10/27/2014 Describe the five modes of transportation, identifying the most significant characteristic of each | Supply Chain Management

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Management > Describe the five modes of
transportation, identifying the most significant
characteristic of each
Describe the five modes of
transportation, identifying
the most significant
characteristic of each
Posted on June 25, 2010 Leave a comment
Describe the five modes of transportation,
identifying the most significant characteristic of
each.
Rail, Highway, Water, Pipeline, and Air
Rail-Railroads have handled the largest number of
ton-miles in the United States to this day. A ton-
mile is the standard measure of freight activity.
The capability to efficiently transport large tonnage
over long distances is the main and most
important reason railroads continue to handle
significant intercity tonnage.
Highway- Highway transportation has grown fast
since the end of World War II. This growth has
resulted from the ability to operate door to door.
Trucks are very flexible because of the ability to
operate on many different roadways. Almost one
million miles of highway are available to trucks.
Trucks have a small fixed investment in terminal
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facilities and operate on publicly financed and
maintained roads.
Water- Water is the oldest mode of transportation.
The main advantage of water transport is the
capacity to transport extremely large shipments.
Water transport ranks between rail and highway
carrier in terms of fixed cost.
Pipeline- Pipelines account for nearly 70% of all
crude and petroleum ton-mile movements. Natural
gas is also transported using a pipeline system.
Pipelines operate on a 24 hour basis and there is
no empty container or vehicle that has to be
returned at the end of the day. The fixed costs are
high but the variable costs are the lowest out of all
the modes of transportation.
Air- Air is the newest but least utilized mode of
transportation. The most significant advantage of
airfreight lies in the speed with which a shipment
can be transported. Air shipment can be done in
hours while the other modes of transportation may
take days.
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10/27/2014 Describe the five modes of transportation, identifying the most significant characteristic of each | Supply Chain Management | w3mentor
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Railroads have the largest percentage of
intercity freight ton-miles, but motor carriers
have the largest revenue. How do you explain
this relationship?
Describe how load planning impacts
transportation efficiency?
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