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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. What companies are players in private carriage?
Specialized: $73 Billion - General: $146 Billion
Sysco - Tyson Foods - Coca-Cola - and Walmart
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Is likely to stay and even get worse in the future

2. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Sysco - Tyson Foods - Coca-Cola - and Walmart
One method moves the trailer on its wheels while the other moves the container
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

3. The whole history of the US railroads is a history of...
Consolidation
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
Consolidation of shipments to different destinations within the same general area.
Water

4. Who has the highest number of coal carloads?
Coastal/Intercoastal - Great Lakes - Internal
Terminal
Wyoming
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

5. 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?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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.
A batching pig

6. Carrier's Operational strategies to minimize cost
About 25 cents per dollar
Used for tax - manning - and relaxed regulation.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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.

7. What was the rationale behind passing the Staggers Act of 1980?
About 25 cents per dollar
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
To save the railroads by giving them a chance to compete with other modes on equal footing
Substantially higher

8. Where does funding for the roads come from?
Highway user taxes
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
About 25 cents per dollar
Intermodal in character

9. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Used for tax - manning - and relaxed regulation.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Declaration of where product was made so that appropriate duties are charged

10. Certificate of origin
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Declaration of where product was made so that appropriate duties are charged
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

11. 1. Character of shipment rates: LTL/TL rates - multiple-car rates - incentive rates - unit train rates - density rates... 2. Area - location or route rates: Local rates - joint rates - proportional rates - differential rates - per mile rate.
Intermodal in character
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Special Rates
Highway user taxes

12. FOB Origin/Destination
Intermodal in character
High price for price insensitive customers.
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...
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

13. Which modes have the following cost structure: Low Variable and High Fixed?
Pipeline and Rail
NTSB
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
Crushed stone - gravel and sand

14. Funding the railroads?
Coal - farm products - chemicals - transportation equipment
Not the government - the railroads themselves
Move 1 single commodity and are non-stop to destination.
A contract for transportation between a shipper and the carrier - also is a cargo receipt

15. What is an approximate capacity of a hopper?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
100 tons
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

16. UNCTAD liner code 40-40-20
Intermodal in character
Terminal
Transfer of function to another country - can stay within the same company!
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

17. Freight Revenue for Truck/Motor (per ton-mile)
Covering variable costs - volume and equipment utilization - and cash flow.
About 25 cents per dollar
Intermodal in character
11 hours straight or anything beyond 70 hours in 8 days

18. What are the current trends in the US railroad?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Society and customer first.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

19. Categories of major pricing decisions
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.
90-s
Water
250 - 000

20. What is Amtrak?
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
The competition is intense in both TL and LTL segments
Interior Non-port cities
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.

21. Benefits of hub and spoke system
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
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Carloads and Ton-miles

22. What is the difference between TOFC and COFC service?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
One method moves the trailer on its wheels while the other moves the container
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

23. LTL terminals are used for connections with these operations...
A pumping station
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

24. What do the users of truck service benefit?
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Moving a corporations internal activities to outside providers - mainly for cheap labor

25. Ways to classify the motor carriers
Declaration of where product was made so that appropriate duties are charged
Wyoming
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
A longer combination vehicle towing more than one trailer

26. A barge tow is capable of moving how many barges?
Consolidation
Coal - farm products - chemicals - transportation equipment
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
15

27. What is the primary railroad cargo out of Arkansas by tonnage?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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
Crushed stone - gravel and sand
Consolidation

28. Mistakes in pricing strategy
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.
1850-1950
To save the railroads by giving them a chance to compete with other modes on equal footing
Covering variable costs - volume and equipment utilization - and cash flow.

29. Cost of Service Pricing
A trucking operation that only hauls freight for the firm which owns it
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Less than 25 carriers handle 75 to 80% of total freight dollar.
Consolidate orders for several customers and stop along the way for partial unloading.

30. Value of Service pricing
To save the railroads by giving them a chance to compete with other modes on equal footing
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Pricing according to product value or demand - higher value of the product - the higher the transportation price (risk of loss/damage..). Third Degree price discrimination: separate price for separate groups of buyers with same service. Must posses
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

31. What is the current share of trucking in total transportation expenses is closest to...
83.8%
Highway user taxes
The intermodal competition has increased dramatically since WW 2
Consolidation of shipments to different destinations within the same general area.

32. Examples of general freight
Coal - farm products - chemicals - transportation equipment
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
NTSB
Transfer of function to another country - can stay within the same company!

33. What commodity/goods are typically transported by railroads in the US?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Coal - farm products - chemicals - transportation equipment

34. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Coal
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
Air
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...

35. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
15
Highway user taxes
To promote interstate commerce and strengthen the defenses of the country
A contract for transportation between a shipper and the carrier - also is a cargo receipt

36. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
ton-miles
Less than 25 carriers handle 75 to 80% of total freight dollar.
484

37. What are the metrics to measure freight traffic in the motor carrier industry?
80 - 000 lbs
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Specialized: $73 Billion - General: $146 Billion
ton-miles

38. What are the highest variable costs in the railroad industry?
One method moves the trailer on its wheels while the other moves the container
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Labor and Fuel
Carloads and Ton-miles

39. Service competition areas in airline industry
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
100 tons
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Yes

40. Freight Revenue for Rail (per ton-mile)
About 2 cents per dollar
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Coal - farm products - chemicals - transportation equipment
Society and customer first.

41. Unit trains
Move 1 single commodity and are non-stop to destination.
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.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Special Rates

42. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Economies of scale
Specialized: $73 Billion - General: $146 Billion
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

43. What is the difference between class 1 and class 2 carriers?
Substantially higher
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.

44. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
ton-miles
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Sysco - Tyson Foods - Coca-Cola - and Walmart

45. What is a road train?
30%
A longer combination vehicle towing more than one trailer
To save the railroads by giving them a chance to compete with other modes on equal footing
Federal Railroad Administration (FRA)

46. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Covered Hopper
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

47. Offshoring
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 trucking operation that only hauls freight for the firm which owns it
15
Transfer of function to another country - can stay within the same company!

48. Near-shoring
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
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Showed a marked decline
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

49. Four types of Liner Service
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

50. Pricing adjustment conditions
ton-miles
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Moderate
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.