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Modes of Transport in Logistics


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An educational presentation about modes of transport in logistics

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Modes of Transport in Logistics

  1. 1. Business EnglishLogistics & Transportation EngineeringSeminar : Modes of Transport in Logistics By Youssef Serroukh 06/12/2011 ~ 13/12/2011 Y.Serroukh – Anglais Commercial 1
  2. 2. Contents1.1 Introduction1.2 The Importance of Transport1.3 Cargo Handling1.4 Pros & Cons1.5 SummaryExercises Y.Serroukh – Anglais Commercial 2
  3. 3. What is TransportMeans by which a shipment is movedfrom point A to point B, such as byair, rail, road, or sea. Y.Serroukh – Anglais Commercial 3
  4. 4. 1.1 Introduction“...freight transportation is vital to the Nations economy. At any given moment, billions of dollars worth of goods are being moved by truck, train, ship, or barge, or held in a yard for transport or distribution.”** Scott Johnson, Reliability in logistics is Key to global market, Public Road Magazine Y.Serroukh – Anglais Commercial 4
  5. 5. 1.2 The Importance of TransportTransportation concerns the movement of products from a source—such as a plant, factory, or work-shop—to a destination—such as awarehouse, customer, or retail store. Transportation may take place viaair, water, rail, road, pipeline, or cable routes, using planes, boats,trains, trucks. The goal for any business owner is to minimizetransportation costs while also meeting demand for products.Transportation costs generally depend upon the distance between thesource and the destination, the means of transportation chosen, andthe size and quantity of the product to be shipped. In many cases, thereare several sources and many destinations for the same product, whichadds a significant level of complexity to the problem of minimizingtransportation costs. Indeed, the United States boasts the worldslargest and most complex transportation system, with four millionmiles worth of roads, a railroad network that could circle the earthalmost seven times. Y.Serroukh – Anglais Commercial 5
  6. 6. 1.3 Cargo Handling• Cargo handling is done through four means of transport:• 1 Roadways• 2 Waterways• 3 Railways• 4 Airways Y.Serroukh – Anglais Commercial 6
  7. 7. 1.3.1 Roadways• Cargo can’t be handled in every part of the country through railway.• Roadways play a major role in handling cargo even in small town.• Roadways transportation is done through Lorries/Trucks.• There are a No. of lorries having different capacities. Y.Serroukh – Anglais Commercial 7
  8. 8. 1.3.2 Waterways• Waterways is the cheapest means of transportation.• Large volume of world trade is done through ships.• Ships handle cargo from one country to other through sea. Y.Serroukh – Anglais Commercial 8
  9. 9. 1.3.3 Railways• Railway play a major role in cargo handling.• Railway handle cargo from sea port to various part of the country.• Railway have special wagons to carry the cargo.• Through Railway large volume of cargo can be handled in a short period of time. Y.Serroukh – Anglais Commercial 9
  10. 10. 1.3.4 Airways• Airways is the fastest but most costly means of transport.• Through this means of transportation only valuable goods having less volume can be transported. Y.Serroukh – Anglais Commercial 10
  11. 11. 1.4 Pros & ConsTransportation is an important link of the logistics system.Vehicles must have a number of necessary properties and satisfycertain requirements in order to create innovative systems forthe collection and distribution of goods. Transport is a branch ofmaterial production, transporting people and goods. Each of themodes of transport has specific characteristics in terms oflogistics management, strengths and weaknesses, determine thepossibilities of its use in the logistics system. Y.Serroukh – Anglais Commercial 11
  12. 12. 1.4.1 RoadA very popular mode of transport used by suppliers and businesses to deliverorders. Many transport companies provide scheduled delivery days and next daydelivery services, depending upon your needs. Goods can be packed/grouped inbox vans or in containers which are also used for sea transportation. Cost effective Transport subject to traffic delays Fast delivery Transport subject to breakdown Ideal for short distances, national Goods susceptible to damage or mainland Europe through careless driving Ideal for transporting perishables Bad weather (e.g. fruit and vegetables) Driving regulations can cause delays Easy to monitor location of goods Easy to communicate with driver Ideal for sending by courier shortages to customers Y.Serroukh – Anglais Commercial 12
  13. 13. 1.4.2 Sea Sea transportation is used by businesses for the delivery of goods from distant suppliers. Most sea transportation is conducted in containers which vary in size. Goods can be grouped into a container (LCL) or fill a container (FCL). Sea tankers are used for bulk shipments of loose goods such as oil, grain and coal. Ideal for transporting heavy and Longer lead/delivery times bulky goods Bad weather Suitable for products with long lead Difficult to monitor exact location of times goods in transit Customs and Excise restrictions Could be costly Y.Serroukh – Anglais Commercial 13
  14. 14. 1.4.3 Rail Businesses use rail transportation for the delivery of a wide range of goods including post, coal, steel and other heavy goods. Fast delivery Subject to unforeseen delays Capacity Reliance on rail freight operators Cost effective timetable Safe mode of transport Suppliers/customers are not always Reliable located near a rail freight depot and delivery to/from the depot can be costly and time consuming Y.Serroukh – Anglais Commercial 14
  15. 15. 1.4.4 Air Airfreighting is commonly used by businesses for the delivery of goods from distant suppliers. This mode of transport is useful to deliver products with short lead times, fragile goods and products that are not bulky. Products in high demand and in short supply may also be airfreighted in order to meet customer demands. The bulk/value ratio will be a determining factor. Flight delays and/or cancellations Fast delivery, usually between 24 and 48 hours Customs and Excise restrictions Customer is not kept waiting for Cost order fulfilment Reduced lead time on supplier Improved service levels Y.Serroukh – Anglais Commercial 15
  16. 16. 1.5 Summary Trucking: very flexible to your needs, but prone to accidents Ocean: inexpensive, but slow Rail: most economic land transportation, but limited in finaldestinations Air: moves at the speed of business, but with a cost Y.Serroukh – Anglais Commercial 16
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  18. 18. 1- Match the different types of freight traffic (1-6) with the definitions (a-f).1. Multimodal2. Piggyback3. Intermodal4. Unaccompanied5. Block train6. Single-wagona. The driver does not stay with his road vehicle during transport by rail or ferry.b. Goods are transported in the same loading unit or vehicle using different modes of transport. The handling of the freight itself is not necessary when changing modes.c. A single shipper uses a whole train which is run directly from the loading point to the destination. No assembling and disassembling is required.d. Carriage of goods by at least two different modes of transport, e.g. shipping by motor lorry and aircraft.e. Train is formed out of individual wagons or sets of wagons which have different origins and different destinations.f. Combines road and rail transport: whole motor lorries, trailers or swap-bodies are carried by rail Y.Serroukh – Anglais Commercial 18
  19. 19. 2. Match the pictures of transport and handling equipment (a-f) with words (1-6) 1- Reach Stacker 2- Container ship 3- Swap-body 4- River barge 5-Tractor 6- LGV Y.Serroukh – Anglais Commercial 19
  20. 20. Thank you for your attention Y.Serroukh – Anglais Commercial 20