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.
MSP would like to thank all customers for their patronage and feedback through the
years, which enabled us to provide better service and grow.