Supply Chain Logistics Management

Freight Transportation

RegulationProf. Goodchild

CEE 587

Supply Chain Logistics Management

Transportation Participants

I need something shipped at the lowest possible

cost!

Supply Chain Logistics Management

Transportation Participants

I need something delivered at the lowest possible

cost!

I need something shipped at the lowest possible

cost!

Supply Chain Logistics Management

Transportation Participants

Carriers: We have the equipment!

Supply Chain Logistics Management

Transportation Participants

Carriers – we can find a shipper!

Shippers – we can find a carrier!

Supply Chain Logistics Management

Transportation Participants

the transportation system is vital for the country’s economic

health

Supply Chain Logistics Management

Transportation Participants

purchase fuel, transportation

equipment, supplies

Supply Chain Logistics Management

Transportation Participants

track shipments

purchase fuel, transportation

equipment, supplies

Supply Chain Logistics Management

Transportation Participants

match products needing to be shipped

with available capacity

purchase fuel, transportation

equipment, supplies

track shipments

Supply Chain Logistics Management

Transportation Participants

Creates demand for transportation

by purchasing products

Supply Chain Logistics Management

Economic

Types of Transportation Regulation

• Investments in transportation infrastructure (e.g., highways, airports, ports)

• Control of routes, pricing, schedules

Supply Chain Logistics Management

Economic

Types of Transportation Regulation

• Investments in transportation infrastructure (e.g., highways, airports, ports)

• Control of routes, pricing, schedules

Social/Safety• Protect the public, the environment

• Make sure equipment operates safely, cleanly • Safe transportation of hazardous materials (HAZMAT)• Regulating hours worked

Supply Chain Logistics Management

History of Transportation Regulation

• Pre-1920 – establish initial government control– Act to Regulate Commerce (1887)– Interstate Commerce Commission (ICC)

Supply Chain Logistics Management

History of Transportation Regulation

• 1920-1940 – regulatory formalization, extension to other transportation modes– Motor Carrier Act (1935)– Civil Aeronautics Act (1938)– Civil Aeronautics Board (1940)– Federal Aviation Administration (FAA)– National Aeronautics & Space

Administration (1951)

Supply Chain Logistics Management

History of Transportation Regulation

• 1940-1970– Regulation of water transportation by

ICC (1940)– Railroad Revitalization and Regulatory

Reform Act of 1976• AMTRAK• CONRAIL

Supply Chain Logistics Management

History of Transportation Regulation

• 1970-1980 – prelude to deregulation– Shift from regulation/control to fostering

competition– Department of Transportation (DOT)

1961– Airline Deregulation Act 1978

Supply Chain Logistics Management

History of Transportation Regulation

• 1980-2000 – deregulation– Motor Carrier Act 1980– Staggers (Rail) Act 1980– Interstate Commerce Commission (ICC)

abolished 1996– Ocean Shipping & Reform Act 1998

Supply Chain Logistics Management

History of Transportation Regulation

• 2000-Present – focus on technology, safety, and security– Patriot Act– Jones Act

Supply Chain Logistics ManagementCopyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.

Rail Track Mileage and Number of Class I Rail Carriers, United States, 1830-2005

0

50,000

100,000

150,000

200,000

250,000

300,000

1830 1850 1870 1890 1910 1930 1950 1970 1990

Mile

s of

trac

ks

0

20

40

60

80

100

120

140

160

180

200

Rai

l Car

riers

Rail Track Mileage

Class I Rail Carriers

Supply Chain Logistics ManagementCopyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.

Average Speed of Class I Railroads, 1945-2004

15

20

25

30

35

40

1945 1955 1965 1975 1985 1995 2005

Kilo

met

ers

per h

our

Supply Chain Logistics Management

Performance of Class I Railroads, 1964-2005

Copyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.

0

50

100

150

200

250

300

1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004

Inde

x 19

81 =

100

Productivity Volume Revenue Price