Session 1 : Introduction and aspects of intermodal freight transport
Reversed logistics= a type of supply chain management that moves goods from customers back to
the sellers or manufacturers.
→ Can be packages too
Causal link between trade - freight transport and economic development
The impact of globalization, it has a very big impact on transport.
There is a very steady correlation between trade and GDP → Trade is growing to 3 times GDP =
globalization-effect
→ Steady relationship between GDP and trade
How is it possible that trade is grown so fast?
Because of the globalization the distance is shorter and more people are connecting. The production
is divided trough the world so goods has to be shipped around the world.
You have the choice of having the goods made from Asia and then taken to Europe OR having it
made in Eastern Europe and then taken to central Europe as this would be cheaper in terms of
transport costs.
→ The container always comes here import
The container goes hand in hand with globalization. The invention of the container allows gigantic
quantities to be brought from point A to B for a much lower unit cost in terms of transport. This
allows us to have products made on the other side of the world and have them come here quite
cheaply.
Is maritime transport so important now?
Yes, it is important because almost everything we use in everyday life comes from abroad. These
products get here through the relatively cheap way of transport by sea.
The reason for moving production abroad is the cheap way of transport.
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,Intermodal freight transport: Success of transport
Success of transport / trade was possible by emergence of containers:
• Efficiency
• Cost reductions: elimination of excessive handling costs
• Reduction of time in ports, increase of turnaround times (much higher proportion of their
time spend at sea = attempt to increase profitability)
• Today increase in automation and use of specific stacking vehicles
• Introduced by Malcolm McLean
• Economic system with three essential elements
o Means of displacement
o Traffic infrastructure
o Load (people or goods)
Reshoring= if you moved the production to China 5 years ago and now you want to bring it back to
Belgium that the reshoring part.
→ What are the criteria for shifting their production back? Aka, cheaper production.
➢ Amount of product you produce
➢ Automatization
Introduction of containers and container vessels
Malcolm McLean: he was a trucker and thought about the fact that each good needs to be handled
piece by piece with a high risk of damage so a container would be safer.
Why can we say it wasn’t a real economic crisis?
It was a disruption.
In an economic crisis we see that demand is
falling, but during the virus the demand didn’t
fall. We kept consuming and there was still a lot
of confidence on de consumers’ side.
Now we have the pandemic and also the energy
crisis and this could result in a pretty rough
situation.
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, The dry bulk is also increasing, but how?
The factory went to south-east Asia but they
didn’t have the materials so those had to be
imported to make the steel. That’s way the dry
bulk transport has been increasing.
The drop was the economic crisis.
They imported more than they exported
in Asia
How is it possible that Oceania imports
more less than they import, comparted
to Asia?
Because Oceania has more natural
goods. Asia import so much because they
need it form their production.
There are 3 major routes:
1. Asia – Suez - Europe
2. Pacific Ocean: Asia - USA
3. Trans-Atlantic ocean: USA - Europe
VIDEO: container development
It shows a lot of globalization and the sizes being uniform.
VIDEO: negative side of globalization
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, Chinese representation because it is the middle instead of the European vision
Ever given: the ship that was stuck in the Suez canal → Why is that a problem.
→ 320 ships were waiting just to cross the canal
→ Different ships were stuck
Definition of transport
Transport is essential for the functioning of the economy and social structure
Transport= All human activities that result in the spatial displacement of people, goods and messages
→ Movement of goods in the exact shape, to the desired place and the most appropriate time
= All socio-economic efforts the society needs to perform to move people, goods and
messages between two places
Characteristics of transport:
• Does not exist on its own
o Transport only exists if there are other needs → the real demand is the demand for
the goods that need to be transported
• Result of a primary need of goods and services
• Transport is a derived demand
o The existance of a transport need of people or goods results from specific
consumption and production needs
• Results in an increase of value
o E.g. raw materials: moves from the primary production centres to industrial centres
and finally distribution centres
o Every displacement results in an increase of value
▪ Displacement is no utility as such but the goods are going to a place
where they can be of more use (e.g. production and distribution).
• For goods as well as people a need for transport exists
o In case residing at the edge of a town is preferred by an individual, this is a reason to
communte every day to work
▪ Need for transport
▪ Reason to organise public transport
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