Logistic

“Global and Domestic Transportation”

Lecturer : Henry Muusz

Students: Rose (26611)
Shermarn (26650)
 Content
 Transportation And Integrated Logistics
 The basic philosophy behind Transportation
 The modes of transportation
 The contrast between modes of transportation
 The market structures and cost structures
 Transportation Regulation
 Introduction

The markets are on the movement due to advancing

globalization. Transportation & Logistics is a diverse
industry sector including all modes of transportation of
goods and people.
 Transportation And Integrated Logistics

 Transportation is sustained to primary integrated

logistics

 The product is moved by modes of transportation

without these economic growth will be impossible
The basic philosophy behind Transportation

The roles of transportation

 Part of logistics system

 Producers and consumers bring goods

to final consumers

 JIT ( Just In Time ) bring raw materials

to production
The modes of transportation
 Airlines  Railroad
terminal-terminal domestic freight
time-sensitive long distance
high - value low - value product
 Pipelines  Water carriers

fixed in place overseas transportation

move liquid and gaseous low - value product
 Motor carriers haul a broad range
most flexible
carry anything
 The contrast between the modes of transportation

Comparison Airlines Motor Pipelines Railroad water

factors
Cost 1 2 4 3 5

Speed 1 2 5 3 4

Reliability 3 2 1 4 5

Capacity 4 5 1 3 2
(up to, tons) (125) (25) (2.5 M) (12 K) (60 K)
Flexibility 3 1 5 2 4
 The market structures and cost
structures

• Perfect Competition - no barrier to entry

,many offering goods
• Monopolistic Competition - sellers sell
different products similar to competition
• Oligopoly - company selling similar
products
• Monopoly - company provides particular
industry
 Costs structures

Fixed Costs are not dependant on the activities

Variable Costs change in proportion

Total Costs Fixed + Variable

Common costs Expense indirectly associated with product

or activity
 Transportation Regulation

 Economic regulation
focus on the prevention of monopolies
the development of fair competition
 Anti-trust laws
challenge monopoly power
prevent small and medium business
 Safety regulation
improving efficiency of transportation
 Legal forms of carriage
contract between the shipper and carrier
 Conclusion

Transportation links with the various integrated

logistics activities and having an effective
transportation system forms is the fundamental of
increasing economic growth.