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Hanging by a Thread? Transportation Challenges to the Efficiency of Global Value Chains

This article explores the impact of transportation challenges on the efficiency of global value chains, including value chain debasement, the role of intermodal transportation, and the effects of oil shocks. It also discusses the importance of terminalization and the potential impacts of a third oil shock on global value chains.

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Hanging by a Thread? Transportation Challenges to the Efficiency of Global Value Chains

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  1. Hanging by a Thread?Transportation Challenges to the Efficiency of Global Value Chains Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Van Horne Researcher in Transportation and Logistics, University of Calgary, Alberta, Canada

  2. A Paradigm Shift in the Making for Global Value Chains Hanging by a Thread: 1) Value Chain Debasement 2) Intermodal Transportation: Added Value or Inefficiency Costs? 3) The Action Takes Place at the Margin 4) The Third Oil Shock Halterm Terminal, Halifax

  3. Commodity Chain Debasement; Where Value Comes From? High R&D Globalization Sales / Service Marketing Branding Added value Economies of scale Efficiency improvements Supply chain competition Distribution Design Manufacturing Concept Low Logistics Commodity chain

  4. An Understatement: Containerization and Global Value Chains Synchronization of inputs and outputs (batches) Flow management (time-based), warehousing unit Distribution Production Container Transport Modes, terminals, intermodal and transmodal operations Trimodal Container Terminal, Willebroek, Belgium

  5. Infrastructures, Networks and Value: Mitigating Inefficiencies Port Terminals Barge terminal Container sea terminal Offshore hub Rail Terminals Load center Transmodalterminal Satelliteterminal On-dock and near dock DistributionCenters Warehousing Cross-docking Transloading

  6. Container Transloading: Basic Value Chain for West Coast Gateways

  7. The Importance of the Margin…

  8. Knitting Value Chains at the Margin: Terminalization Foreland Hinterland Inland Terminal Offshore Hub Gateway Gateway Suppliers DC DC Customers Extended Gate Extended Distribution Center Bottleneck-derived terminalization Buffer-derived terminalization Port regionalization and the creation of a Regional Load Center Network Distribution center Inland containerized goods flow Inland non-containerized goods flow Maritime container flow

  9. Deer in the Headlights; A Third Oil Shock Third Oil Shock Second Oil Shock First Oil Shock Gold Standard

  10. Deer in the Headlights: Potential Impacts of The Third Oil Shock on Global Value Chains Usage level Modal shift P Q A/B P Q(A/B) Price Price Service area changes Gateway / Hub selection B R(B) A Cost A B 1 2 Range Network configuration Supply chain propagation Rail Road Distribution Centers Retailers Raw Materials Manufacturing

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