Hi guys! an OpenTTD player and I happen to be starting a new export/import business in Canada. 40 foot standard containers
I'm curious of Rail transport of 5 containers using Canadian National Rail system vs Trucking shipment is cheaper overall. Perhaps someone can shed a rule of thumb etc.
I know that shipping by sea is cheapest but slowest but shipping by sea from Detroit for containers could prove fruitless I don't think there's such line that operates from Detroit that can ship containers ASAIK. Any info or tips would be awesome as I continually research best shipping methods for my container. (From Detroit to Montreal)
Cheers!
5 Container Transport from Detroit to Montreal
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Re: 5 Container Transport from Detroit to Montreal
Heya Lucrades; welcome to the forum!Lucardes wrote:Hi guys! an OpenTTD player and I happen to be starting a new export/import business in Canada. 40 foot standard containers
I'm curious of Rail transport of 5 containers using Canadian National Rail system vs Trucking shipment is cheaper overall. Perhaps someone can shed a rule of thumb etc.
I know that shipping by sea is cheapest but slowest but shipping by sea from Detroit for containers could prove fruitless I don't think there's such line that operates from Detroit that can ship containers ASAIK. Any info or tips would be awesome as I continually research best shipping methods for my container. (From Detroit to Montreal)
Cheers!
As it happens, I'm a transport economist who works in the real world with the British railway system.
What you're describing - with 40 foot standard containers - is intermodal freight. Intermodal because you can load the containers onto different forms of transport easily.
Some of the advantages are not that hard to imagine.
(1) Rail has considerably lower staff costs. A single intermodal train in Britain handles around 34 containers, but only needs 1 or 2 drivers. Those 34 containers would otherwise need 34 lorry drivers. True, rail driver costs are considerably higher than lorry (you can't sleep in your cab so there's hotel costs; it's far more unionised; you need signallers), but not by a factor of 34.
(2) Rail is a lot more fuel efficient than lorries; particularly if you're hauling a very large amount of weight. This is why rail was developed int eh first place.
(3) Rail in North America is far more cost efficient than in Europe. This is for various reasons: (a) freight rail is vertically integrated, so the freight operations and infrastructure can support each other; (b) North American railways are today operated primarily for freight, rather than passengers. Therefore freight is given priority.
Any opinions expressed are purely mine and not that of any employer, past or present.
Re: 5 Container Transport from Detroit to Montreal
@OP : I think most of the people who'll immediately reply here wouldn't help much, as what you asks really depends on your situation and most don't really know them (well someone better prove me wrong I presume !)
But I'll start with a few things. Please keep in mind that this is based on what I barely heard from people who had worked with import/export taxes payment for a sea port (and an airport, but that's not intermodal) in Indonesia. Things can change in different countries, esp. one being a geographic antipode of the other.
Intermodal containers are owned by someone. That someone is absolutely someone, or an entity / corporation. They're free to do things with it. So, I'll assume a few things for your position :
- As an entity who handles cargo, but doesn't own any equipment :
This would mean you'll need to offload the whole of your operation to someone else. You'll probably only need to handle the immigration taxes papers, declaration etc. . If you don't own any containers, this would mean that in turn you have to submit your goods to yet another shipping/logistics company that has their containers (like, P&O or Maersk or such equivalent in N. A.). I'm not sure if this is viable or not, that depends on the laws that applies there, but this often happens here for shipment of goods that are waay too small in volume to fit it's own container and such. What mode will it end up being delivered in depends on those companies and not yours.
- As an entity that handles cargo, and only own containers :
One step less complicated than above, I could only presume. Mode dependent on your choice as what you need is only the vehicles - but you'll have to see real local condition to single out what's best.
The sort of companies you might want to contact (definitely not the one shown, been defunct for 2 decades by now and is on the wrong island) :
- As an entity that would try to have a vehicle (practically a logistics / shipping company) :
No matter what mode you're using, there's a huge chance that at one point, you'll need road transport. Assuming that you have the fleet, then it's a question of whether to have a large fleet and send them to the destination, or have presumably slightly less fleet and have them "commute" between your warehouse and a port or station. Again, you'll have to do real calculations if you're going this far, not just on theoretical average/normal cost, but including insurance, risks, maintenance, traffic (both vehicles and goods), feasibility etc. You need concrete, rock-solid data and realistic anticipated conditions that will result in concrete, rock-solid plan. I have no say for this end, as things can vary variably. Of course, many vehicular companies are more than happy to "help" you choose a plan.
But I'll start with a few things. Please keep in mind that this is based on what I barely heard from people who had worked with import/export taxes payment for a sea port (and an airport, but that's not intermodal) in Indonesia. Things can change in different countries, esp. one being a geographic antipode of the other.
Intermodal containers are owned by someone. That someone is absolutely someone, or an entity / corporation. They're free to do things with it. So, I'll assume a few things for your position :
- As an entity who handles cargo, but doesn't own any equipment :
This would mean you'll need to offload the whole of your operation to someone else. You'll probably only need to handle the immigration taxes papers, declaration etc. . If you don't own any containers, this would mean that in turn you have to submit your goods to yet another shipping/logistics company that has their containers (like, P&O or Maersk or such equivalent in N. A.). I'm not sure if this is viable or not, that depends on the laws that applies there, but this often happens here for shipment of goods that are waay too small in volume to fit it's own container and such. What mode will it end up being delivered in depends on those companies and not yours.
- As an entity that handles cargo, and only own containers :
One step less complicated than above, I could only presume. Mode dependent on your choice as what you need is only the vehicles - but you'll have to see real local condition to single out what's best.
The sort of companies you might want to contact (definitely not the one shown, been defunct for 2 decades by now and is on the wrong island) :
- As an entity that would try to have a vehicle (practically a logistics / shipping company) :
No matter what mode you're using, there's a huge chance that at one point, you'll need road transport. Assuming that you have the fleet, then it's a question of whether to have a large fleet and send them to the destination, or have presumably slightly less fleet and have them "commute" between your warehouse and a port or station. Again, you'll have to do real calculations if you're going this far, not just on theoretical average/normal cost, but including insurance, risks, maintenance, traffic (both vehicles and goods), feasibility etc. You need concrete, rock-solid data and realistic anticipated conditions that will result in concrete, rock-solid plan. I have no say for this end, as things can vary variably. Of course, many vehicular companies are more than happy to "help" you choose a plan.
Last edited by YNM on 20 Jan 2018 14:47, edited 1 time in total.
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Re: 5 Container Transport from Detroit to Montreal
Thank you guys, I been doing some research and I can say this new venture for me is very exciting learning so much about Free Tax Zones and NAFTA (North America Free Trade Agreement) as well. It's an industry where you truly start to learn the ins and outs of treaties as well and how it affects everything from your business side of things and their implications.
One thing new I found out about Canada which is super unique and very competitive and perhaps the only country in the world to do such thing is that their Free Tax Zones (FTZ) are geographically independent. Meaning my warehouse or any location can be a FTZ! as long as I apply for it and of-course abide with the requirements.
One thing new I found out about Canada which is super unique and very competitive and perhaps the only country in the world to do such thing is that their Free Tax Zones (FTZ) are geographically independent. Meaning my warehouse or any location can be a FTZ! as long as I apply for it and of-course abide with the requirements.
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