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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. Land Bridge
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.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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
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

2. Freight revenue for Modes (per ton-mile)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Economies of scale

3. Service competition areas in airline industry
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Coal - farm products - chemicals - transportation equipment
Intermodal in character
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

4. Which economies are present in the US railroad industry?
15
Economies of scale
Covering variable costs - volume and equipment utilization - and cash flow.
Move 1 single commodity and are non-stop to destination.

5. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Carloads and Ton-miles

6. Labor relations in the US railroad industry?
Yes
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

7. The problem of driver shortage in the US...
Is likely to stay and even get worse in the future
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Service levels - Frequent flyer programs - Timing of flights - In advance registration
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

8. What are the highest variable costs in the railroad industry?
Labor and Fuel
A longer combination vehicle towing more than one trailer
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
100 tons

9. Factors contributing to the decline of Railroad use
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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
The intermodal competition has increased dramatically since WW 2

10. Certificate of Inspection
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Far east to east coast or Europe to west coast - final destination is US port city
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Coal

11. Freight Revenue for Truck/Motor (per ton-mile)
Less than 25 carriers handle 75 to 80% of total freight dollar.
Economies of scope and density
About 25 cents per dollar
90-s

12. Which economies are most prominent in the trucking industry?
Economies of scope and density
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Completely different continent - different time zones.
100 cars x 100 tons

13. 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
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
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Water

14. Which US federal government agency enforces safety regulations for railroads?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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)
Interior Non-port cities

15. Flags of Convenience
11 hours straight or anything beyond 70 hours in 8 days
Used for tax - manning - and relaxed regulation.
Coastal/Intercoastal - Great Lakes - Internal
After World War 2

16. Names of the Class 1 railroads?
Coastal/Intercoastal - Great Lakes - Internal
7
Air
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

17. What were the reasons for the erosion of the railroad dominance in transportation in the US?

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18. Categories of major pricing decisions
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

19. Types and shares of cost in railroads
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
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Water

20. Carrier's Operational strategies to minimize cost
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...
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.
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
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

21. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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.

22. The current share of railroads in total transportation expenses is closest to...
7%
Wyoming
11 hours straight or anything beyond 70 hours in 8 days
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.

23. 20/80 Rule
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Less than 25 carriers handle 75 to 80% of total freight dollar.
Break bulk - Relay - Pick up - Delivery

24. What could be the rationale for railroad mergers?

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25. Terms of Payment
30 - 000 lbs and 300 miles
Coastal/Intercoastal - Great Lakes - Internal
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

26. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
30%
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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.

27. Unit trains
Move 1 single commodity and are non-stop to destination.
Economies of scale
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Far east to east coast or Europe to west coast - final destination is US port city

28. Certificate of origin
Covered Hopper
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
Declaration of where product was made so that appropriate duties are charged
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

29. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Society and customer first.
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
Specialized: $73 Billion - General: $146 Billion

30. What was the golden age of railroads?
1850-1950
To promote interstate commerce and strengthen the defenses of the country
80 - 000 lbs
1500 tons

31. Which Mode of Transportation has the highest volume in tonnage?
To save the railroads by giving them a chance to compete with other modes on equal footing
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.

32. 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.
Special Rates
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.
30 - 000 lbs and 300 miles
Crushed stone - gravel and sand

33. What are the reasons for the relative decline of the US railroads after World War 2?
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
anywhere between a quarter and a third of all highway travel
Declaration of where product was made so that appropriate duties are charged

34. Social Responsibility pricing
Consolidation
11 hours straight or anything beyond 70 hours in 8 days
The competition is intense in both TL and LTL segments
Society and customer first.

35. Land Bridge Services
To save the railroads by giving them a chance to compete with other modes on equal footing
Intermodal in character
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

36. Types of vehicles for trucking
Completely different continent - different time zones.
Coal - farm products - chemicals - transportation equipment
100 tons
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

37. What is the difference between class 1 and class 2 carriers?
11 hours straight or anything beyond 70 hours in 8 days
15
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Intermodal in character

38. What is a road train?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
A longer combination vehicle towing more than one trailer
Completely different continent - different time zones.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

39. Skimming pricing
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
250 - 000
Is likely to stay and even get worse in the future
High price for price insensitive customers.

40. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
About 25 cents per dollar
563
Move 1 single commodity and are non-stop to destination.

41. Mini Bridge
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.
Consolidation of shipments to different destinations within the same general area.
Far east to east coast or Europe to west coast - final destination is US port city
100 cars x 100 tons

42. Name the types of trucking terminals
Wyoming
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Yes
Break bulk - Relay - Pick up - Delivery

43. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Pipeline and Rail
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

44. FOB Origin/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
ton-miles
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

45. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
7%
After World War 2
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...

46. What aspects of the trucking industry is the US involved in?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.
Moderate
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

47. Which government agency will investigate a major railroad accident involving public safety?
484
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
NTSB

48. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Federal Railroad Administration (FRA)
Covered Hopper
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

49. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
1500 tons
11 hours straight or anything beyond 70 hours in 8 days
Water

50. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
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
About 25 cents per dollar
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.