Topic 4 – Transportation Modes: Topic 4 – Transportation Modes A Diversity of Modes Intermodal Transportation Passengers or Freight?


5. Air Transport: 5. Air Transport Context Air routes are practically unlimited, but several concentrations: North Atlantic. Inside North America and Europe. Over the North Pacific. Inside Asia. Multidimensional constraints: Site (a commercial plane needs about 3,300 meters of track for landing and take off). Climate, fog and aerial currents. Air activities: Linked to the tertiary and quaternary sectors: Finance and tourism that require movements of people. Accommodating growing quantities of high value freight.


5. Air Transport: 5. Air Transport Air Space Segment of the atmosphere that is under the jurisdiction of a nation or under an international agreement for its use. Two major components: Land-based; takeoffs and landings. Air-based; composed of air corridors. Air corridors can superimpose themselves to altitudes up to 22,500 meters. Limited to the use of predetermined corridors. Air space use Air space exclusively belongs to the country under it. Access to the land and air-based components is dependent on agreements between nations and airline companies. Air freedom rights.


Air Freedom Rights: Air Freedom Rights First Second Home Country A Country B Third Fourth Fifth Sixth Seventh Eight Ninth


5. Air Transport: 5. Air Transport Short historical overview 1914: First paid passenger between Tampa and St. Petersburg (Airfare of $10; $200 in today’s money). 1919: first commercial international air transport service between England and France. Airmail services were very important in the initial years as a source of income (e.g. US air postal routes). 1941: 80% of all commercial aircraft in the US were DC-3s. 1956: Threshold year as more passengers are carried by air than by long distance (sleeper) rail.


US Post Office Airmail Routes, 1921: US Post Office Airmail Routes, 1921


Selected Transcontinental DC-3 Routes, Late 1930s: Selected Transcontinental DC-3 Routes, Late 1930s


Early Intercontinental Air Routes, 1930s: Sharjah Early Intercontinental Air Routes, 1930s Dakar Tangier Casablanca Agadir Natal Rio de Janeiro Buenos Aires Santiago Punta Arenas Alicante Marseilles Lisbon Azores New York Botwood Eyeries London Paris Brindisi Wadi Halfa Khartoum Juba Nairobi Mbeya Harare Johannesburg Cape Town Cairo Alexandria Athens Jask Gwadar Karachi Jodhpur Calcutta Allahabad Rangoon Bangkok Alor Setar Basra Baghdad Kuwait Medan Singapore Palembang Jakarta Surabaya Kupang Waingapu Darwin Katherine Mount Isa Brisbane Sydney Charleville Longreach Dayr az Zawr Gaza Amsterdam Imperial Airways African Route (c1933) Imperial Airways/Quantas Australian Route (c1934) Aeropostale (1930) Pan American Transatlantic Route (1939) KLM Amsterdam – Jakarta (1935) Toulouse Akyab


5. Air Transport: 5. Air Transport Development of air transportation after WWII Technical improvements: Jet engine considerably reduced distances (1958: Boeing 707). Greater speeds and improved ranges. Almost every part of the world can be serviced in less than 24 hours. Rising affluence: Linked with income and economic output growth. Disposable income available for leisure. International tourism and air transportation are mutually interdependent. Globalization: Trade networks established by multinational corporations. 4% measured by weight but more than 40% by value.


Main Commercial Passenger Aircraft, 1935-2008: Main Commercial Passenger Aircraft, 1935-2008


Flight Times by Piston and Jet Engines from Chicago: Flight Times by Piston and Jet Engines from Chicago Piston Engine Jet Engine 10 hours 15 hours 20 hours 24 hours 30 hours 40 hours 10 hours 15 hours 20 hours 24 hours


Average Airfare (roundtrip) between New York and London, 1946-2004 (in 2004 dollars): Average Airfare (roundtrip) between New York and London, 1946-2004 (in 2004 dollars)


New York / Hong Kong Air Routes: Conventional and Polar: New York / Hong Kong Air Routes: Conventional and Polar


Selected Ultra-Long-Range Nonstop Airline Routes: Selected Ultra-Long-Range Nonstop Airline Routes


5. Air Transport: 5. Air Transport Airline companies Highly capital intensive segment of transport services. Labor intensive, with limited room to lessen those labor requirements. Around 900 airlines operating 11,600 commercial aircrafts. Average number of 200 seats per plane. Dominant share of the traffic is assumed by large passengers and freight carriers. Strategic alliances Joint booking systems, exchange of shares, and a reorganization of their services in order to minimize redundancy. Increased market dominance but also increased competition between major markets.


World Air Travel and World Air Freight Carried, 1950-2004: World Air Travel and World Air Freight Carried, 1950-2004


Largest Airline Companies by Revenue, 2005 (in $millions): Largest Airline Companies by Revenue, 2005 (in $millions)


Operating Expenses of the Airline Industry, 2004: Operating Expenses of the Airline Industry, 2004


Market Share of World Airline Traffic, 2003: Market Share of World Airline Traffic, 2003


Selected Low-Cost Carriers: Selected Low-Cost Carriers


5. Air Transport: 5. Air Transport Flows 1.4 billion passengers traveled by air transport (2000). 2.8 billion departures and arrivals supported by airports. Equivalent of 23% of the global population. 30 million tons of freight were transported. Air traffic is globally highly imbalanced: Distribution of the population. Unequal levels of development. Concentration of traffic in a limited number of hubs. 80% of the global population lives in the Northern Hemisphere: Air traffic is much denser north of the equator. North America and Europe accounted for 70.4% of all passenger movements in 2000.


Major Air Traffic Flows Between Regions, 2000 (% of IATA Scheduled Passengers): Major Air Traffic Flows Between Regions, 2000 (% of IATA Scheduled Passengers) 35.5 23.2 15.9 3.2 1.3 1.1 2.6 1.5 3.9 1.9 1.3 1.8 1.7 1.7 North America Central America South America Africa Europe Middle East Asia Southwest Pacific 1.7


B – Intermodal Transportation: B – Intermodal Transportation 1. Intermodalism 2. Containerization 3. Modal Choice and Intermodal Transport Costs


1. Intermodalism: 1. Intermodalism Integrated transport systems Use of at least two different modes in a trip from origin to destination through an intermodal transport chain. Brought about in part by technology. Techniques for transferring freight from one mode to another have facilitated intermodal transfers. The container has been the major development: Becoming a privileged mode of shipping for rail and maritime transportation.


Intermodal Transport Chain: Intermodal Transport Chain Composition Connection Interchange Decomposition Local / Regional Distribution National / International Distribution Transport Terminal


World Container Traffic, 1980-2005: World Container Traffic, 1980-2005


Multimodal and Intermodal Transportation: Multimodal and Intermodal Transportation A C D F E B Multimodal Point-to-Point Network A C D F E B Intermodal Integrated Network Rail Road Transshipment Transshipment


Intermodal Transportation Cost Function: Intermodal Transportation Cost Function Costs Origin Destination Composition Connection Connection Interchange Decomposition C(T) Transshipment C(cp) C(cn) C(I) C(cn) C(dc) Local / Regional Distribution Cost National / International Distribution Cost


2. Containerization: 2. Containerization Container Load unit that can be used by several transport modes. Usable by maritime, railway and road modes. Foremost expression on intermodal transportation. Rectangular shape that can easily be handled. Reference size is the Twenty-foot Equivalent Unit (TEU). The most common container is the 40 footer (12 meters)


Carrying Capacity of Containers (in cubic feet): Carrying Capacity of Containers (in cubic feet)


2. Containerization: 2. Containerization Advantages of containers Standard transport product: Can be manipulated anywhere in the world (ISO standard). All segments of the industry have access to the standard. Specialized ships, trucks and wagons. Flexibility of usage: Transport a wide variety of goods ranging. Raw materials, manufactured goods, cars to frozen products. Liquids (oil and chemical products). Perishable food products (“reefers”; 50% of all refrigerated cargo). Management: Unique identification number and a size type code. Transport management not in terms of loads, but in terms of unit.


2. Containerization: 2. Containerization Costs: Low transport costs. 20 times less than bulk transport. Speed: Transshipment operations are minimal and rapid. Port turnaround times reduced from 3 weeks to about 24 hours. Containerships are on average 35% (19 knots versus 14 knots) faster than regular freighter ships. Warehousing: Its own warehouse. Simpler and less expensive packaging. Stacking capacity on ships, trains (doublestacking) and on the ground.


2. Containerization: 2. Containerization Security: Contents of the container is unknown to shippers. Can only be opened at the origin, at customs and at the destination. Spoilage and losses (theft), especially those of valued commodities, are therefore reduced.


Five Generations of Containerships : First Generation (1956-1970) Converted Tanker Second Generation (1970-1980) Cellular Containership Third Generation (1980-1988) Panamax Class Fourth Generation (1988-2000) Post Panamax Plus Fifth Generation (2000-?) Post Panamax Converted Cargo Vessel Five Generations of Containerships TEU Length 135 m 200 m 500 800 215 m 1,000 – 2,500 250 m 3,000 290 m 4,000 275 – 305 m 4,000 – 5,000 335 m 5,000 – 8,000 Draft < 9 m 10 m 11-12 m 11-13 m 13-14 m


Stacked 40-Foot Containers, Port of Yantian, China: Stacked 40-Foot Containers, Port of Yantian, China


20-Foot Container on Truck: 20-Foot Container on Truck


40-Foot Containers Doublestacked on a Rail Car: 40-Foot Containers Doublestacked on a Rail Car


20-Foot Tank Containers: 20-Foot Tank Containers


40’ Reefer: 40’ Reefer


The Ultimate “Kegger”: The Ultimate “Kegger”


4th Generation Containership (5,000 TEU): 4th Generation Containership (5,000 TEU)


Emma Maersk (14,500 TEU): Emma Maersk (14,500 TEU)


Characteristics of Some Historical Containerships: Characteristics of Some Historical Containerships


2. Containerization: 2. Containerization Disadvantages Consumption of space. Infrastructure costs: Container handling infrastructures, such as giant cranes, warehousing facilities and inland road and rail access, represent important investments for port authorities and load centers. Stacking. Management logistics: Requires management and tracking of every container. Empty travel. Illicit trade: Common instrument used in the illicit trade of drug and weapons, as well as for illegal immigration. Worries about the usage of containers for terrorism.


3. Modal Choice and Intermodal Transport Costs: 3. Modal Choice and Intermodal Transport Costs Modal choice Relationship between transport costs, distance and modal choice: Road transport is usually used for short distances (from 500 to 750 km). Railway transport for average distances. Maritime transport for long distances (about 750 km). Intermodalism: The opportunity to combine modes. Find a less costly alternative than an unimodal solution. Efficiency of contemporary transport systems: Capacity to route freight. Capacity to transship it.