[Notes]Chapter 4: Transportation Planning

1) Key issues and challenges that will affect freight planning and logistics in the future include the following:

• The demands for freight transportation and logistics services and the ability of the physical and information infrastructure to meet these demands
• The role of road pricing in urban freight transportation
• The impact of information technology on goods movement 
• New development in logistics management

2) SUPPLY, DEMAND AND PRICING

In the new millennium, the freight transportation system will face challenges that will require the development of new paradigms of operations and planning. This situation will result from a combination of factors:

• Domestic and international freight demand will continue to grow
• New-freight transport systems must be responsive to user needs and expectations
• Freight planners will have to deal with significant constants

Transportation allows for:

• Geographic specialization- if it were not for transport, a community would need to produce everything locally. Specialization can continue as long as the production cost savings is greater than transport costs.
• Increased land values- increased land values are a direct result of the fact that the land can be used for its most efficient purpose.
• Large scale production- large scale production made possible because the product does not need to be produced close to the market.

Principles of Transportation:

• Speed- ability to go from origin destination as fast as possible such as air transportation.
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• Consistency- ability for shipments to arrive at the same time, every time. Such example is the product delivered to the customer always at the right time.
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• Control- ability to make changes before and during transport. Telecommunications revolutionized transportation with the ability to communicate with the driver and possibly change the routing.

3) TRADE AND EQUIPMENT BALANCE

Equipment balance when there is the same amount of cargo or equipment going in both directions of a trade lane.

For example: trade between Europe and Asia is balanced when there is the same amount of cargo going from Europe to Asia as there is from Asia to Europe. If there is the same amount of cargo going in each direction, there is a balanced trade.

Four Factors in Transportation Decisions:

• Shipper- the one making the transportation arrangements.
• Cargo- determines the characteristics of cargo. Eg, cargo volume, origin, destination, timing of shipments.
• Carrier- chooses carrier that offering the best services. Eg, private, contract, common carrier.
• Consignee- often influences the method of delivery when the purchase was made.

Some similar factors used to determine cargo transport characteristics:

• Size- the dimensions and volume
• Weight- absolute weight of the cargo
• Density- both the size and weight together
• Stowability- many small pieces may be easier to handle but there is a lot more handling required.
• Handling- containerized cargo is extremely easy to handle. Live animals are good example of cargo that very difficult to handle.
• Liability- cost of damage or lost. Some cargo easily damaged. Fresh fruits are good example.
• Dangerous goods- many commodities that we do not think as ‘dangerous’ can be so while under transport.
• Special service requirements- some cargo have special needs or issues. Eg, live animals require feeding en route.

Special charges:

• Transit services- allow the product to stop en route. Eg, half-full container stops enroute to pick up more cargo.
• Diversion- when a shipment is redirected to a different destination while en route.
• Re consignment- when a shipment is redirected to a different consignee.
• Split delivery- when a shipment is split and part goes to one place and another part goes somewhere else.
• Demur rage/detention- if the customer need to hold onto the container for a longer period of time, this is known as detention which is when the shipper holds the container or demur rage that when the carrier is holding the container.
• Accessorial charges- include currency charges, fuel charges. 

4) CONCLUSION 

Freight movement uses local, regional, national and international systems. Cooperation between private and public sectors requiring changes in both will be needed to ensure a transportation system that meets the freight needs of businesses and consumers. Because customers will require one-stop shopping, freight movement increasingly will be intermodal and multimodal. This trend will accelerate cooperation and coordination between modes and transportation companies.