THE GEOGRAPHY OF TRANSPORT SYSTEMS Chapter 3 – Transportation THIRD EDITION Modes (Part II) CONCEPTS Copyright © 1998-2015, Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University, Hempstead, NY, 11549 USA. Jean-Paul.Rodrigue@hofstra.edu 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 Air Transport THIRD EDITION Concept 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. US Post Office Airmail Routes, 1921-26 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. Selected Transcontinental DC-3 Routes, Late 1930s 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. Early Intercontinental Air Routes, 1930s 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. Flight Times by Piston and Jet Engines from New York 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. Shortest Air Route between London and Sydney, 1955 - 2006 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. Concorde Services, 1976-2003 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. Average Airfare (roundtrip) between New York and London, 1946-2012 (in 2012 dollars) $9,000 $7,900 $8,000 $7,000 $6,000 $4,968 $5,000 $4,000 $3,490 $3,188 $3,160 $3,000 $2,000 $725 $1,000 $800 $0 1940 1950 1960 1970 1980 1990 2000 2010 2020 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. Flight Time and One Way Airfare, 1955 $400 $350 $300 1955 Dollars $250 Domestic International Domestic Trend International Trend $200 $150 $100 $50 $0 0 2 4 6 8 10 12 Flight Time (Hours) 14 16 18 20 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. Regional Sales of Boeing 747s, 1960s-2000s 450 400 350 300 South Asia Oceania 250 North America Middle East 200 Europe Asia-Pacific 150 Latin America Africa 100 50 0 1960s 1970s 1980s 1990s 2000s 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 Commercial Passenger Aircraft, 1935-2011 Aircraft Year of First Commercial Service Speed (km/hr) Maximum Range at Full Payload (km) Seating Capacity Douglas DC-3 1935 346 563 30 Lockheed L-649 Constellation 1943 560 8,200 95 Douglas DC-7 1953 555 7,500 105 Boeing 707-100 1958 897 6,820 110 Boeing 727-100 1963 917 5,000 94 Boeing 747-100 1970 907 9,045 385 McDonnell Douglas DC-10 1971 908 7,415 260 Airbus A300 1974 847 3,420 269 Boeing 767-200 1982 954 5,855 216 Boeing 747-400 1989 939 13,444 416 Boeing 777-200ER 1995 1030 14,300 300 Airbus A340-500 2003 886 15,800 313 Airbus A380 2007 930 14,800 555 Boeing 787-8 2012 1040 15,700 250 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. 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Selected Ultra-Long-Range Nonstop Airline Routes From Singapore Singapore Sydney Johannesburg Dubai Dallas Los Angeles Dubai Dubai New York Newark Doha Johannesburg Melbourne Detroit Chicago Toronto To Newark Los Angeles Dallas Atlanta Los Angeles Brisbane Bangkok Houston San Francisco Hong Kong Hong Kong Houston New York Los Angeles Hong Kong Hong Kong Hong Kong Airline Singapore Singapore Qantas Delta Emirates Qantas Thai Airways Emirates Emirates Cathay Pacific United Qatar Airways South African Airways Qantas Delta United Air Canada Aircraft Airbus A340-500 Airbus A340-500 Boeing 747-400ER Boeing 777-200LR Boeing 777-200LR Boeing 747-400ER Airbus A340-500 Boeing 777-200LR Boeing 777-300ER Boeing 777-300ER Boeing 777-200ER Boeing 777-200LR Airbus A340-600 Airbus A380 Boeing 777-200LR Boeing 747-400 Airbus A340-500 Flying Time 18:50 18:05 15:25 17:05 16:30 16:00 17:20 16:20 16:00 16:05 15:55 16:20 16:05 15:50 15:45 15:55 15:20 Distance (km) 15,345 14,114 13,804 13,582 13,420 13,363 13,309 13,144 13,041 12,990 12,980 12,951 12,825 12,748 12,645 12,517 12,569 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 Air Transport Service Ranges (From New York) 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 Air Travel and World Air Freight Carried, 1950-2012 200 Passengers Freight Billions of passengers-km 5,000 4,000 180 160 140 120 3,000 100 Billions of tons-km 6,000 80 2,000 1,000 60 40 20 0 0 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 Air Travel and Gross World Product, 1950-2011 5000 Gross World Product 70.0 4500 Passengers 4000 Trillions of $US 60.0 3500 50.0 40.0 30.0 3000 2500 Billions of passengers-km 80.0 2000 1500 20.0 1000 10.0 0.0 500 0 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. Annual Air Transportation Growth (Passengers and Freight) and Economic Growth, 19502011 30% 25% 20% 15% 10% 5% 0% 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 -5% -10% Passengers-km Tons-km GWP 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. Monthly Global Passenger Traffic, 2010 500 450 400 350 Millions 300 250 200 150 100 50 0 January February March April May June July August September October November December 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. New York / Hong Kong Air Routes: Conventional and Polar 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. 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Characteristics of Major Air Travel Markets United States Europe Pacific Asia Deregulation started in 1978 Deregulation started in 1997 Regulated markets with government ownership Low population density and dispersed urban centers High population density and concentrated urban centers Dispersion of urban centers but high regional concentrations Relatively open air spaces and airports Congested air spaces and airports Congested gateway airports underutilized regional airports Rail minor competitor; Car compete for short distances High speed rail is a direct competitor; Rail is a minor competitor; Car compete for short distances Except for Japan, less competition from other transportation modes No loyalty to carriers (pricing and frequent flyers) Some lingering loyalty to carriers Strong “imposed” loyalty to carriers Price transparency Price becoming transparent Price not transparent Limited income growth and limited leisure Limited income growth and more leisure time Growing income levels 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. Airline Deregulation and Hub-and-Spoke Networks Before Deregulation After Deregulation Hub Hub 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. Annual Passenger Plane Load Factor, United States, 1950-2012 (in %) 85 80 75 70 Air Deregulation Act 65 60 55 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1974 1976 1978 1972 1970 1968 1966 1964 1962 1960 1958 1956 1954 1952 1950 50 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. Monthly Passenger Plane Load Factor, United States, 2000-2013 (in %) 90 85 80 75 70 65 60 55 Jan-00 Jun-00 Nov-00 Apr-01 Sep-01 Feb-02 Jul-02 Dec-02 May-03 Oct-03 Mar-04 Aug-04 Jan-05 Jun-05 Nov-05 Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 50 Domestic International 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. Domestic Market Share of the top American Airlines, 1977-2012 100 90 80 32.7 48.5 70 All others 17.7 10.5 9.6 12.2 30 10 Southwest 7.0 15.1 40 20 39.7 54 60 50 38.3 9.3 12.6 12.0 16.2 15.1 1977 1984 11.9 13.1 Delta Northwest Eastern 9.6 16.3 TWA American 20.4 17.5 12.9 17.7 14.5 16 1992 2005 2012 United 0 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. Largest Airline Companies by Revenue, 2005 (in $millions) Iberia Cathay Pacific Emirates Group Korean Air Southwest SAS Group SIA Group (Singapore) ACE (Air Canada) Qantas Continental ANA Northwest British Airways Delta Air Lines UAL Corp (United) JAL Group (Japan) FedEx Express AMR Corp. (American) Lufthansa Group Air France-KLM 0 5,000 10,000 15,000 20,000 25,000 30,000 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. Strategies of Low-Cost Carriers On-board operations Optimum use of seating space. Minimal crew. Limited and paying cabin service. Aircraft operations Few (often one) types of aircraft used to minimize maintenance costs. Stair boarding instead of air bridges. Maximal usage of runway length (take-off thrust and braking on landing). Fast turn around to maximize aircraft use. No freight being carried. Service network Point-to-point services. Destinations commonly of less than two hours apart. Usage of secondary airports (lower gate rates). Booking Online booking to minimize transaction costs. No travel agent commissions. 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. Strategies Used by Airlines to Save Fuel Dimension Strategy Fleet Retiring less fuel efficient aircrafts (e.g. DC-9, DC10, MD-80). Switching to more fuel efficient aircrafts (e.g. A330, A319). Operations Less engine idle at gates (electrical systems). Lower flying speed (-5%). More frequent plane and engine washing. On board Lighter seats. Removal of seat-pocket documents (e.g. magazines). Less water in bathrooms. Lighter service carts. Passengers Weight restrictions for luggage. Surcharges for first or second check-in luggage. Passengers weight surcharges (?) 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. Selected Low-Cost Carriers Airline Country 2005 Fleet 2005 Revenue (USD Millions) Southwest USA 454 B737s 7,584 EasyJet UK 62 A319s; 43 B737s 2,365 Ryanair Ireland 107 B737s 2,044 jetBlue USA 89 A320s; 19 ERJs 1,701 Air Berlin Germany 8 A319s/A320; 40 737s; 3 Other 1,457 Virgin Blue Australia 47 B737s 1,335 WestJet Canada 56 B737s 1,197 Gol Brazil 47 B737s 1,140 Frontier USA 51 A318s/A319s/A320s 944 AirAsia Malaysia 6 A320s; 21 B737s 174 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. Air Freedom Rights First Home Second Third Fourth Fifth Sixth Seventh Eight Ninth Country B Country 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. Air Hubs and Market Fragmentation: The Case of Chicago 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. Longitudinal Intermediacy: Icelandair 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. Latitudinal Intermediacy: COPA Airlines 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 Weekly Frequencies on Eastbound Transatlantic Nonstop Routes, 2003 Airbus 330 11% Other 2% Boeing 747 15% Airbus 340 10% Boeing 777 25% McDonnell Douglas DC-10 & MD-11 7% Boeing 767 30% 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 Weekly Frequencies on Westbound Transpacific Nonstop Routes, 2003 Boeing 767 8% Other 0% Boeing 777 21% McDonnell Douglas DC-10 & MD-11 5% Boeing 747 58% Airbus A340 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. Major Air Freight Flows Between Regions, 2003 (in billions of ton-km) 24.2 13.8 North America Europe 9.9 12.3 22.4 4.6 2.7 0.1 Latin America 1.3 1.9 2.2 1.7 2.7 24.2 11.6 2.5 3.3 12.4 0.1 Middle East 9.1 13.8 Asia / Pacific 0.1 Africa 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. Development Costs for Selected Aircraft Aircraft Year of First Service Development Costs (2004 Dollars) Douglas DC-3 1936 4,300,000 Douglas DC-6 1946 144,000,000 Boeing 707 1958 1,300,000,000 Boeing 747 1970 3,700,000,000 Boeing 777 1995 7,000,000,000 Airbus A380 2007 14,400,000,000 Boeing 787 2012 13,400,000,000 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. Operating Profit in the Global Airline Industry, 1960-2005 20 15 $US Billions 10 5 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 1962 1960 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. The World’s Most Profitable Airlines, 1994-2004 Iberia Thai Airways Int’l Scandinavian Qantas Cathay Pacific Airways Lufthansa Southwest Airlines British Airways FedEx Singapore Airlines 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Cumulative Net Income (Millions USD) 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. Jetliners Deliveries from Boeing and Airbus, 1974-2012 1400 1200 1000 800 600 400 200 1974 1975 1975 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 Boeing Airbus 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. Stages in Air Network Development Stage 1 Stage 3 Stage 2 Stage 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. World’s 10 Largest Passengers and Freight Airlines, 2010 US Airways Cargolux China Eastern Airlines EVA Air Air France-KLM China Airlines China Southern Airlines Singapore Airlines Ryanair Lufthansa Lufthansa Emirates American Airlines Korean Airlines Southwest Airlines Cathay Pacific United Airlines United Parcel Service Delta Air Lines Federal Express 0 50,000 100,000 150,000 200,000 Thousands of Passengers 0 5,000 10,000 15,000 20,000 Millions of Ton-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. Commodities Shipped by Air Freight, 2003 Total: 144 billion freight ton-kms 17% Capital equipment Intermediate materials 43% 13% Perishables Computers 11% Apparel Other 7% 9% 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. Network Effect of Strategic Alliances A B C D E 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. Operating Expenses of the Airline Industry 4.1% 2.4% 16.4% 7.0% 7.1% 12.2% 7.4% 10.1% 12.0% 10.5% Promotion and sales Administration Fuel Station expenses Passenger services Maintenance Flight crew Other Depreciation & amortization Airport charges Enroute facility charges 10.8% 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. Jet Fuel Prices, 1990-2014 4.5 4 3.5 USD per Gallon 3 2.5 2 1.5 1 0.5 Apr-14 Apr-13 Apr-12 Apr-11 Apr-10 Apr-09 Apr-08 Apr-07 Apr-06 Apr-05 Apr-04 Apr-03 Apr-02 Apr-01 Apr-00 Apr-99 Apr-98 Apr-97 Apr-96 Apr-95 Apr-94 Apr-93 Apr-92 Apr-91 Apr-90 0 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. Operating Revenues of the Airline Industry 18.8% Passenger Freight 4.2% Charter Other 11.9% 65.1% 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. Cost Structure of a Typical 100 Passengers Domestic Flight, c2012 1% 9% 29% 11% Fuel Salaries Ownership costs Fees and taxes Maintenance 14% Other Profit 20% 16% 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. Seat Capacity of Selected Aircrafts, pre-1985 and 1985-2000 Main pre-1985 Models Main 1985-2000 Models Airbus 310 Boeing 747 297 400 Boeing 767 Douglas DC10 252 Airbus 320 132 Boeing 737 141 265 Boeing 757 Lockheed L1011 183 302 Boeing MD80 0 100 200 300 400 144 0 100 200 300 400 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. Major Air Traffic Flows Between Regions, 2000 (% of IATA Scheduled Passengers) North America 1.7 3.9 Europe 23.2 35.5 1.8 Central America 15.9 1.3 1.3 South America 1.7 1.7 1.9 1.5 Middle East Asia 1.1 Africa Southwest Pacific 3.2 2.6 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. 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 World's Busiest Air Transport Routes, 2012 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 10 Largest International Air Carriers, 2008 Delta Air Lines United Airlines KLM American Airlines Cathay Pacific Airways Singapore Airlines Emirates British Airways Lufthansa Air France 0 20,000 40,000 60,000 80,000 Millions of Passengers-km 100,000 120,000 140,000 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. World’s 10 Largest Domestic Airlines, 2008 Air China JetBlue Northwest Airlines Continental Airlines China Southern Airlines US Airways Delta Air Lines United Airlines Southwest Airlines American Airlines 0 20,000 40,000 60,000 80,000 Millions of Passengers-km 100,000 120,000 140,000 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. Generation and Attraction of Global Air Freight Flows, 2003 (in billions of ton-km) Middle East Africa Latin America Europe Asia / Pacific North America 0 10 20 30 40 Regional Generation 50 60 70 80 90 100 Attraction 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. Changes in the Duration of Selected Scheduled Flights, 1996-2010 (hours) 1.7 Delta Flight 1323 (ATL - MCO) 1.2 2.6 Delta Flight 6582 (ORD - JFK) 1.9 6.6 American Flight 33 (JFK - LAX) 6.0 0 1 2 3 2010 4 5 6 7 1996 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 Intermodal Transportation THIRD EDITION Concept 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. Intermodalism and Transmodalism Intermodalism Origin Road Rail Maritime Destination Transmodalism Origin Rail Rail Destination 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. Major Steps in Intermodal Integration Intermodal Integration Advanced Containers Advanced Terminals Regionalization Intermodal rail crane (1985) Doublestacking; IBCs (1985) Deregulation (1980s) COFC (1967) Transatlantic (1966); Containerships (1968) Standardization (size and latching) (1965) Containerization (1956) TOFC (1950s) Pallets (1930s) 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. Integrated Transport Systems: From Fragmentation to Coordination Factor Cause Consequence Technology Containerization & IT Modal and intermodal innovations; Tracking shipments and managing fleets Capital investments Returns on investments Highs costs and long amortization; Improve utilization to lessen capital costs Alliances and M & A Deregulation Easier contractual agreements; joint ownership Commodity chains Globalization Coordination of transportation and production (integrated demand) Networks Consolidation and interconnection Economies of scale, efficiency and control. 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 Containerization • Lower freight rates • Lower insurance rates • Minimal load unit • Lower storage costs • Lower packing and packaging costs • Faster inventory turnover Transport Costs Inventory Costs • Time reliability • Higher frequency Service Level 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. Evolution of Intermodal Integration 1- Containerization of Maritime Transport Systems Container port 2- Containerization of Inland Transport Systems Gateway Pendulum Services Corridor Intermodal terminal 3- Intermodal and Transmodal Operations Inland Port Offshore hub Transloading 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. Intermodal Transport Chain Composition ‘Last mile’ Interchange Transfer ‘First mile’ Local / Regional Distribution Decomposition National / International Distribution Transport Terminal 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. Intermodal Transportation as an Integrative Force Multimodal Point-to-Point Network Intermodal Integrated Network C A C A B B Transshipment Rail Road D D Transshipment F E F E 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. Integrated Freight Transport Systems: Intermodal and Transmodal Operations Road Transloading facility Rail On-dock rail Thruport Maritime Intermodal operations Distribution Center/ Cross-docking Port container yard Intermediate Hub Transmodal operations 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. Piggyback and Doublestack Train Cars Piggyback (TOFC) 40’ (12.2 m) 9’ (2.7 m) 17’ (2.7 m) 85’ (25.9 m) Doublestack (COFC) 18’ (5.5 m) 65’ (19.8 m) 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. Multimodal Transport System National / Continental Maritime / Land interface Gateways and Hubs A B C Intermodal Corridor Gateway or Hub Regional E Satellite Terminals and Inland Ports H A B F C Intermodal terminal Distribution center G Modal Link Local E H Competition or Complementarity Distribution Centers F G 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. Driving Forces of Containerization and Intermodalism Containerization Unitization Cellular ships Specialized terminals Land consumption Standardization Gantry cranes Transshipment productivity Multi-rate structure Management and coordination Mergers Modal integration Logistics Control over cargo Multimodal operators Through rates and billing Deregulation Intermodalism 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 Physical Characteristics of Containers Type Cubic Capacity Tare Weight Payload Weight Gross Weight Length / Width / Height 20 Footer 33.2 cubic meters (1,170 cubic feet) 2,150 kg - 2,220 kg (4,740 lb - 4,894 lb) 21,850 kg - 28,160 kg (48,171 lb - 62,082 lb) 24,000 kg - 30,480 kg (52,911 lb - 67,197 lb) 6.058 m / 2.438 m / 2.591 m (20‘0" / 8'0“ / 8'6“) 40 Footer 67.7 cubic meters (2,391 cubic feet) 3,720 kg - 3,740 kg (8,201 lb - 8,245 lb) 26,760 kg - 28,760 kg (58,996 lb - 63,405 lb) 30,480 kg - 32,500 kg (67,197 lb - 71,650 lb) 12.192 m / 2.438 m / 2.591 m (40'0“ / 8'0“ / 8'6") 40 Footer High Cube 76.4 cubic meters (2,700 cubic feet) 3,730 kg - 3,950 kg (8,223 lb - 8,708 lb) 26,750 kg - 28,550 kg (58,974 lb - 62,942 lb) 30,480 kg - 32,500 kg (67,197 lb - 71,650 lb) 12.192 m / 2.438 m / 2.896 m (40'0“ / 8'0“ / 9'6") 40 Footer High Cube Reefer 67.7 cubic meters (2,391 cubic feet) 4,810 kg (10,604 lb) 29,190 kg (64,353 lb) 34,000 kg (74,957 lb) 12.192 m / 2.438 m / 2.896 m (40'0“ / 8'0“ / 9'6“) 45 Footer High Cube 86.5 cubic meters (3,055 cubic feet) 4,740 kg (10,450 lb) 28,280 kg (62,350 lb) 33,020 kg (72,800 lb) 13.716 m / / 2.438 m / 2.896 m (45'0“ / 8'0“ / 9'6“) 48 Footer High Cube 98.8 cubic meters (3,489 cubic feet) 5,140 kg (10,865 lb) 25,340 kg (56,350 lb) 30,480 kg (67,197 lb) 14.630 m / 2.591 m / 2.908 m (48'0“ / 8'6“ / 9'6 1/2") 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. Carrying Capacity of Containers (in cubic feet) 53 feet truck 4,090 53 feet high cube container (P5G1) 3,835 48 feet high cube container (M5G1) 3,489 45 feet high cube container (L5G1) 3,055 EILU Long 45 (LEG1) 2,895 40 feet high cube container (45G1) 2,700 40 feet standard container (42G1) 2,391 20 feet standard container (22G1) 1,170 0 1,000 2,000 3,000 4,000 5,000 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. Standard Container Road Weight Restrictions in the United States 40 Foot High Cube Reefer (GN Chassis) 39,300 40 Foot Reefer (GN Chassis) 39,800 40 Foot Dry High Cube (GN Chassis) 43,700 40 Foot Dry (GN Chassis) 44,000 20 Foot Reefer (Tri Axle Chassis) 39,700 20 Foot Reefer (Slider Chassis) 34,900 20 Foot Dry (Tri Axle Chassis) 44,000 20 Foot Dry (Slider Chassis) 39,200 0 5,000 10,000 15,000 20,000 25,000 30,000 US Pounds 35,000 40,000 45,000 50,000 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. Container Identification System Owner Code (3 letters): TGH Product Group Code (1 letter): U Registration Number (6 digits): 759933 Check Digit (1 digit): 0 Size & Type Code (4 digits/letters): 45G1 Operational Characteristics Maximum weight: 30,480 kg Container weight: 3,870 kg Payload weight: 26,610 kg Cubic capacity: 2,700 cubic feet 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 Container as a Transport, Production and Distribution Unit Transport Modes, terminals, intermodal and transmodal operations Production Synchronization of inputs and outputs (batches) Distribution Flow management (timebased), warehousing unit 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. Number of Units and Weight of Standard Consumption Goods that Can be Carried by a 20 Foot Container 4,648 Pair of shoes 6,029 3,916 DVD player 1,654 Payload Weight (kg) 8,279 Cell phone Units 12,193 20,388 Copying paper 1,685 0 5,000 10,000 15,000 20,000 25,000 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. World Container Traffic and Throughput, 1980-2012 700 World Traffic World Throughput 600 Full Containers Empty Containers 500 Transshipment 400 300 200 100 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1980 0 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 Growth Factors Derived Substitution Economic and income growth Globalization (outsourcing) Fragmentation of production and consumption Functional and geographical diffusion New niches (commodities and cold chain) Capture of bulk and break-bulk markets Incidental Induced Trade imbalances Repositioning of empty containers Transshipment (hubbing, relay and intersection) 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 Growth Factors Substitution-Based New niches (commodities and cold chain) Capture of bulk and break-bulk markets Containerization Incidental Trade imbalances Repositioning of empty containers Induced Transshipment (hubbing, relay and intersection) Derived Economic and income growth Globalization (outsourcing) Fragmentation of production and consumption 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 Usage during its Life-Span 16% 16% 56% Ocean Transit Terminal Inland Use Repair Idle or Empty Repositioning 6% 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. Advantages of Containerization Factor Advantage Standard transport product ISO standard. Specialized ships, trucks and wagons. Unique identification number and size type code. Flexibility of usage Commodities (coal, wheat), manufactured goods, cars, frozen products. Adapted containers for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of discarded containers. Costs Low transport costs; 20 times less than bulk transport. Economies of scale at modes and terminals. Velocity Fast transshipment operations. Low terminal turnaround times (port time reduced from 3 weeks to about 24 hours). Warehousing Own warehouse; Simpler and less expensive packaging. Stacking capability on ships, trains (doublestacking) and on the ground. Security and Safety Contents of the container is unknown to carriers. Can only be opened at the origin, at customs and at the destination. Reduced spoilage and losses (theft). 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. Challenges of Containerization Factor Challenge Site constraints Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships (more than 13 meters). Infrastructure costs Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important investments. Stacking Complexity of arrangement of containers, both on the ground and on modes (containerships and doublestack trains). Restacking difficult to avoid. Empty movements Many containers are moved empty (20% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption; repositioning. Theft and losses High value goods and a load unit that can opened or carried (on truck). Vulnerability between terminal and final destination. 10,000 containers are lost at sea each year (fall overboard). Illicit trade Common instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism. 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 and Drawbacks of Containerization Advantages Drawbacks Standardization ISO standard (modes and equipment). Unique identification number and size type code. Site Constraints Large consumption of terminal space. Draft issues with larger containerships. Flexibility Commodities, manufactured goods, liquids and refrigerated goods. Capital Intensiveness Container handling infrastructures and equipment are important investments. Low transport costs. Economies of scale at modes and terminals. Stacking Complexity of arrangement of containers, both on the ground and on modes. Velocity Fast transshipment operations. Low terminal turnaround times. Repositioning Divergence between production and consumption; repositioning. 20% of all containers. Warehousing Own warehouse; simpler and less expensive packaging. Stacking capability. Theft and Losses High value goods vulnerable to thefts, particularly between terminal and final destination. Security & Safety Contents unknown to carriers. Reduced spoilage and losses. Illicit Trade Illicit trade of goods, drugs and weapons, as well as for illegal immigration. Costs $ $ 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 Shipping Costs and Cargo Value Products Items / 40 Foot Container Retail Value (USD) Freight / Value (%) Low High Low High Low High Clothing (low value) 90,000 130,000 225,000 520,000 0.56 1.91 Clothing (mid range) 25,000 60,000 500,000 3,600,000 0.08 0.86 Sports shoes 18,000 28,000 350,000 2,520,000 0.12 0.23 Bicycles 1,200 1,600 240,000 480,000 0.60 1.79 Toys (low quality) 20,000 60,000 60,000 720,000 0.40 7.17 2,800 3,600 170,000 430,000 0.67 2.53 240 480 70,000 140,000 2.07 6.14 Appliances (small) 600 1,200 45,000 100,000 2.90 9.56 Appliances (large) 100 130 30,000 65,000 4.16 14.33 Furniture (assembled) 250 600 20,000 150,000 1.93 21.50 Furniture (flat packed) 1,000 3,000 70,000 360,000 0.80 6.14 Automobile parts 600 15,000 50,000 375,000 0.77 8.60 Consumer electronics (small) Consumer electronics (large) 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. Containerized Cargo Flows along Major Trade Routes, 1995-2013 (in millions of TEUs) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 13.8 7.4 13.1 6.9 12.4 13.5 11.9 11.2 4.5 10.6 4.3 6.9 3.4 5.1 3.8 2.6 1.4 3.4 4.7 2.5 1.6 2.6 7.3 3.5 4.7 2.5 1.7 2.7 5.4 3.9 2.9 4.6 3.5 3.6 2.1 3.0 4.0 3.6 2.6 4.0 3.5 2.4 5 2.3 2.3 2.2 2.0 10 1.5 1.7 1.7 1.6 1.7 1.6 1.9 2.0 2.1 3.6 3.4 3.2 3.3 2.4 3.3 3.5 3.7 3.7 3.3 3.0 2.6 7.4 2.9 4.4 8.2 3.6 8.4 4.5 9.3 4.1 9.0 5.0 3.8 2.8 5.2 13.0 4.7 2.8 2.5 13.5 5.3 13.2 6.1 5.5 6.9 2.7 5.7 11.5 13.4 2.7 6.2 13.3 6.1 2.8 6.3 14.1 6.5 10.6 6.4 13.7 6.9 12.3 0 14.1 Asia-North America North America-Asia Asia-Europe Europe-Asia North America-Europe Europe-North America 2.4 2.3 2.1 1.7 1.7 15 20 25 30 35 40 45 50 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. Containerized Cargo Flows along Major Trade Routes, 2012 Million TEUs 13.3 (+175%) Growth (2006-2012) 6.9 (+48%) 16.0 13.1 Asia 27.0 North America 6.3 (+178%) 10.5 2.7 (+55%) Imports (M TEUs) 13.7 (+293%) 17.3 Europe 3.6 (+23%) 9.0 Exports (M TEUs) 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 American Containerized Trade with Asia, 1996-2012 (TEUs) 25 3 2.5 2 15 1.5 Ratio Million of TEUs of Loaded Containers 20 10 1 5 0.5 0 0 1995 1996 1997 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Imports from Asia Exports to Asia Ratio Imports / Exports 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 Per Ton of U.S. Freight Shipments by Transportation Mode, 2002 Rail $198 Pipeline $241 Water $401 Truck $775 Truck and rail $1,480 Parcel, U.S.P.S, or courier $37,538 Air (incl. truck and air) $88,618 Single modes $611 Multiple modes $4,892 All Modes $667 1 10 100 1,000 10,000 100,000 Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Intermodal Transportation Cost Function C(T) Local / Regional Distribution Costs Decomposition C(dc) Connection C(cn) Costs National / International Distribution Costs C(I) Interchange C(cn) Connection Composition C(cp) Origin Transshipment Destination Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Time and Cost of Transport Activities Involving Moving a 40 Foot Container between the American East Coast and Western Europe 0 200 400 600 US Dollars 800 1000 1200 1400 1600 1800 2000 Moving container to consignee Storage at inland depot Unloading container at inland depot Road transport, port terminal to inland depot Clearance and inspection Tranfer from stack to road trailer Waiting in stack Transfer to stack Tranfer/unloading off ship Containership travel time (NY-Rotterdam) Transfer/loading onto ship Unstacking and transfer to terminal trailer Waiting in stack Transfer from road trailer to stack Waiting for admission to port terminal Road transport to port terminal Loading container on road trailer Container waiting for pickup after stuffing Moving container from loading ramp to storage Time (hours) Cost ($US) 0 20 40 60 80 Hours 100 120 140 160 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. Cumulative Cost and Time of Moving a 40 Foot Container between the American East Coast and Western Europe 3,500 Cumulative cost (US$) 3,000 2,500 2,000 1,500 1,000 500 0 0 100 200 300 400 500 Cumulative time (hours) Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Container Transport Costs, 2000s 13% 23% Ships Containers Terminals 25% Inland Transport Other 18% 21% Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Monthly Intermodal Equipment Depreciation Factors 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 Container Chassis 57 61 65 69 73 77 81 85 89 Copyright © 1998-2015, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Container Transport Costs from Inland China to US West Coast ($US per TEU) Land access to final destination (USA) 250 Port handling (USA) 150 Maritime transport 750 Port handling (China) 200 Land access to port (China) 2300 0 500 1000 1500 2000 2500 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. Price of New Containers, 2001-2008 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2001 2002 2003 20 footer 2004 40 footer 2005 2006 2007 2008 40 footer high cube 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 Lease Rates, 2003-2008 17 0.9 16 0.8 Return (%) 14 0.7 13 0.6 Lease Rate (USD) 15 12 11 0.5 10 0.4 9 8 0.3 2003 2004 2005 Annual Return for Lessor (%) 2006 2007 2008 Daily Lease Rate (USD per TEU) 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 Global Fleet of Containers, 2008 26.2 million TEU 33% 6% 4% 6% 20 Foot 40 Foot 40 Foot High Cube Reefer Regional 24% 27% Other 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. Millions Global Container Fleet, 2003-2009 30 25 20 23.52 2006 24.00 2005 21.30 18.94 15.95 14.59 10 17.83 15 2008 2009 5 0 2003 2004 Dry Freight Standard Dry Freight Special 2007 Reefer Tank 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 Production, 2007 2% 3% 5% 1% Dry Freight Standard Dry Freight Special Reefer Tank Regional 89% 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 American Domestic Container Fleet, 2003-2012 250,000 200,000 Units 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 48-Foot 2008 2009 2010 2011 2012 53-Foot 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. Economies and Diseconomies of Scale in Container Shipping Costs per TEU Transshipment Inland Transportation Maritime Shipping Capacity in TEU 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 Supply Chains Maritime Distribution Inland Distribution Shipping Agent Custom Agent Stevedore Freight Forwarder Trucking Distribution center Carrier Customer Economies of scale Shipping Line Rail / Trucking Megacarrier Level of functional integration 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. Impacts of River / Sea Shipping Origin Road / Rail Fluvial Port Fluvial Seaport Maritime River/sea Fluvial Road / Rail Destination A B C 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.