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Logistics Transportation Systems
Logistics
Transportation Systems

MD Sarder
Bowling Green State University,
Bowling Green, OH, USA
Elsevier
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Contents

Preface xv
Acknowledgments xix

1. Overview of transportation logistics 1

1.1 Introduction: what is transportation logistics? 1
1.2 The importance of transportation systems 3
1.3 The history of transportation systems 7
1.4 Transportation management 10
1.4.1 Logistics planning 10
1.4.2 Logistics functions 11
1.4.3 Logistics goals and strategies 11
1.4.4 Transportation processes 12
1.5 Logistics costs 13
1.6 Logistics/transportation cost implications 16
1.7 Transportation modes 18
1.7.1 Truck 19
1.7.2 Rail 20
1.7.3 Water 23
1.7.4 Pipeline 27
1.7.5 Air 28
1.8 Practical implications 31
1.9 Conclusion 34
1.10 Discussion questions 34
References 35

2. Network and cost analysis of transportation system 37

2.1 Introduction 37
2.2 Terminology 38
2.3 Transportation network 39
2.4 Classification of transportation network 40
2.5 Operational network structure 40
2.5.1 Direct shipping with milk runs 40
2.5.2 All shipments via central DC 42
2.5.3 Shipping via DC using milk runs 42
2.6 Hub advantages 44
2.7 Hub disadvantages 44
2.8 Performance criteria 44

v
vi Contents

2.9 Algorithms 46
2.10 Mathematical tools 47
2.11 Layers of network 48
2.11.1 Physical network 48
2.11.2 Operational network 48
2.11.3 Strategic network 49
2.12 Transportation cost 49
2.12.1 Transportation cost components 50
2.12.2 Transportation cost categories 52
2.12.3 Transportation cost function 52
2.12.4 Factors that influence transportation cost 56
2.13 Network problems 57
2.14 Conclusion 57
References 57
Further reading 58

3. Transportation infrastructure and equipment 59

3.1 Transportation infrastructure 59
3.2 Transportation equipment 59
3.3 Truck/road infratructures 61
3.4 Rail infrastructures 69
3.5 Maritime infrastructures 72
3.5.1 General cargo ships (sometimes called breakbulk
carriers) 73
3.5.2 Bulk carriers 74
3.5.3 Container ships 75
3.5.4 Auto carriers 75
3.5.5 Tankers 75
3.5.6 Fishing vessels 75
3.5.7 Oil industry vessels 76
3.5.8 Passenger ships 76
3.5.9 Ferryboats 76
3.5.10 Tow and tug boats 76
3.5.11 Barges 77
3.6 Aviation infrastructures 78
3.7 Containerization 80
3.7.1 Advantages of container use 83
3.7.2 Disadvantages of container use 85
3.8 Significance of transportation infrastructure on economy 85
3.9 US transportation infrastructure plan 86
3.10 Conclusion 88
3.11 Discussion questions 88
References 88

4. Transportation rules and regulations 89

4.1 Introduction 89
 Contents vii

4.2 Creating transportation laws 89

4.3 Federal transportation laws 90
4.4 Railroad industry regulations 91
4.5 Motor carrier regulation 92
4.6 Regulations in the airline industry 94
4.7 International water regulations 94
4.7.1 Freedom of the seas 94
4.7.2 United Nations Law of the Sea Convention 95
4.7.3 Protection of marine environment and biodiversity 95
4.7.4 Marine shipping and pollution 96
4.7.5 Polar code 96
4.7.6 Piracy 96
4.8 Importing procedures 96
4.8.1 Customs and importers 96
4.8.2 Entry of goods 97
4.8.3 Customs examination of entry goods/documents 97
4.8.4 Penalties 98
4.9 Trade agreements 98
4.10 Hazardous materials regulations 100
4.11 Foreign trade zones 101
4.12 Freight forwarding 102
4.12.1 Freight forwarding and 3PL logistic providers 103
4.12.2 Freight forwarding and 4PL logistic providers 104
4.12.3 3PL logistic providers versus 4PL logistic providers 104
4.12.4 Fourth-party logistics is the best choice 105
4.13 Incoterms 106
4.14 Conclusion 106
References 107
Further reading 107

5. Intermodal transportation 109

5.1 Introduction 109
5.2 Modality 109
5.2.1 Unimodalism 109
5.2.2 Multimodalism 110
5.3 Intermodal freight transportation 110
5.3.1 Intermodalism 112
5.3.2 What is the difference? 112
5.4 Components of intermodal transportation 113
5.4.1 Containers 113
5.4.2 Carriers 114
5.4.3 Shippers 115
5.5 Domestic transportation 115
5.5.1 Domestic commodities 116
5.5.2 Domestic intermodal 116
5.5.3 Intermodal freight distribution in the United States 118
viii Contents

5.5.4 Trends of container freight shipments in the United States 119

5.5.5 Imported container distributions in the United States 120
5.6 International transportation 126
5.6.1 International commodities and trade 126
5.7 Selection criteria of mode of transportation 127
5.7.1 Cost of transportation 129
5.7.2 Dependability and consistency of service 129
5.7.3 Security 129
5.8 Last mile delivery 133
5.8.1 What is last-mile delivery? 133
5.8.2 Unique challenges of last mile delivery 134
5.9 Challenges of intermodal transportation 135
References 135
Further reading 136

6. Logistics transportation problems with linear

programming 137
6.1 Overview 137
6.2 Introduction 137
6.3 Literature review 137
6.3.1 Linear programming 137
6.3.2 Transportation problems 138
6.4 Solving transportation problems 141
6.4.1 LP Formulation 141
6.4.2 Steps in solving a transportation problems 143
6.5 Graphical method 150
6.6 Simplex method and the transportation tableau 153
6.7 Solver method 157
6.8 Sensitivity analysis 164
6.9 Conclusion 166
References 167

7. Assignment and transshipment problems with linear

programming 169
7.1 Overview 169
7.2 Introduction 169
7.3 Literature review 169
7.4 Assignment problems 170
7.4.1 Methods of solving the assignment problem 170
7.4.2 Mathematical formula of solving assignment program
using linear programming 171
7.4.3 Simplex (solver) method 172
7.4.4 The Hungarian algorithm 176
7.5 Transshipment problems 180
7.5.1 LP formulation for transshipment problem 181
 Contents ix

7.6 Sensitivity 194

7.7 Conclusion 194
References 194
Further reading 195

8. Logistics customer services 197

8.1 Introduction 197
8.2 Definition of customer service 198
8.2.1 Elements of customer service 200
8.2.2 Relative importance of customer service elements 202
8.3 Order cycle time 202
8.3.1 Order cycle time adjustments 204
8.3.2 Priorities for order processing 204
8.3.3 Standards for order condition 205
8.3.4 Order constraints 205
8.4 Importance of logistics customer service 205
8.4.1 Service effects on sales 206
8.4.2 Service effects on customer retention 207
8.5 Sales service relationship 207
8.6 Sales service relationship model 208
8.6.1 Two-point method 208
8.6.2 Before/after experiments 209
8.6.3 Game playing 209
8.6.4 Buyer surveys 209
8.7 Costs versus service 209
8.8 Determining optimum service levels 210
8.8.1 Why is it important to identify optimum service level? 210
8.8.2 Practical implications 211
8.9 Customer service variability 211
8.9.1 Taguchi’s loss function 212
8.9.2 Supply chain visibility 213
8.10 Service as a constraint 214
8.11 Measuring logistics service quality 214
8.11.1 Service contingencies 215
8.11.2 System breakdown 216
8.11.3 Product recall and return 216
8.12 Conclusion 217
References 217
Further reading 217

9. Transportation rates and decision analysis 219

9.1 Introduction 219
9.2 Rates for different modes of transportation 220
9.3 Importance of choosing the most cost-effective
transportation system 222
9.4 Service choices 224
x Contents

9.4.1 Characteristics 224

9.4.2 Single-service choices 224
9.4.3 Intermodal services 225
9.5 Factors affecting transportation rates and costs 225
9.5.1 Product volume 227
9.5.2 Demand-related rates 227
9.5.3 Distance of travel (line-Haul rates) 227
9.5.4 Other factors affecting transportation rates and costs 228
9.5.5 Special service charges 230
9.6 Documentation 231
9.6.1 Bill of lading 231
9.6.2 Freight bill 232
9.6.3 Freight claims 232
9.6.4 International transport documentation 232
9.7 Approaches to negotiating transportation rates 233
9.7.1 Negotiation with individual carriers 233
9.7.2 Using a bid process 233
9.8 Collect and analyze data: preparing an request for proposal 234
9.9 Building strong service provider relationships 234
9.10 Post negotiation support 237
9.11 Common misconceptions in rate negotiation 238
9.11.1 You will always get the best rates when going
directly to the carriers 239
9.11.2 Fuel surcharges cannot be negotiated 240
9.11.3 Freight bills are always correct 240
9.12 Analytical problems 241
9.13 Discussion questions 245
9.14 Review questions 247
9.15 Conclusion 247
Further reading 249

10. Transportation routing 251

10.1 Introduction to transportation routing 251
10.2 Choosing a route planning system 253
10.2.1 Schedule and route trucks on a day-to-day basis 253
10.2.2 Maximize fixed routes and schedules 253
10.2.3 Optimize deliveries continually 253
10.2.4 Support customers 253
10.2.5 Connect with live vehicle tracking 253
10.2.6 Consider “what-if” situations 254
10.2.7 Using multiperiod arranging 254
10.2.8 Makes programming advancement plans 254
10.2.9 Combines central scheduling 254
10.2.10 Focuses on reporting 254
10.3 Vehicle routing 254
10.3.1 Separate and single origin and destination points 255
10.3.2 Multiple origin and destination points 255
 Contents xi

10.3.3 Coincident origin and destination points 256

10.4 Vehicle routing and scheduling 257
10.4.1 Routing and scheduling methods 257
10.4.2 Sweep method 258
10.4.3 Savings method 258
10.5 Transportation routing analysis geographic information
system 259
10.6 Freight consolidation 260
10.7 Hazardous material (HazMat) routing and risks 260
10.7.1 Factors used to calculate the risk 264
10.7.2 HazMat route modeling 268
10.7.3 Case analysis 269
10.8 Advantages of choosing the right routing system 273
10.8.1 Cost 273
10.8.2 Safety 273
10.8.3 Customer loyalty 273
10.8.4 Scalability with speed 273
10.8.5 Organizational control 274
10.9 Analytical problems 274
10.9.1 Solving routing problems using software 277
Reference 280
Further reading 280

11. Transportation security 281

11.1 Introduction 281
11.1.1 What is transportation security? 281
11.1.2 Safety versus security 282
11.2 Importance of transportation security 282
11.3 Cybersecurity in logistics transportation 283
11.3.1 Impact of cybersecurity on transportation 285
11.3.2 Benefits of cybersecuring transportation assets,
goods, and people 286
11.3.3 Current cybersecurity challenges 288
11.4 Security risk assessment 291
11.5 Practical implications 293
11.6 Transportation security in the United States 293
11.6.1 National Security Act of 1947 294
11.6.2 Maritime Transportation Security Act of 2002 294
11.6.3 Security and Accountability for Every Port Act of
2006 by Department of Homeland Security 294
11.6.4 US Department of Homeland Security 295
11.6.5 Transportation Security Administration 296
11.6.6 US Customs and Border Protection 296
11.6.7 Cargo security initiatives—C-TPAT by Customs and
Border Protection 296
11.6.8 Secure Freight Initiative by Department of Homeland
Security 297
xii Contents

11.7 Cost of security 297

11.8 Modal aspects of transportation security 297
11.8.1 Road transport security 297
11.8.2 Maritime security 299
11.8.3 Aviation transport security 299
11.9 Privately initiated transportation security 300
11.10 Conclusion 301
References 301
Further reading 301

12. Reshoring and its impact on transportation and

economy—a US perspective 303
12.1 Introduction 303
12.2 What is reshoring? 304
12.3 Literature reviews 307
12.3.1 The reasons why those companies are reshoring 307
12.3.2 Economic impact of reshoring 309
12.4 Developing reshorability index 311
12.4.1 Step 1: Selecting socioeconomic factors 311
12.4.2 Step 2: Reshoring factors 312
12.4.3 Step 3: Weighting the factors 312
12.4.4 Step 4: Reshorability index 312
12.5 Implementation of reshorability index 314
12.5.1 Sensitivity analysis 318
12.6 Evaluating economic impact of reshoring 321
12.7 Economic impact analysis 322
12.7.1 NAICS 331: Primary metal 324
12.7.2 NAICS 332: Fabricated metal product 326
12.7.3 NAICS 315: Apparel 328
12.8 Analysis Summary 328
12.9 Conclusion and future research 329
References 329

13. Automotive transportation logistics 331

Musarrat Jehan
13.1 Introduction 331
13.2 Overview of automotive supply chain 332
13.3 Logistics functions and strategies 333
13.4 Significance of a supply chain and logistics in the
automotive industry 335
13.4.1 Expertise 335
13.4.2 Opportunity cost 336
13.4.3 Decrease expenses for supplier management 336
13.4.4 Quality control 336
13.4.5 Mass production 336
13.4.6 Duty and freight weight 336
 Contents xiii

13.5 Contributors of the automotive supply chain 337

13.5.1 Automotive dealers 337
13.5.2 Original equipment manufacturers 338
13.5.3 Tier 1 suppliers 339
13.5.4 Tier 2 suppliers 339
13.5.5 Tier 3 suppliers 340
13.6 Challenges in automotive transportation 341
13.6.1 Inventory control and just-in-time delivery 341
13.6.2 Cost control 342
13.6.3 Globalization 343
13.6.4 Recalls 344
13.6.5 Supplier proximity 345
13.6.6 Flexibility 345
13.6.7 External factors 346
13.6.8 Market share 347
13.6.9 Sustainability 347
13.7 How the automotive industry plans and manages their
transportation 348
13.7.1 Demand forecasting 349
13.7.2 Production planning 350
13.7.3 Facility location selection 351
13.7.4 Procurement 352
13.7.5 Information processing 352
13.7.6 Packaging 352
13.7.7 Material handling, warehousing, and storage 353
13.7.8 Inventory management 353
13.7.9 Transportation 354
13.7.10 Customer service 354
13.8 3PL: third-party logistics 354
13.9 Role of 3PL in the automotive supply chain 356
13.10 Conclusion 362

Appendices 363
Index 419

A Instructor’s Guide website for this book is available at:

https://textbooks.elsevier.com/web/Manuals.aspx?isbn=9780128159743
Preface

Logistics and transportation systems have changed significantly in recent

times. Customers no longer want to wait months, weeks, or even days to
receive their orders. They want to receive their orders within a very tight
time window and want to know the status of their orders at every turn. These
ever-increasing customer expectations are challenging for businesses but also
provide opportunities to offer differentiating services. For instance,
Amazon’s two-hour delivery, drone-based delivery, GPS-enabled real-time
order tracking, and robotic food delivery are some examples of logistics ser-
vices that can make a business competitive. Those who are responsible for
planning, designing, operating, and managing logistics systems must possess
a wide variety of skills including engineering design, economic analysis, and
business decision making. Skill-based technical shift has been a pervasive
feature of today’s businesses. Technology-skill complementarity has also
been widespread over the past century with new technologies from those
associated with internet and computer revolution to the artificial intelligence
revolution, which has been primarily shaping the future of the logistics
industry.
I developed a logistics transportation systems course and have been
teaching it since 2009 at undergraduate and graduate levels. I could not find
a single text that was suitable for this course, primarily due to the lack of
coverage of all topic areas and the overemphasis on either engineering or
business aspects. Logistics transportation is an evolving area. A text covering
a wide range of logistics transportation systems, while keeping the right bal-
ance between engineering and business scopes, is needed to prepare today’s
graduates to do their jobs. This text tries to address some of the issues.
The Logistics Transportation Systems textbook provides a one-semester
introduction to the fundamentals of logistics. This text provides an overview
of the basic concepts and mathematics determining operational business
decisions that logistics engineering, systems engineering, and applied science
students will encounter every day when they enter the workforce. This text
will also prove useful to students focused on supply chain management,
operations management, economics, and international business. A basic
knowledge of logistics allows students to balance costs with performance in
their future endeavors. This knowledge base will provide a context for stu-
dents in the larger world around them, regardless of their specialty.

xv
xvi Preface

This text is basically a course resources for a logistics transportation sys-

tems or similar course where students can get exposure to the fundamentals
of logistics and transportation systems, transportation infrastructures and
equipment, and historical evolution of transportation systems. Engineering
and design aspects are primarily covered for transportation network analysis,
transportation problem formulation and solution, assignment and transship-
ment problem formulation and solution, and transportation routing.
Economic and contemporary aspects are covered for transportation cost anal-
ysis, transportation security, and reshoring impact analysis. Business aspects
are covered for logistics customer service, transportation rates and decision
analysis, transportation rules and regulations, and intermodal transportation.
Dr. Jehan, who works for Ford Motor Company, contributed the Automotive
transportation logistics chapter, which presents a real-life case of how auto-
mobile logistics works. Following is a synopsis of the 13 chapters covered in
this text.
The Overview of transportation logistics chapter describes basic concepts
of logistics and transportation systems. This chapter illustrates the difference
between a supply chain system and a logistics system, explains the impor-
tance of the logistics system and how it evolved over time, and provides a
brief overview of different modes of transportation.
The Transportation network and cost analysis chapter explains the differ-
ent types of transportation networks and what exactly they entail including
cost, effectiveness, and quality. From the information provided within this
chapter, one can easily learn how the different aspects of transportation net-
works affect the overall transportation cost.
The Transportation infrastructure and equipment chapter describes var-
ious infrastructures and equipment and explains different characteristics
and capabilities of the infrastructures and equipment used for each
mode of transportation. Transportation systems cannot operate without
necessary infrastructures and equipment as the performance of a transpor-
tation system is heavily dependent on the appropriate infrastructure and
equipment.
The Transportation rules and regulations chapter explains transportation
rules and regulations and how they are designed to improve the efficiency of
transportation systems. Transportation rules and regulations are important to
know as they impact the performance of transportation systems.
The Intermodal transportation chapter explains intermodal transportation
from a US perspective as well as international perspective. Other topics
include components of intermodal transportation such as containers, shippers,
carriers, mode selection considering total cost of shipment, and last-mile
delivery.
The Logistics transportation problems with linear programming chapter
describes mathematical modeling of transportation problems. It explains how
to formulate transportation problems into mathematical equations in terms of
 Preface xvii

defining objective functions and constraints that prevent to achieve the

objectives.
The Assignment and transshipment problems with linear programming
chapter describes formulating and solving two special types of transportation
problems: assignment problems and transshipment problems. Assignment
problems are similar to resource allocation problems in transportation.
Transshipment problems are real-time issues where suppliers ship their pro-
ducts to customers through cross-docking or hub facilities.
The Logistics customer service chapter discusses customer service in
logistics in terms of service elements, the relative importance of those ele-
ments, and how it impacts the effectiveness of logistics operations. This
chapter also explains the sales service relationship and how to measure set
service levels for businesses.
The Transportation rates and decision analysis chapter discusses trans-
portation rates and explains the process of how to choose cost-effective
transportation options with analytical examples. Other topics covered in this
chapter include factors affecting rates and total cost, negotiation approaches,
common misconceptions of negotiation, and documentation needed for
transportation.
The Transportation routing chapter focuses on routing selection and the
importance of planning in transportation decisions. This chapter discusses
how routing and scheduling problems carefully take into consideration time
windows to fulfill demands, demand flexibility, capacities of equipment,
etc., to determine the problem and eventually a technique to yield a solution.
The Transportation security chapter discusses various issues of transpor-
tation security and safety. This chapter introduces various factors that con-
tribute to transportation security and safety as well as their impacts on
transportation. In addition, this chapter also discusses cybersecurity in gen-
eral and how logistics and transportation businesses can prevent
cyberattacks.
The Reshoring and its impact on transportation and economy—a US per-
spective chapter discusses one of the contemporary issues of logistics and
supply chain from the US perspective. This chapter defines reshoring, mea-
sures reshorability for select industries, and quantifies the impact of reshor-
ing on US transportation and economy.
The Automotive transportation logistics chapter presents a real-life case
of how automakers manage their logistics. Automakers are continuously
looking for the best way to fulfill their customers demand while keeping the
cost low. This chapter explores how the automotive supply chain works. It
also discusses the main challenges automotive manufacturers are facing, how
they are dealing with these challenges, and how they manage and operate
their transportation logistics systems.
Logistics Transportation Systems presents the above material in a format
that is easy to use and learn from. The text defines the terms, explains the
xviii Preface

concepts, illustrates concepts with visuals and graphics when possible,

demonstrates with analytical problems where possible, and provides critical
analysis throughout. Presenting the material this way allows students to
quickly grasp the concepts. Other key features of the text include:
G A wide variety of topics related to logistics and transportation systems
G Balanced topics among engineering design, economic analysis, and busi-
ness decisions
G Showing readers “how to apply” the logistics principles
G Contemporary issues such as reshoring and its impact on transportation
and economy
G Clear, real-world examples of logistics systems solutions for multiple
transportation modes, including seaports, rail, barge, road, pipelines, and
airports
G A wide range of business aspects, including customer service, cost, and
decision analysis
G Key-term definitions, concept overviews, discussions, and analytical
problem-solving
The textbook also comes with instructor resources such as PowerPoint
slides for all chapters and sample test questions and solutions and student
resources including MS Excel templates for easy-to-run analytical problems.
Author contact information for instructors adopting the book is also pro-
vided. Feedback for improving future editions is welcomed.

MD Sarder
msarder@bgsu.edu
Acknowledgments

I would like to express my sincere appreciation to numerous students and

graduate assistants of mine for their inspiration, feedback, and editing help. I
would like to thank Dr. Musarrat Jehan for her contribution to the
Automotive transportation logistics chapter and for encouraging me to finish
this book. I would also like to acknowledge and give credits to Shutterstocks
for the images used in this text. Credits also goes to several public agencies
such as US DOT, TRB, US Census Bureau, UNCTAD, etc., for providing
their publicly available data and graphics. I acknowledge and give credit to
Dr. Ronald Ballou. I shadowed his Business Logistics Management book for
several chapters covering business aspect of logistics.
I would like to acknowledge the support provided to me by CFIRE fund-
ing, my coresearchers, and Harry Moser (founder of reshoring.org) for the
Reshoring and its impact on transportation and economy—a US perspective
chapter.
Finally, I would like to thank the people to whom I owe the most my
family. They have sacrificed just as much, if not more, than I have during
my manuscript preparation. Thanks to my wife, Shimu, for her well-
organized management of our family. Thanks to my three daughters, Mariah,
Sarah, and Sawdah, for their love and inspiration. They had to be without
their daddy many nights while I was busy working on this book.
July 31, 2020

xix
Chapter 1

Overview of transportation
logistics
1.1 Introduction: what is transportation logistics?
What is transportation logistics? Broadly, it is the process of obtaining raw
materials, material handling and distributing products from the point of origin
to point of consumption with the help of transportation. Logistics is a subset
and an integral part of supply chain systems. Acquiring and transporting raw
materials and subsystems, inbound and outbound movements within the pro-
duction facilities, storing, loading and unloading, and getting the products to
customers is supply chain. Logistics then can be defined as the processes
involved in moving these materials in the supply chain. Transportation system
and distribution system are part of logistics system. Fig. 1.1 shows the rela-
tionship among all these concepts.
According to the Council of Supply Chain Management Professionals
(CSCMP), logistics management can be defined as “that part of supply chain
management that plans, implements, and controls the efficient, effective for-
ward and reverse flow and storage of goods, services, and related informa-
tion between the point of origin and the point of consumption in order to
meet customers’ requirements.” Logistics management typically includes
inbound and outbound transportation management, fleet management, ware-
housing, materials handling, order fulfillment, network design, inventory
management, supply/demand planning, and management of third-party ser-
vices providers. To varying degrees, logistics also includes sourcing and pro-
curement, production planning and scheduling, packaging and assembly, and
customer service.
The CSCMP defines supply chain management as the planning and man-
agement of all activities involved in sourcing and procurement, conversion,
and all logistics management activities. Importantly, it also includes coordi-
nation and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, sup-
ply chain management integrates supply and demand management within
and across companies. It includes all of the logistics management activities
noted above, as well as manufacturing operations, and it drives coordination

Logistics Transportation Systems. DOI: https://doi.org/10.1016/B978-0-12-815974-3.00001-0

© 2021 Elsevier Inc. All rights reserved. 1
2 Logistics Transportation Systems

FIGURE 1.1 Logistics and transportation systems within supply chain systems.

of processes and activities with and across marketing, sales, product design,
finance, and information technology.
Logistics involves planning, implementing, and controlling of efficient
and effective forward and reverse flow. Logistics also involves storing of
goods from the source of production to the destination of consumption to ful-
fill consumers’ requirements. The popular concept of seven Rs in logistics
refers to getting the right product in the right quantity in the right condition
at the right place at the right time to the right recipient at the right price.
When an order is placed, and a product needs to be delivered from one
place to another, there are four major components involved in the process:
physical flow of the product, information flow related to the process, pro-
cesses involved in the delivery and shipment, and roles and responsibilities
of appropriate personnel. In this book, we will focus on the physical flow of
the product and everything associated with the flow.
In the current state of our global market, logistics managers play a key
role for companies as they bring their merchandise from source to market.
The merchandise may be physical products such as food, medicine, furniture,
and toys or it can be services such as information technology. For many
companies, the transportation of goods from production to end user constitu-
tes up to two thirds of total costs associated with a particular item. This is
because the logistics management of physical products requires integration
of several elements such as planning and implementation, information flow,
material handling, product fabrication, packaging of the final product, stor-
age and inventory control, warehousing, and transporting the final product to
the consumer. Logistics management is a crucial part of supply chain man-
agement as it ensures the efficient and effective movement of goods through
the supply chain. Logistics plays a critical role in determining the overall
 Overview of transportation logistics Chapter | 1 3

cost of delivering a product to the market, it generates significant revenues

for companies and firms around the globe.
According to the North American Transportation Statistics Database, more
than 3 trillion metric tons of freight was transported domestically throughout
the United States in 2010. The massive shipments of freight represent a large
portion of the global economy. Freight shipments is how the world moves its
money. “On a typical day in 2007, over 35.7 million tons of goods, valued at
$32.4 billion, moved nearly 9.6 billion ton-miles on the nation’s transportation
network” (US Department of Transportation, 2008). Over the years, there has
been a significant increase in the miles traveled. In 2016, over 3.2 trillion
miles were traveled on roads, moving both people and goods across the nation
(2017 Infrastructure Report Card, 2018). Of these freight shipments more than
90% were shipped using a single mode of transportation and the remaining
was shipped using two or more modes of transportation (US Department of
Transportation, 2008). In 2010, the United States exported trillions worth of
merchandise all over the world (US Department of Transportation, 2009a,b).
The transportation and transportation-related service industries employed 12
million Americans alone in 2009, which constitutes 9.3% of the total labor
pool (US Department of Transportation, 2010) These numbers are staggering
but not surprising when you consider the diversity of the logistics field.
There are five major modes of transportation—air, rail, road, maritime,
and pipeline—and each of these modes of transportation must have a number
of employees directly working on transportation operations and additional
employees of service companies that provide other services directly related
to these same operations, such as maintenance. These logistics service per-
sonnel play a pivotal role in ensuring that fleet operations are efficient. This
can be a bit complicated when you consider that in 2009 there were more
than 1 million freight cars and locomotives as well more than 40,000 barges
or ocean-going ships using the US transportation system (US Department of
Transportation, 2010). These numbers only consider the US transportation
system. If you expand the scope to the global logistics transportation system
you will begin to understand why logistics management is a growing field.
The management and improvement of global logistics transportation systems
will be a challenge for future logisticians because we must improve the effi-
ciency of our given system while at the same time ensuring that growth is
managed properly and effectively. Table 1.1 provides examples of the physi-
cal infrastructure found around the world in 15 countries.

1.2 The importance of transportation systems

Transportation systems can have both positive and negative societal, environ-
mental, and economic impacts. All of these impacts should be critically ana-
lyzed in the systems processes. As our population continues to grow, so
does the demand for products, which therefore increases the need for
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as in the original. Some translations are poor or incorrect but have been retained as in the
original, except as noted in the list below.
The corrections listed in the Errata have been made except where the Errata entry is itself
incorrect. Other obvious printer or spelling errors have been corrected without note.
Archaic English and Scottish spellings have been retained as in the original.
The following substantive errors have been retained as in the original:
p. 13, maxim 7 - "not valid" should be "valid."
p. 18, maxim 5 - "Catella" should be "Catalla"; "A little whelp, (perhaps cattle)" should be
"Chattels."
p. 21, maxim 7 - "Condictio" should be "Conditio"; "The appointment of an action for a
certain day" should be "A condition."
p. 22, maxim 2 - "Condictio præcedens" should be "Conditio præcedens"; "The
appointment of an action preceding" should be "The fulfillment of a condition precedent."
p. 29, maxim 8 - "lex volentes" should be "lex nolentes"; "law draws those who are willing"
should be "law draws those who are unwilling."
p. 54, maxim 5 - The Errata indicate that "three witnesses may be brought" should be in
the translation, but that is not supported by the Latin, which is correct as is and says
nothing about witnesses.
p. 62, maxim 7 - "est alleganda" should be "non est allegenda"; "to be alleged" should be
"not to be alleged."
p. 80, maxim 3 - "casis" should be "cassis"; the translation should be "Law is the safest
helmet."
p. 139, maxim 2 - The Latin maxim should read, "Quemadmodum ad quæstionem facti
non respondent judices, ita ad quæstionem juris non respondent juratores"; the
translation should read, "As judges do not answer to questions of fact, jurors do not
answer to questions of law."
p. 151, maxim 3 - The Errata entry, "consensus," does not appear in the text of this
maxim.
*** END OF THE PROJECT GUTENBERG EBOOK A COLLECTION
OF LATIN MAXIMS & RULES, IN LAW AND EQUITY ***

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