Rail Characteristics Good fuel economy. Mainly bulk, low-value commodities (coal, stone, lumber), except for finished automobiles. Poor at public relations – critical need for new managers. Becoming more competitive with scheduled intermodal service. --J. B. Hunt, UPS. --Steamship land bridges.
Rail Characteristics -2 Average Length of Haul 720 miles (1995) Average train speed 22 miles per hour (35 miles per hour for priority trains). Mainly deals in carload freight. Prefer batch processing of cars.
Challenges Railroads prefer unit trains, because switching costs are reduced. Bulk commodities are diminishing due to reduced manufacturing base. Railroads are beginning to expand intermodal.
Railroad Intermodal Initially, railroad shippers were located in urban areas and were served by railroads who had been in the city for years. When industry in urban areas closed, railroads often could not gain access to new markets in suburban areas.
Malcolm McLean “…arguably one of the greatest contributors to the growth of the world economy in the 20th century. In an editorial on his death, the Baltimore Sun stated that "he ranks next to Robert Fulton as the greatest revolutionary in the history of maritime trade." Forbes Magazine called him "one of the few men who changed the world.” -- United States Commissioner of Customs, Robert C. Bonner before the Center for Strategic and International Studies, Washington, D.C., January 17, 2002. From: International Organization for Standardization website http://www.iso.ch/iso/en/commcentre/news/malcolmmclean.html
Most International Shipping Involves Use of Containers
Standard container sizes: –8 x 8 x 10 feet. –20 feet. –30 feet. –40 feet.
Most International Shipping Involves Use of Containers Advantages –Protection reduces loss, damage. –Standardization helps automation reduce labor costs. –Easily stored, transported –Can serve as temporary storage facilities Disadvantages –Suitable ports not always available. –Capitalization for containers, handling and transport equipment.
Container ship Arrives on coast Rail Land Bridge Containers transloaded and transported by rail. Placed again on Container ship