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Business English
Logistics & Transportation Engineering
Seminar : Modes of Transport in Logistics
          By Youssef Serroukh
       06/12/2011 ~ 13/12/2011




          Y.Serroukh – Anglais Commercial   1
Contents

1.1 Introduction
1.2 The Importance of Transport
1.3 Cargo Handling
1.4 Pros & Cons
1.5 Summary
Exercises

                 Y.Serroukh – Anglais Commercial   2
What is Transport




Means by which a shipment is moved
from point 'A' to point 'B', such as by
air, rail, road, or sea.

              Y.Serroukh – Anglais Commercial   3
1.1 Introduction




“...freight transportation is vital to the Nation's economy. At
   any given moment, billions of dollars' worth of goods are
   being moved by truck, train, ship, or barge, or held in a yard
   for transport or distribution.”*

* Scott Johnson, Reliability in logistics is Key to global market, Public Road Magazine




                                                      Y.Serroukh – Anglais Commercial     4
1.2 The Importance of Transport
Transportation concerns the movement of products from a source—
such as a plant, factory, or work-shop—to a destination—such as a
warehouse, customer, or retail store. Transportation may take place via
air, water, rail, road, pipeline, or cable routes, using planes, boats,
trains, trucks. The goal for any business owner is to minimize
transportation costs while also meeting demand for products.
Transportation costs generally depend upon the distance between the
source and the destination, the means of transportation chosen, and
the size and quantity of the product to be shipped. In many cases, there
are several sources and many destinations for the same product, which
adds a significant level of complexity to the problem of minimizing
transportation costs. Indeed, the United States boasts the world's
largest and most complex transportation system, with four million
miles worth of roads, a railroad network that could circle the earth
almost seven times.




                         Y.Serroukh – Anglais Commercial               5
1.3 Cargo Handling
• Cargo handling is done through four means
  of transport:
• 1 Roadways
• 2 Waterways
• 3 Railways
• 4 Airways



                Y.Serroukh – Anglais Commercial   6
1.3.1 Roadways




•   Cargo can’t be handled in every part of the country through railway.
•   Roadways play a major role in handling cargo even in small town.
•   Roadways transportation is done through Lorries/Trucks.
•   There are a No. of lorries having different capacities.




                             Y.Serroukh – Anglais Commercial               7
1.3.2 Waterways




• Waterways is the cheapest means of transportation.
• Large volume of world trade is done through ships.
• Ships handle cargo from one country to other through sea.




                          Y.Serroukh – Anglais Commercial     8
1.3.3 Railways




•   Railway play a major role in cargo handling.
•   Railway handle cargo from sea port to various part of the country.
•   Railway have special wagons to carry the cargo.
•   Through Railway large volume of cargo can be handled in a short period
    of time.



                            Y.Serroukh – Anglais Commercial              9
1.3.4 Airways




• Airways is the fastest but most costly means of transport.
• Through this means of transportation only valuable goods having less
  volume can be transported.




                           Y.Serroukh – Anglais Commercial               10
1.4 Pros & Cons



Transportation is an important link of the logistics system.
Vehicles must have a number of necessary properties and satisfy
certain requirements in order to create innovative systems for
the collection and distribution of goods. Transport is a branch of
material production, transporting people and goods. Each of the
modes of transport has specific characteristics in terms of
logistics management, strengths and weaknesses, determine the
possibilities of its use in the logistics system.

                       Y.Serroukh – Anglais Commercial           11
1.4.1 Road
A very popular mode of transport used by suppliers and businesses to deliver
orders. Many transport companies provide scheduled delivery days and next day
delivery services, depending upon your needs. Goods can be packed/grouped in
box vans or in containers which are also used for sea transportation.

 Cost effective                                    Transport subject to traffic delays
 Fast delivery                                     Transport subject to breakdown
 Ideal for short distances, national               Goods susceptible to damage
  or mainland Europe                                through careless driving
 Ideal for transporting perishables                Bad weather
  (e.g. fruit and vegetables)                       Driving regulations can cause delays
 Easy to monitor location of goods
 Easy to communicate with driver
 Ideal for sending by courier
  shortages to customers

                             Y.Serroukh – Anglais Commercial                        12
1.4.2 Sea
  Sea transportation is used by businesses for the delivery of goods from distant
  suppliers. Most sea transportation is conducted in containers which vary in size.
  Goods can be grouped into a container (LCL) or fill a container (FCL). Sea
  tankers are used for bulk shipments of loose goods such as oil, grain and coal.

 Ideal for transporting heavy and                    Longer lead/delivery times
  bulky goods                                         Bad weather
 Suitable for products with long lead                Difficult to monitor exact location of
  times                                               goods in transit
                                                      Customs and Excise restrictions
                                                      Could be costly




                               Y.Serroukh – Anglais Commercial                            13
1.4.3 Rail
    Businesses use rail transportation for the delivery of a wide range of goods
    including post, coal, steel and other heavy goods.

    Fast delivery                                      Subject to unforeseen delays
    Capacity                                           Reliance on rail freight operator's
    Cost effective                                     timetable
    Safe mode of transport                             Suppliers/customers are not always
    Reliable                                           located near a rail freight depot and
                                                        delivery to/from the depot can be
                                                        costly and time consuming




                                 Y.Serroukh – Anglais Commercial                           14
1.4.4 Air
 Airfreighting is commonly used by businesses for the delivery of goods from
 distant suppliers. This mode of transport is useful to deliver products with short
 lead times, fragile goods and products that are not bulky. Products in high
 demand and in short supply may also be airfreighted in order to meet customer
 demands. The bulk/value ratio will be a determining factor.

                                                       Flight delays and/or cancellations
 Fast delivery, usually between 24
  and 48 hours                                         Customs and Excise restrictions
 Customer is not kept waiting for                     Cost
  order fulfilment
 Reduced lead time on supplier
 Improved service levels




                                Y.Serroukh – Anglais Commercial                             15
1.5 Summary




  Trucking: very flexible to your needs, but prone to accidents
  Ocean: inexpensive, but slow
  Rail: most economic land transportation, but limited in final
destinations
  Air: moves at the speed of business, but with a cost


                       Y.Serroukh – Anglais Commercial       16
Y.Serroukh – Anglais Commercial   17
1- Match the different types of freight traffic (1-6) with the definitions (a-f).

1.    Multimodal
2.    Piggyback
3.    Intermodal
4.    Unaccompanied
5.    Block train
6.    Single-wagon


a.    The driver does not stay with his road vehicle during transport by rail or ferry.
b.     Goods are transported in the same loading unit or vehicle using different modes of transport.
      The handling of the freight itself is not necessary when changing modes.
c.    A single shipper uses a whole train which is run directly from the loading point to the
      destination. No assembling and disassembling is required.
d.    Carriage of goods by at least two different modes of transport, e.g. shipping by motor lorry and
      aircraft.
e.    Train is formed out of individual wagons or sets of wagons which have different origins and
      different destinations.
f.    Combines road and rail transport: whole motor lorries, trailers or swap-bodies are carried by
      rail



                                       Y.Serroukh – Anglais Commercial                            18
2. Match the pictures of transport and handling equipment (a-f) with words (1-6)
     1- Reach Stacker 2- Container ship 3- Swap-body 4- River barge 5-Tractor 6- LGV




                                 Y.Serroukh – Anglais Commercial                       19
Thank you for your attention




         Y.Serroukh – Anglais Commercial   20

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Modes of Transport in Logistics

  • 1. Business English Logistics & Transportation Engineering Seminar : Modes of Transport in Logistics By Youssef Serroukh 06/12/2011 ~ 13/12/2011 Y.Serroukh – Anglais Commercial 1
  • 2. Contents 1.1 Introduction 1.2 The Importance of Transport 1.3 Cargo Handling 1.4 Pros & Cons 1.5 Summary Exercises Y.Serroukh – Anglais Commercial 2
  • 3. What is Transport Means by which a shipment is moved from point 'A' to point 'B', such as by air, rail, road, or sea. Y.Serroukh – Anglais Commercial 3
  • 4. 1.1 Introduction “...freight transportation is vital to the Nation's economy. At any given moment, billions of dollars' worth of goods are being moved by truck, train, ship, or barge, or held in a yard for transport or distribution.”* * Scott Johnson, Reliability in logistics is Key to global market, Public Road Magazine Y.Serroukh – Anglais Commercial 4
  • 5. 1.2 The Importance of Transport Transportation concerns the movement of products from a source— such as a plant, factory, or work-shop—to a destination—such as a warehouse, customer, or retail store. Transportation may take place via air, water, rail, road, pipeline, or cable routes, using planes, boats, trains, trucks. The goal for any business owner is to minimize transportation costs while also meeting demand for products. Transportation costs generally depend upon the distance between the source and the destination, the means of transportation chosen, and the size and quantity of the product to be shipped. In many cases, there are several sources and many destinations for the same product, which adds a significant level of complexity to the problem of minimizing transportation costs. Indeed, the United States boasts the world's largest and most complex transportation system, with four million miles worth of roads, a railroad network that could circle the earth almost seven times. Y.Serroukh – Anglais Commercial 5
  • 6. 1.3 Cargo Handling • Cargo handling is done through four means of transport: • 1 Roadways • 2 Waterways • 3 Railways • 4 Airways Y.Serroukh – Anglais Commercial 6
  • 7. 1.3.1 Roadways • Cargo can’t be handled in every part of the country through railway. • Roadways play a major role in handling cargo even in small town. • Roadways transportation is done through Lorries/Trucks. • There are a No. of lorries having different capacities. Y.Serroukh – Anglais Commercial 7
  • 8. 1.3.2 Waterways • Waterways is the cheapest means of transportation. • Large volume of world trade is done through ships. • Ships handle cargo from one country to other through sea. Y.Serroukh – Anglais Commercial 8
  • 9. 1.3.3 Railways • Railway play a major role in cargo handling. • Railway handle cargo from sea port to various part of the country. • Railway have special wagons to carry the cargo. • Through Railway large volume of cargo can be handled in a short period of time. Y.Serroukh – Anglais Commercial 9
  • 10. 1.3.4 Airways • Airways is the fastest but most costly means of transport. • Through this means of transportation only valuable goods having less volume can be transported. Y.Serroukh – Anglais Commercial 10
  • 11. 1.4 Pros & Cons Transportation is an important link of the logistics system. Vehicles must have a number of necessary properties and satisfy certain requirements in order to create innovative systems for the collection and distribution of goods. Transport is a branch of material production, transporting people and goods. Each of the modes of transport has specific characteristics in terms of logistics management, strengths and weaknesses, determine the possibilities of its use in the logistics system. Y.Serroukh – Anglais Commercial 11
  • 12. 1.4.1 Road A very popular mode of transport used by suppliers and businesses to deliver orders. Many transport companies provide scheduled delivery days and next day delivery services, depending upon your needs. Goods can be packed/grouped in box vans or in containers which are also used for sea transportation.  Cost effective Transport subject to traffic delays  Fast delivery Transport subject to breakdown  Ideal for short distances, national Goods susceptible to damage or mainland Europe through careless driving  Ideal for transporting perishables Bad weather (e.g. fruit and vegetables) Driving regulations can cause delays  Easy to monitor location of goods  Easy to communicate with driver  Ideal for sending by courier shortages to customers Y.Serroukh – Anglais Commercial 12
  • 13. 1.4.2 Sea Sea transportation is used by businesses for the delivery of goods from distant suppliers. Most sea transportation is conducted in containers which vary in size. Goods can be grouped into a container (LCL) or fill a container (FCL). Sea tankers are used for bulk shipments of loose goods such as oil, grain and coal.  Ideal for transporting heavy and Longer lead/delivery times bulky goods Bad weather  Suitable for products with long lead Difficult to monitor exact location of times goods in transit Customs and Excise restrictions Could be costly Y.Serroukh – Anglais Commercial 13
  • 14. 1.4.3 Rail Businesses use rail transportation for the delivery of a wide range of goods including post, coal, steel and other heavy goods.  Fast delivery Subject to unforeseen delays  Capacity Reliance on rail freight operator's  Cost effective timetable  Safe mode of transport Suppliers/customers are not always  Reliable located near a rail freight depot and delivery to/from the depot can be costly and time consuming Y.Serroukh – Anglais Commercial 14
  • 15. 1.4.4 Air Airfreighting is commonly used by businesses for the delivery of goods from distant suppliers. This mode of transport is useful to deliver products with short lead times, fragile goods and products that are not bulky. Products in high demand and in short supply may also be airfreighted in order to meet customer demands. The bulk/value ratio will be a determining factor. Flight delays and/or cancellations  Fast delivery, usually between 24 and 48 hours Customs and Excise restrictions  Customer is not kept waiting for Cost order fulfilment  Reduced lead time on supplier  Improved service levels Y.Serroukh – Anglais Commercial 15
  • 16. 1.5 Summary Trucking: very flexible to your needs, but prone to accidents Ocean: inexpensive, but slow Rail: most economic land transportation, but limited in final destinations Air: moves at the speed of business, but with a cost Y.Serroukh – Anglais Commercial 16
  • 17. Y.Serroukh – Anglais Commercial 17
  • 18. 1- Match the different types of freight traffic (1-6) with the definitions (a-f). 1. Multimodal 2. Piggyback 3. Intermodal 4. Unaccompanied 5. Block train 6. Single-wagon a. The driver does not stay with his road vehicle during transport by rail or ferry. b. Goods are transported in the same loading unit or vehicle using different modes of transport. The handling of the freight itself is not necessary when changing modes. c. A single shipper uses a whole train which is run directly from the loading point to the destination. No assembling and disassembling is required. d. Carriage of goods by at least two different modes of transport, e.g. shipping by motor lorry and aircraft. e. Train is formed out of individual wagons or sets of wagons which have different origins and different destinations. f. Combines road and rail transport: whole motor lorries, trailers or swap-bodies are carried by rail Y.Serroukh – Anglais Commercial 18
  • 19. 2. Match the pictures of transport and handling equipment (a-f) with words (1-6) 1- Reach Stacker 2- Container ship 3- Swap-body 4- River barge 5-Tractor 6- LGV Y.Serroukh – Anglais Commercial 19
  • 20. Thank you for your attention Y.Serroukh – Anglais Commercial 20