Friday, January 30, 2009

From Barge to Warehouse

When the U.S. was young, we took advantage of river ways to transport supplies quickly and efficiently, but with relative inexpensive fuel costs in the past, companies have remained faithful transporting goods over land. However, in recent years, the rising fuel costs have encouraged supply chain transportation managers to find alternative methods of transport. This alternative comes in the form of container-on-barge transportation methods. Europe has used this mode of transportation for years, but this is a new concept in the US.

The wave of the U.S. future follows Europe's example

Using the intermodal concept of transportation, often warehouses will arrange transport for goods across the nation; ideally, transporting commodities in the most efficient method. This system utilizes local water straights via shipping to transport containers rather than rail way or trucks. The container-on-barge method streamlines the process even further by reducing the amount of documentation along with the number of trucks needed to transport commodities, effectively reducing traffic congestion at the port.

The loads are reviewed and sorted according to color. Each color represents a destination or delivery method; for instance, truck or rail. For each container, the heavy crane operator receives orders for where it needs to go from port to barge and vice versa.

Warehousing facilities have become open to this concept because of the cost savings incurred and quicker turnaround times. Where it may have taken several days to convey commodities, now it may take three, effectively cutting transport time by half while fuel costs is distributed.

Sources
Port of New Orleans Launches Container-On-Barge Delivery
Sea Point
Bizjournals.com

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