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Test your basic knowledge |
Transportation Logistics
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Micro Bridge
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Interior Non-port cities
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Gov't aid to develop air service - Gov't funding of highways - Construction of inland waterways - Growing preference of shippers for more frequent deliveries and smaller shipments
2. Consular Invoice
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183
3. What are the revenues of the specialized and general cargo?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Far east to east coast or Europe to west coast - final destination is US port city
Specialized: $73 Billion - General: $146 Billion
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
4. Freight Revenue for Rail (per ton-mile)
Transfer of function to another country - can stay within the same company!
Labor and Fuel
About 2 cents per dollar
Containers moving between Far East & Europe via ship - rail - ship instead of all water through Panama Canal - Use continent U.S. as bridge (move by train) - Save Transit time - fuel - & Liner ship investment
5. Which economies are present in the US railroad industry?
Economies of scale
NTSB
100 tons
Declaration of where product was made so that appropriate duties are charged
6. Did the US railroads have anything to do with the creation of world time zones?
Provides rate for any commodity between any two points 1) Geogrphic: rate basis points and numbers 2) Commodity: commodity classification - class ratings 3) Rate structure: national scale of rates - cwt-based.
Yes
Continuous straight line movement - minimize intermediate handlings - maximize the full capacity of equipment - consolidation and break-bulk activities - empty mileage should be minimized - movement should be scheduled and dispatched.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
7. Labor relations in the US railroad industry?
1850-1950
Over reliance on costs - slow reaction to market changes - ignoring marketing mix - prices not tailored to services and markets - need to price according to strategic plan.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
With both - there are intermediary stops in between a route that serve as loading/consolidating or unloading of passengers/goods and then they are moved on to their final destinations.
8. What commodity/goods are typically transported by railroads in the US?
Liner Shipping- ply fixed routes on published schedule - Tramp Shipping- charter ships - lease based on time or voyage - Private Vessels- ship registry; flags of convenience for regulations.
Coal - farm products - chemicals - transportation equipment
To promote interstate commerce and strengthen the defenses of the country
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
9. What are the metrics to measure freight traffic in the motor carrier industry?
Break bulk - Relay - Pick up - Delivery
anywhere between a quarter and a third of all highway travel
ton-miles
Containers moving between Far East & Europe via ship - rail - ship instead of all water through Panama Canal - Use continent U.S. as bridge (move by train) - Save Transit time - fuel - & Liner ship investment
10. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
100 tons
Specialized: $73 Billion - General: $146 Billion
A batching pig
11. What are the characteristics of a block train?
Substantially higher
250 - 000
7
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
12. Factors contributing to the decline of Railroad use
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
A trucking operation that only hauls freight for the firm which owns it
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
13. What is a typical fixed cost item in the motor carrier industry?
Terminal
Main penalty is the cost of lost of sales by holding the shipment.
Continuous straight line movement - minimize intermediate handlings - maximize the full capacity of equipment - consolidation and break-bulk activities - empty mileage should be minimized - movement should be scheduled and dispatched.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
14. Which mode has the highest carrying capacity?
Main penalty is the cost of lost of sales by holding the shipment.
Water
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
15. Types of vehicles for trucking
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Line-Haul Vehicles: Tractor Trailer combination of 3 or more axles - City Straight Vehicles: Single Units - Special Vehicles: Dry Van - Open Top - Flatbed - Tank Trailer - Special
Terminal
Over reliance on costs - slow reaction to market changes - ignoring marketing mix - prices not tailored to services and markets - need to price according to strategic plan.
16. Who has the highest number of coal carloads?
Labor and Fuel
Wyoming
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
17. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Amtrak is a US government business since 1971 - created to ease the burden on private railroads by taking over money-locing passenger transportation in exchange for the right to operate Amtrak trains over their networks
Pipeline and Rail
18. What were the reasons for the erosion of the railroad dominance in transportation in the US?
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19. How are interstate highways numbered?
1500 tons
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
484
20. Offshoring
NTSB
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Transfer of function to another country - can stay within the same company!
30%
21. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
7
22. Which mode has the lowest cost per ton mile?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
23. Non-vessel operating common carriers (NVOCC)
A batching pig
Intermodal in character
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
90-s
24. Far-shoring
11 hours straight or anything beyond 70 hours in 8 days
Completely different continent - different time zones.
Yes
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
25. What are the highest variable costs in the railroad industry?
Water
A longer combination vehicle towing more than one trailer
Accompanies shipment - Bill for the goods from the seller to the buyer - Often used by government to determine the true value of goods when assessing customs duties
Labor and Fuel
26. Invoices
Wyoming
Increased use of technology - Shorter length of haul - Growth of intermodal - Expected increase in rates due to expected capacity shortage - Convergence of LTL market with traditional integrators - Expanded menu of services - Active government lobbyi
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Labor and Fuel
27. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
Coal - farm products - chemicals - transportation equipment
28. Intermodal Transportation
90-s
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
About 2 cents per dollar
The use of two or more modes to move a shipment from origin to destination. -Malcom McLean first move freight by truck and rail in 1950.
29. What was the rationale behind passing the Staggers Act of 1980?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Interior Non-port cities
To save the railroads by giving them a chance to compete with other modes on equal footing
Labor and Fuel
30. Which US federal government agency enforces safety regulations for railroads?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Federal Railroad Administration (FRA)
A trucking operation that only hauls freight for the firm which owns it
31. Third Party Logistics
Far east to east coast or Europe to west coast - final destination is US port city
Showed a marked decline
Large carrying capacity - versatility of cargo - reduced pollution due to higher fuel efficiency compared to trucking - coast-to-coast 'land bridge' with shorter total transit sea+land times for prevailing import container routes
Connect buyer and seller- Use of outside firms (outsourcing) to provide own logistics support. Firms: Info-based... freight bill payment - auditing. Asset and operation-based: in/outbound transportation - warehousing...
32. Unit trains
Move 1 single commodity and are non-stop to destination.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Transfers accountability between domestic and international carrier at the terminal
33. How does the US railroad industry compete with other modes?
Less than 25 carriers handle 75 to 80% of total freight dollar.
The intermodal competition has increased dramatically since WW 2
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
anywhere between a quarter and a third of all highway travel
34. Where does funding for the roads come from?
Interior Non-port cities
Provides rate for any commodity between any two points 1) Geogrphic: rate basis points and numbers 2) Commodity: commodity classification - class ratings 3) Rate structure: national scale of rates - cwt-based.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Highway user taxes
35. 1 Barge is equivalent to how many tons?
30%
1500 tons
Maximize the operational time of equipment - fuel efficient speeds - vahicle weight should be minimized - standardized equipment - equipment should be adapted to special market and commodity requirements.
Carloads and Ton-miles
36. What factors lead to reduction of air pollution by trucks?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Wyoming
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Moderate
37. Pricing adjustment conditions
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Moving a corporations internal activities to outside providers - mainly for cheap labor
Coal
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
38. Pro-Forma Invoice
A longer combination vehicle towing more than one trailer
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
39. What are the current trends in the US railroad?
80 - 000 lbs
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Covering variable costs - volume and equipment utilization - and cash flow.
40. Highway weight limitation
Class 1 - Regional - Shortline - Switching and Terminal
100 tons
Attests to authenticity and accuracy of the goods. Performs by third party independent company
80 - 000 lbs
41. 20/80 Rule
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Less than 25 carriers handle 75 to 80% of total freight dollar.
About 25 cents per dollar
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
42. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
High price for price insensitive customers.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
After World War 2
Declaration of where product was made so that appropriate duties are charged
43. Service competition areas in airline industry
anywhere between a quarter and a third of all highway travel
30 - 000 lbs and 300 miles
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
44. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Completely different continent - different time zones.
A batching pig
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
45. Name the types of trucking terminals
Specialized: $73 Billion - General: $146 Billion
Break bulk - Relay - Pick up - Delivery
Air
Voyage: Time - Bareboat or demise Voyage: Similar to taxi - ship owner - responsibility for crews & operation Time: Rent Vessel & crew for period of time Bareboat/Demise: Long period - chartering party responsibility for crews & operation
46. What is the current share of trucking in total transportation expenses is closest to...
Economies of scope and density
83.8%
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
47. Skimming pricing
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
High price for price insensitive customers.
Containers moving between Far East & Europe via ship - rail - ship instead of all water through Panama Canal - Use continent U.S. as bridge (move by train) - Save Transit time - fuel - & Liner ship investment
Society and customer first.
48. What is a public benefit of railroads?
Covered Hopper
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
49. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
High price for price insensitive customers.
Water
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
50. Which economies are most prominent in the trucking industry?
30 - 000 lbs and 300 miles
Economies of scope and density
Break bulk - Relay - Pick up - Delivery
About 2 cents per dollar