1. What are the various factors used in classifying commodities for tariff purposes? The National Motor Freight Classification (NMFC), as determined by the Surface Transportation Board (STB), is the tariff system that has classification and description of commodities based on four main characteristics. These are density of the commodity, liability, handling and storability of the commodity. Carrier companies negotiate the rate and terms of transporting the commodities on the basis of these four characteristics. It is important to mention that product density is the dominant factor that determines use of carrier’s vehicle and cost per hundredweight. Higher product density results in lower cost per hundredweight but higher capability of …show more content…
During 1980, the TL motor carriers fared quite well. These companies include J.B. Hunt, MS Carriers and Werner. There was 30% to 40% annual increment in their revenues during 1980s. For instance, J.B Hunt’s revenues at the start of 1980 was around $25 million but increased to $732 million starting 1991. MS Carriers increased from $35 million in 1980 to $152 million in 1991. During 1980s, TL segment of the motor-carrier industry rapidly outgrew other segments such as LTL, rail boxcars, and long-haul private fleets. 3. Railroads have abandoned a significant number of miles of track (over 260,000 miles) since 1916. Why has this trend developed? Will it continue into the future? Why or why not? The major reason of railroads abandoning significant number of miles of track (over 260,000) has been the rapid inter-model transportation competition. Since the gradual deregulation of railroad industry, the two major industry segments in motor carrier transportation have been truck load (TL) and less-than truck load (LTL) industries. TL and LTL industry segments have rapidly developed after the US government reregulated the transportation industry. There has been an increasing competition of rail boxcars with trucking industry. The improvement of water ways carried out by the engineering corps of the U.S army has also led to increased competition between inter-modal transportation carriers. The trend is
The article, “Creating the System: Railroads and the Modern Corporation”, informs us all about the development of the transcontinental railroad and how it helped drive the nation west and also transformed western North America into a economy that had many opportunities. The railroads have always interested me when it comes to this period of time. What I learned from the reading that I didn’t know before was that the Western railroads were primary carriers of grain, other agricultural produce, livestock, coal, lumber and minerals. Also seeing the prices that the farmers shipped their products for, and what they paid for the freights rates was very interesting. Overall, if the railroads wouldn’t have been built in a time when there was so little
Prompt: In what ways did developments in transportation bring about economic and social change in the United States in the period 1820-1860?
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
This article describes, in full detail, the many aspects of the transcontinental railroad. In this, there are a few mentions of pioneers, farmers, and regular people that have been affected by the railroad. This article is credible because it is a commonly used site and is quite accurate. The purpose of this website is to inform the reader about the transcontinental railroad. This site connects to this paper, because it provides facts about the transcontinental railroad that are useful in describing how the railroad affected farmers.
Richard White’s 2011 book titled Railroaded: The Transcontinentals and the Making of Modern America is about the corrupt and mismanaged transcontinental railroads and bold arguments of the story how they came and went. In this book White describes how the construction of the transcontinental railroads across the US in the late nineteenth century would change America socially, economically, and politically. He also describes the companies that built these railroads and argues with three main points on why they were corrupt companies. First I’d like to go over the three different ways that the railroads would affect America, socially, economically, and politically.
Have you ever seen a railroad? Well, there was a time when railroads were desperately needed. This was the time of the Transcontinental Railroad. In my paper I will explain the purpose of the railroad, challenges the workers faced, and the results of the finished railroad.
By the middle of the 19th century, the Industrial Revolution was changing the face and culture of the United States. Demand for raw materials and new inventions was increasing. From 1800-1850, territories claimed by the United States had grown to stretch from the East Coast to the West Coast. The spirit of “Manifest Destiny”, the California Gold Rush, and the promise of rich new land, ripe with raw materials and opportunity drew settlers ever westward. Following the invention of the steam engine, trains were becoming very important to the expansion of civilization and its infrastructure. Trains and the railroads they ran on soon became the lifeblood of industrialized economic development across the country. Public and private partnerships were formed with railroad companies to provide them with vast amounts of investment funding. Within a few decades, the railroad companies and their transcontinental railroads ushered in the Gilded Age and changed American society forever.
The Transcontinental Railroad was the largest project the United States had ever seen. Due to lack of technology, the enormous size of the project, and the environmental conditions, the railroad seemed to be an impossible task. This construction project posed a huge challenge to those working on it. The railroad’s route would span nearly seven hundred
industry by setting the size of track , the size of trains and the price paid for shipping. The
Railroads became extremely popular in America in the 1800’s. The railroad industry itself began to boom; it was supported by its reputation for speed and efficiency. But, along with the booming industry of railroads came the strong debate that
In 1925, the New York Railways removed 46 miles of tracks to substitute buses. Span argues that the political battle between railways and buses had already been fought by the time General Motors got involved, influencing the type of
The difference in the share of railways in the USA and the EU is due to the geographical distances between cities in the USA and the EU. Railways cost less to operate and have fewer emissions when compared to trucking. Yet, the use of railways is limited for the following reasons: (i) building its infrastructure is very costly; (ii) the long lead time required for developing the infrastructure; (iii) consistent-high-volume of the freight traffic is needed for economic viability; and (iv) the need for trucks for the distribution to the final destinations. Trucks have many advantages over other modes of transportation, especially that they provide last mile delivery. Trucks, as compared to railways, ships, or planes have the most flexibility in reaching a destination, and the upfront
The Title II common carriage rules help in ensuring a competitive market for all the telecom related services and offers protection to the consumers using it. According to the regulation, common carriers should provide service when there is a reasonable request and therefore should provide service at a reasonable rate. It is necessary that the common carriers under the Title II act, would require the FCC approval to block data that they are not willing to carry in addition to providing the delivery at prices which are just and reasonable as per the FCC.
At the onset of the airline industry in the United States, major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation, hub-and spoke models and costly information systems for reservations, fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major network airlines; this is a region a fresh “second tier of service providers” could enter into. This endeavor proved to provide a consumer savings of billions per year. Thus in June of 1971, after a tumultuous battle with other Texas-based
Piedmont Airlines recently invested over $1 million in state of the art equipment and employee development in order to forecast and analyze the appropriate amount of discounted fares to offer per flight. The company discovered that by offering several discounted flights to consumers willing to book their travel well in advance of their departure date left many options available for the business traveler who needed to book much closer to the actual departure date. The analysis was the task of the Revenue Enhancement Department (RED) managed by Marilyn Hoppe. While this state of the art equipment was a step in the right direction, Marilyn believed that there were still a lot of subjective decisions being made and