Feasibility Study of Transportation of Plastic Pellets
- Submitted by: dennisd
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- Category: Other
- Date Submitted: 04/10/2016 02:31 PM
- Pages: 6
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This feasibility study is for the transportation of plastic pellets for injection molding. This product can be packaged in numerous ways dependent upon the transportation method selected. For example, it can be packaged in fifty pound bags or boxes for shipment via commercial carrier or it can be delivered in bulk via tanker and off-loaded into holding tanks at the customer’s production facility.
Companies have many transportation options available when evaluating the quantity to order and how the product will be delivered. For the purpose of this feasibility study, we will be discussing the shipment of three (3) gaylords (boxes) of plastic pellets with a total gross weight of 4,725 pounds from Evansville, Indiana to Heyward, California via air, rail, truck, water, and pipeline.
AIR FREIGHT
Air freight is a good method if you need the product delivered quickly to avoid expensive production shutdown or to satisfy a customer’s need. While this is the quickest form of transportation, unfortunately it is also the most expensive. Air freight would require costs incurred for a truck to deliver the material to the closest airport with an air freight terminal, costs for the air freight company to fly the material to its destination terminal, costs for another truck to pick up the freight and deliver to my customer. Fed Ex or UPS are examples of the companies that will help take care of delivery from door to door. Air freight is priced more on the area needed to hold the product being shipped and these boxes are large and would not be stackable on an airplane. When I quoted this volume via UPS air freight online, I received a quote for $32,589.80 for next day delivery. Many companies have tariffs in place with UPS and would most likely receive some sort of a discount. However, even with a fifty percent discount, that would be over $16,000.00.
Air freight would be a great option for immediate delivery if you had to keep an automotive production line running and...
Companies have many transportation options available when evaluating the quantity to order and how the product will be delivered. For the purpose of this feasibility study, we will be discussing the shipment of three (3) gaylords (boxes) of plastic pellets with a total gross weight of 4,725 pounds from Evansville, Indiana to Heyward, California via air, rail, truck, water, and pipeline.
AIR FREIGHT
Air freight is a good method if you need the product delivered quickly to avoid expensive production shutdown or to satisfy a customer’s need. While this is the quickest form of transportation, unfortunately it is also the most expensive. Air freight would require costs incurred for a truck to deliver the material to the closest airport with an air freight terminal, costs for the air freight company to fly the material to its destination terminal, costs for another truck to pick up the freight and deliver to my customer. Fed Ex or UPS are examples of the companies that will help take care of delivery from door to door. Air freight is priced more on the area needed to hold the product being shipped and these boxes are large and would not be stackable on an airplane. When I quoted this volume via UPS air freight online, I received a quote for $32,589.80 for next day delivery. Many companies have tariffs in place with UPS and would most likely receive some sort of a discount. However, even with a fifty percent discount, that would be over $16,000.00.
Air freight would be a great option for immediate delivery if you had to keep an automotive production line running and...