals
Labor – Used to sort, load and unload goods
– connection between line‐haul and local
deliveries
– connection between different modes or carriers
– dispatching, maintenance, administration
• Vehicles
– owned or leased by the carrier
156
18
Intermodal Cost Analysis
Question to be asked:
Should transportation be direct or through an
intermediate site?
Should the intermediate site stock product or only
serve as a cross‐docking location?
Suppliers send shipments to an intermediate transit point
Freight are cross‐docked and sent to buyer locations
without storing
Should each delivery route supply a single destination
or multiple destinations (milk run)?
Transportation Cost Elements
Transportation
Cost Elements
Line haul
Pickup and delivery
Terminal handling
Billing and collecting
157
19
Line‐Haul Costs (LHC)
Line-Haul Costs Line-Haul Costs

(Distances) Cost per hundred weight (cwt)
Fuel, labor, depreciation Total line‐haul cost varies :
Approximately the same Cost per mile
per mile whether full or Distance moved
empty
Line‐haul cost per cwt varies :
LHC = Total Line‐Haul Cost Cost per mile
Distance Travelled Distance moved
Weight moved
Example 1: Line‐Haul Costs
For a given commodity, the line‐haul cost is $3 per mile and
the distance shipped is 100 miles. The total line‐haul cost is
therefore, $250.
If the shipper sends 60,000 pounds, the total line haul cost is
the same as if 20,000 pounds were shipped.
However the line‐haul cost per hundred weight (cwt) will vary.
LHC60,000 lbs = $250×100 = $0.42 per cwt

60,000
LHC10,000 lbs = $ 250×100 = $1.25 per cwt

20,000
158
20
Example 2: Line‐Haul Costs
• For a particular commodity, the line‐haul cost is $3.00 per
mile.
• For a trip of 800 miles and a shipment of 50,000 pound (or,
500 cwt), what is the cost of shipping per cwt?
• If the shipment is increased to 100,000 pound (or, 1000 cwt),
what is the savings per cwt?
Cost800 =($3.00 x 800) / 500 = $4.8 / cwt
Cost1000 = ($3.00 x 800) / 1000 = $3.00 / cwt
Savings = $4.8 - 3.00 = $1.8 / cwt
Example 3: Total Cost Concept
A company normally ships a product by rail.
Transport by rail costs $200, and the transit time is 10 days.
However, the can be moved by air at a cost of $1000 and it
will take one day to deliver.
The cost of inventory in transit is $100 per day.
What are the costs involved in the decision?
Rail Air
Transportation Cost $ 200 $1000
Inventory Carrying Cost 1000 100
Total $1200 $1100
159
21
Example 4: Shipping Cost
A company ships items fully
Truck have a assembled.
weight limitation
Items such as scooter, toys etc.
Some products have a The average line‐haul cost is $15.00
low density and the
per mile, and the truck carries 200
truck is filled before the
weight limitation is met assembled items.
The company decides to ship the
Therefore, load products
items unassembled, which facilitate
or ship products
unassembled to increase to ship 500 units in a truck.
the weight shipped Find the following:
Example 4: Shipping Cost (cont.)
Calculate line‐haul cost Line-haul cost assembled

($ / item) = $15.00/200 =$0.075/ item / mile
200 assembled items Line-haul cost unassembled

500 unassembled = $15.00/500 =$0.03/ item/mile
items
Savings per mile
If the average trip is 300 = $0.075 ‐ 0.03 = $0.045/item/ mile
miles, calculate the
savings per barbecue. Trip savings
= 300 miles x $0.045 / item/mile
=$13.5 per barbecue
160
22
Session V:
Mechanized loading equipment / technology
Truck Types
Counterbalanced Trucks
(Electric/Gas/Diesel) Pallet Trucks
Tow Trucks Stacker Trucks
Order Pickers Narrow Aisle Trucks Reach Trucks
161
23
Mechanized Loading Technology
• Mechanized loading technology offers flexibility,
expandability, quality, and reliability in handling and storage
of containers. Commonly Intermodal containers are 20 or 40
feet in length, and can weigh up to 100,000 pounds.
• The loading/unloading equipment can moves simultaneously
in both horizontal and vertical directions.
• Some common equipment used in mechanized loading are :
Gantry crane
Straddle loader
Side loader
Reach loader
Marine Gantry Cranes
Gantry crane
• supported by a mobile frame
which travels on the ground.
• Used for transfer goods
• 25–50 ton lift capacity
• Span 32-76 ft
• 5-8 container lift height
Source: Intermodal Freight Transportation and Railroads

David B. Clarkem, University of Tennessee
162
24
Straddle Loader
Straddle loader
• This equipment includes an upper
frame having a spreader for grasping the
load and at least two traveling frames for
receiving the load, and a lifting system
connected to the upper frame and the
plural traveling frames
• Used for transfer/storage
• Capacity 50 Ton
• Span 15-20 feet
• Turning radius 35 ft outside
• Lifting height 2-5 container lift height
Side Loader
Side loader
• Used to Move long or bulky materials
in very narrow aisles.
• 22–45 ton lift capacity
• Turning radius 20 ft to 52ft
• Requires aisles 30ft min to 75ft

163
25
Reach Loader
Reach loader
• Generally used to transfer goods on
coastal vessels.
• 50 ton lift capacity

Lift Spreader
Lift Spreader
• This equipment has adjustable
lifting points.
• It is used for lifting containers.
• Capacity 5 to 10 Ton

164
26
Future Trend: Wireless management
Four wireless communication options:
Satellite: railcar application (specially on military)
Cellular: Tractor to trailer
High-bandwidth radio frequency (RF):
Warehouse management system
Narrow-band RF:
Heavy industrial products, retailers, products
Section VI:
Intermodal Risk and security management
165
27
Risks in intermodal transportation
Risk of accident
Improperly secured cargo can cause severe accidents and lead to the
loss of property and lives as well as environmental hazards.
Risk of delay
Involves different modes of transportation, so any time cargo is
transferred to a comparatively slower means of travel
Possibility of delay du to extra time required for unloading and
loading.
Risk of disruptions
Because of its reliance on more than one mode of transit, intermodal
transportation is also subject to inconsistent overall reliability and
disruption in service may happen if not properly planned.
Risks in intermodal transportation (cont.)
Risk of carrying hazardous material
Transporting hazardous material posses potential risks to the people
related with the material handling and transportation and the
adjacent locality, loss of property and environmental damage.
Risk of terrorist activity
Terrorist attack in a transportation mode can cause loss/injury of people
associated with it, loss of products.
The vessels can be used against a population center adjacent to port
facilities and/or shipping channels, to damage port facilities themselves
or to sink the vessel(s) and block access to a port facility.
166
28
Risk mitigation strategies:
Decrease the probability of disruptions
Adequate planning and coordination among the modes allied with the
intermodal transportation.
Alternative routings
Select transportation location avoiding highly populated area, critical
locations
Select route that can be taken under continuous supervision
Use of modern technology
Surveillance and detection
remote sensing, electronic tags)
GIS to provide visual maps
Risk mitigation strategies (cont.)
CSI ( Container security initiative)
Four core elements:
Emergency i. Using intelligence and automated
Response
information to identify and target
Planning for
containers that pose a risk for
any
terrorism.
anticipated
transportation ii. Pre‐screening those containers that
pose a risk at the port of departure
before they arrive at U.S. ports.
iii. Using detection technology to quickly
pre‐screen containers that pose a risk
iv. Using smarter, tamper‐evident
containers.
167
29
Risk mitigation strategies (cont.)
Hazardous Material Transportation

Planning and Following Hazardous Material
following
Transportation Act of 1975 (HMTA)
regulations for
carrying Carry minimum quantity or threshold
hazardous Use of Dedicated container
material
Identify sensitive areas in the route and
take precautions accordingly.
Avoiding populated routes.
Case Study
168
30
Intermodal Cost Components
Pickup and Delivery Costs Terminal Handling
Depends on time spent Cost depends on how many
times the shipment must be
(not distance)
handled
Charged for each pickup Full truckloads (TL) go
directly to the customer
Therefore, consolidate Less than truckloads (LTL)
multiple shipments to avoid must be sent to a terminal,
many trips sorted and consolidated
Therefore, consolidate
shipments into fewer parcels
Intermodal Cost Components
Billing and Collecting Costs
Costs of paperwork
Costs of invoicing
Total Cost
Therefore, reduce the number
of pickups and pieces shipped
Fixed Cost: pickup, and delivery
(consolidating) terminal handling, billing and collecting
Distance
169
31
Total Transportation Costs
Transportation
Total cost
To reduce costs:
Increase the weight shipped
(line‐haul cost)
Line‐haul Reduce the number of
+ pickups (pickup and
Pickup and delivery delivery cost)
Decrease the number of
+
parcels (terminal handling
Terminal handling costs)
+ Consolidate shipments
Billing and collecting (billing and collecting costs)
Example: Case Study
Suppose Kholer Inc. export agriculture tractors to South
American countries (say, Argentina).
Note:
24 tractors can be carried inside a 20‐foot container.
Rail from Lincoln, Nebraska to Gulfport, Mississippi cost $400
per container.
Transportation cost to ship overseas is $700 per container
What is the costs of shipping 40 tractors?
170
32
Case 1: Cost Analysis
Type of cost Cost ($)
What price
should be Tractors (40 x $700) 28,000
quoted for 40 Rail to Gulfport (2 containers) 800
tractors? Ocean freight 4,400
Note that 24
Insurance on land (1% of $28,000) 280
tractors can be Insurance on sea (2% of $28,800) 576
carried inside a Documentation 250
20‐foot container. Subtotal 34,306
Here are the costs
of shipping 40 Interest (0.12 x [25/365] x 34,306) 282
tractors: Subtotal 34,588
10% markup 3,459
Total 38,047
$38,047 divided by 40 tractors equals $951.18 per tractor
Case 2: Cost Analysis
Type of cost Cost ($)
What price
should be Tractors (100 x $700) 70,000
quoted for Rail to Gulfport (5 containers) 2,000
100 tractors? Ocean freight 11,000
Here are the costs
Insurance on land (1% of $70,000) 700
of shipping 100 Insurance on sea (2% of $72,800) 1,440
tractors: Documentation 250
Subtotal 85,390
Interest (0.12 x [25/365] x $85390) 702
Subtotal 86,092
10% markup 8,609
Total 94,701
$94,701 divided by 100 tractors equals $947.01 per tractor
171
33
Thank you
172
34

Module 5
Intermodal Transportation Curriculum
for Secondary Education – Pilot Study
MODULE 5: Successful Handling of
Intermodal Operations at UPS
WORKSHOP
Prepared by
Ms. Jennifer Steele, Manager, UPS
Mr. Stuart McAvoy, Customer Solutions, UPS
0 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE
Logistics Keeps the World Moving

175
1
Agenda
• Intermodal Evolution
• Package Services
• Innovative Technology
• Freight Services
• Shipment Consolidation
• Customs Brokerage
• Sustainability
• Region Profiles
What is Wikipedia’s Definition of Intermodal Freight?

• Intermodal freight transport involves the transportation of freight in an
intermodal container or vehicle, using multiple modes of transportation (rail,
ship, and truck), without any handling of the freight itself when changing
modes. The method reduces cargo handling, and so improves security,
reduces damage and loss, and allows freight to be transported faster. Reduced
costs over road trucking is the key benefit for intracontinental use, as well as
reduced greenhouse gas emissions 1. This may be offset by reduced timings
for road transport over shorter distances.
176
2
Wikipedia’s Definition of the Origin of Intermodal?
• Jack Purcell McLean (born “Jack”; but late in life he changed his given name to its
historic traditional Scottish spelling) (September 27 1734 – September 27, 1735),
he was born in Maxton, North Carolina, was an American entrepreneur, often —
albeit inaccurately — called "the father of containerization" — inaccurate since the
concept was developed more than 100 years previously on the railways of Britain
(following even earlier attempts on the canals). In 1956, McLean developed the
metal shipping container, which replaced the traditional break bulk method of
handling dry goods and revolutionized the transport of goods and cargo
worldwide. He later founded Sea-Land Service, Inc., one of the pioneers in the
intermodal cargo transport business.1 McLean was named "Man of the Century"
by the International Maritime Hall of Fame. He and his sister, Clara McLean, and
brother, Jim McLean, founded McLean Trucking Co.
Supply Chain Evolution
End
Supplier Manufacturer Distributor Retailer
Consumer
Information
Goods
Funds
Manufacturer End
Supplier Retailer/E-tailer Consumer
Distributor
177
3
Global Sourcing / Distribution Model (1990’s)
1990’s
O
Global Sourcing / Distribution Model (2000 – 2008)
Slow boat
from China –
causing large
warehouses
2000-2008
O
178
4
Global Sourcing / Distribution Model (2009 - 2012)
JIT reintroduced –
excess warehouse
space / consumer
2009-2012
O demand down
Map out Existing Network to Visually Understand
179
5
Intermodal Capabilities
World’s Largest Transportation Company
The new logistics model from UPS
Package Freight Contract Logistics

• Express • Air • Warehousing
• Deferred • Cargo • Distribution
• Day-Definite • Ocean • Service Parts Logistics
• Road • Supply Chain Management
and Consulting
The Most Powerful Force

in Business Today
• Business grows more global daily
• Old markets change, new markets appear
• Customers expect more — in less time, for less money
• How do businesses gain a competitive advantage?
• Logistics — the most powerful force in business today
180
6
Expand Business Global Reach
• Large business or small, logistics helps businesses

reach
220 countries and territories
─ Access more markets, spur greater growth
• Large coverage with the world’s largest
transportation company
• World’s largest customs brokerage network optimizes
clearance
Balance Speed with Cost
• When counting minutes or counting costs, logistics gives

more flexibility
─ Multiple transportation modes allow for multiple delivery
options
─ Shipments arrive at the right time at the right cost with
Intermodal Options
• Packages or pallets
• Import or export
181
7
Streamline Daily Processes
• Driving greater efficiency, logistics opens up more

possibilities for international business
─ Innovative software and Web-based technologies
help businesses get more done with less, inside and outside
the office
• One system for shipping package and freight saves
time and money
• Easy access and distribution of critical data improves
visibility and compliance
• Enhanced reporting and quick delivery confirmations
simplify invoicing and speed cash flow
Package Services
182
8
A Package Service for Every Need
• UPS delivers more guaranteed packages on time

around the world than any other carrier
─ That’s logistics opening up more opportunities
for business worldwide
• Three time-definite express options to more

international locations than anyone
─ Balance budgets with deadlines to get the service
you and customers need
Get More Done Faster
• When speed is a priority, UPS’s international time-definite express portfolio

offers the best options
183
9
Business Starts Early Worldwide
• UPS delivers to more countries from the U.S.

by 9:00 a.m. and before noon than any major carrier
• Earlier deliveries provide a faster start to the day
for business
• Allows business to meet challenging deadlines
Flexible Deadlines, Cost-Effective Deliveries
• Guaranteed choices for both overseas deliveries and within North America
when speed isn’t the top priority
SERVICES FEATURES
UPS Worldwide Customs-cleared delivery within 2-5 business days

Expedited® to and from 70 countries and territories
Guaranteed ground delivery within 2-7 business

days to and from the U.S. with coverage of:
UPS Standard • Every Canadian province
• All of Mexico, and the industry’s only

U.S.-to-Mexico ground package service
184
10
When Shipments are Urgent
UPS Express Critical®
• UPS Express Critical gives a next-flight-out option

24/7/365 for shipping anytime, anywhere*
─ Secure solutions include bonded couriers, armored cars
and special packaging to control high-value shipments
─ Full, online visibility for tracking and delivery confirmation
for peace of mind
─ Specialized equipment available to handle a broad range
of requirements
─ Import/customs clearance services for expedited processing
* For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S.
and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information,
conditions and limitations.
Business Can Take Control of Imports
• Import Freight Collect

─ Billed with rates fixed in U.S. dollars*
─ Protects from currency fluctuations
─ Keeps import costs in check
• UPS Import Control®

─ Allows Business to take charge of the shipping process
with the most comprehensive import delivery solutions
─ Initiate shipments from another country
─ Complete paperwork “in house” to ensure compliance
─ Use option to remove commercial invoice prior
to third-party delivery so value of goods is not revealed
*Rates are fixed relative to currency fluctuations, but are subject to periodic review by UPS.
185
11
Act as Importer and Exporter
Non-Resident Importer (NRI) to Canada
• Act as both U.S. exporter and Canadian importer

of record
• Export to Canada without the expense of a physical
location
• Offer customers seamless service with an all-in-one
price
Innovative Technology
186
12
Advanced Technology Maximizes
Daily Efficiency
• Logistics keeps business moving without leaving
your desk
• UPS software and Web-based solutions:
─ Expedite shipment processing
─ Enhance visibility
─ Improve compliance
─ Simplify billing and accounting
Streamline the Shipping Room

and Beyond
• Integrate UPS technology tools into business systems
and processes to better manage shipments —
inbound and outbound, package and freight
• Enhance productivity by better managing delivery
information in the shipping room and in departments
such as:
─ Customer Service
─ Finance and Accounting
─ Inventory and Production Management
─ Information Technology
187
13
One System for Package and Freight
UPS WorldShip®
• Use one technology platform to simplify shipping
across all international locations
• WorldShip software processes both package
and freight, saving time and money
• The single automated system makes it easier
to ship, track, train personnel and integrate
information with business systems
• Displays UPS published rates or customized rates
with a built-in calculator
• Supports 129 countries in 16 languages
Reduce Holds Up to 56 Percent

UPS Paperless® Invoice
• Helps reduce the chance of errors, improving compliance

to expedite customs clearance, while saving paper:
─ UPS Paperless Invoice, an industry first, transmits
commercial invoice data on package and air freight
shipments to customs offices around the globe
• Can reduce customs holds 56 percent, minimizing
costly delays and increasing timely deliveries
• Begins the customs clearance process earlier
• Cuts processing hours and paper waste
• Does not reveal commercial invoice and shipment
value to consignee
• Is available for package and freight in multiple
automated shipping systems
188
14
Complete Visibility
Quantum View® Manage
• Complete visibility for both package and freight makes

business more productive – inbound and outbound:
─ Quantum View Manage provides up-to-date information
on all shipments via e-mail notification
• Imports view offers access to customs brokerage data
to facilitate clearance and compliance
• Monitor multiple shipments across multiple accounts
without tracking numbers
• Available worldwide in multiple languages
Complete Visibility – Package/Freight

Flex® Global View
• Complete visibility for both package and freight

makes business more productive:
─ Flex Global View provides an integrated view of
supply chain 24/7
• Event-management and visibility tool lets business
react faster to orders and inventory levels
• Proactive e-mail alerts notify business of events and
exceptions to meet customer needs quicker
• Standard and customized reports streamline
data analysis
189
15
Simplify and Improve Compliance
UPS TradeAbility®
• Gives business a competitive advantage with resources

that help facilitate compliance for fast clearance when
crossing borders:
─ UPS TradeAbility offers a suite of free information-
based services
• Access the latest regulations and forms to improve
compliance
• Review estimates of landed costs before shipments
leave dock to control expenses
• Stay current on the latest security requirements
to help eliminate surprises
Reverse Logistics
UPS Returns®
• An industry first, UPS Returns expands reach with service

to 110 countries and territories:
─ Helps reduce costs and the hassle of processing international returns
─ Simplifies customer experience by providing return labels and commercial invoices
in outbound packages or by e-mail
─ Can coordinate return even when UPS wasn’t the original shipper
190
16
A Comprehensive Portfolio of UPS Returns®
Service Options
• UPS will help business accommodate the needs of all their customers,
making returns as easy as possible, even overseas
• Options vary based on origin and destination countries
UPS Returns Service Options

Print Return Label Business prints a label that is included on the
outbound shipment.
Electronic Return Label UPS e-mails the return label to the customer.
Print and Mail Return Label UPS prints and mails the return label
to the customer.
Web-based Label Business prints a Web-based label, which

enables their customer self-service.
3 UPS Pickup Attempts UPS makes three attempts to deliver return

label and pick up the package.
1 UPS Pickup Attempt UPS leaves the return label at the pickup
location after one attempt.
Freight Services
191
17
Moving Freight Efficiently
• UPS offers a full range of freight options

from critical to routine freight services
─ As the world’s largest transportation company and with
one of the largest airlines, UPS’s global presence and
access to preferred carriers is dynamic
─ Benefit from cost alternatives and adaptability with
the speed of air freight and the economy of ocean
─ Logistics offers freight customers UPS reliability
and flexibility on a larger scale
Delivering a Global Advantage
• A leader in international air freight forwarding

• Complete end-to-end solutions available, including
door-to-door delivery and customs brokerage
• Customers can combine package and freight services
for greater supply chain efficiency and cost-effectiveness
192
18
Easily Meet Market
and Customer Demands
• UPS offers day-definite and time-definite
International Air Freight delivery options
SERVICES
DESTINATIONS Transit days and times FEATURES
depend on destination
Guaranteed door-to-door
delivery to most major metro
UPS Express® Freight
areas worldwide; pickup,
1-3 business days
delivery and routine customs
To Africa,
clearance included
Asia Pacific,
Europe,
UPS Air Freight Direct®
Latin America, Airport-to-airport delivery
1-3 business days
Middle East included; pickup, delivery
UPS Air Freight and customs clearance
optional
Consolidated®
3-5 business days
UPS Air Freight Service Options

to and from Destinations Worldwide
Multiple Options to Meet Many Demands
SERVICES
Transit days and times FEATURES
®
UPS Express Critical * Within North America and between major metro
Next flight out areas worldwide, available 24/7/365
Guaranteed door-to-door delivery to most major

UPS Express® Freight
metro areas worldwide; pickup, delivery and
1-3 business days
routine customs clearance included
Airport-to-airport delivery included with day-

UPS Air Freight Direct®
specific scheduling; pickup, delivery and customs
1-3 business days
clearance optional
Airport-to-airport delivery included with day-

UPS Air Freight Consolidated®
specific scheduling; pickup, delivery and customs
3-5 business days
clearance optional
* For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S.
193
19
Easily Meet Market and
Customer Demands
• UPS offers day-definite and time-definite
International Air Freight delivery options
SERVICES
DESTINATIONS Transit days and times FEATURES
Guaranteed to most major

UPS Next Day Air® Freight metro areas in U.S. 48, Canada
Noon or 5:00 p.m. (excluding intra-Canada) and
Puerto Rico; non-guaranteed
service (NGS) to most areas
To Canada, UPS 2nd Day Air® Freight
in U.S. 50, Canada and
Puerto Rico, Noon or 5:00 p.m.
Puerto Rico
within the U.S.
Guaranteed and non-
guaranteed service (NGS)
UPS 3 Day Freight®
within 3-4 business days
5:00 p.m.
to most areas in U.S. 48,
Canada and Puerto Rico

Within and Between the U.S., Canada
and Puerto Rico
SERVICES
UPS Express Critical®* Within North America and between major metro
Next flight out areas worldwide, available 24/7/365
UPS Next Day Air® Freight Guaranteed to most major metro areas in U.S. 48,
Noon or 5:00 p.m. Canada and Puerto Rico
UPS Next Day Air® Freight NGS** Delivery to most areas in U.S. 50, Canada and
Noon or 5:00 p.m. Puerto Rico
continued
• For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S.
**Non-Guaranteed Service
194
20
Within and Between the U.S., Canada
and Puerto Rico
SERVICES
®
UPS 2nd Day Air Freight Guaranteed to most major metro areas in U.S. 48,
Noon or 5:00 p.m. Canada and Puerto Rico
UPS 2nd Day Air® Freight NGS* Delivery to most areas in U.S. 50, Canada and
Noon or 5:00 p.m. Puerto Rico
UPS 3 Day Freight® Guaranteed delivery within 3-4 days to most

5:00 p.m. areas in U.S. 48, Canada and Puerto Rico
UPS 3 Day Freight® NGS* Delivery within 3-4 days to most areas in U.S. 48,
5:00 p.m. Canada and Puerto Rico
*Non-Guaranteed Service
Single Source for Global

Ocean Freight
• A leading Non-Vessel Operating Common Carrier
(NVOCC) and freight forwarder
• Offers more buying power and the flexibility
to choose based on timing, cargo size
and routing needs
• Handling more than 600,000 TEUs annually including:
─ Less-than-container loads
─ Full containers
─ Special equipment
─ Oversized cargo
• UPS Preferred LCL can increase speed to market

up to 40 percent while minimizing cost
195
21
Shipment Consolidation
Consolidate Shipments,
Shorten Supply Chains
• Logistics has business covered end to end
• Streamline supply chain and customs clearance
whether shipping packages, freight or a combination
─ Individual shipments to same destination country
or European Union grouped as one shipment
─ UPS handles pickup, transportation, deconsolidation
and delivery
─ Reduce time to market and eliminate need for
distribution centers
196
22
Consolidated Clearance
of Packages
World Ease®
• Send packages to multiple recipients in same country

or the European Union
• Ship and clear customs as a single transaction
• Extends global reach without start-up costs and
international warehousing
• One shipment with one customs entry simplifies
processing and managing shipments
World Ease® — Streamlines Package

Supply Chain – True Intermodal
• Consolidates customs clearance to help cross borders with ease
197
23
Consolidated Clearance
of Freight and Package
UPS Trade Direct®
• Consolidates multiple package and freight shipments

to the same destination
• Clears as one shipment with one contact, one bill to pay
• Streamlines supply chain and customs clearance
• Reduces time to market, eliminates need for
distribution centers
• A choice of three services in three modes:
─ UPS Trade Direct® Cross Border – For North America
─ UPS Trade Direct® Ocean – From 70 ports worldwide
─ UPS Trade Direct® Air – For time-sensitive, high-value
air freight from select airports worldwide
UPS Trade Direct® — Streamlines Freight

and Package Supply Chain - Intermodal
• Serves as business rolling, floating and flying warehouse to get goods
to market efficiently
198
24
Customs Brokerage
Global Customs Broker
• The world’s largest customs broker

─ Over 75 years of experience, helps reduce delays
and red tape
─ Offices in more than 60 countries, provides vital
knowledge of local customs processes
• Customs Network includes transportation,

as well as trade professionals and integrated
technologies
• Routine clearance included in most international
package delivery rates
199
25
Access International Support
and Resources
• Added security — UPS was first major carrier
to become certified C-TPAT participant
• Added information — Easily access information
to facilitate global trade, often free of charge, with
UPS TradeAbility® and UPS TradeSense®
• Added guidance — Working relationship with U.S.
Commercial Service provides proven resource
and support conducting business worldwide
Expand Exports to Grow Business

Globally
• UPS’s partnership with the U.S. Commercial Service
enables business to:
─ Consult with a trade specialist
• Uncover new opportunities in international markets
• Develop export expansion strategy
─ Take advantage of resources in 107 U.S. cities
and 78 countries
• Trade counseling
• Market intelligence
• Business matchmaking
• Commercial diplomacy
200
26
Sustainability
Greening Your Shipping

and Business Processes
• Logistics lets you grow green without sacrificing growth
─ UPS carbon neutral shipping option to conveniently offset
climate impact on a per-shipment or contract basis
─ UPS Smart Pickup® to schedule a pickup only when needed,
saving fuel, reducing equivalent carbon (CO2e) emissions
─ Eco Responsible Packaging Program to reduce the
possibility of damage and help ensure sustainable materials
─ UPS Express® Reusable Envelopes to reduce waste,
enabling two shipments using the same envelope
─ Alternative-fuel/technology fleet of more than 2,500
vehicles to reduce our emissions and yours
─ Analysis of driver behavior and package car mechanics
to reduce idling time and avoid unnecessary mileage,
saving more than 186,000 gallons of fuel in 2010
201
27
Leading by Example
• UPS ranked first in 2011 FORTUNE “World’s Most

Admired” survey for the delivery industry, as well as
first in the industry in Social Responsibility
• Scored 99 out of 100 in the S&P 500 and Global 500
2011 Carbon Disclosure Leadership Indexes
• Scored 81 in the 2011 Dow Jones Sustainability
Index (DJSI) North America
• Scored highest in Climate Counts consumer shipping
category and 11th highest among all ranked companies
Sources:
World’s Most Admired Companies. UPS. FORTUNE. March 21, 2011. Web. August 19, 2011
< http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/2071.html>.
CDP S&P 500 Report 2011, PricewaterhouseCoopers, pgs. 22, 23; CDP Global 500 Report 2011, PricewaterhouseCoopers,
pgs. 23, 24.
Company Benchmarking Scorecard, Corporate Sustainability Assessment 2011. United Parcel Service, Inc. SAM Research AG.
<http://www.sam-group.com/int/sustainability-services/company-benchmarking-report.jsp>.
Scorecard Sectors – Consumer Shipping. Climate Scores – Scorecard Overview.ClimateCounts.org. n.d. Web. December 7, 2011.
<http://www.climatecounts.org/>.
Region Profiles
202
28
Asia Pacific Capabilities
Canada Capabilities
203
29
Europe Capabilities
Latin America Capabilities
204
30
Thank You
205
31

Module 6
MODULE 6: Transportation Rule and

Regulations
WORKSHOP
Prepared By:
Big Idea: should be:
Government
policy and
regulation has a
major impact on • Aware of rules and regulation of Rail, Motor
how intermodal Carrier, Air Line, and Ocean Shipping Industry
transportation is
conducted
• Familiar with Shippers and Carriers Duties,
Lecture Duration:
Two 40 minutes
HazMat movements, etc.
sessions (2 hours)
209
1
Sections
Section I: Rules and regulation of Rail, Motor Carrier, Air

Line, and Ocean Shipping Industry
Section II: Shippers and Carriers Duties, HazMat

movements, etc.
Section III: Evaluate the impact of transportation policy on

intermodal operation and economic development
Section IV: Introduction to transportation geography
Section I:
Rules and regulation of Rail, Motor Carrier,
Air Line, and Ocean Shipping Industry
210
2
Transportation Regulation
Transportation Rules & Regulations are

for:
¾Vehicle operations
¾Vehicle dimensions
¾Safety of operators
¾Safety of general public
Discussion Question: Can you

name some transportation rules and
regulations and why we have these
rules?
Source: http://www.thesafetybloke.com/texting-and-
driving-a-sure-way-to-have-an-accident/
Creation of Transportation Laws
¾Common Law – made by

the state and federal
courts, e.g., common
carrier and its liabilities,
¾Statutory Law – enacted

by congress, e.g., trade
embargos,
Source: http://hamptoncivics.wikispaces.com/Unit+4
211
3
Interstate vs. Intrastate Commerce
• Intrastate commerce is that business that is conducted

between business entities that exist within the same
state, while interstate commerce is that which is
conducted between businesses located in differing
states.
Discussion Question: Do you
think most of the produce at local
farmers markets are intrastate or
interstate commerce?
http://303magazine.com/2011/06/colorado-fresh-local-farmers-markets/
Common Carrier vs. Contract Carrier
• A common carrier is legally bound to carry all passengers or freight as long as
there is enough space, the fee is paid, and no reasonable grounds to refuse to
do so exist. A common carrier that unjustifiably refuses to carry a particular
person or cargo may be sued for damages.
• The states regulate common carriers engaged in business within their borders.
When interstate or foreign transportation is involved, the federal government,
by virtue of the Commerce Clause of the Constitution, regulates the activities
of such carriers. A common carrier may establish reasonable regulations for
the efficient operation and maintenance of its business
Source: http://salestaxguy.blogspot.com/2010/06/common-
carriers.html
212
4
Common or Statutory law?
Map of States with Statutes Regarding Motorists Passing Bicyclists
Source: http://www.ncsl.org/issues-research/transport/safely-passing-bicyclists.aspx
History of Federal Policy and Freight
Transportation
• Article One of the Constitution articulates the importance of interstate
commerce and allows Congress to regulate these activities.
• In 1808, Secretary of the Treasury Albert Gallatin sent a report to the Senate
on potential federal-state-private partnerships to finance canals and roads.
• The federal government operated a land grant system between 1855 and
1871, through which railway companies in the uninhabited West were given
millions of acres they could sell or pledge to bondholders
• In 1941, President Roosevelt appointed the National Interregional Highway

Committee, whose recommendation for a “National System of Interstate and
Defense Highways”
• The Interstate and Defense Highways Act of 1956, also called the 1956
Federal-Aid Highway Act (Interstate Act), built 41,000 miles of multi-lane,
limited access highways.
213
5
History of Federal Policy and Freight
Transportation Cont’d
• In 1991, Congress passed the Intermodal Surface Transportation Efficiency
Act (ISTEA), changing the overall program to allow greater flexibility in
project selection and expanding the number of programs.
• Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for

Users (SAFETEA-LU) in 2005. The $286.4 billion measure contained a host
of provisions and earmarks intended to improve and maintain the surface
transportation infrastructure in the United States, including the interstate
highway system, transit systems around the country, bicycling and
pedestrian facilities, and freight rail operations.
• Moving Ahead for Progress in the 21st Century Act (MAP-21) in 2012 does
not significantly alter total funding from the previous authorization, but it does
include many significant reforms and calls for a national freight policy tol be
developed
Initial Regulation
• Railroads provided a needed and valuable

service to millions of customers in an
unregulated market economy
• Interstate Commerce Commission formed in
1887
• Regulate railroads
• Fix price ceilings
• Prevent them from making a profit that would be
deemed excessive
• 1916 was year of peak trackage (254,000
miles)
214
6
History of Regulation
1920-1940 – Regulatory formalization, extension to other
transportation modes
Motor Carrier Act (1935)
Civil Aeronautics Act (1938)
Civil Aeronautics Board (1940)
1940-1970
Regulation of water transportation by ICC (1940)
National Aeronautics & Space Administration (1951)
Federal Aviation Administration (1958)
Railroad Revitalization and Regulatory Reform Act of 1976
AMTRAK
CONRAIL
History of Deregulation
1970-1980 – prelude to deregulation

Shift from regulation/control to fostering competition
Department of Transportation (DOT) 1961
Airline Deregulation Act 1978
1980-2000 – Deregulation
Motor Carrier Act 1980
Staggers (Rail) Act 1980
Interstate Commerce Commission (ICC) abolished in 1996
Ocean Shipping & Reform Act 1998
215
7
Four Trends of Transportation Policy
1. Deregulation and privatization.
2. A more broad focus of policies, particularly in light of

intermodalism and multimodalism.
3. A move towards social and political issues behind

transport projects as opposed to technical and
engineering issues.
4. Globalization increased interactions at the international

level, both for freight and passengers.
Railroads
¾Railroad Rates
¾Railroads’ Liability for loss,

Damage and Delay – pages 20-21
¾Carmack Amendment – it
requires railroads to assume
liability for the full value of
goods transported, railroads
may limit their liability by
providing a release rate..
Source: http://www.economist.com/node/16636101
The main purpose of the Carmack Amendment is to relieve shippers of the

burden of discovering which carrier, among often numerous carriers, was
responsible for damage for goods.
216
8
Ocean Shipping
• The Jones Act (1920) requires that all goods transported by water between
U.S. ports be carried in U.S.-flag ships, constructed in the United States,
owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent
residents
• Critics note that the legislation results in costs for moving cargo between
U.S. ports that are far higher than if such restrictions did not apply. In
essence, they argue, the act is protectionism
• U.S.-flagged, -built, and -crewed ships to cannot compete
internationally with vessels built and registered in other nations with
crews willing to work for wages that are a fraction of what their U.S.
counterparts earn.
Discussion Question: Do you think the Jones Act is a good law or is it

outdated?
Ocean Shipping
ISPM 15 requires that all international ocean freight

shipments using any species of raw wood packaging
must be fumigated or heat treated to kill insects or
fungus and stamped with the approved stamp,
before international ocean freight is allowed entry or
crossing through a participating country.
http://www.divyashreepackaging.com/wooden-pallets.htm
217
9
Motor Carriers
¾Current Motor Carrier

Regulation –
¾What is a motor
carrier?
¾Requirements of motor
carrier
¾Cargo Insurance –
¾A requirement to
operate cargo
¾A minimum of $5,000
per vehicle or $10,000
http://www.bts.gov/publications/multimodal_transportation_indicators/december_2011/html/hi
per incidence ghway_retail_diesel_price.html
Truck Weight Regulations
Federal regulations limit truck weights to no more than 80,000 pounds (36,287
kg), but many states have passed special provisions allowing exceptions, and
more states are considering similar measures
Source: http://www.moreproductivetrucks.com/heavier_trucks.html
218
10
Container Weight Regulations
The rating of a 20' dry cargo container is 24,000 kgs.

(52,900 lbs.), and a 40', including the high cube
container, is 30,480 kgs. (67,200 lbs.).
A 20' x 8.5' dry cargo container may weigh 1,800 kgs. to

2,400 kgs., a 40' x 8.5' may weigh 2,800 kgs. to 4,000
kgs, and a 40' x 9.5' may weigh 3,900 kgs. to 4,200 kgs.
Payload = Rating - Tare Mass
Maximum cargo volume information is also provided

since cargo carried by container tends to "cube out"
before it "weights out"
Motor Carriers
¾Exemptions from
Federal Motor Carrier
Regulations:
¾Between Alaska and
another state thru
Canada
¾Rail/Truck/Water
within terminal areas
¾Motor vehicle –
school bus, taxi cabs, Source: http://www.ccjdigital.com/port-of-seattle-implements-drayage-truck-registry/
…
Discussion Question: Where do you think the
TXLC Series Loaded Container Handlers
pictured above was made?
219
11
Motor Carriers
Motor Carrier Liability for Loss, Damage & Delay: page 85
• Statutory liability – page 85

• Suit filing time limits – min 2
years, page 111
• Concealed loss & damage
claims – page 113
• Non-deliveries – page 114
• Litigation issues – page 115
• Arbitration & mediation –
page 132
http://www.atlantainjurylawblog.com/truck-wreck-of-the-day/can-you-believe-no-one-
was-hurt-in-this.html
Section II:
Shippers and Carriers Duties, HazMat
movements, etc.
220
12
Shippers’ & Carriers’ Responsibilities
¾Shippers’ and carriers’ duties and exposure to lawsuits:

page 163
¾Shippers’ responsibilities – pages 163 -169
¾Packaging of the goods
¾Duty to accept goods on delivery
¾Liability for injury and death
¾Accurate description of goods
¾Carriers’ duties and responsibilities – pages 169 - 176
¾Inspection of goods loaded by shipper
¾Duties in loading and unloading
¾Liabilities or damages for violating Interstate
Commerce Act
¾Driver regulations
Federal Motor Carrier Safety Regulations
¾General qualifications of drivers –

¾Disqualifications of drivers –
¾Hours of service of drivers –
¾Maximum driving time
¾Record of duty status
¾Automatic on-board recording devices
CSA 2010 is a point-based Driver Safety- Rating System that
tracks the manner in which Driver’s operate Commercial
Vehicles.
Enhances visibility to a Driver’s safety record and disqualifies

them if they exceed the government-established safety
standards for operating a Commercial Vehicle.
221
13
Sampling of some of the point values
Violation Points
Following too close 5
60/70‐hour rule 7
Failure to include driver signature 2
or certification in duty status records
Failure to list main office address 2
in duty status records
Driver failing to retain previous 5
7 days' logs
No medical certificate 6
Inoperative tail lamp 4
Periodic inspection 4
Electronic‐Logging Systems
2014 Mandatory Implementation of Electronic-Logging Systems in Big

Trucks.
• By 2014, truck drivers will be required to use electronic log
books (e-logs) under a federal mandate by the Federal Motor
Carrier Safety Administration (FMSCA).
•
• Capture hours-of-service (HOS) data, reducing the potential for
inaccuracies and risk of violations associated with manual
(paper) logs, which negatively impact safety, on-time service,
operational efficiencies and CSA scores, among other issues
• As expected, the transition to e-logs is likely to cause both an

operational and cultural shift for drivers, carriers and shippers
— after all, paper-based logs have been used in the industry for
years.
222
14
Electronic Logging Devices
The term ‘electronic logging device’ means an electronic device that
… is capable of recording a driver’s hours of service and duty status
accurately and automatically
Source: http://www.schneiderjobs.com/company-drivers/equipment-and-technology
HazMat Regulations
¾HazMat – materials capable

of posing unreasonable risk to
health, safety and property
according to Secretary of
transportation, pages - 262 -
266
¾Identification
¾Classification
¾Packaging
¾Leveling
¾Emergency response
¾Training
¾Security requirements
223
15
Section III:
Evaluate the impact of transportation
policy on intermodal operation and
economic development
Driver Shortage
Source: http://www.roadscholar.com/blog/tag/csa-2010/
224
16
HazMat Regulations
¾HazMat – materials capable

of posing unreasonable risk to
health, safety and property
according to Secretary of
transportation, pages - 262 -
266
¾Identification
¾Classification
¾Packaging
¾Leveling
¾Emergency response
¾Training
¾Security requirements
Section IV:
Introduction to transportation geography
225
17
Questions
What questions do you have about

transportation rules, regulations, & their
impacts?
226
18

Student Project
Students’ Project Discussions

WORKSHOP
Prepared By:
Learning Outcomes
Big Idea: Instigate At the completion of this module students
students’ should be able to:
interests and
promote critical – Understand the objectives and needs of these hands
thinking thru on projects
hands on project. – Identify the problems and formulate the problems
Provide guidance associated with the project (s)
for maximized
learning.
– Identify the constraints, resources, and mechanisms
to solve the project problem (s)
Lecture Duration: – Deduce the appropriate assumptions, apply right
Embed with solution processes, derive and interpret results
appropriate
– Produce acceptable project deliverables
modules.
229
1
Project 1: Decision Regarding Hub Use
¾Company “A” is a retail distributor who operates its business from Hattiesburg,
MS. Most of its customers are in Mississippi and most of the time they orders LTL of
products. This company has limited trucks for delivery but has synergetic
partnership with several hubs in the state. It ships all customer orders from its
Hattiesburg warehousing facility.
¾Company “A” received a total of 5 orders today from its customers who are
located in Natchez, Vicksburg, Greenwood, Greenville, and Starkville. All these
orders are due by tomorrow. This company can either directly ship those orders
from its warehouse to individual customers or can use a hub facility in Jackson for a
fee and deliver from there. Should company “A” use the hub facility or directly ship
from its warehouse?
¾Following information is provided by the company;
9Total demand for 5 customers = 2TL delivery and none of the order requires a TL delivery
9Average distance between origin & destination = 500 miles
9Average distance from origin to hub or hub to destination = 250 miles
9Cost for transportation = $200 handling + 1 $/mile
9Cost for using hub = $100/day
Project 1: Problem Dissection
¾Identify the Problem to be solved: Should company “A” use the hub facility or
directly ship from its warehouse?
¾Formulate the Problem: Calculate the value of each option depending on the
performance factors. For example: if cost is the issue, calculate the total cost of
shipments for all available options.
¾Identify constraints, resources, and mechanisms: What is given/available and
what is the limiting factor that dictates the solution?
¾This company has limited trucks for delivery
¾It received a total of 5 orders
9Total demand for 5 customers = 2TL delivery and none of the order requires a TL
delivery
9Average distance between origin & destination = 200 miles
9Average distance from origin to hub or hub to destination = 100 miles
9Cost for transportation = $50handling + 1 $/mile
9Cost for using hub = $100/day
230
2
Project 1: Problem Dissection
¾Deduce the assumptions:
¾ Consolidated delivery is not an option
¾Each delivery route is unique and can not be shared
¾Company has at least 5 trucks and 5 drivers
¾Solutions:
¾Comprehend the problem (may visualize the case)
¾Identify available alternatives
¾Calculate results based on performance factor(s)
¾Interpret results
¾ Problem
Comprehension
231
3
Project 1: Performance Criteria
¾ Number of trucks
¾Number of trips
¾Shipment cost
¾Frequency of service
¾Customer satisfaction
¾ Example Case
9Pick the option that has the least cost of shipment
Project 1: Calculations
¾ Example Case: Direct Shipment
9Total no. of shipments = 5
9Total handling cost = 5 X $50 = $250
9Total shipment cost = 5 X ($1 X 200) = $1000
9Total cost = $250 + $1000 = $1250
9Level/frequency of customer service?
¾ Example Case: Via Hub Shipment
9Total no. of shipments = 2 + 5 = 7
9Total handling cost = 7 X $50 = $350
9Total shipment cost = 7 X ($1 X 100) = $700
9Hub cost = $100
9Total cost = $350 + $700 + $100 = $1150
9Level/frequency of customer service?
232
4
Project 1: Interpretation
¾ Based on the assumptions and current requirements,
calculation shows that Company “A” should use the hub
system to deliver its orders to its customers. In this case
the company will be able to save $100 over the direct
shipments.
¾Any changes in assumptions or requirements may alter
the savings and may lead to different decision.
Project 1: Critical Thinking
¾ What if the Company “A” has only 4 truck drivers
available for that day?
¾What if the hub cost goes up to $200 per day?
¾What if a customer want to expedite the delivery?
¾What if a customer orders a TL of delivery?
233
5
Project 2: Modal Selection
¾Selection of freight transport services is a twofold process, which covers
modal choice and carrier choice. Modal choice could be either a specific mode
or intermodal transportation. The shipper chooses a particular mode and also
chooses between similar services within the chosen route‐mode.
¾As mentioned earlier that modal selection is not like a cherry picking
process, it ensures the efficient movement of goods while considering the
performance factors.
¾Performance factors may include the following;
¾Transportation cost
¾Transit time
¾Reliability and competency
¾Flexibility and Customization
¾Emissions
¾Energy consumptions, etc.
Project 2: Modal Selection Criteria
¾There is a relationship between transport costs, distance and modal choice
that has for long been observed. It enables to understand why road transport
is usually used for short distances (from 500 to 750 km), railway transport for
average distances and maritime transport for long distances (about 750 km).
Distance, Modal Choice
and Transport Cost
D1 = 500 ‐750 KM
D2 = Near 1500 KM
Source: Photo: Dr. Jean‐Paul Rodrigue
234
6
¾The concept of economies of scale applies particularly well to container
shipping.
¾It is thus not surprising that maritime shipping companies have introduced
larger and larger containerships, particularly over long distance routes.
Average Cost per TEU by Containership
Capacity and By Route, 1997
Source: Cullinane, K. and M. Khanna
¾While maritime container shipping companies have been pressing for larger
ships, transshipment and inland distribution systems have tried to cope with
increased quantities of containers.
¾The growth in capacity comes with increasing problems to cope with large
amounts of containers to be transshipped over short periods of time as
shipping companies want to reduce their port time as much as possible.
Economies and Diseconomies of
Scale in Container Shipping
Source: Photo: Dr. Jean‐Paul Rodrigue
235
7
Project 2: Shipping Shoes from China
How should I ship my shoes from Shenzhen, China

to Kansas City, USA?
¾ Shoes are manufactured, labeled, and packed at Shenzhen plant
¾ ~4.5M shoes shipped per year from this plant
¾ 6,000 to 6,500 shoes shipped per container (~700‐750 FEUs / year)
¾ Value of pair of shoes ~$35
Project 2: Problem Comprehension
40 shipping lines visit these ports each w/ many options
Examples:
¾ APL ‐ APX‐Atlantic Pacific Express Service
¾ Origins: Hong Kong ‐> Kaohsiung, Pusan, Kobe, Tokyo
¾ Stops: Miami (25 days), Savannah (27), Charleston (28), New York (30)
¾ CSCL ‐ American Asia South loop
¾ Origins: Yantian ‐> Hong Kong, Pusan Stops: Port of Los Angeles(16.5 days)
236
8
Inland Transport @ Origin
3 Port Options
Shekou (30k)
• Truck
Yantian (20k)
• Rail
• Truck
Hong Kong (32k)
• Rail
• Truck
• Barge
In Hong Kong
• 9 container terminals
Inland Transportation within US
237
9
Project 2: Problem Analysis
Port of New York / New Jersey
Maher Terminal
Express Rail II NS RR
• Double stack thru:
•Harrisburg, Pittsburgh,
Cleveland, Ft. Wayne, to
Kansas City
CSX RR (5-10 days)
• Double stack thru:
• Philadelphia, Baltimore,
Washington, Pittsburgh,
Stark, Indianapolis, to
Kansas City
Truckload (2.5 - 3 days)
• NJ Turnpike to I-78W, I-
81S, I-76/70 to Kansas City
Project 2: Problem Analysis
Intermodal transport that utilizes trucking is the most expensive shipping option
Source: Morrison, 2012
• Intermodal shipping that utilizes rail transportation uses the lowest energy
and produces the least CO2 emissions
• The all‐water route via the Panama Canal is the least expensive option
238
10
Project 2: Problem Analysis (cont’d..)
“Given a choice, many shippers today are Source: Morrison, 2012
leaning toward a delivery service that costs

less and is more reliable, even if the delivery
time were slightly longer" (Spivak, 2011)
Project 2: Decision Making
Transportation Decision
¾Let students do the research to find the details
¾Calculate total point to point cost
¾Calculate total transit time
¾Calculate emissions and energy consumptions
¾Identify the reliability, dependability, and other performance parameters of
modes and shipping companies
¾Compare the values and select the best
¾ So how do I ship shoes from Shenzhen to Kansas City?
239
11
Project 3: Intermodal Choice
Consider a product to be transported from a location A to a
location B.
location B.
The distance between A and B is (y) mile.
Mode options and associated distances are given below:
1. Truck (mile) × Cost = Total1

2. Rail (mile) × Cost + Truck (mile) × Cost = Total2
3. Truck (mile) × Cost + Rail (mile) × Cost + Truck(y mile) ×
Cost = Total3
4. Truck (mile) × Cost + Water (mile) × Cost + Truck(y mile) ×
Cost = Total4
Project 3:
A Manufacturer (M) ships goods to a Distribution

Intermodal Center (D) located in a different city.
Options: There are three modes of transportation
options available.
A manufacturer has three Loading/unloading, or container transaction
options available to deliver from one mode to another mode is
its product to a $10/container.
distribution center. Inventory carrying (lead time) (including
insurance) cost is 1% of total goods value.
ti 1 R d R il R d
Option 1: Road-Rail-Road
O
Option 2: Road only
Assume cargo transportation is estimated 20
Option 3: Road-Water-Road
containers.
Average container value is approx. $10,000
240
12
Option 1: Intermodal Choice
Road-Rail-Road
Distance
Di travelled:
ll d D R2
From factory to Intermodal-1 is 60 miles,

From Intermodal-1 (R1) to Intermoda-2 is 420 miles,
From Intermodal-2 (R2) to Distributor is 40 miles,
Base cost by rail is $30/Container M R1
Transportation costs by road per ton

Mode Sign
Costs $/ton
Up to 100 mile 90 Road
Up to 200 mile 85 Rail
Up to 500 mile 70 Water
By Road (direct)
Distance
Di t ttravelled:
ll d D
From Manufacturing factory (M) to Distribution (D) center
is 400 miles
Transportation costs by road per ton

M
Costs $/ton
Up to 100 mile 90 Mode Sign
Up to 200 mile 85 Road
Water
241
13
Road-Water-Road
P2
Distance travelled:
D
From factory to Port-1 (P1) is 70 miles,
From Port-2 (P2) to Distributor is 50 miles,
From Port-1 to Port-2 is 500 miles,
Base cost by water is $20/Container M
P1
Transportation costs per ton
Mode Sign
Costs $/ton
Road
Up to 200 mile 85 Water
Up to 500 mile 70
Solution to Project 3
Up to miles Road Rail Water Containers Handling Value/container
100 $90 $30 $20 20 10 10000
200 $85
500 $75
Carrying + Insurance cost
Transportation Loading / Carrying
(miles) transaction (days) 1.00% /day/ton (road)
Road Rail Water
1.00% /day/ton (Rail)
Option 1 100 420 4 4
Option 2 400 - - 2 3 1.20% /day/ton (water)
Option 3 120 500 4 7
Transportation Loading / Carrying

Total
(miles) transaction (days)
Road Rail Port
Option 1 $9,000 12600 800 8000 $30,400
Option 2 $30,000 - - 400 6000 $36,400
Option 3 $10,200 $10,000 800 16800 $37,800
242
14
Questions?
Thanks
243
15

Notes

CENTER FOR LOGISTICS
S, TRADE AAND TRANSSPORTATIO
ON
Notes
N
For more information about the CLLTT online visit
http://ww
ww.usm.ed
du/cltt 247

CENTER FOR LOGISTICS
S, TRADE AAND TRANSSPORTATIO
ON
Notes
N
For more information about the CLLTT online visit
248 http://ww
ww.usm.ed
du/cltt

'Intermodal Transportation - The Center For Logistics

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

'Intermodal Transportation - The Center For Logistics

Uploaded by

Copyright:

Available Formats

Dr. Tulio Sulbaran

Ms. Cole Bernstein

Under the Supervision of:

Dr. Lemond Irvin

Dr. Tulio Sulbaran

Ms. Cole Bernstein,

Under the Supervision of:

Dr. Lemond Irvin

Intermodal Transportation Curriculum for Secondary Education

Following is the workshop schedule:

Table 1: Workshop Schedule:

Day 1: Monday 22nd October, 2012 (8:00 am to 4.30 pm)

• Welcoming workshop participants

• Understand the terms used in international

Day 2: Tuesday 23rd October, 2012 (8:00 am to 4.30 pm)

Lunch Break 12.15 – 1.15 pm

• Evaluate the impact of transportation

Student Project • Discuss sample class project ideas/plans

Leadership and Speakers

Intermodal Transportation Curriculum for

Ms. Cole Bernstein Ms. Jennifer Steele Mr. Stuart McAvoy

Under the Supervision of:

Dr. Lemond Irvin & Mr. Brad Skelton

Center for Logistics, Trade and Transportation

Introduction of CLTT Leadership

Dr. Lemond Irvin Mr. Brad Skelton

The CLTT provides a competitive advantage to

The CLTT mission is to respond to the Gulf-region

¾Transportation consists of many layers.

¾ Transportation managers find the best

¾Transportation is but one of

¾ It is highly related with other

Intermodal Transportation Curriculum for

Under the Supervision of:

Dr. Lemond Irvin & Mr. Brad Skelton

Center for Logistics, Trade and Transportation

Module 1: Learning Outcomes

At the completion of this module students

Session I: Basic concepts of logistics and transportation

Center for Logistics, Trade and Transportation

typically a network of transportation is equipment and infrastructure which

Nodes (facility locations or terminals) - Nodes are junction points of links.

Center for Logistics, Trade and Transportation

Operational Network: The route the shipment takes in terms of decision

Strategic Network: A series of paths through the network from origin to

Center for Logistics, Trade and Transportation

Primary Activities within Operational

Center for Logistics, Trade and Transportation

Primary Activities within Operational

Primary Activities within Operational

Center for Logistics, Trade and Transportation

Center for Logistics, Trade and Transportation

Hub & Spoke Network

Direct Vs. Hub Network

Center for Logistics, Trade and Transportation

Center for Logistics, Trade and Transportation

Center for Logistics, Trade and Transportation

Students’ Project Idea: Will be discussed on Oct 23

Center for Logistics, Trade and Transportation

Historical Perspective of Intermodal

Wooden coal containers used on railways go back to the 1830s on the

In 1841 Isambard Kingdom Brunel introduced iron containers to move

Historical Perspective of Intermodal