Silicachem Corporation: Outbound Freight Transport Report Essay

Bundling is a term that refers to the process of transportation of goods belonging to various flows in a common vehicle intermodal unit such as truck, train or barge or other segments during part of their journey. As a result, this process is a major business of the transportation sector given that operators occasionally examine their service networks and change their bundling operations. The adjustments made in bundling operations are usually a reaction to changing cost structures, situations, and competition with regards to the requirements of demand and performance. During the adjustments, the operators basically change the bundling type, extent of network concentration, frequency of service, vehicle load, and utilized physical means (Kreutzberger, 2010, p.160). Generally, the major factors for adjustments are changes in flow directions and sizes and the operator’s share in the market.

As cargo costs vary with the freight moved they are calculated as a product of Cargo costs per ton, as stated above, and the capacity for each of the vessels, i.e. for Tashtego 1,43*3950 + 1,43*3150 = 10.153,00 and for the large vessel 1,43*6850 + 1,43*3150 = 14.300,00.

8. Threat of New Entrants: “There are a number of low-cost carriers (LCCs) in the domestic market and the Company competes with LCCs over a very large part of its network.”

The excessive cost of travel for both the East and West Coast Boat Forces and

Such new moves by both “gorillas” like companies may sweep the corners of the market described by some industry analysts. For years, the industry set the prices without consideration of distance, which means, a same sized letter from New York to New Jersey has the same cost as if the letter is shipped to California from New York. In 1996, UPS officially moved to distance-based pricing, and Federal Express followed same action in 1997. There is no denying that what actions Airborne take is significant affecting the development of the company, while facing this big change in industry.

Expedient delivery of goods outweighed the cost differential. However, since intermodel transportation pricing is governed by fixed costs, such as terminal expenses, not fuel costs, shipping costs will remain higher in this area. Now, lower fuel costs will further help to increase the use of trucks, rather than rail for transportation. This type of shift has not been seen in the industry since 2010, but it appears the trend will continue for the foreseeable future.

Selecting an exceptional freight company for your specialized freight needs is an important business decision. After all, freight companies can be considered the backbone for any company that relies on logistics for its functioning.

To avoid the confusion and problems, the shipper should declare the value for the goods on the ocean bill of lading or to exercise the right to declare a higher value and pay higher freight charges. If the shipper wants the number of

4. Assuming a 20% gross margin for each printer, sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days), evaluate the various alternatives available to Brent Cartier to address the inventory and service problem.

The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).

Passenger and freight transportation systems have a number of similarities in the investment evaluation process, with a few significant differences. The table below offers an initial look at the stakeholders for each and their relative financial interests.

This essay attempts to describe current air freight market conditions, challenges in air freight demand and generate potential solutions to increase air cargo demand. It is divided into four parts: air freight, current demand for air freight, challenges, and potential

Solely taking a look at the graph, to accommodate future demand for growth I would recommend ocean transportation to move our products from the new facility in China. As we expect demand to grow by 10 percent annually over the next five years, it will be most beneficial to utilize ocean transportation as projected total costs for air becomes higher than ocean above the trade off point of 1,904,761.9 POUNDS. For example, total projected costs were calculated to be at $587,156 for air versus $630,080 for ocean at the end of 5 years. Extrapolate the graph even further into the future, with the expectation of even more growth,

They result in the following environmental threats like greenhouse effect, acidification, over-fertilization and depletion of the ozone layer.

The transportation and logistics industry is one of the key components of modern life. It provides the framework through which every raw material and finished consumer good is moved through the supply chain into the hands of consumers. This industry is generally taken for granted by consumers. When consumers do think about the industry it is thought of in terms of unchanging and stagnate transportation modes. This vision of the industry is not an accurate reflection of the reality of modern transportation industry. During the last several decades the technological innovations that have changed the face of modern life, have also had far reaching effects on the transportation industry. The pressures driving innovation in the industry