Silicachem Corporation: Outbound Freight Transport Report Essay

As cargo costs vary with the freight moved they are calculated as a product of Cargo costs per ton, as stated above, and the capacity for each of the vessels, i.e. for Tashtego 1,43*3950 + 1,43*3150 = 10.153,00 and for the large vessel 1,43*6850 + 1,43*3150 = 14.300,00.

The excessive cost of travel for both the East and West Coast Boat Forces and

Such new moves by both “gorillas” like companies may sweep the corners of the market described by some industry analysts. For years, the industry set the prices without consideration of distance, which means, a same sized letter from New York to New Jersey has the same cost as if the letter is shipped to California from New York. In 1996, UPS officially moved to distance-based pricing, and Federal Express followed same action in 1997. There is no denying that what actions Airborne take is significant affecting the development of the company, while facing this big change in industry.

Expedient delivery of goods outweighed the cost differential. However, since intermodel transportation pricing is governed by fixed costs, such as terminal expenses, not fuel costs, shipping costs will remain higher in this area. Now, lower fuel costs will further help to increase the use of trucks, rather than rail for transportation. This type of shift has not been seen in the industry since 2010, but it appears the trend will continue for the foreseeable future.

Selecting an exceptional freight company for your specialized freight needs is an important business decision. After all, freight companies can be considered the backbone for any company that relies on logistics for its functioning.

To avoid the confusion and problems, the shipper should declare the value for the goods on the ocean bill of lading or to exercise the right to declare a higher value and pay higher freight charges. If the shipper wants the number of

Solely taking a look at the graph, to accommodate future demand for growth I would recommend ocean transportation to move our products from the new facility in China. As we expect demand to grow by 10 percent annually over the next five years, it will be most beneficial to utilize ocean transportation as projected total costs for air becomes higher than ocean above the trade off point of 1,904,761.9 POUNDS. For example, total projected costs were calculated to be at $587,156 for air versus $630,080 for ocean at the end of 5 years. Extrapolate the graph even further into the future, with the expectation of even more growth,

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).

Passenger and freight transportation systems have a number of similarities in the investment evaluation process, with a few significant differences. The table below offers an initial look at the stakeholders for each and their relative financial interests.

This essay attempts to describe current air freight market conditions, challenges in air freight demand and generate potential solutions to increase air cargo demand. It is divided into four parts: air freight, current demand for air freight, challenges, and potential

They result in the following environmental threats like greenhouse effect, acidification, over-fertilization and depletion of the ozone layer.

In conclusion it can be said the main drivers for cooperating through a PCS are increased efficiency by saving time and costs and the decreasing number of mistakes made as described by Burckhardt et al(1998) and Fenex and Syntens (2010). While the main disadvantage can be described as the high switching barrier for freight forwarders to adapt its current operations (with it is own software solutions) towards

The transportation and logistics industry is one of the key components of modern life. It provides the framework through which every raw material and finished consumer good is moved through the supply chain into the hands of consumers. This industry is generally taken for granted by consumers. When consumers do think about the industry it is thought of in terms of unchanging and stagnate transportation modes. This vision of the industry is not an accurate reflection of the reality of modern transportation industry. During the last several decades the technological innovations that have changed the face of modern life, have also had far reaching effects on the transportation industry. The pressures driving innovation in the industry

Using the right type of transport is very important in the supply chain. As we have learnt earlier the use of the transport mode is of strategic importance to stock holding decisions. Air transport is much quicker but the costs are high as opposed to shipping by boat or rail. Sea or rail transport requires having higher levels of inventory in-house to meet quick customer demands. Most importantly, customer service levels must be met, and this often determines the mode of transport used.

In fact, the organization can pick an assortment of method for transportation. In such manner, the decision ought to be grounded on requirements of the organization. For example, the organization working in the book distributing industry needs the supply of paper and mash materials alongside the supply of ink and different materials fundamental for book distributing. In such a circumstance, the organization ought to recognize successful methods for transportation in light of the fact that the transportation may expand expenses of creation considerably. For example, utilizing the air transportation for book distributing is irrational on the grounds that the expenses of such transportation are the most elevated, while the quick speed of transportation does not legitimize its expenses. Rather, the organization ought to concentrate on four key measurements: rail transport, inland water transport, sea transport, and air transport.