Because of the high-risk involved in business, Petro chemical logistics requires
ID: 373317 • Letter: B
Question
Because of the high-risk involved in business, Petro chemical logistics requires flexibility and adaptability. The chemical supply chain is long, volatile, and highly complex. The array of safety considerations and regulatory follow-through needed to store and transport chemicals makes outsourcing a popular choice for this sector. Chemical companies design their products and manufacture them safely, while logistics companies offer the expertise required to safely navigate transporting and storing these potentially dangerous products.
Chemical shipment drivers are more experienced and skilled, and must pass rigorous background checks, undergo federally certified training, and complete in-house training with the company they work for. All drivers must meet the high standards, leaving the chemical vertical with a very small slice of a dwindling pie of available drivers.
Houston have an assess to sea transport as well other then road, railways and air transport. Percentage is not a issue but the petro chemicals if sent bthrough sea transport can cause a big danger to the bio diversity of sea. Same is the case with air transport. So the preffered mode should be rail and road transport.
In areas such as Houston, on the edge of South Texas’ Eagle Ford Shale, petrochemical has tapped out available space. But Los Angeles and other commerce centers are also feeling the pinch. “The Los Angeles warehousing market is very tight,” When the economy first started to rebound, construction was delayed until available space was absorbed. In robust economies such as Houston, real estate developers were taken by surprise when the energy market quickly surged. New buildings take 18 to 24 months to complete, and the lag time has made warehouse space difficult to find. In Houston, for example, less than three million square feet are under construction in a market that has more than one billion square feet already occupied. Nationally, warehouse availability is approaching 10 percent, down from a peak of more than 14 percent at the height of the recession.
Explanation / Answer
SCLT 3384 - Logistics Tech and Processes
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Assume that you are a logistics manager for a petrochemical company based in Houston. Discuss the transportation modes you can choose to process inbound and outbound material flows. How are you going to allocate the percentages of materials into different modes? Explain.