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Transportation Logistics

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Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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1. Name the types of trucking terminals
Water
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Break bulk - Relay - Pick up - Delivery
The competition is intense in both TL and LTL segments

2. It is common for an operating ratio of motor carriers to be around these numbers...
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
90-s
Coal - farm products - chemicals - transportation equipment
NTSB

3. Value of Service pricing
Crushed stone - gravel and sand
Carloads and Ton-miles
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
Moving a corporations internal activities to outside providers - mainly for cheap labor

4. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Covering variable costs - volume and equipment utilization - and cash flow.
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.
To promote interstate commerce and strengthen the defenses of the country
250 - 000

5. What term is related to railroad operations?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Consolidate orders for several customers and stop along the way for partial unloading.
Substantially higher

6. Certificate of Inspection
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

7. What are the characteristics of a block train?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

8. Non-vessel operating common carriers (NVOCC)
484
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

9. Mistakes in pricing strategy
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Economies of scope and density
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 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.

10. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Air
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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

11. Which mode has the highest carrying capacity?
Break bulk - Relay - Pick up - Delivery
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Labor and Fuel
Water

12. Labor relations in the US railroad industry?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A longer combination vehicle towing more than one trailer
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Far east to east coast or Europe to west coast - final destination is US port city

13. What is the truck driving time limitations?
Consolidation
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.
11 hours straight or anything beyond 70 hours in 8 days
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.

14. Consular Invoice

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15. Four types of Liner Service
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Consolidation
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

16. Pricing adjustment conditions
FedEx - YRC - Conway - UPS - ABF
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
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

17. What aspects of the trucking industry is the US involved in?
The competition is intense in both TL and LTL segments
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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.

18. What are the issues facing the US railroads?
Transfers accountability between domestic and international carrier at the terminal
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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...

19. What are the metrics to measure freight traffic in the motor carrier industry?
7
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
ton-miles
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.

20. Outsourcing
30%
Main penalty is the cost of lost of sales by holding the shipment.
Moving a corporations internal activities to outside providers - mainly for cheap labor
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

21. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
Move 1 single commodity and are non-stop to destination.
Yes
About 2 cents per dollar

22. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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
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.
A trucking operation that only hauls freight for the firm which owns it

23. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Highway user taxes

24. What is Amtrak?
30%
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
Showed a marked decline
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

25. Three kinds of ocean carriers
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

26. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
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.
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.
90-s
15%~13%

27. What was the rationale behind passing the Staggers Act of 1980?
To save the railroads by giving them a chance to compete with other modes on equal footing
Coastal/Intercoastal - Great Lakes - Internal
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Is likely to stay and even get worse in the future

28. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
The competition is intense in both TL and LTL segments
30 - 000 lbs and 300 miles
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.

29. Commercial Invoice
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.
Economies of scope and density
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
Coastal/Intercoastal - Great Lakes - Internal

30. Terms of Payment
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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
Transfers accountability between domestic and international carrier at the terminal

31. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Not the government - the railroads themselves
30%
Covered Hopper
About 25 cents per dollar

32. What are the reasons for the relative decline of the US railroads after World War 2?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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
484
Sysco - Tyson Foods - Coca-Cola - and Walmart

33. Pooling
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Consolidation of shipments to different destinations within the same general area.
A longer combination vehicle towing more than one trailer
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

34. Carrier's Operational strategies to minimize cost
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

35. Benefits of hub and spoke system
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Far east to east coast or Europe to west coast - final destination is US port city

36. Line of credit process

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37. Far-shoring
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Completely different continent - different time zones.
Carloads and Ton-miles
Declaration of where product was made so that appropriate duties are charged

38. 20/80 Rule
Less than 25 carriers handle 75 to 80% of total freight dollar.
Break bulk - Relay - Pick up - Delivery
The intermodal competition has increased dramatically since WW 2
Not the government - the railroads themselves

39. Social Responsibility pricing
Society and customer first.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Labor and Fuel
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. How are airport hub/spoke and LTL breakbulk similar?
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
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.
Water
NTSB

41. On the average - per gallon of fuel - US railroads move a ton of freight...
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.
484
NTSB
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

42. Which US federal government agency enforces safety regulations for railroads?
Main penalty is the cost of lost of sales by holding the shipment.
Federal Railroad Administration (FRA)
83.8%
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

43. Which economies are most prominent in the trucking industry?
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.
Economies of scope and density
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
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

44. Main forms of Charter Ships
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
Consolidate orders for several customers and stop along the way for partial unloading.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Crushed stone - gravel and sand

45. The current share of railroads in total transportation expenses is closest to...
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
Substantially higher
Not the government - the railroads themselves

46. What terms describe a type of operation in trucking?
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
Transfer of function to another country - can stay within the same company!
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
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

47. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Highway user taxes
Covered Hopper
58

48. What commodity/goods are typically transported by railroads in the US?
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
Showed a marked decline
Coal - farm products - chemicals - transportation equipment

49. What is the difference between class 1 and class 2 carriers?
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
Not the government - the railroads themselves
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Used for tax - manning - and relaxed regulation.

50. Pro-Forma Invoice
30 - 000 lbs and 300 miles
Coastal/Intercoastal - Great Lakes - Internal
1500 tons
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C