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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
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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. Did the US railroads have anything to do with the creation of world time zones?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Yes
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Transfer of function to another country - can stay within the same company!

2. Dock receipt
Coal
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...
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Transfers accountability between domestic and international carrier at the terminal

3. How are interstate highways numbered?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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
Far east to east coast or Europe to west coast - final destination is US port city

4. Social Responsibility pricing
Society and customer first.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Sysco - Tyson Foods - Coca-Cola - and Walmart
Covering variable costs - volume and equipment utilization - and cash flow.

5. What are the revenues of the specialized and general cargo?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Is likely to stay and even get worse in the future
Specialized: $73 Billion - General: $146 Billion
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

6. What is the current share of trucking in total transportation expenses is closest to...
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.
The competition is intense in both TL and LTL segments
83.8%
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

7. Ways to classify the motor carriers
Society and customer first.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Yes
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

8. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
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
Consolidation
Declaration of where product was made so that appropriate duties are charged
Air

9. Factors affecting Pricing decisions
To promote interstate commerce and strengthen the defenses of the country
Special Rates
1850-1950
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

10. Funding the railroads?
Covered Hopper
The intermodal competition has increased dramatically since WW 2
Wyoming
Not the government - the railroads themselves

11. Consolidation
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Main penalty is the cost of lost of sales by holding the shipment.
100 cars x 100 tons

12. Intermodal Transportation
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
11 hours straight or anything beyond 70 hours in 8 days
Water
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.

13. 1 Barge is equivalent to how many tons?
A pumping station
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Attests to authenticity and accuracy of the goods. Performs by third party independent company
1500 tons

14. Price variation factors in airline service
Wyoming
A trucking operation that only hauls freight for the firm which owns it
Service levels - Frequent flyer programs - Timing of flights - In advance registration
15%~13%

15. Carriers' Technological and Equipment strategies to minimize costs
Completely different continent - different time zones.
Pipeline and Rail
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.
250 - 000

16. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
To save the railroads by giving them a chance to compete with other modes on equal footing
Water

17. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
Break bulk - Relay - Pick up - Delivery
The intermodal competition has increased dramatically since WW 2
11 hours straight or anything beyond 70 hours in 8 days

18. Unit trains
Transfers accountability between domestic and international carrier at the terminal
Move 1 single commodity and are non-stop to destination.
Water
15

19. What do the users of truck service benefit?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Coal - farm products - chemicals - transportation equipment
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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

20. What term is related to railroad operations?
Is likely to stay and even get worse in the future
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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.
A batching pig

21. Four types of Liner Service
Water
The trends in supply chain management called for faster and more frequent services and smaller inventories - so many shippers preferred trucks - - The newly built system of inland waterways swayed cost-conscious shippers to less expensive barge tran
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

22. Freight revenue for Modes (per ton-mile)
The trends in supply chain management called for faster and more frequent services and smaller inventories - so many shippers preferred trucks - - The newly built system of inland waterways swayed cost-conscious shippers to less expensive barge tran
Crushed stone - gravel and sand
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

23. LTL terminals are used for connections with these operations...
To promote interstate commerce and strengthen the defenses of the country
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
1500 tons
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

24. Bill of Lading
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
The trends in supply chain management called for faster and more frequent services and smaller inventories - so many shippers preferred trucks - - The newly built system of inland waterways swayed cost-conscious shippers to less expensive barge tran
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Coal

25. Factors contributing to the decline of Railroad use
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Pipeline and Rail
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Air

26. Far-shoring
High price for price insensitive customers.
Completely different continent - different time zones.
Intermodal in character
15%~13%

27. Where does funding for the roads come from?
30%
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Interior Non-port cities
Highway user taxes

28. Outsourcing
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Moving a corporations internal activities to outside providers - mainly for cheap labor
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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

29. What is Amtrak?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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
100 cars x 100 tons

30. Non-vessel operating common carriers (NVOCC)
The intermodal competition has increased dramatically since WW 2
Water
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

31. Mini Bridge
Is likely to stay and even get worse in the future
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Far east to east coast or Europe to west coast - final destination is US port city
A batching pig

32. Micro Bridge
30%
Consolidation of shipments to different destinations within the same general area.
Interior Non-port cities
NTSB

33. Certificate of Inspection
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Declaration of where product was made so that appropriate duties are charged
Attests to authenticity and accuracy of the goods. Performs by third party independent company

34. Commercial Invoice
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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

35. What is a public benefit of railroads?
Main penalty is the cost of lost of sales by holding the shipment.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
15
Intermodal in character

36. What are the highest variable costs in the railroad industry?
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.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Labor and Fuel

37. Which mode has the lowest cost per ton mile?
Society and customer first.
One method moves the trailer on its wheels while the other moves the container
Carloads and Ton-miles
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

38. What are the current trends in trucking?
Completely different continent - different time zones.
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
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
15%~13%

39. What is an approximate capacity of a hopper?
Expanding capacity to benefit from large volume traffic efficiencies and economies of scale - Strengthening financial position and eliminating duplication through side-by-side mergers - Ensuring fair intramodal competition through 'soft' mergers - St
100 tons
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

40. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
7
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

41. Flags of Convenience
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...
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Used for tax - manning - and relaxed regulation.
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.

42. Which modes have the following cost structure: Low Variable and High Fixed?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Water
Expanding capacity to benefit from large volume traffic efficiencies and economies of scale - Strengthening financial position and eliminating duplication through side-by-side mergers - Ensuring fair intramodal competition through 'soft' mergers - St
Pipeline and Rail

43. A pumping station requires 3-6000HP to move oil through a pipeline. To move more than 1 grade at same time what do you use?
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.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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
A batching pig

44. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Consolidation
7%
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

45. What are the issues facing the US railroads?
Interior Non-port cities
FedEx - YRC - Conway - UPS - ABF
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

46. The average annual salary of a locomotive operator compared to a TL driver in the US is...
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Less than 25 carriers handle 75 to 80% of total freight dollar.
Substantially higher
About 2 cents per dollar

47. What is the difference between class 1 and class 2 carriers?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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.
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.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

48. Labor relations in the US railroad industry?
90-s
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
1. Setting prices on new services- consider cost and market elasticity; no precedent 2. Modification of prices over time- respond to market/operating/service changes 3. Initiating and responding to price changes- impact on market share and profits.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

49. What are the characteristics of a block train?
Economies of scope and density
Water
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

50. Types of vehicles for trucking
Water
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
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
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.