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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. Highway weight limitation
Pipeline and Rail
80 - 000 lbs
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

2. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
anywhere between a quarter and a third of all highway travel
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
484
30 - 000 lbs and 300 miles

3. Pooling
Coastal/Intercoastal - Great Lakes - Internal
Consolidation of shipments to different destinations within the same general area.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
A trucking operation that only hauls freight for the firm which owns it

4. What are the types of railcars?
Terminal
Yes
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
83.8%

5. Class Rate Calculations
Transfers accountability between domestic and international carrier at the terminal
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.
250 - 000
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.

6. Which mode has the highest carrying capacity?
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
58
Water
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...

7. What is a road train?
A longer combination vehicle towing more than one trailer
Consolidate orders for several customers and stop along the way for partial unloading.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Labor and Fuel

8. 1 Barge is equivalent to how many tons?
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.
1500 tons
90-s
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

9. What do the users of truck service benefit?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Moderate
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

10. Which government agency will investigate a major railroad accident involving public safety?
Consolidation
7%
NTSB
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

11. Flags of Convenience
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Completely different continent - different time zones.
Used for tax - manning - and relaxed regulation.

12. Stop-off
Break bulk - Relay - Pick up - Delivery
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...
Water
Consolidate orders for several customers and stop along the way for partial unloading.

13. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Water
7%
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
83.8%

14. Mini Bridge
Wyoming
Specialized: $73 Billion - General: $146 Billion
Far east to east coast or Europe to west coast - final destination is US port city
A batching pig

15. Haulage

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16. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Substantially higher
Covering variable costs - volume and equipment utilization - and cash flow.
Consolidation

17. Which economies are most prominent in the trucking industry?
A batching pig
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.
Economies of scope and density
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

18. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
11 hours straight or anything beyond 70 hours in 8 days
Less than 25 carriers handle 75 to 80% of total freight dollar.
Transfer of function to another country - can stay within the same company!

19. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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.
Coastal/Intercoastal - Great Lakes - Internal

20. What are the revenues of the specialized and general cargo?
Specialized: $73 Billion - General: $146 Billion
Moving a corporations internal activities to outside providers - mainly for cheap labor
About 2 cents per dollar
Carloads and Ton-miles

21. Where does funding for the roads come from?
Highway user taxes
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Coastal/Intercoastal - Great Lakes - Internal
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

22. Non-vessel operating common carriers (NVOCC)
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
One method moves the trailer on its wheels while the other moves the container
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

23. What is the current share of trucking in total transportation expenses is closest to...
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
Transfer of function to another country - can stay within the same company!
83.8%
Highway user taxes

24. Ways to classify the motor carriers
Consolidate orders for several customers and stop along the way for partial unloading.
Used for tax - manning - and relaxed regulation.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
1500 tons

25. Cost of Service Pricing
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.
Break bulk - Relay - Pick up - Delivery
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Wyoming

26. What was the golden age of railroads?
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.
1850-1950
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

27. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
250 - 000
Interior Non-port cities
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

28. Major commodities hauled by each mode
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
A trucking operation that only hauls freight for the firm which owns it
Water
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

29. Service competition areas in airline industry
Water
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
7%
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

30. Which US federal government agency enforces safety regulations for railroads?
250 - 000
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
563
Federal Railroad Administration (FRA)

31. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Terminal
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Showed a marked decline

32. Labor relations in the US railroad industry?
Wyoming
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Labor and Fuel
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

33. What aspects of the trucking industry is the US involved in?
1850-1950
The intermodal competition has increased dramatically since WW 2
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
30 - 000 lbs and 300 miles

34. What are the metrics to measure freight traffic in the motor carrier industry?
563
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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
ton-miles

35. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
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
anywhere between a quarter and a third of all highway travel
FedEx - YRC - Conway - UPS - ABF

36. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Consolidation
A longer combination vehicle towing more than one trailer
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

37. Which modes have the following cost structure: Low Variable and High Fixed?
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
Pipeline and Rail
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Water

38. What is the difference between TOFC and COFC service?
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
One method moves the trailer on its wheels while the other moves the container
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

39. Dock receipt
Economies of scope and density
83.8%
Transfers accountability between domestic and international carrier at the terminal
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.

40. What are the issues facing the US railroads?
Showed a marked decline
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Crushed stone - gravel and sand
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

41. What is a typical fixed cost item in the motor carrier industry?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Terminal
Carloads and Ton-miles
Less than 25 carriers handle 75 to 80% of total freight dollar.

42. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
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.
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

43. Near-shoring
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

44. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Water
Highway user taxes
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

45. What are the current trends in trucking?
30 - 000 lbs and 300 miles
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
7
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

46. How does the US railroad industry compete with other modes?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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.
The intermodal competition has increased dramatically since WW 2
Substantially higher

47. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Federal Railroad Administration (FRA)

48. Unit trains
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
About 25 cents per dollar
Class 1 - Regional - Shortline - Switching and Terminal
Move 1 single commodity and are non-stop to destination.

49. How are airport hub/spoke and LTL breakbulk similar?
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.
Covering variable costs - volume and equipment utilization - and cash flow.
Interior Non-port cities
Far east to east coast or Europe to west coast - final destination is US port city

50. Types of vehicles for trucking
250 - 000
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
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.
Labor and Fuel