Case Study of Hardee Transportation

The current U.S. economy has changed to one of service and technology from manufacturing (Coyle, et.al. 2011, p. 259). By providing higher customer service and shipment visibility a company can differentiate itself from the competition. Declining volume of iron-ore and grain has necessitated Great Lakes Carriers (GLC) to transform its business for the future. By promoting collaborative associations with groups such as railroads and ports, they can increase their bulk cargo division and renovate their organization at the same time.

While water transport faces competition from other modes, it is the second most efficient form of transport (Coyle et. al. 2011, 259). Without water transport, many suppliers would not maintain competitiveness (Coyle, p. 259). Aside from natural challenges water carriers face, there are slow transit times, shipment visibility, and port development. One of the ways in which water carriers could realize enhanced efficiency is to eliminate unneeded stops. Water carriers are considered to be medium-to-long-haul carriers, short hauls with frequent stops become uneconomical (Coyle, p. 264). One area this can be achieved is by partnering with rail service. If GLC were to be convinced to add coal as a product using rail shipments to the Port of Toledo, then to appropriate locations on the Great Lakes, it would increase their bulk cargo business. Water-rail combination is lower than the all-rail route (Coyle, p. 263). Further incentive is the ability to increase the bottom line by using the twelve bulk ore vessels already available for use with this new raw material. Another avenue at hand is GLC’s ability to increase its service area by accessing the Atlantic and Gulf ports via the Saint Lawrence Seaway. This activity would require ocean going vessels and/or barges, however potential problems could be adverted through proper planning (Coyle, p. 262). It would also open new opportunities in the area of hauling bulk liquid commodities although heavy competitions exist with pipelines.

Other opportunities exist in the area of container ship service which warrants careful consideration. Both Ben Heur and E. Kate Weber realize the need to form

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