1. Intermodal & Special Carriers

2. Intermodal Transportation
Involves the use of 2 or modes of transportation in moving cargo from origin to destination.
Relies primarily upon the use of containerization
Involves the use of standardized box dimensions, hold down devices, & related items.
Allows the same container to be used by water, rail, & motor carriers.
Combines the advantages & disadvantages of each transportation mode used
Motor freight is the most common mode used

3. Piggyback
Includes the movement of motor carrier trailers on rail flatcars (TOFC)
Typical trailer ranges in length from 28 to 53 feet
Most flatcars can handle up to 2 trailers 40 feet in length
Trailers loaded by driving, crane hoisting, or fork-lift hoisting
And the movement of water carrier containers on flatcars (COFC)
Container come in 2 standard lengths
TEU (20 feet equivalent units)
FEU (40 feet equivalent units)
Typically loaded by crane hoisting
Normally transported on a doublestack car

4. Piggyback
Water containers may be transported by motor freight carriers
May be loaded on a flatbed trailer (up to 2 FEUs)
RoadRailer® is a new innovation that allows the attachment of special wheel sets
Use of the RoadRailer® allows containers to be used interchangeably with motor & rail freight

5. Air Intermodal
Standard, rectangular, 40 foot box not used to aircraft limitations
Rather, special containers used
20 feet long
Roughly 6 feet wide
Rounded top to accommodate aircraft shape
Hydraulic handling equipment used for loading/unloading

6. Special Carriers Surface Freight Forwarders Air Freight Forwarders
Freight Brokers
Shippers’ Associations
Shippers’ Agents & Consolidators
Owner-Operators
Express Services & Courier Services
Household Goods Industry

7. Surface Freight Forwarders
Recognized as a “carrier” by their customers
Recognized as a “shipper” by the firm providing the transportation services
Now exempt from economic regulation
Must register with the DOT and maintain minimum cargo insurance
Defined as an entity that
offers itself to the general public to provide transportation for compensation in the ordinary course of its business (other than a rail, motor, or water carrier)
And that assumes the responsibility for the transportation from place of receipt (origin) to destination
And that uses the services of another mode
Air freight forwarders are specifically exempted from this definition

8. Surface Freight Forwarders
Forwarders consolidate small shipments into TL or full carloads
Typically provide local pickup & delivery
Must issue a bill of lading to the shipper
This makes the forwarder responsible for the shipment.
Thus, must maintain liability & cargo insurance
Insurance policy must be on file with the STB
Freight Forwarder Act of 1986
Removed economic regulation of industry
Allowed it to begin again competing with LTL carriers

9. Air Freight Forwarders
Operate much in the same way as surface forwarders
Primarily use services of major passenger & freight airlines for long-haul service
Generally used by shippers with high-product-dollar value, high time-sensitivity value, or both.
Allow airlines to focus on terminal-to-terminal service
Provide speed of service
Provide single-carrier, full door-to-door service
Extremely high rates (offset to some extent by 2nd or 3rd day shipment)

10. Freight Brokers Function as middlemen between shippers & carriers
Defined as an entity (other than a motor carrier, agent, or employee) that as a principal or agent
Sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise selling, providing, or arranging
For transportation by motor carrier
Typically represent carriers and seek freight on their behalf
May also represent shippers by seeking carriers
Can provide intermodal services, warehousing, & cross docking
Must post a $10,000 surety bond
Broker bills the shipper & pays the trucker
Bond pays the lost revenue in the event broker fails to do this

11. Freight Brokers Differences from freight forwarders
Do not issue bills of lading
Are not required to maintain cargo liability insurance
Most brokers do carry cargo insurance to protect their customers
Represented by the Transportation Intermediaries Association
Services Offered:
Arrangement of service
Verification of trucker’s insurance & safety ratings
Verification of equipment condition
Negotiation of freight transportation prices
Consolidation of LTL and warehousing
Aid truckers in obtaining insurance

12. Shippers’ Associations
Nonprofit cooperative consolidators
Nonprofit distributors of shipments owned or shipped by member firms
Purpose is to consolidate shipments for line haul
Provide most of the services offered by for-profit freight forwarders
Typically provide by service and lower total transportation costs

13. Shippers’ Agents & Consolidators
Intermodal Marketing Companies (IMC)
Facilitate or arrange transportation only
Assume little or no legal liability
Legal shipping arrangement is between the shipper & the long-haul carrier
Freight charge payment made to the agent who then pays the carrier
As the name implies, primary role is managing shippers’ intermodal operations

14. Owner-Operators Any person who owns or leases a truck & trailer
Who makes his/her equipment & driving services available to for-hire carriers
Essentially, a trucking “free agent”
Typically used on an overflow basis, or
When special-commodity carriers lack the special equipment necessary to haul booked freight

15. Express & Courier Services
Started by offering fast, door-to-door service for small high-value goods & documents
Have moved aggressively into the LTL market
Typically provide both air & surface transportation

16. Household Goods Industry
Consists of group of motor carriers specifically organized for the movement of the household goods of people or organizations.
Typically called “van lines”
Charges
Based on weight
Plus additional fees for weekend work, movement of special items (large, heavy, fragile, etc)
Additional fees may increase charges by up to 50%
Industry regulated by the Household Goods Transportation Act of 1980

17. Household Goods Industry
Central franchise firms
Provide central dispatch to coordinate efficient flow of vehicles
Receive 10% of revenue distribution
Local agencies
Provide terminals for local customer contact & warehouses
Generally provide packing services, pickup vehicles, un/loading labor, & local delivery
Pickup agencies receive 25% of revenue distribution
Delivery agencies receive 15% of revenue distribution
Over-the-road vehicles
Vehicles used to move the household goods that are owned & operated by the local agencies
If local agency vehicles used, receive 50% of revenue distribution
Owner-operators
Provide the vehicles (50% of revenue distribution)
Load, haul, & unload shipments arranged by local agencies & coordinated by the central franchise firms

18. Household Goods Transportation Act of 1980
Provides STB with greater jurisdiction over agents & parent firms
Does allow some flexibility in pricing & in services offered
Discounts for seniors
Limited time promotions allowing reduced or free services
Charges by cube rather than weight
Space reservations
Customer allowed to choose levels of service
Binding estimates
Guaranteed delivery dates
Full-value insurance
Volume discounts on line-haul rates & on accessorial services