Transportation Management

UNIT 3
Topics
Topic 1 - Transport structure- Topic 2 - Suppliers of transport service-

Rail, Road, Water, Air and Pipeline, Inter-modal Single mode carriers, specialized carriers,

- (Performance characteristics and suitability of

Inter-modal transportation (TOFC, COFC),
each mode);
Containership, Non-operating intermediaries.
Topics
Topic 3 - Transport Operation Planning- Topic 4 - Transport documentation-

Equipment scheduling, yard management, load

Delivery Order, Dock receipt,Bill of Lading,
planning, routing and advanced shipment
Freight Bill, Sea waybill (SWB/e-SWB), Airway
notification, movement administration,
Bill (AWB/e-AWB),shipping guarantee, packing
consolidation, negotiation control of transport
note or list,consignment note - Shipping Manifest;
management, audit and claim administration,
Documentation process.
logistics integration
 Topic 1 - Transport Structure
● Rail,

● Road,

● Water,

● Air and Pipeline,

● Inter-modal
Rail - Performance Characteristics
● Speed: Generally faster than road and water transport for long distances on
land. High-speed rail can be very competitive with air travel for certain routes.
● Capacity: High capacity for both passengers and freight, especially for bulky
goods. Multiple wagons can be coupled to form long trains.
● Cost: Economical for long-haul transportation of large volumes of goods and
passengers due to lower fuel consumption per unit carried.
● Reliability: Can be reliable due to fixed routes and schedules, less affected by
weather conditions compared to road or air transport.
● Safety: Generally a safe mode of transport with lower accident rates compared
to road transport.
● Environmental Impact: More environmentally friendly than road and air
transport in terms of emissions per unit carried, especially if electrified.
● Infrastructure Dependence: Requires significant investment in tracks, signaling
systems, and stations. Maintenance of infrastructure is crucial.
● Flexibility: Limited flexibility in terms of routes and door-to-door delivery
compared to road transport. Requires transshipment for goods to reach their
final destination.
Suitability
● Long-distance transportation of passengers and large volumes of freight.

● Transportation of bulky goods such as coal, minerals, and agricultural products.

● Commuter transport in densely populated urban areas.

● Intermodal transportation, where rail is used for the long haul and other modes for the

initial pickup and final delivery.

● Environmentally conscious transportation over land where infrastructure exists or can

be developed. Example : Trishul and Garuda, Vasuki

Road - Performance Characteristics
● Speed: Relatively fast for short to medium distances. Speed is highly dependent
on traffic conditions and road infrastructure.
● Capacity: Lower capacity per vehicle compared to rail or water transport.
However, a large number of vehicles can operate.
● Cost: Can be economical for short to medium distances and door-to-door
delivery. Costs increase significantly for long distances due to fuel, tolls, and
driver expenses.
● Reliability: Can be affected by weather conditions, traffic congestion, road
maintenance, and accidents.
● Safety: Higher accident rates compared to other modes. Safety regulations and
vehicle maintenance are critical.
● Environmental Impact: High emissions per unit carried compared to rail and
water transport. Contributes significantly to air pollution and greenhouse gas
emissions.
● Infrastructure Dependence: Requires an extensive network of roads and
highways. Maintenance of roads is essential.
● Flexibility: Offers the highest flexibility in terms of routes, schedules, and
door-to-door delivery.
 `

Suitability
● Short to medium distance transportation of

passengers and freight.

● Door-to-door delivery of goods.

● Transportation of perishable goods requiring

fast transit.

● Connecting other modes of transport (e.g.,

drayage in intermodal transport).

● Areas with limited or no rail or water

infrastructure.
Water Transportation - Performance Characteristics
● Speed: Generally the slowest mode of `
transport, especially for ocean freight.
Inland waterways can be faster but are
limited by navigation conditions.
● Capacity: Highest carrying capacity for
freight, especially for bulk goods and large
containers.
● Cost: Most economical for long-distance
transportation of large volumes of
non-perishable goods. Low operating costs
due to the natural "roadway."
● Reliability: Can be affected by weather conditions (storms, fog), water levels
(droughts, floods), and port congestion.
● Safety: Relatively safe for cargo, but accidents can have significant
environmental consequences (e.g., oil spills).
● Environmental Impact: Generally lower carbon footprint per unit carried
compared to road and air transport. However, spills can cause severe
environmental damage.
● Infrastructure Dependence: Requires ports, harbors, canals, and navigable
rivers. Maintenance of waterways and port facilities is necessary.
● Flexibility: Limited flexibility in terms of routes and direct delivery. Requires
other modes for inland transportation.
Suitability
● Long-distance and international trade of bulk goods (e.g., oil, grains, minerals).

● Transportation of very heavy or oversized cargo.

● Cost-effective transportation where speed is not critical.

● Regions with well-developed inland waterways and coastal access.

● Intermodal transportation, where ships carry containers for long distances.

Note :
Intermodal transport involves moving goods using multiple transportation modes,

such as trucks, trains, ships, and airplanes, without the need to unload and reload

the goods between each mode. This means that a container, for example, can be

transferred directly from a truck to a train, or a ship, without the goods inside being

handled.
Air Transportation - Performance Characteristics
● Speed: Fastest mode of transport, ideal for time-sensitive goods and long
distances.
● Capacity: Limited cargo capacity compared to other modes, especially in
passenger aircraft. Dedicated cargo planes have larger capacities but are still
less than ships or trains.
● Cost: Most expensive mode of transport due to high fuel consumption,
maintenance, and airport fees.
● Reliability: Can be affected by weather conditions (fog, storms), air traffic
control, and technical issues.
● Safety: Generally considered the safest mode of transport due to stringent
regulations and maintenance.
● Environmental Impact: Highest emissions per unit carried, contributing
significantly to greenhouse gases.
● Infrastructure Dependence: Requires airports with runways, terminals, and air
traffic control systems.
● Flexibility: Limited flexibility in routes compared to road transport. Requires
ground transportation to and from airports.
Suitability
● Transportation of high-value, low-volume, and time-sensitive goods (e.g.,

electronics, pharmaceuticals, perishables with short shelf life).

● Long-distance travel where speed is essential.

● Accessing remote or landlocked areas where other modes are difficult or

unavailable.

● Emergency transport and delivery of critical supplies.

Pipeline Transportation - Performance Characteristics
● Speed: Relatively slow and constant flow. Not suitable for rapid delivery.

● Capacity: High capacity for continuous flow of liquids and gases.

● Cost: Low operating cost per unit volume after the initial high investment in

infrastructure. Economical for continuous, large-volume transport.

● Reliability: Highly reliable and less affected by weather conditions. Can operate

24/7.
● Safety: Generally safe, but leaks can have severe environmental and economic
consequences. Requires strict safety measures and monitoring.
● Environmental Impact: Lower environmental impact compared to road and rail
for the same volume of transported goods, assuming no leaks.
● Infrastructure Dependence: Requires a network of pipelines, pumping stations,
and storage facilities. High initial capital investment.
● Flexibility: Very limited flexibility in routes and the type of goods transported
(primarily liquids and gases).
Suitability
● Transportation of crude oil, natural gas, `

petroleum products, water, and slurries

over long distances.

● Continuous and reliable supply of raw

materials to industries.

● Regions with significant production and

consumption of fluids and gases.

 Topic 2 - Suppliers of transport service
1. Single mode carriers,

2. Specialized carriers,

3. Inter-modal transportation (TOFC, COFC),

Containership,

4. Non-operating intermediaries.
1)Single mode carriers
These are companies that focus on providing transportation services using only one
mode of transport.
Characteristics:
● Mode-Specific Expertise: They develop deep expertise and infrastructure
specific to their chosen mode.
● Focused Operations: Their operations, equipment, and personnel are tailored to
the requirements of that single mode.
● Potential Limitations: May not offer seamless door-to-door service for
shipments requiring multiple modes, necessitating coordination with other
carriers.
Examples :-

● Railways: Companies like Indian Railways (for freight and passenger),

Deutsche Bahn (Germany), Union Pacific (USA - primarily freight). They
operate and maintain railway infrastructure and rolling stock to move goods and
people.
● Trucking Companies (Road): Numerous companies ranging from small
owner-operators to large fleets like FedEx Freight, DHL Freight, and local
trucking firms. They specialize in moving goods via trucks over roadways.
Examples :-

● Shipping Lines (Water): Companies like Maersk, MSC, CMA CGM that own
and operate container ships, bulk carriers, and other vessels for maritime
transport. Inland waterway operators also fall into this category.
● Airlines (Air): Passenger airlines like IndiGo, Emirates, United Airlines, and
cargo airlines like FedEx Express, UPS Airlines. They operate aircraft for
transporting people and goods via air.
2)Specialized Carriers
These are carriers that focus on transporting specific types of cargo or providing
unique transportation services, often within a single mode or sometimes across a
limited set of compatible modes.
Characteristics:
● Niche Markets: They cater to specific needs within the broader transportation
landscape.
● Specialized Equipment & Knowledge: Require specific equipment, handling
procedures, and trained personnel.
● Higher Value Services: Often command premium rates due to the specialized
nature of their services.
Examples :-

● Heavy Haul Trucking: Companies specializing in moving oversized and

overweight cargo that requires specialized trailers, permits, and routing.
● Refrigerated Transport (Reefer Carriers): Trucking or shipping companies
equipped to maintain specific temperature conditions for perishable goods like
food and pharmaceuticals.
● Tanker Operators (Road, Rail, Water): Carriers with specialized tanks for
transporting liquids and gases in bulk.
● Automobile Carriers (Road & Rail): Companies that transport vehicles using
specialized trailers or railcars.
● Express Delivery Services (Air & Road): Companies like DHL Express,
FedEx, UPS that focus on the rapid, time-definite delivery of parcels and
documents, often utilizing a combination of air and ground transport but with a
highly integrated system.
● Hazardous Materials (Hazmat) Carriers: Companies certified and equipped to
transport dangerous goods according to strict regulations.
3)Inter-modal Transportation (TOFC, COFC)
This involves the movement of freight in intermodal containers or vehicles, using
multiple modes of transportation (rail, road, water) without any handling of the
freight itself when changing modes. The key is the standardized container or trailer
that facilitates seamless transfer.
Intermodal Container: Standardized, robust boxes (typically 20 or 40 feet long) that
can be easily transferred between ships, railcars, and truck chassis.

Trailer-on-Flatcar (TOFC): Transporting truck trailers on railway flatcars. This is

often referred to as "piggyback."

Container-on-Flatcar (COFC): Transporting shipping containers directly on railway

flatcars, without the trailer chassis. This is generally more efficient than TOFC as it
allows for double-stacking of containers on specialized railcars, increasing capacity
and reducing costs.
Containership:-
● A specialized type of cargo ship designed specifically to carry intermodal
containers in large quantities.
● Their design features cellular holds with vertical guides to securely stack
containers, maximizing space utilization and facilitating efficient loading and
unloading at ports using specialized gantry cranes.
● Containerships are a crucial link in global intermodal supply chains, enabling
the efficient and cost-effective movement of manufactured goods across
continents.
Characteristics of Inter-modal Transportation:

● Efficiency: Reduces handling costs and time, minimizes the risk of damage and
theft.
● Cost-Effectiveness: Can be more economical for long-distance freight movement
compared to relying solely on trucking.
● Environmental Benefits: Often more fuel-efficient per ton-mile compared to
over-the-road trucking for long hauls.
● Requires Coordination: Demands seamless coordination between different
modes and transfer points (intermodal terminals, ports, rail yards)
4)Non-Operating Intermediaries
These are companies that arrange transportation services but do not own or operate the
actual transportation equipment themselves. They act as intermediaries between shippers
and carriers.
Characteristics:
● Asset-Light: They have lower capital investment as they don't own vehicles, ships,
etc.
● Expertise & Network: They leverage their knowledge of the transportation market
and relationships with various carriers to find the best solutions for shippers.
● Value-Added Services: Often provide additional services like documentation, tracking,
and consolidation.
● Important Role: Play a crucial role in connecting shippers with the complex world of
transportation providers.
Examples:

● Freight Forwarders: Companies that organize the shipment of goods on behalf

of shippers. They can handle the entire transportation process, including
booking with carriers, documentation, customs clearance, warehousing, and
more. They select the most appropriate carriers and modes based on the
shipper's needs.
● Transportation Brokers: Primarily focused on the trucking industry, they
match shippers with available carriers. They do not take possession of the
freight but facilitate the transaction.
Examples:

● Third-Party Logistics (3PL) Providers: Offer a broader range of logistics

services beyond just transportation arrangement. This can include warehousing,
inventory management, order fulfillment, and other supply chain management
functions. While they may not own all the assets, they manage and integrate
various transportation and logistics services.
● Shippers' Associations: Non-profit cooperatives that consolidate the freight of
multiple small shippers to achieve volume discounts with carriers. Indian
Coastal Conference (ICC) Shipping Association (ICCSA)
Topic 3 - Transport Operation Planning
1. Equipment scheduling, 5. movement administration,

2. yard management, 6. consolidation,

3. load planning, 7. negotiation control of transport

4. routing and advanced shipment management,

notification, 8. audit and claim administration,

9. logistics integration
Transport Operation Panning
● Transport operation planning involves defining how to move people and goods
efficiently, considering factors like route optimization, vehicle scheduling, and
resource allocation to achieve specific goals like cost reduction, faster deliveries,
and improved safety.
● It's a crucial aspect of logistics and transportation management, encompassing
everything from load planning to final delivery.
1) Equipment scheduling
● This involves the efficient allocation and assignment of vehicles, trailers,
containers, and other transport equipment to meet planned shipments.
● The goal is to maximize equipment utilization, minimize idle time, and
ensure the right equipment is available at the right place and time.
● Large trucks (for bulk deliveries to a few locations)
● Smaller vans (for smaller deliveries to multiple locations)
● Refrigerated trucks (if some goods are temperature-sensitive)
Yard Management
2)Yard Management -
● Focuses on optimizing the flow and storage of goods and equipment within a
transportation yard or terminal.
● This includes managing gate operations, parking, loading/unloading areas, and
inventory staging to reduce congestion, improve turnaround times, and enhance
security.
● This includes tasks like scheduling, coordinating, and directing inbound and
outbound trucks, as well as managing loading and unloading processes.
● A Yard Management System (YMS) is a key tool for efficient yard operations,
providing real-time visibility and control over all yard activities.
● https://youtu.be/xyFXHxOyfDI?si=HeSlqi5G2diFop0a
3)Load Planning
This critical process involves determining how best to arrange and secure cargo
within a transport unit (e.g., truck, container) to maximize space utilization, ensure
load stability, and comply with weight restrictions and safety regulations.

Effective load planning minimizes the risk of damage and optimizes transportation
costs.
4) Routing and Advanced Shipment Notification (ASN):

● Routing involves determining the most efficient and cost-effective paths for
shipments, considering factors like distance, traffic, road conditions, and
delivery time windows.
● ASN is the proactive communication of shipment details (contents, quantity,
expected delivery time) to the recipient before arrival, improving visibility and
enabling better downstream planning.
5)Movement Administration:
● Encompasses the day-to-day management and tracking of shipments as they
move through the transportation network.
● This includes dispatching, monitoring progress, handling exceptions, and
ensuring timely delivery.
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6)
Consolidation: This strategy combines multiple smaller shipments into larger, more
economical loads to reduce transportation costs. Effective consolidation requires
careful planning and coordination of pickup schedules and delivery destinations.