[Notes] Chapter 5 : Intermodalism and Land Transport

1)      Definition of Intermodalism

i)        Not mode of transport

ii)       A system of coordinating different modes of transport for a shipment

2)      Containerization

i)        ISO 9000 standard ; Set by organization

ii)       Known as Cargo Container in Logistics World

iii)     Unitization: Cargo is in the same size and dimension

3)      Most common modes of transportation using intermodal

i)        Trucking

ii)       Railroad

iii)     Ocean Shipping

4)      Benefit using intermodal

i)        Security

(a)    cargo in container, so hard to get into

(b)   Container identified by serial number

(c)    Sealed

Sealed container

ii)       Safety

(a)    Container cargo safer than any other types of container

(b)   Strong and almost impossible to crush

(c)    Weather resistant

iii)     Efficiency

(a)    Container in standard dimension and specialized equipment design to handle it

Equipment to handle the container

(b)   Container is same, no time is wasted to make adjustment

iv)     Speed

(a)    Closely related to the Efficiency

(b)   If cargo handle quicker, more cargo can move through one port in a given amount of time

5)      Standardized of intermodal equipment

i)        Basic element: Cargo container

ii)       8 feet wide, 8 feet 6 inch high, length is varies

iii)     Majority used; 20 feet or 40 feet long

iv)     Some; 45 feet, 48 feet

6)      Types of Container

i)        Dry - Basic container and common used

ii)       Open Top - No top, so cargo can be laid down into the container, useful for cargo that is awkward to handle

iii)     Flat Rack – No top or sides, just the bottom and 2 ends. This is also for the awkward cargo

iv)     Platform – There is only the bottom. Having an awkward piece of cargo on the platform

v)      Refrigerated – Known as a reefer, built into the container, running on a diesel generator or plugged into an external power source

vi)     Live animals – designed for live animal

vii)   Tanker – To carry any liquid

  

7)      Roadway Transport

i)        Private

(a)    Owned by the shipper

(b)   Eg: Gardenia, Nestle

ii)       Contract

(a)    The shipper does not own them, but they control & operate them for a specified amount of time.

(b)   Like leased

(c)    Eg: Jusco, Tesco

iii)     Common carrier

(a)    Shipper use the service of carrier

(b)   Eg: Tiong Nam, Nippon, MAERSK

iv)     Low entry requirement; anyone can buy truck

v)      Lowest entry cost compared other modes of transportation

vi)     High competitive market (involved many players)

vii)   Influence by regulation

(a)    Eg: Speed limit

8)      Railroad Transport

i)        Operation & Ownership can be either Government OR privatized

ii)       High fixed costs, Low variable cost

iii)     No weight/volume restriction but there is restriction on dimension

iv)     High damage and slow

v)      Competition is low

vi)     Shipper use train to move very large volume goods

vii)   Rail doesn’t have standardized like truck

9)      Intermodal railroad

i)        Container-on-Flatcar (COFC)

ii)       Trailer-on-Flatcar (TOFC)

10)   Inland shipping

i)        Include rivers, lakes and canal

ii)       Biggest limitation => GEOGRAPHY

iii)     Commodity moves; Iron ore, Coal and Limestone

iv)     Low fixed cost

v)      Competitors: Pipeline & Railroad

vi)     Types of ship same with ocean ship but much smaller

11)   Pipeline

i)        High investment, Low variable cost

ii)       Moves in one direction

iii)     Cargo is safer, low cost and low risks of damages

iv)     Very dependable & low maintenance

v)      Not affected by weather

vi)     Slow and limited accessibility