In today’s society, everyone seems to be in a rush. Convenience trumps nearly anything and everything. The closest and the promptest option is the one we often lean toward, regardless of the consequence or cost. One of the biggest convenience items within the 21st Century is gasoline. Regardless of the price, we often purchase this item at the most suitable site and time, especially when we are in desperate need of the item. Gasoline companies are alert that convenience is ideal; therefore, they alter gas prices to obtain the greatest amount of business.
Case Background: - In transportation industry, one of the biggest challenge is how to deal with carbon dioxide emissions and how to reduce the energy. According to the Natural Resources Canada, one third of the greenhouse emission is because of transportation industry.
The “U.S. became the world’s top producer of petroleum and natural gas” in 2013 (Energy Infrastructure). “Capital spending in the infrastructure that moves and transforms oil and gas into everyday products … has increased by 60 percent between 2010 and 2013” (Energy Infrastructure). The rise to become the top producer has led to the decrease in “U.S. oil import dependence” and the “rise of U.S. product exports” (U.S. Oil Import Dependence). The increased exportation of oil and gas by the U.S. has allowed both of these products to become large moneymakers for the United States. Although we will probably never “completely eliminate our need” for oil, we can reduce our petroleum consumption and the damage we inflict on the environment (Reduce Oil Dependence Costs). By decreasing the “dependence on oil” in new vehicles, there has been a
As the prices of fuel increase nationwide, it isn’t only the local residents that feel the pinch of higher fuel prices. Those responsible for fueling ambulances, fire engines, and police cars are also battling the soaring transportation costs.
The company that we will be covering is J.B. Hunt Transport Services, Inc. JB Hunt is a transportation company, primarily trucking, that is based in Lowell, Arkansas and was founded in 1961. The company has 16,000 employees, with 12,000 trucks, and 47,000 trailers in operation; they offer their transportation services to Canada, Mexico, and the continental United States. We chose J.B. Hunt because they are leading innovators in green transportation by using environmentally friendly fuel, reducing empty miles, training drivers to drive in a fuel-efficient manner, and a myriad of other green innovations (J.B. Hunt, 2015). J.B. Hunt’s innovations have made them one of the most competitive transportation companies in the nation (J.B. Hunt, 2015). Compared to their competitors, they have the same amount of drivers, but bring in double the profit margins. Among their extensive list of awards and honorable recognitions are included the Most Innovative Third Party Service Provider from Voluntary Interindustry Commerce Solutions, one of America’s Most Admired Companies from Fortune Magazine, Top 500 Greenest Big Companies in America from Newsweek Magazine, and Top 100 Companies for Employee Training from Training Magazine. They have been leaders in developing environmentally friendly forms of product transportation and many companies have adopted their progressive methods (J.B. Hunt, 2015).
The American Trucking Company has recently been experiencing an increase in stolen loads—a loaded tractor/trailer is stolen and the load sold. Loads of merchandise are often worth thousands of dollars, sometimes exceeding the value of the tractor/trailer. American Trucking, while wishing to recover both the load and equipment, seeks a way to locate the tractor/trailer at all times so they can dispatch their security team to retrieve the load before it is sold on the black market (as well as to retrieve the truck/trailer before it is vandalized). They have engaged the services of Truck Locators, a provider of locating services to the trucking industry.
Another issue that I found in my evaluation was the routing of the trucks. There seems to be a miscommunication in the routing department with the inbound and outbound shipments. There is a system currently, however those that are operating it do not properly communicate “across the desk” so to speak. With this lack of communication between the inbound and outbound coordinators, the loads are not being recorded properly. This
The combination of all these things compiled the cost of diesel, spells out higher overall costs for every single trucking company in the industry. The growth of the freight industry and superior efficiency of railroads will lead to an even slower growth rate for the trucking industry and could be a cause for more concern as the trend continues.
These waiting times severely delay trucks and thus increase the cost of transportation and extend the lead times. Moreover, the trucks inefficient utilization have negative affects on the fixed cost of owned vehicles.
If the company manages to eliminate or minimize the bobtail operation, it will free up more tractors and drivers to pull the trailers for the pickup and delivery operation, which is where they get their revenue.
Transportation is the number one thing we consumers do that harms the environment. Transportation causes the highest amount of environmental damage overall - nearly half of the toxic air pollution and more than a quarter of the greenhouse gases traceable to household consumption. Over time, however, sales of trucks, vans and SUV's went from 16% market share to over 50%. One big auto manufacturer even shelved their work of the last three years, spent updating their most popular selling economy car, so they could spend the money getting SUVs to market faster.
The market index in fuel prices is a challenge for carriers in terms of their costs and profits. Especially, in the air carrier, the airline 's uses high prices for the major quantity of volume in fuel.
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
The Automobile Industry, aside from the World Wide Web has spurred more economic growth in the past century than any other invention in our history. From coal fueled steam driven power plants to internal combustion engines, modern transportation methods have closed the distance gap globally, allowing for rapid movement of goods throughout all economies. While the aviation industry has increased the overall scale and speed of transportation, the automotive industry
Around the world, it is a common tendency of the transport sector to be a critical contributor to greenhouse emissions. It is about 23% of CO2 global emissions and about 30% for OECD nations in 2007. The CO2 emissions from transportation increased by 45% from 1990 to 2007. Estimates of the increase for 2030 says that a continuing grow is waiting, up to 40%, even with the actual planning to reduce fuel consumption.