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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. How many Class 1 freight railroads are there?
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
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
Not the government - the railroads themselves

2. Mini Bridge
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Far east to east coast or Europe to west coast - final destination is US port city
Yes
30 - 000 lbs and 300 miles

3. What is the empirical formula of the typical coal unit train in the US?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
100 cars x 100 tons
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Completely different continent - different time zones.

4. Which economies are most prominent in the trucking industry?
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%
Economies of scope and density
Transfers accountability between domestic and international carrier at the terminal

5. Trackage

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6. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
ton-miles
Air
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Water

7. Which mode has the highest carrying capacity?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Water
A pumping station
Used for tax - manning - and relaxed regulation.

8. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
ton-miles
NTSB

9. What are the service and public benefits of the railroad industry?

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10. What is the approximate share of fixed costs of US railroads?
83.8%
30%
15
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

11. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Wyoming
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.

12. Which type of a railcar has the highest share in terms of its numbers in service in the US?
About 25 cents per dollar
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Covered Hopper
Consolidate orders for several customers and stop along the way for partial unloading.

13. Certificate of origin
Far east to east coast or Europe to west coast - final destination is US port city
Declaration of where product was made so that appropriate duties are charged
After World War 2
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.

14. UNCTAD liner code 40-40-20
Specialized: $73 Billion - General: $146 Billion
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

15. Benefits of hub and spoke system
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.
563
The competition is intense in both TL and LTL segments
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

16. Stop-off
Consolidate orders for several customers and stop along the way for partial unloading.
Water
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Moderate

17. What is a typical fixed cost item in the motor carrier industry?
Society and customer first.
563
Terminal
Substantially higher

18. Terms of Payment
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Crushed stone - gravel and sand
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
80 - 000 lbs

19. Far-shoring
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Special Rates
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Completely different continent - different time zones.

20. Three kinds of ocean carriers
A trucking operation that only hauls freight for the firm which owns it
15
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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. Dock receipt
Service levels - Frequent flyer programs - Timing of flights - In advance registration
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
563
Transfers accountability between domestic and international carrier at the terminal

22. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
anywhere between a quarter and a third of all highway travel
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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.

23. What do the users of truck service benefit?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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

24. Name the types of trucking terminals
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...
One method moves the trailer on its wheels while the other moves the container
Break bulk - Relay - Pick up - Delivery
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

25. What are the two primary operational indicators in the railroad industry?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Carloads and Ton-miles
1850-1950
100 tons

26. Outsourcing
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Coal - farm products - chemicals - transportation equipment
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Moving a corporations internal activities to outside providers - mainly for cheap labor

27. Carriers' Technological and Equipment strategies to minimize costs
Covered Hopper
About 2 cents per dollar
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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

28. 1 Barge is equivalent to how many tons?
Consolidation
Society and customer first.
1500 tons
Covering variable costs - volume and equipment utilization - and cash flow.

29. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
Transfers accountability between domestic and international carrier at the terminal
Specialized: $73 Billion - General: $146 Billion
Crushed stone - gravel and sand

30. What was the golden age of railroads?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
15%~13%
Consolidation of shipments to different destinations within the same general area.
1850-1950

31. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Moving a corporations internal activities to outside providers - mainly for cheap labor
Interior Non-port cities
7

32. Freight Revenue for Truck/Motor (per ton-mile)
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
About 25 cents per dollar
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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

33. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
250 - 000
Completely different continent - different time zones.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

34. Ways to classify the motor carriers
Federal Railroad Administration (FRA)
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

35. What factors lead to reduction of air pollution by trucks?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
About 2 cents per dollar
250 - 000
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

36. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
ton-miles
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
100 tons

37. Pro-Forma Invoice
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
484

38. What term is related to railroad operations?
About 25 cents per dollar
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Class 1 - Regional - Shortline - Switching and Terminal
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

39. Factors contributing to the decline of Railroad use
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
90-s
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

40. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Water
Interior Non-port cities

41. Types and shares of cost in railroads
A trucking operation that only hauls freight for the firm which owns it
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Economies of scale
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

42. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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

43. A barge tow is capable of moving how many barges?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
15
563
7%

44. On the average - per gallon of fuel - US railroads move a ton of freight...
anywhere between a quarter and a third of all highway travel
11 hours straight or anything beyond 70 hours in 8 days
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
484

45. What is a road train?
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
Terminal
A longer combination vehicle towing more than one trailer

46. Line of credit process

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47. Name the 3 types of water carriers
Coastal/Intercoastal - Great Lakes - Internal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Highway user taxes
A contract for transportation between a shipper and the carrier - also is a cargo receipt

48. Intermodal Transportation
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart
563
A batching pig

49. What are the metrics to measure freight traffic in the motor carrier industry?
ton-miles
30%
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

50. The whole history of the US railroads is a history of...
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
High price for price insensitive customers.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Consolidation