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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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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. Freight Revenue for Truck/Motor (per ton-mile)
To save the railroads by giving them a chance to compete with other modes on equal footing
100 cars x 100 tons
Attests to authenticity and accuracy of the goods. Performs by third party independent company
About 25 cents per dollar

2. What are the issues facing the US railroads?
7%
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

3. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Specialized: $73 Billion - General: $146 Billion
Coal
Consolidation of shipments to different destinations within the same general area.

4. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
Coal
The competition is intense in both TL and LTL segments
A longer combination vehicle towing more than one trailer

5. Haulage

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6. Pooling
Main penalty is the cost of lost of sales by holding the shipment.
58
Consolidation of shipments to different destinations within the same general area.
After World War 2

7. Funding the railroads?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
100 cars x 100 tons
Not the government - the railroads themselves
Coal - farm products - chemicals - transportation equipment

8. Far-shoring
Carloads and Ton-miles
The intermodal competition has increased dramatically since WW 2
Water
Completely different continent - different time zones.

9. Survival Based pricing
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Economies of scale
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Covering variable costs - volume and equipment utilization - and cash flow.

10. The current share of railroads in total transportation expenses is closest to...
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.
7%
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

11. Which economies are most prominent in the trucking industry?
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
Economies of scope and density
About 2 cents per dollar
Federal Railroad Administration (FRA)

12. Categories of major pricing decisions
Water
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.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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

13. How does the US railroad industry compete with other modes?
Water
The intermodal competition has increased dramatically since WW 2
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
ton-miles

14. How many Class 1 freight railroads are there?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
100 tons
7
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. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
15%~13%
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Completely different continent - different time zones.

16. Carrier's Operational strategies to minimize cost
Less than 25 carriers handle 75 to 80% of total freight dollar.
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 closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
A pumping station

17. Unit trains
Move 1 single commodity and are non-stop to destination.
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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Class 1 - Regional - Shortline - Switching and Terminal

18. Name the 3 types of water carriers
1850-1950
A batching pig
Coastal/Intercoastal - Great Lakes - Internal
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

19. The problem of driver shortage in the US...
ton-miles
Is likely to stay and even get worse in the future
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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

20. Line of credit process

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21. Skimming pricing
A longer combination vehicle towing more than one trailer
High price for price insensitive customers.
Yes
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

22. Which economies are present in the US railroad industry?
Covered Hopper
Coal - farm products - chemicals - transportation equipment
A pumping station
Economies of scale

23. Pricing adjustment conditions
7
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Declaration of where product was made so that appropriate duties are charged

24. What are the current trends in the US railroad?
Break bulk - Relay - Pick up - Delivery
The competition is intense in both TL and LTL segments
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

25. Drayage
Interior Non-port cities
Coastal/Intercoastal - Great Lakes - Internal
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

26. Which modes have the following cost structure: Low Variable and High Fixed?
Class 1 - Regional - Shortline - Switching and Terminal
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Pipeline and Rail
Water

27. What are the major causes of general traffic congestions?
Covered Hopper
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.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Break bulk - Relay - Pick up - Delivery

28. What is a road train?
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
A longer combination vehicle towing more than one trailer
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

29. Intermodal Transportation
Water
Yes
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.

30. Which type of a railcar has the highest share in terms of its numbers in service in the US?
The intermodal competition has increased dramatically since WW 2
Covered Hopper
Yes
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

31. How to assess the operating ratio?
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
Substantially higher

32. What are the current trends in trucking?
Declaration of where product was made so that appropriate duties are charged
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Covering variable costs - volume and equipment utilization - and cash flow.

33. Government is involved in which aspects of the railroad business?
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.
Crushed stone - gravel and sand
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

34. What is the current share of trucking in total transportation expenses is closest to...
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.
High price for price insensitive customers.
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.
83.8%

35. Non-vessel operating common carriers (NVOCC)
Terminal
To promote interstate commerce and strengthen the defenses of the country
Break bulk - Relay - Pick up - Delivery
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

36. On the average - per gallon of fuel - US railroads move a ton of freight...
Class 1 - Regional - Shortline - Switching and Terminal
To promote interstate commerce and strengthen the defenses of the country
ton-miles
484

37. Which mode has the highest carrying capacity?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Society and customer first.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Water

38. Which US federal government agency enforces safety regulations for railroads?
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 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
Federal Railroad Administration (FRA)

39. What is the empirical formula of the typical coal unit train in the US?
Pipeline and Rail
100 cars x 100 tons
Economies of scale
90-s

40. Commercial Invoice
Economies of scope and density
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.
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
80 - 000 lbs

41. Four types of Liner Service
11 hours straight or anything beyond 70 hours in 8 days
Wyoming
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Specialized: $73 Billion - General: $146 Billion

42. Flags of Convenience
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Used for tax - manning - and relaxed regulation.
Service levels - Frequent flyer programs - Timing of flights - In advance registration

43. Mistakes in pricing strategy
Move 1 single commodity and are non-stop to destination.
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Class 1 - Regional - Shortline - Switching and Terminal

44. How are airport hub/spoke and LTL breakbulk similar?
Coal - farm products - chemicals - transportation equipment
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.
Consolidate orders for several customers and stop along the way for partial unloading.
1850-1950

45. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
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
A batching pig

46. Outsourcing
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
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
Moving a corporations internal activities to outside providers - mainly for cheap labor
The competition is intense in both TL and LTL segments

47. 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
30 - 000 lbs and 300 miles
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.
11 hours straight or anything beyond 70 hours in 8 days

48. Freight revenue for Modes (per ton-mile)
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
Substantially higher
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Sysco - Tyson Foods - Coca-Cola - and Walmart

49. Social Responsibility pricing
Transfer of function to another country - can stay within the same company!
Society and customer first.
Coastal/Intercoastal - Great Lakes - Internal
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

50. It is common for an operating ratio of motor carriers to be around these numbers...
Covering variable costs - volume and equipment utilization - and cash flow.
Transfer of function to another country - can stay within the same company!
90-s
1850-1950