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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 are the revenues of the specialized and general cargo?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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
Specialized: $73 Billion - General: $146 Billion
Transfer of function to another country - can stay within the same company!

2. What is the current share of trucking in total transportation expenses is closest to...
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Pipeline and Rail
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
83.8%

3. What factors lead to reduction of air pollution by trucks?
Air
Coastal/Intercoastal - Great Lakes - Internal
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

4. What are the metrics to measure freight traffic in the motor carrier industry?
Wyoming
ton-miles
Carloads and Ton-miles
Transfers accountability between domestic and international carrier at the terminal

5. What are the current trends in trucking?
Used for tax - manning - and relaxed regulation.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Air
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

6. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Sysco - Tyson Foods - Coca-Cola - and Walmart
Water
Special Rates

7. Survival Based pricing
Yes
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...
Covering variable costs - volume and equipment utilization - and cash flow.
Coal - farm products - chemicals - transportation equipment

8. Highway weight limitation
80 - 000 lbs
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Economies of scale

9. Cost of Service Pricing
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
30 - 000 lbs and 300 miles
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

10. Name the types of trucking terminals
A trucking operation that only hauls freight for the firm which owns it
Break bulk - Relay - Pick up - Delivery
Used for tax - manning - and relaxed regulation.
Service levels - Frequent flyer programs - Timing of flights - In advance registration

11. Certificate of Inspection
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

12. What are the LTL carriers?
Special Rates
FedEx - YRC - Conway - UPS - ABF
11 hours straight or anything beyond 70 hours in 8 days
Interior Non-port cities

13. What are the highest variable costs in the railroad industry?
Labor and Fuel
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
11 hours straight or anything beyond 70 hours in 8 days

14. What is the primary railroad cargo out of Arkansas by tonnage?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Labor and Fuel
Crushed stone - gravel and sand

15. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
A pumping station
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Crushed stone - gravel and sand
Yes

16. Haulage

17. Which economies are present in the US railroad industry?
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Economies of scale
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

18. Categories of major pricing decisions
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.
Coal
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.

19. Non-vessel operating common carriers (NVOCC)
The competition is intense in both TL and LTL segments
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
To promote interstate commerce and strengthen the defenses of the country

20. Government is involved in which aspects of the railroad business?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Class 1 - Regional - Shortline - Switching and Terminal

21. What could be the rationale for railroad mergers?

22. Land Bridge
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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
7%
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

23. What is the truck driving time limitations?
Highway user taxes
Air
11 hours straight or anything beyond 70 hours in 8 days
30%

24. Flags of Convenience
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Used for tax - manning - and relaxed regulation.
Transfer of function to another country - can stay within the same company!
Highway user taxes

25. Offshoring
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Transfer of function to another country - can stay within the same company!
Highway user taxes

26. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
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...
anywhere between a quarter and a third of all highway travel
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
A batching pig

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

28. Far-shoring
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.
About 2 cents per dollar
Completely different continent - different time zones.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

29. Types of vehicles for trucking
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
11 hours straight or anything beyond 70 hours in 8 days

30. Mistakes in pricing strategy
Less than 25 carriers handle 75 to 80% of total freight dollar.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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.
Consolidate orders for several customers and stop along the way for partial unloading.

31. Core Carrier concept
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
High price for price insensitive customers.

32. Which economies are most prominent in the trucking industry?
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.
58
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

33. Line of credit process

34. A barge tow is capable of moving how many barges?
15
A batching pig
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
Completely different continent - different time zones.

35. Pro-Forma Invoice
Not the government - the railroads themselves
Sysco - Tyson Foods - Coca-Cola - and Walmart
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

36. What is the difference between class 1 and class 2 carriers?
11 hours straight or anything beyond 70 hours in 8 days
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

37. Who has the highest number of coal carloads?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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.
Wyoming
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

38. Carriers' Technological and Equipment strategies to minimize costs
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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.
Consolidate orders for several customers and stop along the way for partial unloading.

39. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Pipeline and Rail
Transfer of function to another country - can stay within the same company!
100 cars x 100 tons

40. How are interstate highways numbered?
Water
Moderate
484
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

41. Types and shares of cost in railroads
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Transfers accountability between domestic and international carrier at the terminal

42. 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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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
FedEx - YRC - Conway - UPS - ABF

43. What was the rationale behind passing the Staggers Act of 1980?
1500 tons
To save the railroads by giving them a chance to compete with other modes on equal footing
After World War 2
Move 1 single commodity and are non-stop to destination.

44. What are the reasons for the relative decline of the US railroads after World War 2?
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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
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.
The intermodal competition has increased dramatically since WW 2

45. Which type of railroad cargo has the highest tonnage share in the US?
Coal
ton-miles
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

46. How are airport hub/spoke and LTL breakbulk similar?
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.
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.
Main penalty is the cost of lost of sales by holding the shipment.
Yes

47. The average annual salary of a locomotive operator compared to a TL driver in the US is...
15%~13%
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
NTSB
Substantially higher

48. Private Carrier
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A trucking operation that only hauls freight for the firm which owns it
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Main penalty is the cost of lost of sales by holding the shipment.

49. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Yes
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

50. Which modes have the following cost structure: Low Variable and High Fixed?
After World War 2
Crushed stone - gravel and sand
Pipeline and Rail
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.