The document discusses strategies for reducing the negative environmental impacts of logistics operations through better utilization of transport capacities. It analyzes current inefficiencies like high rates of empty truck kilometers. The key strategies proposed are: 1) Increasing use of low-emission transport and intermodal solutions. 2) Optimizing transport capacity utilization through consolidation centers and multi-user warehouses. 3) Redesigning distribution networks to reduce the number of transition points and increase distances between terminals to enable more intermodal transport.
www.its.leeds.ac.uk/research/mobility-energy-futures-series
Freight transport constitutes a very significant but under researched part of total transport demand, and one in which
the prospects for lower energy use and associated lower
carbon emissions may prove particularly elusive. Reducing
energy use and carbon emission whilst maintaining the freight
transport services that the modern global economy requires
will hinge on many recent and current trends being changed.
Clean Fleets - Guide on the European Clean Vehicles Directive (CVD)Helen_ICLEI
This guide is designed to assist public authorities and public transport operators in purchasing clean and energy efficient vehicles in full compliance with European legislation – in particular the Clean Vehicles Directive (CVD)4.
It is primarily targeted at procurers and fleet managers, but will also be of relevance to policy makers and others involved in the transport sector.
Also available in: FR, HR, DE, RO, NL, IT
Visit: www.clean-fleets.eu/publications
To improve the quality of the access to and from the hinterland, several new concepts are presented and implemented by seaports. One of these concepts is Synchromodal Freight Transport. In this presentation, a clear definition of Synchromodality is presented and the set of decisions needed for the design and operation of a synchromodal freight transport systems is discussed.
www.its.leeds.ac.uk/research/mobility-energy-futures-series
Freight transport constitutes a very significant but under researched part of total transport demand, and one in which
the prospects for lower energy use and associated lower
carbon emissions may prove particularly elusive. Reducing
energy use and carbon emission whilst maintaining the freight
transport services that the modern global economy requires
will hinge on many recent and current trends being changed.
Clean Fleets - Guide on the European Clean Vehicles Directive (CVD)Helen_ICLEI
This guide is designed to assist public authorities and public transport operators in purchasing clean and energy efficient vehicles in full compliance with European legislation – in particular the Clean Vehicles Directive (CVD)4.
It is primarily targeted at procurers and fleet managers, but will also be of relevance to policy makers and others involved in the transport sector.
Also available in: FR, HR, DE, RO, NL, IT
Visit: www.clean-fleets.eu/publications
To improve the quality of the access to and from the hinterland, several new concepts are presented and implemented by seaports. One of these concepts is Synchromodal Freight Transport. In this presentation, a clear definition of Synchromodality is presented and the set of decisions needed for the design and operation of a synchromodal freight transport systems is discussed.
The objective of this project is to Weastflows strengthen the development of sustainable solutions for connective freight transport and logistics in the North West Europe on a green axis east / west
Presentation of ASCAME about logistic sector Strategic Paper ASCAME
Presentation about the Logistic Sector- Strategic Paper
Transport and Logistics is a strategic sector for the development of the Euro-Mediterranean region due to the key role it plays in a country’s general economy, contributing significantly to regional development and integration (Integral part of modern production).
Economics of Crossrail (Microeconomics)Eton College
Europe’s largest construction project
Crossrail will increase London's rail capacity by 10%
Crossrail route will run >100km from Reading and Heathrow in the west to Shenfield and Abbey Wood in the east.
40 Crossrail stations including 10 new stations
Crossrail will bring an extra 1.5 million people to within 45 minutes of central London
Total funding available to deliver Crossrail is £14.8bn
Costs outside the £14.8 billion funding package include the estimated £1 billion cost of buying trains, the majority of which will be funded directly by Transport for London
I am pleased to announce the first signaturies to the European limate Transact Initiative. As the UK representative on the Green Logistics Consultants Group I look forward to driving this project forward in the UK. Please contact me if you are interested in taking part.
In this edition the focus is Sustainable Urban Mobility. Our region has several good examples of how we can reduce the use of fossil fuels within sustainable urban mobility systems and create liveable cities. The Bulletin both provides examples of technical solutions and innovative campaigns from the UBC member-cities as well as displaying several externally co-funded mobility projects that covers a series of cities around the Baltic Sea Region.
In the editorial Mr Siim Kallas, EU Commissioner on transport and vice president for the EU Commission, stresses the importance of acknowledging also the economic benefits of developing sustainable urban mobility systems. He further on emphasise the necessity to stimulate markets that foster sustainable mobility supplies and the unpredictable future of fossil fuel as the dominant source for our vehicle fleets.
Trade Corridors and Multimodal Transport Corridors in EuropeParadigma Consulting
Trans European Networks (TEN-T) illustrate the concept of trade corridors. The Baltic-Adriatic Corridor in particular which extends to the Nordic countries as well as to the Eastern Mediterranean exemplifies the challenges and promises of such networks.
Guest presentation Dr Chikage Miyoshi, April 2015.
www.cranfield.ac.uk/about/people-and-resources/academic-profiles/satm-ac-profile/dr-chikage-c-miyoshi.html
www.its.leeds.ac.uk/courses/masters/itslectureseries
Logistics are vital to ensuring that a city is both dynamic and pleasant to live. Organizing city logistics operations more efficiently and more sustainably can significantly reduce the negative aspects of vibrant cities, such as pollution and noise.
In collaboration, TNO, CE Delft and Connekt have developed the Outlook City Logistics 2017, to show how changes in city logistics can help achieve the Paris climate goals by 2050.
the survey is based on a multifaceted analysis of transport infrastructure and its implications for the Transportation & Logistics industry. This paper addresses the question “how will transport infrastructure be able to keep up with increasing freight volumes and growing demand for fast, efficient, reliable and environmentally sustainable transport solutions?”
the source of survey is PwC Russia
Discussion of the important sustainable best practises at Bremen,Germany focusing on the aspect of Transportation as the heart of living which is not about having great technology but all the solutions being integrated into a syenergy manner
The critical coordination of transport in less mature logistics environmentsTristan Wiggill
A presentation by Carsten Schubert, Director, Transnova, South Africa.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
In the last five years many South African manufacturers have accelerated their expansion plans into Africa but unfortunately often painfully and expensively. All too often the blame has been placed on the immaturity of local supply chains and poor levels of logistics maturity. But is this really fair? Even worse does this point to an ‘air of arrogance’ that South African companies believe they know better, an attitude that promotes the very resistance that they are seeking to avoid? In both a pragmatic and amusing presentation, filled with real-world anecdotes and personal experiences, the presenter will explore the challenges that face the South African logistician attempting to successfully penetrate the East African market.
The objective of this project is to Weastflows strengthen the development of sustainable solutions for connective freight transport and logistics in the North West Europe on a green axis east / west
Presentation of ASCAME about logistic sector Strategic Paper ASCAME
Presentation about the Logistic Sector- Strategic Paper
Transport and Logistics is a strategic sector for the development of the Euro-Mediterranean region due to the key role it plays in a country’s general economy, contributing significantly to regional development and integration (Integral part of modern production).
Economics of Crossrail (Microeconomics)Eton College
Europe’s largest construction project
Crossrail will increase London's rail capacity by 10%
Crossrail route will run >100km from Reading and Heathrow in the west to Shenfield and Abbey Wood in the east.
40 Crossrail stations including 10 new stations
Crossrail will bring an extra 1.5 million people to within 45 minutes of central London
Total funding available to deliver Crossrail is £14.8bn
Costs outside the £14.8 billion funding package include the estimated £1 billion cost of buying trains, the majority of which will be funded directly by Transport for London
I am pleased to announce the first signaturies to the European limate Transact Initiative. As the UK representative on the Green Logistics Consultants Group I look forward to driving this project forward in the UK. Please contact me if you are interested in taking part.
In this edition the focus is Sustainable Urban Mobility. Our region has several good examples of how we can reduce the use of fossil fuels within sustainable urban mobility systems and create liveable cities. The Bulletin both provides examples of technical solutions and innovative campaigns from the UBC member-cities as well as displaying several externally co-funded mobility projects that covers a series of cities around the Baltic Sea Region.
In the editorial Mr Siim Kallas, EU Commissioner on transport and vice president for the EU Commission, stresses the importance of acknowledging also the economic benefits of developing sustainable urban mobility systems. He further on emphasise the necessity to stimulate markets that foster sustainable mobility supplies and the unpredictable future of fossil fuel as the dominant source for our vehicle fleets.
Trade Corridors and Multimodal Transport Corridors in EuropeParadigma Consulting
Trans European Networks (TEN-T) illustrate the concept of trade corridors. The Baltic-Adriatic Corridor in particular which extends to the Nordic countries as well as to the Eastern Mediterranean exemplifies the challenges and promises of such networks.
Guest presentation Dr Chikage Miyoshi, April 2015.
www.cranfield.ac.uk/about/people-and-resources/academic-profiles/satm-ac-profile/dr-chikage-c-miyoshi.html
www.its.leeds.ac.uk/courses/masters/itslectureseries
Logistics are vital to ensuring that a city is both dynamic and pleasant to live. Organizing city logistics operations more efficiently and more sustainably can significantly reduce the negative aspects of vibrant cities, such as pollution and noise.
In collaboration, TNO, CE Delft and Connekt have developed the Outlook City Logistics 2017, to show how changes in city logistics can help achieve the Paris climate goals by 2050.
the survey is based on a multifaceted analysis of transport infrastructure and its implications for the Transportation & Logistics industry. This paper addresses the question “how will transport infrastructure be able to keep up with increasing freight volumes and growing demand for fast, efficient, reliable and environmentally sustainable transport solutions?”
the source of survey is PwC Russia
Discussion of the important sustainable best practises at Bremen,Germany focusing on the aspect of Transportation as the heart of living which is not about having great technology but all the solutions being integrated into a syenergy manner
The critical coordination of transport in less mature logistics environmentsTristan Wiggill
A presentation by Carsten Schubert, Director, Transnova, South Africa.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
In the last five years many South African manufacturers have accelerated their expansion plans into Africa but unfortunately often painfully and expensively. All too often the blame has been placed on the immaturity of local supply chains and poor levels of logistics maturity. But is this really fair? Even worse does this point to an ‘air of arrogance’ that South African companies believe they know better, an attitude that promotes the very resistance that they are seeking to avoid? In both a pragmatic and amusing presentation, filled with real-world anecdotes and personal experiences, the presenter will explore the challenges that face the South African logistician attempting to successfully penetrate the East African market.
Respond 100 Response 1Inland ports can benefit from lea.docxwilfredoa1
Respond 100 :
Response 1:
Inland ports can benefit from learning how to better utilize integrated transportation and distribution systems because the more connected a port of embarkation or debarkation is to the global transportation network of hubs, the more business that the port will see and profit that will be generated. In a hub and spoke concept, hubs are the central point of activity in the transportation network, which act as a conduit to smaller locations (spokes) and other hubs within the transportation system. Spokes on the other hand are essentially the outstations. The smaller ports which facilitate the handoff to the last-mile delivery services and provide a portal to connect consumers with the logistics enterprise (Bonsor, n.d.).
For inland ports, this correlates back to the idea that many inland seaports ports are most likely primarily spokes within the transportation network, facilitating the movement of goods between the local economy and the larger transportation infrastructure (the hubs). Rather than hand delivering packages to the coastal maritime ports that connect one country with another, inland ports can help bridge the gap by providing a shuttle service type capability to move packages from the inland port to the coastline or even enable the direct pickup and drop off from container ships for inland ports large enough to handle the capacity of the vessels. As a result of this, if inland ports are able to embrace the ability to either provide shuttle services to coastline ports or improve their capabilities enough to facilitate the movement of large maritime vessels, the demand for services at that particular port will drastically increase. This not only provides a necessary service to the local economy, but also improves business at the inland port itself.
Response 2:
Over the years improved integrated transportation systems has become a leading model for freight distribution. Rodrigue (2020b) explains there are several ways in which integrated transport systems could advance “capacity, efficiency, and reliability,” for all modes (p.
Maritime Industry Hub and Spoke Impacts
Ports tend to use a point-to-point or a hub and spoke network. Rodrigue (2020a) compared the cost of each and found that a hub and spoke concept is usually cheaper. This occurs because the cost is reduced due to the network structure (Rodrigue, 2020a). The loading and unloading time and cost may not change, but the transport distances and the economies of scale for point-to-point services are usually higher (Rodrigue, 2020a). Unquestionably, a hub port usually has larger advantages than other locations and limits the competition (Rodrigue, 2020a).
Response 3:
Since shipping the industry carries 80% of the global economy. It must find ways of making itself as efficient as possible. However, the problem is getting the product from the port to the customer. Because once the product arrives at the port, it is then transported from .
Professor Alan McKinnon, Kühne Logistics University is Guest Speaker for a CILT Green Series Webinar examining green technology and sustainability issues in relation to the logistics and transport sector
Prof. José Holguín presented on improving the performance of freight systems at the Transforming Transportation 2015.
Transforming Transportation 2015: Smart Cities for Shared Prosperity is the annual conference co-organized by the World Resources Institute and the World Bank.
Challenges and Solutions in Modern Freight TransportEarlesTransport
Modern freight transport faces infrastructure strain and environmental impact. Proactive solutions, like investment in infrastructure and smart technologies, are vital. Collaboration among governments, industries, and tech providers promises a more sustainable and efficient logistics network. To read more information: https://earlestransport.com/hay-freight-service/
I gave this presentation to the department Technology and Operations Management to explain my thoughts on how sea ports act in global supply chains through organisational, logistics, and information networks.
Imagine a world in which people and goods can move with minimum impact on the local environment and climate. Imagine an intelligent transport system with smart infrastructure and smart, connected vehicles powered predominantly by renewable energy, and with enlightened end-users: private individuals and enterprises. Imagine a system that is actually based on user demand. That is what we would like to see.
To put mobility and transport on the track to sustainability, we have to improve energy efficiency, switch to renewable energy and more efficient modes of mobility, and, most importantly, increase smartness at all levels of the system. In practice, the last point means smart and efficient mobility services, cooperative systems, and intelligent vehicles and infrastructure.
VTT has a toolbox and the expertise to tackle all the key challenges of smart low-carbon mobility. And, to really make an impact, we are cooperating with all the key stakeholders in the field. Let us re-invent mobility and co-create a better future together!
Drivers influencing the transport costs Aniello EspositoAniello Esposito
Transport covers a strategic role for the development of trade and is a key element in people’s lives. Transport system has become indispensable for our survival, and important is the study of its costs to win the competition in the business world, to make efficient our movements and to reduce the waste of resources.
Below, the main drivers affecting the transport costs and their changes will be analysed with a focus on transport of goods.
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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Utilisation of transport capacities and opportunity to mitigate negative environmental impact of logistics operations
1. TRANSBALTICA 2011
The 7th International Conference ISSN 2029-2376 print / ISSN 2029-2384 online
May 5–6, 2011, Vilnius, Lithuania ISBN 978-9955-28-840-4
Selected papers http://transbaltica.vgtu.lt
Vilnius Gediminas Technical University Transport Engineering Faculty, J. Basanavičiaus g. 28, LT-03224, Vilnius, Lithuania
UTILISATION OF TRANSPORT CAPACITIES AND OPPORTUNITY
TO MITIGATE NEGATIVE ENVIRONMENTAL IMPACT
OF LOGISTICS OPERATIONS
Aurimas Vilkelis
Dept of Transport Management, Vilnius Gediminas Technical University, Plytin s st. 27, LT-10105 Vilnius
Lithuania. E-mail: aurimas@vilkelis.lt
Abstract. The industry has worked hard on the efficiency of its own and its suppliers’ logistics operations for
many years. An effective management of the supply chain delivers environmental benefits by reducing resource con-
sumption and, therefore, cost savings. One of the problems faced today in the logistics industry is the underutilization
of assets, including trucks, trains and containers. Around 25 % of truck kilometers in the EU are running empty.
Empty journeys are not only wasteful economically, but also carry an environmental cost. The reasons behind empty
trucking are diverse: poor coordination of purchasing, sales and logistics, unreliable delivery schedules, vehicle size
and weight restrictions, demand fluctuations, incompatibility of vehicles and products, just-in-time (JIT) deliveries,
among others. The article provides an analysis of the load efficiencies, and logistic companies inefficiency.
Keywords: transport mode, strategic solution, supply chain, capacity management
1. Introduction threats to civilians, have emerged (Fig. 1.). To mitigate
negative environmental effects of transport, it is vital to
Since products are usually not produced where they come up with innovative solutions that would be adapted
are consumed, a distribution network has to be set up, in to the current situation.
order for the goods to reach the final customer. Distribu-
tion strategies are mainly concerned with network design, 2. Design of Transport Network, Considering
geographical distribution of warehouses and transship- Negative Environmental Impact
ment points, as well as the modal mix – that is, the mode
of transportation used to connect the nodes of the net- Most companies currently design their distribution
work, including warehouses and production sites. networks based on cost and speed. However, these pro-
Reductions in freight intensity in one country may cesses also have an influence on other factors, including
simply be counter-balanced by an increase in another. carbon emissions. Out of 1.62 billion tons of truck emis-
There will, however, to be a net increase in total energy sions in Europe, roughly one quarter are caused by trucks
consumption in the freight transport worldwide, partly running empty.
because of the growth in international trade volumes but Optimizing a network design, including the nodes
also because the energy intensity of freight movement in and interrelated transport flows, can reduce both costs
developing countries is often significantly higher than in and carbon emissions significantly. The problem today is
developed countries (Piecyk and McKinnon 2009; that a lot of networks are inefficient due to change inertia
Kamakate and Schipper 2009). and failure to factor sustainability into their design. From
The majority of manufacturers develop intermodal a sustainability point of view, the design of a network
schemes focused on sea or railway transport in an effort faces two contradicting objectives: on the one hand, to
to achieve their environmental objectives, however, this have the lowest inventory and warehousing CO2 emis-
may lead to interruption of road transport connection sions, while, on the other hand, to achieve the lowest
routes and weaken the link between factories and trajec- transportation CO2 emissions. A common way to improve
tories of road traffic. Intermodal solutions should be as- the sustainability of networks is for companies to come
sessed in the global respect of the manufacturer and the together and create consolidation centers and multi-user
retailer, as well the local respect of carrier or a logistic warehouses, which can improve the load factor of the
company, considering the use of energy resources. transportation, while keeping the warehousing costs to a
Road transport accounts for carrying the largest minimum (Sathaye et al. 2010; Liimatainen and Pöllänen
amount of cargo, therefore, problems, such as transport 2010; Humpf et al. 2009).
congestions, overfilled road network, air pollution and
275
2. A. Vilkelis / TRANSBALTICA 2011
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
EU27 BE BG CZ DK DE EE GR ES FR IT LV LT HU NL AT PL PT RO SI SK FI SE UK
Inland waterway Rail Road
Fig. 1. Modal split of freight transport in EU countries 2008 (% in total inland freight tonne-km) (Source: Eurostat)
Many manufacturers and retailers build their distri- processes, the efforts should be focused in four main
bution channels on individual solutions. However, to areas:
ensure more efficient use of intermodal transport, the 1) Increase in low-emission transport;
tendency today involves reduction of the number of 2) Use of intermodal solutions;
warehouses and terminals and increase of the distance of 3) Optimisation of transport capacity;
transportation. The network of warehouses and terminals 4) Better route planning.
was shaped in a way to curtail distances to the end con- Legislative measures, such as vehicle taxation, road
sumer, however, in larger countries, the arrangement of usage charges, congestion charges, and carbon taxes, will
terminals allowed serving certain regions from a few further push companies to increase their vehicle utiliza-
terminals, which were relatively close to each other. This tion levels. The reasons behind empty trucking are di-
led to overlapping of logistics operations. To avoid over- verse: poor coordination of purchasing, sales and logis-
lapping of operations and increase the distance between tics, demand fluctuations, unreliable delivery schedules,
terminals, it is necessary to reduce the number of transi- vehicle size and weight restrictions, incompatibility of
tion points. This would also allow enhancing the potential vehicles and products, goods-handling requirements, JIT
of use of intermodal transportation. In longer distances, deliveries, and regulations (e.g., cabotage restrictions in
the use of railway and sea transport is more efficient, it Europe, which oblige trucks to run empty cross-border
also enables to achieve a higher degree of economies of after providing services in a neighboring EU member
scale. Evasion of long-distance haulage and use of inter- state), among others. While increases in fuel prices are
modal transportation increases the efficiency of the use of forcing companies to give greater priority to vehicle utili-
road transport, thus diminishing the degree of traffic con- zation, there is a limit to how much an individual compa-
gestions and CO2 emissions. ny can do to improve its utilization.
While changes such as the redesign of distribution Some companies are highly responsible in their re-
networks, the optimization of transportation modes or the sponse to negative environmental effects and use low-
implementation of city logistics concepts can notably emission transport in their transport operations (needs).
improve the CO2 footprint of logistics, the industry will For example, since October 2009 for inbound transport of
not become a low carbon sector without operational components and materials, Fiat Group Automobiles has
changes, especially without adopting new, more efficient been using low-emission (Euro III-IV-V) vehicles only.
technologies. In fact due to the inclusion of specific terms in transport
agreements, vehicles that fail to meet the Euro III stand-
2.1. Optimization of Transport Operations ard were prohibited from enetering plants. For outbound
transport in Europe, Euro III or even stricter standard
Transport efficiency is an important way to reduce vehicles are used for approximately 33 % of shipping
an environmental impact. Logistics can be made more requirements (Fiat Sustainability Report 2009).
efficient through two major approaches. One is to raise A significant problem for logistics is managing ca-
the loading ratio, by increasing the amount that is carried pacity. In most cases where capacity is exceeded, the
at one time and decreasing the number of shipments, the logistics firm will use sub-contractors to take up excess
other is to shift the transport mode from trucks to ships or material. Using sub-contractors on a regular basis can
trains, which emit less CO2 (Dinwoodie 2006; Humpf et increase the environmental impact because capacity utili-
al. 2009). To reduce the environmental impact of logistics sation, fuel efficiency and emissions standards may be
lower on sub-contractor vehicle. Contracts with logistics
276
3. A. Vilkelis / TRANSBALTICA 2011
companies should contain clauses stipulating that all sub- It’s pricing must therefore reflect the fact it is only one
contract hauliers must meet the same standards as the leg of the delivery chain. The main negative issues with
main logistics companies. EU rail tend to be:
− Geographical infrastructure relative to access to
2.2. Integration of Rail Transport into the Supply suppliers;
Chain − Excess cost given that road has often to be used
at each end of the journey;
No general statistics are compiled on the efficiency − The bulk nature of rail, with small loads being
of freight movement by rail transport. This is a serious uneconomic. Infrequent delivery results.
anomaly given the strenuous efforts of governments and The vast majority of the European network accom-
the EU to transfer large amounts of freight from road to modate passenger and cargo trains, that due to their low
rail, primarily for environmental reasons. In the absence (relatively to passenger train) speed, reduce dispropor-
of data energy efficiency on the rail freight system, it is tionately the network capacity in mixed circulation. For
not possible to compare the environmental performance that reason, the commercial trains travel usually over-
of the different modes on a consistent basis. However, night and are served during the day (Janic 2008; Knörr et
some countries such as Poland, Spain and others provide al. 2010).
utilization rates of rail freight at the national level
(Fig. 2.). 3. Efficiency of Utilisation of Transport Capacities
70%
Using government data it is only possible to assess
the efficiency of road freight transport. It is also likely
60%
that the definition of empty varies both within and be-
tween countries, as often this is not exactly specified in
50%
the questionnaires. Operators are sometimes unsure
40% whether to classify as empty vehicles returning various
types of handling equipment. While a truck carrying only
30% enough wooden pallets for the next load may be consid-
ered empty, another returning empty roll cages from su-
20% permarket to a distribution centre could be considered
loaded. One haulier moving an empty ISO container back
10% to a port might consider this to be load, as they are being
paid to move it, while another might, for statistical pur-
0% poses, record the as an empty journey. There is a need for
PL SK CZ SI LT ES HU more rigorous definitions of what types of trip should be
classified as empty. The interpretation of empty running
Fig. 2. Rail freight utilization (load factor as % by tkm) – na- statistics also requires some qualification. There is a
tional 2007 (Source: European Environmental Agency) common perception that empty running is the result of a
prodigal use of transport capacity and clear evidence of
It is widely believed that rail as an alternative mode inefficiency. In practice, it is often very difficult, if not
of transport has a lower environmental impact per tonne impossible, to obtain a return load and thus eliminate
of product transported than road. Rail commands a much empty running. Much empty running, for example, is the
smaller share of the freight market in lighter, higher value result of geographical imbalances in freight traffic flows,
manufactured goods. Move to more flexible JIT manufac- in many countries it is illegal for companies operating
turing: the intrinsic inflexibility and slower speed of rail trucks on an own account basis to collect a return load
freight services make them less suited to the systems of from another company (McKinnon 2010).
order replenishment that have evolved over the past few Most of the available data for road is compiled by
decades (Piecyk and McKinnon 2009; Woodburn 2003; EU countries and published by Eurostat. This comprises
Jeong 2007). statistics on the distances that trucks run empty and laden.
Rail transport is generally slower than road The proportion of truck-kms run empty varies widely
transport, but on sufficiently long distances, for instance across Europe and averages around 25 % (Fig. 3). Inter-
of 500 km and more, the average speed may decrease as a national variations can reflect differences in the size of
result of the driving time regulation: truck drivers must the country, the nature of its freight market, regulatory
spend sufficient resting time. Theoretically, resting time controls and regional imbalances in freight flows.
regulation should make long distance transportation time The longer the haul the greater is the financial incen-
quite comparable between single mode road and inter- tive to find a backload. In larger countries, therefore, the
modal transport (Davydenko et al. 2006). Lack of infra- level of empty running tends to be lower. Reductions in
structure, vandalism and reliability have also played their empty running are likely to be the result of several factors
part in the demise of rail. In order to have any chance of including the development of load matching agencies,
recovery, rail must realize that in virtually all cases road online freight exchanges, the strengthening flow products
transport have to be used for final delivery to the dealers. going back along the supply chain for recycling and re-
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4. A. Vilkelis / TRANSBALTICA 2011
manufacture, backloading initiatives by retailers and economies of scope or economies of scale. Equally, own-
manufacturers and the outsourcing of transport to third- account transport may be the preferred or even the only
party carriers (Piecyk and McKinnon 2009; Van de option because the goods traded need special care or
Klundert and Otten 2011). knowledge, or when marketing strategies include delivery
by the manufacturing company itself (Aberle et al. 1999).
45% One of the leading manufacturer of automobiles in the
world Nissan has been sending its own trucks to take
40% delivery of needed parts from suppliers since 2000, mak-
35% ing it the first Japanese automaker to do so. This has ena-
bled to “visualize” waste during transport that had been
30% hidden in the past. They have worked with suppliers to
optimizme the frequency of deliveries and transport
25% routes. The result is better loading ratios and reduced
truck runs (Nissan Sustainability Report 2010).
20%
Breaking down the empty journey total by type of
15% operator, shows a higher incidence of empty journeys for
“own account” than for „hire and reward“ operators but
10% with some exceptions. For Sweden and the United King-
dom, this again may reflect very strong competitive pres-
5%
sures, forcing efficient organisation of logistics, as for the
0% major supermarkets chains. Empty running was lower for
CZ DK DE ES FR LT HU NL AT PL PT SI SK FI SE UK international transport than national transport. However,
all countries recorded higher levels of empty running in
international transport for own account operators, who
Own account Hire or reward
may find more difficulty in obtaining return loads on
international journeys than hire and reward operators
Fig. 3. Share of empty vehicle-kilometres in the total vehicle-
kilometres by type of transport, 2008 – % in Vkm (Source: (Pasi 2007).
Eurostat)
4. Conclusions
3.1. Comparison of Efficiency of the Use of Own
Account Transport with Hire or Reward 1. Transport companies are under constant pressure
Haulage to use their transport resources more efficiently, however,
in many cases the efficiency depends on strategic solu-
The EU rules were adopted in 1980 and should be tions of the manufacturer or retailers. Manufacturers and
seen in relation to the regulations governing road haulage retailers should place a bigger focus on the management
for hire or reward at that time. These latter have under- of transport resources by optimizing routes.
gone important changes at national level in the Member 2. Empty running and loading factors are efficiency
States. In parallel to the introduction of increasingly indicators of transport operations. Return cargo is im-
stringent quality criteria, quantitative licencing and oblig- portant for all modes of transport, therefore, the strategy
atory tariff systems were abandoned, leading to better and of the distribution network should ensure a higher level of
cheaper transport services which, in turn, made many interaction of transport modes and bringing empty run-
companies opt for transport for hire or reward instead of ning to the minimum.
using their own vehicles. 3. Economy of logistics operations can be achieved
Own-account transport of goods is an important part by reducing the number of transition points, while in-
of goods transport by road and a vital component of the crease of transportation distances would increase the
marketing and logistics concepts of hundreds of thou- efficiency of use of intermodal transport. Changes in the
sands of companies in the European Union and in Europe distribution network should reduce the inefficient use of
at large. More competition in road transport, better possi- transport resources and mitigate the geographical imbal-
bilities of adapting transport services to the needs of the ance of transport flows.
shippers, integration of other logistic services and an 4. Haulage of cargo at own account allows better
increase in average transport distances make transport for understanding of distances of transport operations, im-
hire or reward an increasingly attractive alternative to proving loading ratio and reducing empty running. How-
own-account carriage. ever, own-account haulage is less efficient in many coun-
Many companies continue to consider own vehicles tries due to the difficulty in finding return cargo in case of
and full control of the business, including the logistic and international routes. Nevertheless, due to extremely fierce
transport element, as the preferred solution for whole or competition among logistic companies in some European
part of their activities. The reason can be cost efficiency, countries, the efficiency of own-account haulage is mere-
when the characteristics of the transport operations make ly slightly different from hire or reward transportation.
it difficult for transport service providers to profit from
278
5. A. Vilkelis / TRANSBALTICA 2011
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