Mississauga, Ontario
MSP logistics offers complete delivery services solutions By Air, Land, Intermodal/Rail
Freight & Ocean, LTL or FTL To all across Canada, USA & Worldwide
MSP
Logistics is a Green Transportation Company committed to creating Sustainable Transportation
Solutions to protect the environment. We are dedicated to reducing our client's transportation costs
and carbon footprint by utilizing the efficiencies of existing fleets available and implementing
Sustainable Transportation Programs. By adapting a Green Sustainability Program we are not only
being environmentally responsible, we save money for our clients and ourselves.
Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier organizations
that offer transportation services on a for-hire or internal basis. The nature of the infrastructure
also determines a variety of legal and economic characteristics for each mode or multi-modal system.
A mode identifies the basic transportation method or form.
Since olden times, railroads have handled the largest number of ton-miles. As a result of the early
establishment of a comprehensive rail network connecting almost all the cities and towns, railways
dominated the intercity freight tonnage till World War II and in some cases of Europe, Asia and
Africa they even connected the countries. This early superiority enabled railways to transport large
shipments very economically.
The capability to efficiently transport large tonnage over
long distances is the main reason railroads continue to handle significant intercity tonnage and
revenue. Railroad operations incur high fixed costs because of expensive equipment, right-of-way
(railroads must maintain their own track), switching yards, and terminals. However, rail experiences
relatively low operating costs. The replacement of steam by diesel power reduced the railroads'
variable cost per ton-mile, and electrification offers potential for more reductions. New labor
agreements have reduced workforce requirements, further decreasing variable costs.
These
days' rail transport only focuses on transporting specific products, which are best, suited to the
requirement. Greatest railroad tonnage comes from raw material extractive industries located at
considerable distances. Despite problems, Rail fixed-variable costs are still superior for long
distances. Railroads basically concentrate on the container traffic and are becoming more responsive
of the customer needs, emphasizing bulk industries and heavy manufacturing.
They have
expanded their intermodal operations through alliances and motor carrier ownership. Railroads are
even concentrating on development of special equipment. There are unit trains which are entire train
carrying the same commodity, which are bulk products such as coal or grain. Unit trains are faster,
less expensive to operate and quick as it can bypass rail yards and go direct to the product's
destination.
There are also various different types, such as articulated cars for extended
Rail chassis, double-stack rail cars, have 2 levels of containers, thereby doubling the capacity of
each car. It also reduces chances of damage because of their design. These technologies have are
being applied by railroads to reduce weight, increase carrying capacity, and facilitate interchange.
Highway transportation has increased rapidly since the end of World War II. This is because Motor
carrier industry results from door-to-door operating flexibility and speed of intercity movement.
They are even flexible because they can operate on each and every kind of roadways.
In
comparison to railroads, motor carriers have relatively small fixed investments in terminal
facilities and operate on publicly maintained highways. Although the cost of license fees, user
fees, and tolls are considerable, these expenses are directly related to the number of over-the-road
units and miles operated.
The variable cost per mile for motor carriers is high because a
separate power unit and driver are required for each trailer or combination of tandem trailers.
Labor requirements are also high because of driver safety restrictions and the need for substantial
dock labor. Motor carriers are best suited to handle small shipments moving short
distances.
The characteristics of motor carriers favor manufacturing and distributive
trades, short distances, and high-value products. Motor carriers have made significant inroads into
rail traffic for medium and light manufacturing. This is also because of delivery flexibility, that
they have captured a major chunk of the market. In short, the prospect for maintaining a stable
market share in highway transport remains bright.
It is the oldest mode of transportation. First it was the sailing vessels, which was replaced by
steamboats in early 1800's and by diesel power in the 1920's.
Domestic water
transportation-involves the Great Lakes, canals, and navigable rivers. In every country, fewer
system miles exist for inland water than any other transportation mode.
The main advantage
of water transportation is the capacity to move extremely large shipments. Water transport employs 2
types of vessels. Deep-water vessels, which are generally designed for Ocean and Great Lakes use,
& are restricted to deep-water ports for access. In contrast, diesel-towed barges, which
generally operate on rivers and canals, have considerably more flexibility.
Water transport
ranks between rail and motor carrier in the fixed cost aspect. Although water carriers must develop
and operate their own terminals, the right-of-way is developed and maintained by the government and
results in moderate fixed costs as compared to railways and highways.
The main disadvantage
of water transport is the limited range of operation and speed. Unless the origin and destination
are adjacent, supplement haul by rail or truck is required. The capability to carry very high cargo
at an extremely low variable cost places this mode of transport in demand when low freight rates are
desired and speed of transit is a secondary consideration.
But, water transport on the
other hand isn't all that flexible. Labor restrictions on loading and unloading at docks create
operational problems and tend to reduce the potential range of available traffic. Also, a highly
competitive situation has developed between railroads and inland water carriers in areas where
parallel routes exist.
Great lakes are concentrating towards transportation of bulk
products while Deep-water vessels transport a significant high volume of non-bulk items.
Containerized cargo facilitates vessel loading and unloading and enhances intermodal capability by
increasing the efficiency of cargo transfer between highway, rail and water.
Inland and
great lakes will continue to be a viable option in future logistical systems while the slow passage
of inland river transport can provide a form of warehousing in transit integrated into overall
system design.
Air transport is the newest and the least utilized mode of transport. Its major advantage being its
speed, which is accompanied by high costs. A coast-to-coast shipment via air requires only a few
hours contrast to days taken by other mean of transportation. The high cost of transport can be
traded off for high speed, which allows other elements of logistical design, such as warehousing,
inventory to be reduced or eliminated. But still air transport remains more of a potential
opportunity than a reality because it is very much under utilized.
The high cost of jet
aircraft, coupled with erratic nature of freight demand, has limited the assignment of dedicated
planes to all-freight operations. However premium carriers provide planes dedicated for freight
operations. This premium service started off with documents and has moved onto large parcels, which
is an ideal service for firms with a large number of high-value products and time-sensitive service
requirements.
The fixed cost of air transport is low as compared to rails and water. In
fact, air transport ranks second only to highway with respect to low fixed cost. Airways and
airports are maintained by public funds and terminals are by local communities. The fixed costs of
airfreight are associated with aircraft purchase and the requirement for specialized handling
systems and cargo containers. But the air freight variable cost is extremely high as a result of
fuel, maintenance, and labor intensity of both in-flight and ground crews.
Since they
require wide-open space, airports are generally not integrated with other means of transport.
However more "all freight" airports are being developed so as to reduce conflict with passenger
operations.
No particular commodity dominates the traffic carried by airfreight operations.
These operations are carried more on emergency basis than routine basis. Firms usually utilize
scheduled or non-scheduled air cargo movements when the situation justifies high cost. Products with
greatest potential for regular air movements are those having high value or extremely perishable.
When the marketing period for an item is extremely limited, air transport comes into the picture, as
it may be the only practical method for logistical operations.