Abstract
This chapter starts by presenting the elements of modern transportation systems, it highlights the characteristics of alternative freight transportation modes (road, rail, water, air, intermodal), and it gives an overview of processes, regulations and services associated with shipping freight. Transportation pricing mechanisms are examined, and various cost modeling approaches are proposed to facilitate transportation means comparisons. Finally, an approach for the evaluation and selection of transportation means is presented.
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Notes
- 1.
Liquid products such as oil may also be transported using pipelines. This particular case, however, is not examined in this book.
- 2.
A “tonne” is a metric measure equal to 1000 kg. In the United States it is referred to as a “metric ton.”
- 3.
Container traffic is measured in 20-foot equivalent units (TEUs).
- 4.
Dead Weight Tonnage—Weight in tonnes a ship can carry without riding dangerously low in the water.
- 5.
FOB stands for Free-On-Board and it originally applied to international maritime shipments. Although not really appropriate for domestic shipments, it is used profusely in practice.
- 6.
Note that a fourth term capturing combined weight-distance effects (\(c^{\text{dw}} DW\)) could be added to (5.2) to improve the approximation. However, this term would introduce nonlinearities and, because it is usually relatively small, it will be ignored.
- 7.
This exercise is based on the Polymedic Ltd case found in Taylor (1997).
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Martel, A., Klibi, W. (2016). Transportation in the Supply Chain. In: Designing Value-Creating Supply Chain Networks. Springer, Cham. https://doi.org/10.1007/978-3-319-28146-9_5
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