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GS 120 – iGlobalization: Moving The Things We Buy Professor: Dr. Jean-Paul Rodrigue Hofstra University, Department of Global Studies & Geography Topic.

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Presentation on theme: "GS 120 – iGlobalization: Moving The Things We Buy Professor: Dr. Jean-Paul Rodrigue Hofstra University, Department of Global Studies & Geography Topic."— Presentation transcript:

1 GS 120 – iGlobalization: Moving The Things We Buy Professor: Dr. Jean-Paul Rodrigue Hofstra University, Department of Global Studies & Geography Topic 5 – Intermodal Transport Systems A – Intermodalism B – Containerization

2 A – Intermodalism Read section 1

3 Intermodalism and Transmodalism Origin Destination Road RailMaritime Intermodalism Origin Destination Rail Transmodalism

4 Organization of Intermodal Transportation Nature and quantity Suitable for intermediate and finished goods in load units of less than 25 tons. Transport modes Sequence of modes; an intermodal transport chain. Dominant modes; trucking, rail, barges and maritime. Origins and destinations Distances above 500 km (longer than one day of trucking) usually require intermodal transportation.

5 Organization of Intermodal Transportation Time and costs Use each mode according to their respective time and cost advantages. Total transport costs are minimized. Cargo value Suitable for intermediate cargo values. Low and high value shipments are usually less suitable. Frequency of shipments Cargo flows need to be continuous and in similar quantities.

6 Multimodal and Intermodal Transportation A C D F E B A C D F E B Rail Road Transshipment Intermodal Integrated Network Multimodal Point-to-Point Network

7 Distance, Modal Choice and Transport Costs Distance Transport costs per unit Road RailMaritime D1D2 C1 C2 C3

8 Freight Transport Costs per Ton-Mile (in 1995 dollars)

9 Average Length of Haul, Domestic Freight in the United States, 1960-2010 (in miles)

10 Modal Split in the EU, United States and Japan, 2005 (in % of ton-km)

11 Intermodal Transport Chain Composition Transfer Interchange Decomposition Local / Regional Distribution National / International Distribution Transport Terminal ‘First mile’ ‘Last mile’

12 The North American Landbridge

13 B – Containerization Read section 2

14 The Benefits of Containerization Lower freight rates Lower insurance rates Minimal load unit Transport Costs Lower storage costs Lower packing and packaging costs Faster inventory turnover Inventory Costs Time reliability Higher frequency Service Level

15 Carrying Capacity of Containers (in cubic feet)

16 Container Identification System Owner Code (3 letters): TGH Product Group Code (1 letter): U Registration Number (6 digits): 759933 Check Digit (1 digit): 0 Size & Type Code (4 digits/letters): 45G1 Operational Characteristics Maximum weight: 30,480 kg Container weight: 3,870 kg Payload weight: 26,610 kg Cubic capacity: 2,700 cubic feet

17 Intermodal Terminal Equipment Circulate over container piles. Can go over stacks up to 3 in height. 500 to 700 TEU per hectare. Use container top anchor points. Handle most containers. Can reach stacks up to 3 in height. Flexible side loaders. Can reach stacks up to 3 full or 5 empty containers in height. 500 TEU per hectare. High storage densities (1,000 TEU per hectare). Difficult to move from one stack to the other. High acquisition but low operating costs. Highest storage density (widespan; +1,000 TEU per hectare); mostly used at port terminals. Lowest operating costs. Fixed to rail tracks. Load and unload containerships. Various sizes (Panamax and Super-Panamax). Straddle Carrier Rubber-tired Gantry Front-end Loader Rail-mounted Gantry Reach Stacker Portainer

18 Number of Units and Weight of Standard Consumption Goods that Can be Carried by a 20 Foot Container

19 World Container Traffic and Throughput, 1980-2011

20 Containerized Cargo Flows along Major Trade Routes, 1995- 2011 (in millions of TEUs)

21 Advantages of Containerization FactorAdvantage Standard transport product Can be manipulated anywhere in the world (ISO standard). Specialized ships, trucks and wagons. Flexibility of usage Commodities (coal, wheat), manufactured goods, cars, frozen products. Adapted containers for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of discarded containers. Management Unique identification number and a size type code. Transport management not in terms of loads, but in terms of units. Costs Low transport costs; 20 times less than bulk transport. Economies of scale. Speed Transshipment operations are minimal and rapid. Port turnaround times reduced from 3 weeks to about 24 hours. Containerships are faster than regular freighter ships. Warehousing Its own warehouse; Simpler and less expensive packaging. Stacking capacity on ships, trains (doublestacking) and on the ground. Security Contents of the container is unknown to carriers. Can only be opened at the origin, at customs and at the destination. Reduced spoilage and losses (theft). Read section 3

22 Challenges of Containerization FactorChallenge Site constraints Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships (more than 13 meters). Infrastructure costs Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important investments. Stacking Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid. Theft and losses High value goods and a load unit that can opened or carried (on truck). Vulnerability between terminal and final destination. 10,000 containers are lost at sea each year (fall overboard). Empty movements Many containers are moved empty (20% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption; repositioning. Illicit trade Common instrument used in the illicit trade of drug and weapons, as well as for illegal immigration. Worries about the usage of containers for terrorism.

23 Stacked 40-Foot Containers, Port of Yantian, China

24 Loading Coffee into Containers, Cartagena, Colombia

25 40-Foot Containers Doublestacked on a Rail Car

26 40’ Reefer Container

27 20-Foot Tank Containers

28 The Ultimate “Kegger”

29 Reuse of a Discarded Container (South Africa)

30 Containerized Housing Units, Le Havre, France

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