Transportation (with InfoTrac)

by Coyle, John J.; Bardi, Edward J.; Novack, Robert A.

• ISBN13: 9780324202144
• ISBN10: 0324202148
• Edition: 6th
• Format: Hardcover
• Copyright: 2005-01-24
• Publisher: South-Western College Pub

Summary

Transportation service isn't as simple as you think. TRANSPORTATION goes in-depth and explains the fundamental role that transportation plays in our society. By looking at both domestic and international transportation systems, as well as their legal issues, you'll get a thorough, easy-to-understand overview. Plus, TRANSPORTATION gives you the tools you need to succeed in this fast-paced and rapidly changing industry. In class or on the road, TRANSPORTATION gives you the edge.

Table of Contents

Preface	vi
PART I THE ROLE AND IMPORTANCE OF TRANSPORTATION	1	(92)
Transportation, the Supply Chain, and the Economy	3	(48)
The 2000s: A Decade of Challenge	4	(2)
The Logistics Concept	6	(4)
The Supply Chain Concept	10	(1)
Total-Cost Analysis	11	(1)
Stop Off: ``The True Meaning of Supply Chain Management''	12	(1)
Business Logistics Activities	13	(2)
Transportation and the Economy	15	(1)
Historical Significance	16	(1)
Economic Significance	17	(8)
Value of Goods	17	(3)
Utility of Goods	20	(1)
Transportation Patterns	21	(2)
Gross Domestic Product	23	(2)
Environmental Significance	25	(4)
The Environment	25	(2)
Safety	27	(2)
Substance Abuse	29	(1)
Social Significance	29	(1)
Political Significance	29	(2)
Governmental Responsibility	29	(2)
Overview of Modern Transportation	31	(1)
Overview of Transportation Trends	32	(1)
Demand for Transportation	33	(1)
Demand Measurement Units	34	(1)
Level of Aggregation	35	(1)
Demand Elasticity	35	(1)
Freight Transportation	36	(1)
Derived Demand	36	(1)
Value of Service	37	(3)
Service Components of Freight Demand	38	(1)
Location of Economic Activity	39	(1)
Passenger Transportation	40	(4)
Business Travel	40	(1)
Vacation Travel	41	(1)
Personal Travel	41	(1)
Urban Transit	42	(1)
Passenger Demand Characteristics	43	(1)
Summary	44	(1)
Key Terms	45	(1)
Study Questions	45	(1)
Notes	46	(1)
Suggested Readings	46	(1)
Case 1-1 Hardee Transportation	47	(1)
Case 1-2 Soup to Nuts, Inc.	48	(2)
Case 1-3 Fly-By-Night Helicopter Service	50	(1)
Transportation Regulation and Public Policy	51	(42)
Why Doesn't Someone Do Something?	52	(1)
Regulation of Transportation	53	(5)
Nature of Regulation	53	(1)
Common Law	54	(1)
Role of the Independent Regulatory Commission	55	(1)
Role of the Courts	56	(1)
Safety Regulations	56	(1)
State Regulations	57	(1)
Development of Regulation	58	(1)
Current Economic Regulations	58	(3)
Antitrust Laws in Transportation	61	(1)
Transportation Policy	62	(1)
Stop Off: ``Play By the Rules''	63	(1)
Why Do We Need a Transportation Policy?	63	(1)
Declaration of National Transportation Policy	64	(7)
Policy Interpretations	66	(2)
Who Establishes Policy?	68	(3)
Public Promotion	71	(8)
Transportation Project Planning in the Public Sector	71	(3)
Air	74	(1)
Motor and Highway	75	(1)
Rail	76	(1)
Domestic Waterway Operations	77	(1)
International Water Carriage	77	(1)
Pipeline	78	(1)
Miscellaneous Forms of Promotion	78	(1)
Transportation Promotion in Perspective	79	(1)
User Charges	79	(1)
Nationalization	80	(1)
Transportation Safety	80	(3)
Transportation Security	82	(1)
Summary	83	(1)
Key Terms	83	(1)
Study Questions	84	(1)
Notes	84	(1)
Suggested Readings	84	(1)
Case 2-1 CBN Plastic Wood	85	(1)
Case 2-2 The U.S. Airline Industry Public Support	86	(2)
Appendix 2-A Department of Transportation	88	(5)
PART II OVERVIEW OF TRANSPORTATION PROVIDERS	93	(166)
Motor Carriers	95	(32)
Brief History	96	(1)
Industry Overview	97	(4)
Significance	97	(1)
Types of Carriers	97	(1)
Number of Carriers	98	(2)
Market Structure	100	(1)
Competition	101	(1)
Stop Off: ``Yellow and Roadway Get it Together''	101	(2)
Operating and Service Characteristics	103	(9)
General Service Characteristics	103	(1)
Equipment	104	(1)
Types of Vehicles	105	(1)
Terminals	106	(4)
Terminal Management Decisions	110	(2)
Cost Structure	112	(4)
Fixed Versus Variable Cost Components	112	(2)
Economies of Scale	114	(2)
Stop Off: ``Discounts Still a Major Factor in LTL Pricing''	116	(2)
Current Issues	118	(3)
Safety	118	(1)
Technology	119	(1)
LTL Rates	120	(1)
Financial Stability	120	(1)
Summary	121	(1)
Key Terms	122	(1)
Study Questions	122	(1)
Notes	123	(1)
Suggested Readings	123	(1)
Case 3-1 Hardee Transportation	124	(1)
Case 3-2 JEI Carrier Corporation	124	(1)
Case 3-3 Retirement Funds	125	(2)
Railroads	127	(30)
Nittany Valley Shortline	128	(1)
Company Background	128	(1)
Current Situation	128	(1)
Brief History of the Rail Industry	129	(1)
Industry Overview	130	(4)
Number of Carriers	130	(1)
Competition	131	(3)
Stop Off: ``Rail Shippers Yearn To Be Free''	134	(1)
Operating and Service Characteristics	135	(8)
General Service Characteristics	135	(2)
Constraints	137	(1)
Strengths	137	(1)
Equipment	138	(1)
Service Innovations	139	(4)
Cost Structure	143	(3)
Fixed Costs	143	(1)
Semivariable Costs	143	(1)
Variable Costs	144	(1)
Economies of Scale	145	(1)
Financial Plight	146	(2)
Legislation Reform	147	(1)
Improved Service to Customers	147	(1)
Current Issues	148	(3)
Alcohol and Drug Abuse	148	(1)
Energy	149	(1)
Technology	149	(1)
Future Role of Smaller Railroads	150	(1)
Customer Service	151	(1)
Drayage for Intermodal Service	151	(1)
Summary	151	(1)
Key Terms	152	(1)
Study Questions	152	(1)
Notes	153	(1)
Case 4-1 CBN Railway Company	154	(1)
Case 4-2 Nittany Valley Shortline Railroad	155	(2)
Air Carriers	157	(28)
Brief History	158	(1)
Industry Overview and Significance	158	(1)
Types of Carriers	158	(2)
Private Carriers	158	(1)
For-Hire Carriers	159	(1)
Market Structure	160	(2)
Number of Carriers	160	(2)
Competition	162	(1)
Intermodal	162	(1)
Intramodal	162	(1)
Service Competition	162	(1)
Cargo Competition	163	(1)
Stop Off: ``FedEx Buys Kinko's to Increase Retail Presence''	163	(1)
Operating and Service Characteristics	164	(3)
General	164	(1)
Speed of Service	165	(1)
Length of Haul and Capacity	165	(1)
Accessibility and Dependability	166	(1)
Equipment	167	(2)
Types of Vehicles	167	(1)
Terminals	167	(2)
Cost Structure	169	(3)
Fixed Versus Variable Cost Components	169	(1)
Fuel	169	(1)
Labor	170	(1)
Equipment	171	(1)
Economies of Scale/Economies of Density	171	(1)
Rates	172	(2)
Pricing	172	(1)
Operating Efficiency	173	(1)
Current Issues	174	(2)
Safety	174	(2)
Technology	176	(1)
Summary	176	(1)
Key Terms	177	(1)
Study Questions	178	(1)
Notes	178	(1)
Suggested Readings	179	(1)
Case 5-1 Hardee Transportation	180	(1)
Case 5-2 US Airways	180	(3)
AirTran	181	(1)
JetBlue	181	(1)
Southwest	182	(1)
US Airways	182	(1)
Case 5-3 Southwest Airlines	183	(2)
The Southwest Approach	183	(1)
Current Situation	184	(1)
Water Carriers and Pipelines	185	(24)
Mon Valley Coal and Aggregates Company	186	(1)
Introduction	187	(1)
Brief History of Water Transportation	187	(1)
Water Transport Industry Overview	187	(7)
Significance of Water Transport	187	(1)
Types of Carriers	188	(1)
Number and Categories of Carriers	189	(1)
Competition	190	(1)
Operating and Service Characteristics	190	(1)
Equipment	191	(1)
Cost Structure	192	(1)
Current Issues	193	(1)
Brief History of Pipelines	194	(3)
Pipelines Industry Overview	194	(1)
Significance of Pipelines	195	(1)
Types of Carriers	196	(1)
Ownership	196	(1)
Number of Carriers	196	(1)
Stop Off: ``This Politics of Global Pipelines''	197	(7)
Operating and Service Characteristics	198	(1)
Relative Advantages	199	(1)
Relative Disadvantages	199	(1)
Competition	200	(1)
Equipment	200	(1)
Commodity Movement	201	(2)
Cost Structure	203	(1)
Summary	204	(1)
Key Terms	205	(1)
Study Questions	205	(1)
Notes	206	(1)
Suggested Readings	206	(1)
Case 6-1 Great Lakes Bulk Carriers	206	(2)
Case 6-2 CBN Pipeline Company	208	(1)
Intermodal and Special Carriers	209	(22)
So, What Is So Special About a Special Carrier?	210	(1)
Development of Special Carriers	210	(1)
Intermodal Transportation	211	(3)
Piggyback	212	(2)
Containerization	214	(1)
Third-Party Transportation	214	(2)
Stop Off: ``CP Expands Expressway Service''	216	(1)
Special Carrier Forms	217	(7)
Surface Forwarders	217	(2)
Air Freight Forwarders	219	(1)
Freight Brokers	220	(1)
Shippers' Associations	221	(1)
Intermodal Marketing Companies	221	(1)
Owner-Operators	222	(1)
Express Services and Expedited Services	222	(2)
Drayage Carriers	224	(1)
Household Goods Industry	224	(2)
Shipment Process	225	(1)
Problems	226	(1)
Summary	226	(1)
Key Terms	227	(1)
Study Questions	227	(1)
Suggested Readings	227	(1)
Case 7-1 Specialty Gift Foods	228	(1)
Case 7-2 Rare Book Sellers	229	(2)
Global Transportation	231	(28)
The Balancing Act: Security versus Global Commerce	232	(1)
Extent and Magnitude of Trade	233	(4)
Overview of the North American Free Trade Agreement	234	(3)
Stop Off: ``Could You Do What Denso Did?''	237	(1)
Global Transportation Providers	238	(5)
Ocean Transportation	238	(2)
Air Carriers	240	(1)
Ancillary Services	240	(3)
Rate Making in Global Transportation	243	(6)
Shipping Conferences	243	(1)
Global Air	244	(1)
Liner Rate Making	245	(3)
Tramp Ship Cost Rate Factors	248	(1)
Stop Off: ``Hard Times For TACA''	249	(1)
Global Transportation Problems, Issues, and Policies	250	(3)
Federal Maritime Commission Regulation of U.S. Ocean Rates	250	(1)
Global Air Regulation	251	(2)
Role of Port Authorities in Global Transportation	253	(1)
Future of Global Transportation	253	(1)
Summary	254	(1)
Key Terms	255	(1)
Study Questions	255	(1)
Notes	255	(1)
Suggested Readings	256	(1)
Case 8-1 Natural Footwear Company	256	(1)
Case 8-2 Ohio Plastics	257	(2)
PART III TRANSPORTATION MANAGEMENT	259	(224)
Costing and Pricing in Transportation	261	(60)
Market Considerations	263	(2)
Market Structure Models	263	(1)
Theory of Contestable Markets	264	(1)
Relevant Market Areas	264	(1)
Cost-of-Service Pricing	265	(5)
Stop Off: ``LTL Rate Increases on Par with Last Year's GRIs''	270	(1)
Value-of-Service Pricing	271	(5)
Rate Making In Practice	276	(8)
General Rates	277	(6)
Rate Systems Under Deregulation	283	(1)
Stop Off: ``STB Will Enforce `Truth in Rates' Rules for Motor Carrier Rate Bureaus''	284	(1)
Special Rates	285	(5)
Character-of-Shipment Rates	285	(1)
Area, Location, or Route Rates	286	(1)
Time/Service Rate Structures	287	(1)
Other Rate Structures	288	(2)
Pricing in Transportation Management	290	(7)
Factors Affecting Pricing Decisions	290	(2)
Major Pricing Decisions	292	(1)
Establishing the Pricing Objective	292	(2)
Estimating Demand	294	(1)
Estimating Costs	294	(1)
Price Levels and Price Adjustments	294	(1)
Most Common Mistakes in Pricing	295	(2)
Summary	297	(1)
Key Terms	297	(1)
Study Questions	298	(1)
Notes	298	(1)
Suggested Readings	299	(1)
Case 9-1 Hardee Transportation	299	(1)
Case 9-2 Hardee Transportation	300	(2)
Equipment Cost Data	301	(1)
Route and Time of Move	301	(1)
Case 9-3 Startruck, Inc.	302	(2)
Appendix 9-A Cost Concepts	304	(7)
Notes	311	(1)
Appendix 9-B LTL and TL Costing Models	312	(9)
Carrier Strategies	321	(30)
CBN Trucking	322	(1)
Carrier Operating Conditions	323	(5)
Operating Network	323	(1)
Operations	324	(1)
Labor	325	(1)
Performance Measures	325	(3)
Operating Strategies	328	(1)
Stop Off: ``Workin' on the Railroad''	328	(2)
Technology and Equipment	330	(3)
The Hub-and-Spoke Route System	333	(1)
Marketing	334	(2)
Coordination	336	(1)
Challenges Affecting Carrier Management	336	(2)
Stop Off: ``Keeping Freight Safe South of the Border''	338	(1)
The Terminal: The Basic Transportation System Component	339	(7)
General Nature of Terminals	339	(1)
Terminal Ownership	340	(1)
Types of Terminals	340	(3)
Terminal Management Decisions	343	(3)
Summary	346	(1)
Key Terms	347	(1)
Study Questions	347	(1)
Notes	347	(1)
Suggested Readings	348	(1)
Case 10-1 Shiner International Transportation Company (A)	348	(1)
Case 10-2 Shiner International Transportation Company (B)	349	(2)
Information Management and Technology	351	(46)
Information Systems	352	(2)
Information Sources	354	(7)
Bill of Lading	355	(2)
Waybill	357	(1)
Manifest	357	(1)
Freight Bill	358	(3)
Information Technology	361	(14)
Areas of Application	361	(2)
Types of Information Technology	363	(12)
Stop Off: ``RFID Costs Aren't Likely to Impede Adoption''	375	(3)
Stop Off: ``Technology to the Rescue''	378	(5)
Conclusion	383	(1)
Summary	383	(1)
Key Terms	384	(1)
Study Questions	384	(1)
Notes	385	(1)
Suggested Readings	385	(1)
Case 11-1 Hardee Transportation	386	(1)
Case 11-2 Braxton Stores, Inc. (A)	387	(1)
Case 11-3 Braxton Stores, Inc. (B)	388	(2)
Appendix 11-A Transportation Sites on the Internet	390	(7)
Shipper Strategies	397	(54)
Transportation Management	398	(1)
Transportation Management as a Procurement Function	398	(1)
Shipper Transportation Strategies	399	(6)
General Strategy	399	(1)
Proactive Management	399	(1)
Improve Information	400	(1)
Limit Number of Carriers Used	401	(1)
Carrier Negotiation	401	(1)
Contracting	402	(1)
Review Private Motor Carrier Transportation	402	(1)
Small Shipment Strategy	402	(2)
Bulk Shipment Strategy	404	(1)
Inbound Transportation Strategy	405	(1)
Line Aspects of Transportation Management	405	(7)
Shipment Planning	406	(1)
Carrier Selection	406	(1)
Ordering Service	406	(1)
Expediting/Tracing	406	(1)
Pre-auditing/Rating	406	(1)
Auditing/Paying the Freight Bill	407	(1)
Detention/Demurrage Processes	407	(1)
Claims	407	(1)
Private Car and Motor Carrier Fleet Management	408	(1)
Transportation Budget Management	408	(1)
Staff and Administrative Aspects of Transportation Management	408	(1)
Mode Selection	408	(1)
Monitoring Service Quality	408	(2)
Service/Supply Assurance	410	(1)
Negotiations	410	(1)
Regulatory Matters	410	(1)
Policy Matters	410	(1)
Planning Annual Transportation Requirements	410	(1)
Budgeting	410	(1)
Information Systems	411	(1)
Systems Analysis	411	(1)
Management and Executive Development	411	(1)
Transportation Department Human Resources Management	411	(1)
Mode Selection Process	412	(2)
Transportation Cost	412	(1)
Transit Time and Transit Time Reliability	412	(1)
Accessibility	413	(1)
Capability	413	(1)
Security	413	(1)
Carrier Selection Process	414	(1)
Relationship Management	414	(1)
Types of Buyer/Seller Relationships	415	(3)
Arm's-Length Relationships	415	(1)
Type I Partnerships	416	(1)
Type II Partnerships	416	(1)
Type III Partnerships	417	(1)
Joint Ventures	417	(1)
Vertical Integration	417	(1)
Conclusion	418	(1)
Why Enter Relationships?	418	(4)
Availability of External Suppliers	419	(1)
Cost Efficiencies	420	(1)
Third-Party Expertise	420	(1)
Customer Service	421	(1)
Conclusion	421	(1)
Third-Party Relationship Characteristics	422	(1)
Planning	422	(1)
Communications	422	(1)
Risk/Reward Sharing	423	(1)
Stop Off: ``Shippers, Unite!''	423	(4)
Trust and Commitment	424	(1)
Scope of the Relationship	425	(1)
Financial Investment	426	(1)
Future Orientation	426	(1)
Organization/Culture Change	426	(1)
Relationship Challenges	427	(2)
Buyer Challenges	427	(1)
Supplier Challenges	428	(1)
Conclusion	429	(1)
The Negotiation Process	429	(3)
Market Power	429	(2)
Negotiating Philosophy	431	(1)
Goals and Objectives	431	(1)
Bargaining	431	(1)
Breakdown	432	(1)
Agreement	432	(1)
The Bidding Process	432	(2)
Qualifying Third Parties	432	(1)
Providing Information	433	(1)
Proposal Elements	433	(1)
Evaluate Proposals	434	(1)
Contract	434	(1)
Third-Party Contracts	434	(5)
Disclosure of Goods	435	(1)
Responsibility for Goods	436	(1)
Routing, Mode, and Method of Operation	436	(1)
Term, Termination, and Modification	436	(1)
Volume Requirements	437	(1)
Scope of Operation	437	(1)
Performance Standards	437	(1)
Operational Standards---Indemnification	437	(1)
Force Majeure	438	(1)
Billing and Payment	438	(1)
Applicable Law	438	(1)
Assignability	438	(1)
Breach of Contract	439	(1)
Dispute Resolution	439	(1)
Confidentiality	439	(1)
Contracting Hints	439	(2)
Indemnification Clauses	439	(1)
Penalty Clauses	439	(1)
Service Requirements	440	(1)
The ``Living'' Contract	440	(1)
Prices	440	(1)
Conclusion	441	(1)
Summary	441	(1)
Key Terms	442	(1)
Study Questions	442	(1)
Notes	443	(1)
Suggested Readings	444	(1)
Case 12-1 Hardee Transportation, Inc.	445	(1)
Case 12-2 Commercial Gypsum	445	(2)
Case 12-3 Shipper---Carrier Negotiation Project	447	(4)
Shipper Situation	447	(1)
Carrier Situation	448	(1)
Virgin Cumulus Cotton Industry	449	(2)
Shipper Process	451	(32)
No Carriers Available	452	(1)
Domestic Transportation Management Process	453	(5)
Shipment Source	453	(1)
Shipment Analysis	454	(2)
Rate Analysis	456	(2)
Carrier Scheduling	458	(1)
Stop Off: ``Single-Shipment Pickups Will Cost Extra''	458	(13)
Load Tendering	462	(1)
Documentation	463	(3)
Shipment Monitoring	466	(1)
Postdelivery Maintenance	467	(4)
Global Transportation Process	471	(1)
Buyer-Seller Agreement	471	(1)
Stop Off: ``When `All Inclusive' Isn't Necessarily the Case''	472	(5)
Incoterms	473	(2)
Order Preparation	475	(1)
Documentation	475	(1)
Transportation	476	(1)
Summary	477	(1)
Key Terms	478	(1)
Study Questions	478	(1)
Notes	479	(1)
Suggested Readings	479	(1)
Case 13-1 Rocket Electrical Parts, Inc.	479	(1)
Case 13-2 Dollar Discounters	480	(3)
Appendix A Selected Transportation Publications	483	(2)
Appendix B Transportation-Related Associations	485	(2)
Glossary	487	(10)
Name Index	497	(2)
Subject Index	499