Transcript Chapter 5 * International Trade and Freight

THE GEOGRAPHY OF
TRANSPORT
SYSTEMS Chapter 5 – International
THIRD EDITION
Trade and Freight Distribution
APPLICATIONS
Copyright © 1998-2015, Jean-Paul Rodrigue, Dept. of Global Studies & Geography,
Hofstra University, Hempstead, NY, 11549 USA.
[email protected]
You may use the figures within for educational purposes only. No modification or
redistribution permitted.
For more information: http://people.hofstra.edu/geotrans
Usage Conditions
• DO NOT COPY, TRANSLATE OR REDISTRIBUTE THIS DOCUMENT.
• The contents of this document can be freely used for personal or classroom use ONLY.
• Although the material contained in this document is freely available, it is not public domain. Its contents, in whole or in
part (including graphics and datasets), cannot be copied and published in ANY form (printed or electronic) without
consent.
• If you have accessed this document through a third party (such as a content farm), keep in mind that this party is
illegally redistributing this content. Please refer to the true source (http://people.hofstra.edu/geotrans) instead of
the third party.
• Permission to use any graphic material herein in any form of publication, such as an article, a book or a conference
presentation, on any media must be requested prior to use.
• Information cited from this document should be referred as: Rodrigue, J-P et al. (2013) The Geography of Transport
Systems, Hofstra University, Department of Global Studies & Geography, http://people.hofstra.edu/geotrans.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
THE GEOGRAPHY OF
TRANSPORT
SYSTEMS
UPS: Logistical Management of
Distribution Networks
THIRD EDITION
Application 2
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Market Share of Domestic US Ground Parcel Deliveries, 2006
18.3%
UPS
14.9%
FedEx
USPS
DHL
2.9%
61.1%
Others
2.8%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Market Share of Domestic US Air Parcel Deliveries, 2006
Deferred
25.9
Overnight
21.8
40.6
33.8
0%
42.2
20%
40%
UPS
FedEx
13.3
60%
USPS
DHL
8.4
80%
6
100%
Others
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Hub-and-Spoke Structure of Parcel Carriers
Destination
Origin
Route
(collect)
Consolidation
Spoke
Hub
Distribution
Route
(delivery)
Fragmentation
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Hubs of Major Air Freight Integrators
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Order-Delivery Sequence of an Apple iPad
Order placed
online
Order Fulfillment (Cycle time of 12 days 18hrs 08min)
Order processed
3hrs 34min
Shipment notification
12 days 15hrs 34min
Note: Path is approximate
Consolidation (Shenzhen/HK)
2hrs 45min
4hrs 23min
7hrs 34min
Transfer (Anchorage)
17hrs 04min
1hr 57min
1hr 22min
Deconsolidation (NY Metro)
6hrs 03min
4hrs 00min
1hr 11min
2hrs 48min
At Anchorage hub
Left Anchorage hub
Shipment notification
Left Newark hub
Leaving local DC
At
Hong
Kong
hub
At
Newark
hub
At local DC
Cleared customs
Shipment picked up
Delivered
Delivery (Lead time of 48hrs 11min)
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Order-Delivery Sequence of an Apple iPad
Action
Location
Date - Time (EST)
Duration
Order placed online
NA
25/07/10 – 11:52PM
Order processed
NA
26/07/10 – 3:26AM
3hrs 34min
Shipment notification
NA
3/8/10 – 8:10PM
12days 15hrs 34min
Shipment picked up at supplier DC
Shenzhen, China
3/8/10 – 10:55PM
2hrs 45min
Left local FedEx DC
Shenzhen, China
4/8/10 – 3:18AM
4hrs 23min
At Hong Kong hub
Hong Kong, China
4/8/10 – 11:52AM
7hrs 34min
At Anchorage hub
Anchorage, AK, USA
5/8/10 – 4:56PM
17hrs 04min
Cleared customs
Anchorage, AK, USA
5/8/10 – 6:53PM
1hr 57min
Left Anchorage hub
Anchorage, AK, USA
5/8/10 – 8:15PM
1hr 22min
At Newark hub
Newark, NJ, USA
6/8/10 – 2:18AM
6hrs 3min
Left Newark hub
Newark, NJ, USA
8/8/10 – 6:18AM
4hrs 0min
At local FedEx DC
Moonachie, NJ, USA
8/8/10 – 7:29AM
1hr 11min
Delivered
Fort Lee, NJ, USA
8/8/10 – 10:17AM
2hr 48min
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
THE GEOGRAPHY OF
TRANSPORT
SYSTEMS
The Repositioning of Empty
Containers
THIRD EDITION
Application 3
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main Container Leasing Companies
Amphibious Container Leasing Ltd. (AMFICON)
CAI International, Inc. (CAI)
Capital Intermodal
Cronos Containers Ltd.
Flexi-Van Leasing Inc.
Florens Container Services (U.S.) Ltd.
Gold Container Corp.
GE SeaCo SRL
Textainer Equipment Management (U.S.) Ltd.
Seacastle Container Leasing
TAL International Container Corporation
Trac Lease Inc.
Triton Container International Ltd.
NA
668,000 TEU (2006)
NA
NA
NA
NA
400,000 TEU (2007)
950,000 TEU (2008)
2,000,000 TEU (2008)
976,000 TEU (2008)
1,187,000 TEU (2008)
NA
NA
www.amficon.com
www.capps.com
www.capital-intermodal.com
www.cronos.com
www.flexi-van.com
www.florens.com
www.touax.com
www.geseaco.com
www.textainer.com
www.seacastleinc.com
www.tradexonline.com
www.interpool.com
www.tritoncontainer.com
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Leased Container Fleet Size, 2009
Container
Number of Units
%
Total TEUs
%
20 Foot Standard
3,093,918
44.3%
3,093,918
28.9%
40 Foot Standard
1,094,406
15.7%
2,185,812
20.4%
40 Foot High Cube
2,172,058
31.2%
4,344,116
40.6%
Others
616,781
8.8%
1,075,807
10.1%
Total
6,977,163
100%
10,699,653
100%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Leased Container Fleet Size, 2008
Container
Number of Units
%
Total TEUs
%
20 Foot Standard
2,645,849
42.6%
2,645,849
27.6%
40 Foot Standard
1,035,850
16.7%
2,071,700
21.6%
40 Foot High Cube
1,949,752
31.4%
3,898,964
40.7%
Others
578,235
9.3%
965,768
10.1%
Total
6,209,686
100%
9,582,281
100%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Composition of the Leased Container Fleet, 2008-10
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Units (2008)
TEU (2008)
20 Foot Standard
Units (2009)
TEU (2009)
40 Foot Standard
40 Foot High Cube
Units (2010)
TEU (2010)
Others
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
World Container Fleet Ownership (in thousand TEUs)
30,000
16,900
10,200
17,160
11,525
13,485
12,035
10,680
2003
9,850
2002
2005
2006
Sea Carrier Fleet
2007
2008
2009
9,380
2001
9,080
9,590
8,370
8,790
7,635
5,000
6,895
10,000
8,560
15,000
10,900
20,000
15,555
25,000
0
2004
Lessor Fleet
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Empty Containers Handled by Major Markets (in 1,000 TEUs)
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1980
1990
2002
2003
2004
Western Europe
North America
Africa
Middle East
Latin America
Australasia
Southeast Asia
South Asia
East Asia
Eastern Europe
2005
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Age of Marine and Domestic Chassis Fleet, United States
40
35
30
25
Domestic
20
International
15
10
5
0
> 2007
2003-2007
1997-2001
1991-1996
1986-1990
< 1985
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Characteristics of Container Leasing Arrangements
Lease Type
Duration
Repositioning
Other Arrangements
Leasing Company
Maintenance &
Repair
Leasing Company
Master Lease
Short to medium term
Long Term
Lease
Short term
Lease
5 to 8 years
Lessee
Lessee
•
•
Short period / trip /
round trip
Lessee
Lessee
•
•
•
Variable number of containers (min/max)
Variable lease duration
On hire and off hire credits/debits
(depending on location and equipment
condition)
Fixed number of containers
Predetermined delivery schedule
_
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Cargo Rotation
Port
B
Inland location with
Exports >> imports
Empties
Inland location with
Imports >> exports
A
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Asymmetries between Import and Export-Based Containerized Logistics
Import-Based
Gateway
Inland
Terminal
Distribution Customer
Center
Many Customers
•Function of population density.
•Geographical spread.
•Incites transloading.
•High priority (value, timeliness).
Repositioning
Supplier
Few Suppliers
•Function of resource density.
•Geographical concentration.
•Lower priority.
•Depends on repositioning
opportunities.
Export-Based
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Container Repositioning using an Empty Container Depot
Empty Repositioning
& Full Delivery
Consignee
Full Delivery
Trade Flows
Global Maritime
Container Shipping
Network
Port
Terminal
Global
Repositioning
Empty Delivery
Empty Repositioning
Empty
Depots
Sold out of
Network
Regional Intermodal
Transportation
Network
Full Delivery
Consigner
Empty Delivery
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Inland Containerized Flows and Inland Ports
Standard
Expanded
Port
Port
Terminal
A
Importer
Shuttles
Inland Port
/ Depot
B
C
Exporter
Importer
Exporter
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Geographical Levels of Empty Container Repositioning
Hinterland
Regional
Repositioning
Inter-Regional
Repositioning
(coastal / fluvial)
Foreland
Port
Depot / Inland terminal
Freight Distribution Center
Cargo Rotation
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Imbalances and Container Repositioning Strategies
Container manufacturing costs
High limit of feasible actions
Unit Repositioning Costs
High imbalance
Repositioning not
economically feasible
International
(Overseas repositioning)
Regional
Local
(Empty interchange)
(Intermodal
repositioning)
Repositioning not
considered a problem
Low imbalance
Repositioning Distance (TEU – KM)
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Empty Container Depot
Storage
Accommodate container storage demand.
Storage before reutilization and repositioning.
Container exchange market between different supply chains (neutral location).
Terminal extension
Flexibility in opening hours and gate access.
Shuttles between the terminal (port or rail) and the depot.
Buffer for the terminal (reduce congestion).
Favorable location
Closer to main freight distribution activities (periphery).
Reduce the frequency and distance of repositioning (cargo rotation).
Better response to freight distribution requirements.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
THE GEOGRAPHY OF
TRANSPORT
SYSTEMS
Commodity Chain Analysis
THIRD EDITION
Application 4
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Agri-food Supply Chain
INPUTS
Chemical companies
Stages and Actors in Europe
Seed companies
Farmers / producers
3,200,000
Second tier suppliers
PRODUCTION
160,000
First tier suppliers
Agricultural production
80,000
Manufacturers
8,600
Buying desks
PROCESSING
Fresh food processing
Supermarket chains
Manufacturing / processing
DELIVERY
Retail
110
Catering
600
Retail outlets
170,000
Customers
89,000,000
Consumers
160,000,000
1
1,000
1,000,000 1,000,000,000
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Breakdown of a $299 iPod US Retail Price, 2005
$85
$19
$27
$40
$75
$7
$80
$5
$1
Apple (Margin)
Distribution and Retail
Major Components
Other Inputs
Japan (Margin)
USA (Margin)
Taiwan (Margin)
Korea (Margin)
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Value of an iPhone 3G Components and Labor, 2009
Total: $178.96
27%
34%
3%
6%
13%
Japan
Germany
South Korea
United States
China
Other
17%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Costs of a Shoe Sold $100 in the United States and Made in China
0.4%
8.0%
1.6%
2.0%
5.0%
Wages
Materiel
Other production costs
Profit
11.0%
50.0%
Transport and taxes
Research
Publicity
8.5%
Profit
Retail Store
13.5%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main Distribution Centers of TJ Maxx in the United States
Seattle / Tacoma
Worcester
Pittston
Oakland Las Vegas
Evansville
Charlotte
LA / LB
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
THE GEOGRAPHY OF
TRANSPORT
SYSTEMS
The Cold Chain
THIRD EDITION
Application 5
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Elements of the Cold Chain
Process
Load integrity
Conditional
demand
Product
Technology
Distribution
Origin /
Destination
Transport
integrity
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Operational Conditions of Cold Chain Logistics
Conditional demand
• Each product has a specific perishability.
• Shelf life and revenue.
• Demand conditional to qualitative attributes.
Load integrity
• Reefers as the common load unit.
• Packing, packaging and preparation.
• Empty backhauls.
Transport integrity
• Uninterrupted integrity of the transport chain (modes, terminals and
distribution centers).
• Specialized modes (speed) and terminals.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Cold Chain Technology
Dimension
Preparation / Packaging
Blast freezers, Insulated containers, Vacuum packing. Crates, Perforated plastic
containers, Perforated boxes
Storage
Refrigerated warehouses, Refrigerated distribution centers. Loading / Unloading bays.
Transport
Refrigerated trucks, Refrigerated railcars, Refrigerated ships, Reefers. Reefer clips. Rail
gensets. Refrigerated bins. Refrigerated unit load devices. Source loading.
Terminals
Reefer storage areas.
Monitoring
Sensors. Monitors (e.g. Partlow recorders).
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Cold Chain Technology
Monitoring
Fabrication
Storage
Preparation methods
Warehousing
Distribution center
Reefer storage
Terminal
Transport
Packing
Reefers
Power generators
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Availability of Fresh Produce by Season and Region
JAN
Apples
FEB
MAR
APR
MAY
JUN
AUG
Argentina
Chile
Peru
Avocados
OCT
NOV
DEC
United States
United States
Australia
Peru
Mexico
Bananas
Pineapples
SEP
Chile
New Zealand
Citrus
Chile
Ecuador, Costa Rica, Colombia
Costa Rica, Ecuador, Philippines
Chile
Grapes
JUL
Peru
Mexico
United States
Brazil
Chile
Peru
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Temperature Integrity along a Cold Chain
Origin (Loading)
Destination (Unloading)
Cold Storage Facility
Transport
Unloading – Warehousing – Loading
Transport
Temperature
Potential integrity breach
Temperature Range
Potential integrity breach
Time
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Temperature Standards for the Cold Chain
"Banana"
Pharmaceutical
Chill
Frozen
Deep Freeze
-30
-25
-20
-15
-10
-5
Degrees Celcius
0
5
10
15
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Temperature Requirements for the Cold Chain Transport of Some Commodities
Potatoes
Coffee
Bananas
Oranges
Lettuce
Frozen Fish
Frozen Meat
-30
-25
-20
-15
-10
-5
0
5
10
15
20
Degrees Celcius
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Shelf Life of Selected Perishable Food Products
Product
Shelf Life (Days)
Optimum Temperature (Celsius)
Apples
90-240
0
Bananas
7-28
13.5
Bell Peppers
21-35
7
Cabbage
14-20
1
Eggs
180
1.1
Onions
30-180
1
Lettuce
12-14
0.6
Fresh Meat (beef, lamb, pork, poultry)
14-65
-2
Oranges
21-90
7
Pears
120-180
-0.6
Potatoes
30-50
10
Seafood (shrimp, lobster, crab)
120-360
-17.8
Strawberries
5-10
0.6
Tomatoes
7-14
12
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Lettuce Shelf Life by Storage Temperature
14
12
Shelf Life (Days)
10
8
6
4
2
0
0
5
10
15
20
25
Temperature (Celsius)
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Preponderance of Fresh and Frozen Cargo by Transport Mode
Global Fresh / Frozen Share in Air
Cargo
Global Fresh / Frozen Share in Maritime
Cargo
4
37
63
96
Frozen
Fresh
Frozen
Fresh
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Share of Refrigerated Transport Capacity in Maritime Shipping
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1980
1990
2000
Reefers
2010
2013
Refrigerated ships
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Seaborne Reefer Trade, 2008
14%
20%
3%
7%
24%
10%
Bananas
Citrus
Deciduous
Exotics
Fish & Seafood
Meat
Dairy
Other
3%
19%
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Reefer Slots Available at North American Ports
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main Reefer Import and Export Ports in the United States, 2010
Reefer Exports
Reefer Imports
Others
2,194,208
Others
2,983,761
New York
433,135
Houston
399,187
Houston
448,717
San Diego
441,283
Norkfolk
457,445
Miami
481,239
Tacoma
652,055
Long Beach
633,232
Jacksonville
654,827
Gulfport
677,490
Philadelphia
783,611
Long Beach
807,342
Savannah
Port Everglades
1,100,997
Los Angeles
Los Angeles
1,271,453
Oakland
1,000,000
2,000,000
Tons
1,236,202
New York
1,710,378
0
1,087,055
Wilmington
1,451,162
Seattle
841,252
3,000,000
2,107,250
0
1,000,000
2,000,000
3,000,000
Tons
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Reefers Imports and Exports by the Port of New York / New Jersey by Commodity (in
TEUs)
Reefer Imports
Reefer Exports
Other
Other
Bread & cereals
Berries
Sugar
Fruit
Mandarin oranges
Cheese
Cheese
Frozen fish
Frozen Fish
Poultry
Bananas
Foodstuffs
Shrimp
Candy & confections
Fruit
Vegetables
Candy & confection
Milk, eggs & dairy
Vegetables
Meat
0
10,000 20,000 30,000 40,000
2009
2010
0
10,000 20,000 30,000 40,000
2009
2010
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main American Banana Import Ports, 2011
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Reefers and Source Loading in the Chilled Meat Cold Chain
Cold Transport Chain
Transit Time (days)
Typical Shelf Life (days)
Refrigerated truck / Cold-storage facility transloading / Air
4-5
30-35
Refrigerated truck / Cold-storage facility transloading /
Maritime shipping
15-16
30-35
Source loading with Reefer / Maritime shipping
15-16
55-60
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Amount of Dry Ice Required for Packing Frozen Food in a Well Insulated Container
50
Required dry ice (pounds)
45
40
35
30
25
20
15
10
5
0
0
5
10
15
20
25
30
35
40
45
50
Transit time (hours)
2 lbs
5 lbs
10 lbs
20 lbs
50 lbs
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Income per Capita and Perishable Share of Food Imports
$40,000
$35,000
Income per Capita
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
0
5
10
15
20
25
Perishable Share of Food Imports
30
35
40
45
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Containerization, Cold Chains and the Flexibility of Supply Chains
Fishing
Freezing
Scotland
Maturation in warehouse
(3 weeks)
Manual peeling
Processing
Packaging
Packaging
UK
Processing
Distribution
Reefer (3 weeks)
Distribution
Thailand
Mechanical peeling
Scotland
Fishing
Maturation (3 weeks)
Extraction
Transformation
Transport
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Fresh Flowers Cold Chain, Ecuador-United States
Process
Post-harvest on farm, Ecuador
Storage on farm
Transportation to cargo agencies
Storage at cargo agency
Palletizing, Quito
Customs clearance, Quito
Loading to aircraft, Quito
Flight UIO-MIA nonstop
Customs clearance, Miami
De-palletizing, Miami
Storage at cargo agency, Miami
Transportation to U.S. retailer
Time
4 - 8 hours
12 - 72 hours
1 - 6 hours
4 hours
6 hours
0.5 hour
1 - 2 hours
4 hours
4 - 12 hours
2 - 4 hours
4 - 72 hours
2 hours - 5 days
Quality Deterioration
Medium
Low - Medium
Medium
Low
Medium - High
Low
Medium – High
High
Low
High
Low - Medium
Medium
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Large Scale Grocery Cold Chain Distribution Center
Suppliers
Inbound
Ambient (20 °C)
‘Banana’ (10 °C)
Storage / Sorting
Chilled (2 °C)
Freeze (-10 °C)
Outbound
Customers
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
World’s Largest Public Refrigerated Warehouse Operators, 2009
AB Oxford Cold Storage Pty Ltd.
Frialsa Frigorificos S.A. De C.V.
Bring Frigoscandia
Henningsen Cold Storage Co.
Richmond Cold Storage Company
Gruppo Marconi Logistica Integrata
Total Logistic Control, LLC
Cloverleaf Cold Storage Co.
Columbia Colstor, Inc.
Nordic Cold Storage, LLC
MUK Logistik GmbH
Interstate Warehousing, Inc.
Burris Refrigerated Logistics
Castle & Cooke Cold Storage
Nichirei Logistics Group, Inc.
Preferred Freezer Services
Swire Cold Storage / United States Cold…
Millard Refrigerated Services
VersaCold
AmeriCold Logistics LLC
0
200,000,000
400,000,000
600,000,000
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
North America’s Largest Public Refrigerated Warehouse Operators, 2014
Allied Frozen Storage, Inc.
Interstate Cold Storage, Inc.
Brookfield Cold Storage
Zero Mountain, Inc.
Confederation Freezers
Trenton Cold Storage, Inc.
Conestoga Cold Storage
Hanson Logistics
Congébec Logistics, Inc.
Frialsa Frigorificos S.A. de C.V.
Columbia Colstor, Inc.
Henningsen Cold Storage Co.
Nordic Logistics and Warehousing, LLC
Burris Logistics
Cloverleaf Cold Storage Co.
Interstate Warehousing, Inc.
VersaCold Logistics Services
United States Cold Storage
Preferred Freezer Services
Lineage Logistics
AmeriCold Logistics LLC
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
Square Footage
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Reefer Cold Chains: Import Channels
Transloading
• Typical of groceries.
• Reefer brought to refrigerated transloading facility.
• Contents placed on domestic reefers and brought to DC.
• Maritime reefers brought back to port terminal (or depot).
• Cross-docked at DC; orders built to specific grocery stores.
Direct Transit
• Reefer brought directly to DC by truck or rail (long distances and less common).
• Reefer repositioned to port terminal (more common) or directly to exporter (less
common).
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Reefer Cold Chains: Export Channels
Domestic Reefer Haul
• Domestic reefer trucked to transloading facility near port.
• Contents loaded into reefers and brought to port.
Empty Haul/ Full Backhaul
• Empty reefer brought from port to exporter.
• Source loaded and brought back to port.
• Dominated by truck hauls.
Repositioning Haul
• Empty reefer repositioned (local / regional) to exporter.
• Source loaded and brought back to port.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
THE GEOGRAPHY OF
TRANSPORT
SYSTEMS
Logistics Zones
THIRD EDITION
Application 6
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
The Benefits of Logistics Improvements
Improvements
Infrastructures
Human Resources
Operations
Supply chain integration
Lower costs (imports &
exports)
Transport assets
utilization
Employment
opportunities
Outcomes
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Taxonomy of Logistics Clusters
Modal Orientation
Port
• Port, Airport, Rail.
Port-Centric
• International, Regional, Urban.
Airport
Corridor
Geographical Scope
Airport centric
Function
• Customs and taxation, Single
commodity, Special services.
Industrial Park
Inland Port
Logistics Park
Intermodal
Rail
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Functional Integration of Freight Clusters
Scope
Logistic Pole
FTZ
Logistic Cluster
Logistic Zone
Distribution center
Terminal / Depot
Port
Scale
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
A Typology of Logistics Zones
FV
Portcentric
Co-location (port / logistic park)
Inventory management and security
Port authorities the key actors
Supported by satellite terminals
Intermodal
Terminal
Port
Co-location (inland terminal / logistic park)
Hinterland integration and massification
Import and export platform (load center)
Inland
Port
FV
Land for logistics with agglomeration economies
Proximity to an intermodal terminal
Variety of private or public actors
Logistics
Park
FV
Intermodal Corridor
Drayage
Freight
Village
(FV)
Service and transactional dimensions of freight
distribution
Office space, hotels, convention centers
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Port Centric Logistics
Second Tier
First Tier
Port Terminal
Imports
Exports
Transshipment
Storing (Full)
Stuffing
Storing (in terminal)
De-stuffing
Transloading
Distribution
Storing (Full + Empties)
Repositioning
Port Cargo Logistics
Warehousing
Manufacturing / Commodities
Port-Related Production and Distribution
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main Advantages of Port-Centric Logistics Zones
Factor
Advantages
Land
Availability of land and labor.
Co-location.
Drayage
Direct access to terminal gates.
Little / no congestion.
Short distances.
Container assets
Direct transloading.
Limited dwell time.
Fast repositioning of empties.
Mitigate land weight restrictions.
Supply chain management
Lower lead times.
Less inventory.
Direct deliveries to customers.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Main Governance Paradigms of Logistics Zones
Model
Characteristics
Implications
Single Ownership
A public or a private actor entirely
responsible for the development and the
operations.
Single vision and conformity to a specific
role.
Potential lack of flexibility in view to changes (single
mandate).
Potential conflicts with surrounding communities.
Public – Private
Partnership
Help combine public planning of
infrastructures with private operational
expertise.
Public (local) interests represented.
Tendency to prioritize public interests over private
interests.
Landlord Model
Public ownership and private operations (a Managerial flexibility between the owner, the site
form of PPP).
manager and the operators.
Long term concession agreements.
Most of the risk assumed by private operators.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Economic Benefits and Costs of Logistic Zones
Economic Benefits
Economic Costs








Employment creation (direct, indirect, induced).
Attracting capital investment.
Increased distribution efficiency and lower costs to
consumers.
Innovation in industry (practices).
Increased trade and cross-border traffic.
Reduced congestion and emissions.


Opportunity cost of public fund usage.
Loss of economic opportunities (redundant businesses
shut down).
Additional burden on taxpayers.
Negative community impacts.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Operational Advantages of Foreign Trade Zones
Custom Clearance
Done inland instead of at the gateway port.
Simpler and faster.
Higher security level (lower insurance rates).
Consignment can stay for an unlimited amount of time in the FTZ.
Consignee gets further advance notice that shipment is ready.
Quotas can be managed through postponement.
Duties
Duties and merchandise processing fee not paid until the consignment is released and moved out of the
FTZ (storage).
Not paid if goods are exported or re-exported.
Deferred if goods moved to another FTZ.
Not paid for damaged, defective or obsolete goods.
Lower insurance rates since no duties.
If transformation is performed in the FTZ, the duty class may change (Select the taxation regime).
Settlement
Vendors often not paid until consignments leave the facility for delivery (Delay settlement).
Remove damaged or defective products from the settlement.
Copyright © 1999-2012, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Logistics Zones: Freight Services
Type of Service
Rail services
Trucking services
Loading / consolidation
Unloading / deconsolidation
Transloading / crossdocking
Warehousing
Bonded warehousing
Container and chassis depot
Container and chassis
maintenance
Equipment maintenance
Fabrication
Cold chain
Recycling
Description
Long distance rail transportation for suppliers and customers. Commonly involve a co-located intermodal terminal.
Drayage and long distance truck services for suppliers and customers. Shuttles to nearby rail and maritime terminals.
Packing, palletizing, stuffing of cargo into containers or trailers. Cargo consolidation from multiple suppliers. Mostly
linked to exports.
Unpacking, de-palletizing, and de-stuffing of cargo in distribution centers. Mostly linked to imports.
Transfer from one cargo unit to another, such as a maritime container into a domestic container (or vice-versa).
Crossdocking implies the transfer of truckloads, including changes in the composition of loads of each transport unit with
minimal and short duration warehousing.
Standard function protecting the integrity of cargo units (e.g. damage, theft) while waiting to be released to customers.
Cargo waiting to be released by customs. If part of a free trade zone, cargo can be transformed for re-export.
Empty container storage waiting to be used. Transfer custody of containers between shippers. Consolidation center for
containers used by maritime and rail terminals. Chassis pools.
Container preparation and inspection before usage. Container cleaning and repair. Chassis inspection and repair.
Important for the container and chassis location industry.
Maintenance of vehicles and intermodal equipment.
Light manufacturing activities often undertaken at the distribution center. Include labeling, assembly, testing and quality
control. Can also include the bagging of bulk cargo. Provides added value.
Activities maintaining the thermal integrity of cargo. Includes temperature-controlled warehousing but also preparation,
transformation and inspection.
“Green logistics” activities. Returns of defective or discarded merchandises. Recycling of components used in freight
distribution, such as boxes.
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Logistics Zones: Corporate Services
Type of Service
Office space
Customs clearance
Description
Provision and location of office space to fill the management needs of logistics activities, such as the activities below.
Availability of custom officers to support the custom clearance process. Services supporting compliance to custom
procedures for imports and exports.
Site integrity (e.g. access). Important if there is a free trade zone or custom activities.
Security
General activities related to cleaning, garbage collection as well as technical maintenance such as utilities.
Site maintenance
Support the high transactional level of logistical activities.
Parcel services
Certification and quality control Certifying and benchmarking agencies to insure that users meet recognized criteria.
Expert assessment in cargo losses and damages. Specialized laboratories.
Cargo inspection
Sale and location of logistical equipment, such as racks, fork lifts, conveyors, etc. Maintenance of this equipment.
Logistics equipment location
Availability of maritime and domestic containers for export and import activities. Availability of chassis.
Container and chassis location
Activities promoting exports such as certification, financing and marketing.
Export facilitation
Uniforms, work equipment (e.g. gloves), wraps, labels, boxes, security equipment (fire extinguishers), etc.
Work supplies
Supplying temporary workers to cope with fluctuations in the demand.
Temporary workers agencies
Sale and rental of office equipment and supplies.
Office supplies
Sale and rental of computers, telecommunication equipment and software. IT network setting and management.
IT equipment
Personnel management from recruiting to payroll. Labor training and certification.
Human resources
Management of transactions and finances.
Accounting
Insurance and financial services Variety of insurance products for people and merchandises. Activities facilitating commercial transactions at the
national and international levels (e.g. letters of credit).
Expertise for contract redaction and commercial dispute resolution.
Legal services
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Logistics Zones: Personal Services
Type of Service
Hospitality
Restoration
Personal services
Description
Availability of hotel and meeting facilities to support the transactional intensity of logistics zones. Extended stay
facilities. Overnight facilities for truckers.
Availability of restaurants for workers and truckers. Lounges for short term relaxation and informal meetings.
Array of services for workers (e.g. convenience store, hair salon, sports club, daycare, clinic, postal services, etc.)
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Advantages of Logistic Zones
Geographical Advantages
Land
Availability (ownership or zoning).
Lower acquisition (or renting) costs.
Preferential taxation.
Accessibility
Proximity to terminals and customers (for imports or exports).
Lower distribution costs (distance).
An important regional market. Site accessibly 24/7.
Infrastructures
Provision of basic utilities and roads.
Leasing of warehousing space and equipment.
Anchor tenants
Long term relationship with at least one major player in logistics (e.g. “Big Box” retailer).
Operational Advantages
Planning and regulations
“Fast track” (construction and operation).
Additional infrastructure (development phases).
Compliance to safety, security and environmental regulations.
Foreign trade zone status.
Economies of agglomeration
Lower distribution costs (scale); shuttles to terminals. More FTL.
Shared services (labor, transloading, telecommunications).
Internal multiplying factors
Diffusion of best practices.
Labor training (managerial, technical).
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Value-added Activities Performed at Freight Distribution Clusters
Freight Distribution Cluster
Inventory Management
Inspection / Testing
Pickup
Suppliers
Warehousing
Terminal
Terminal
Transloading
Packing / Packaging
Labeling / RFID
Assembly / Customizing
Reverse Distribution
Delivery
Customers
Specialized Storage
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Kansas City Smartport: The Regionalization of Logistics
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.
Distribution of the Size of Logistics Zones
More than 2,500
N=105
Average size: 435 hectares
Median size: 130 hectares
1,500 to 2,500
800 to 1,500
400 to 800
200 to 400
100 to 200
50 to 100
25 to 50
Less than 25
0
5
10
15
20
25
Hectares
Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & 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.