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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. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
A batching pig
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

2. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Main penalty is the cost of lost of sales by holding the shipment.
250 - 000
Air
Crushed stone - gravel and sand

3. Name the types of trucking terminals
30%
The intermodal competition has increased dramatically since WW 2
7%
Break bulk - Relay - Pick up - Delivery

4. Highway weight limitation
80 - 000 lbs
Transfer of function to another country - can stay within the same company!
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.
Covered Hopper

5. 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.
Special Rates
484
Economies of scale

6. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
To promote interstate commerce and strengthen the defenses of the country
Not the government - the railroads themselves
Coastal/Intercoastal - Great Lakes - Internal

7. Where does funding for the roads come from?
Less than 25 carriers handle 75 to 80% of total freight dollar.
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
Highway user taxes
Specialized: $73 Billion - General: $146 Billion

8. Service competition areas in airline industry
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Used for tax - manning - and relaxed regulation.
Substantially higher

9. What is the current share of trucking in total transportation expenses is closest to...
Coal
A longer combination vehicle towing more than one trailer
Labor and Fuel
83.8%

10. 1 Barge is equivalent to how many tons?
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
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
1500 tons

11. How are airport hub/spoke and LTL breakbulk similar?
Transfers accountability between domestic and international carrier at the terminal
100 cars x 100 tons
Consolidation
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.

12. Names of the Class 1 railroads?
The intermodal competition has increased dramatically since WW 2
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

13. What are the reasons for the relative decline of the US railroads after World War 2?
A longer combination vehicle towing more than one trailer
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
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
Far east to east coast or Europe to west coast - final destination is US port city

14. Non-vessel operating common carriers (NVOCC)
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Move 1 single commodity and are non-stop to destination.
After World War 2
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

15. Which government agency will investigate a major railroad accident involving public safety?
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
NTSB
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Class 1 - Regional - Shortline - Switching and Terminal

16. What are the two primary operational indicators in the railroad industry?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
30 - 000 lbs and 300 miles
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Carloads and Ton-miles

17. How to assess the operating ratio?
The competition is intense in both TL and LTL segments
Not the government - the railroads themselves
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

18. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
30%
Less than 25 carriers handle 75 to 80% of total freight dollar.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

19. What commodity/goods are typically transported by railroads in the US?
A longer combination vehicle towing more than one trailer
563
Move 1 single commodity and are non-stop to destination.
Coal - farm products - chemicals - transportation equipment

20. What could be the rationale for railroad mergers?

21. Invoices
Coastal/Intercoastal - Great Lakes - Internal
Substantially higher
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Showed a marked decline

22. What is a road train?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
The intermodal competition has increased dramatically since WW 2
A longer combination vehicle towing more than one trailer

23. What is the difference between class 1 and class 2 carriers?
Consolidation of shipments to different destinations within the same general area.
Carloads and Ton-miles
Covering variable costs - volume and equipment utilization - and cash flow.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

24. What term is related to railroad operations?
250 - 000
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Main penalty is the cost of lost of sales by holding the shipment.
Transfers accountability between domestic and international carrier at the terminal

25. Freight Revenue for Truck/Motor (per ton-mile)
15%~13%
About 25 cents per dollar
Declaration of where product was made so that appropriate duties are charged
A pumping station

26. Land Bridge Services
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Intermodal in character
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

27. Cost of Service Pricing
58
Air
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Intermodal in character

28. Freight revenue for Modes (per ton-mile)
Is likely to stay and even get worse in the future
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
563

29. 20/80 Rule
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
Completely different continent - different time zones.

30. The whole history of the US railroads is a history of...
ton-miles
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
1850-1950
Consolidation

31. What was the rationale behind passing the Staggers Act of 1980?
250 - 000
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
To save the railroads by giving them a chance to compete with other modes on equal footing
Main penalty is the cost of lost of sales by holding the shipment.

32. Third Party Logistics
Society and customer first.
7%
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...

33. UNCTAD liner code 40-40-20
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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

34. Main forms of Charter Ships
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
A pumping station
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
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

35. Pricing adjustment conditions
Covered Hopper
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Specialized: $73 Billion - General: $146 Billion
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

36. FOB Origin/Destination
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Sysco - Tyson Foods - Coca-Cola - and Walmart
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

37. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
The intermodal competition has increased dramatically since WW 2
15
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

38. What are the highest variable costs in the railroad industry?
Coal - farm products - chemicals - transportation equipment
Labor and Fuel
The intermodal competition has increased dramatically since WW 2
30 - 000 lbs and 300 miles

39. Micro Bridge
Highway user taxes
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Interior Non-port cities

40. Pro-Forma Invoice
Federal Railroad Administration (FRA)
30%
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

41. What is Amtrak?
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
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
To promote interstate commerce and strengthen the defenses of the country
1850-1950

42. Pooling
Not the government - the railroads themselves
A trucking operation that only hauls freight for the firm which owns it
A pumping station
Consolidation of shipments to different destinations within the same general area.

43. Terms of Payment
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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.

44. Who has the highest number of coal carloads?
Wyoming
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Interior Non-port cities
Transfers accountability between domestic and international carrier at the terminal

45. Four types of Liner Service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Consolidation
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

46. What are the types of railcars?
Water
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Coal - farm products - chemicals - transportation equipment
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

47. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Air
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
A trucking operation that only hauls freight for the firm which owns it

48. Which mode has the lowest cost per ton mile?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Consolidate orders for several customers and stop along the way for partial unloading.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Covering variable costs - volume and equipment utilization - and cash flow.

49. Ways to classify the motor carriers
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
1500 tons
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

50. Line of credit process