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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. The whole history of the US railroads is a history of...
Far east to east coast or Europe to west coast - final destination is US port city
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Consolidation
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

2. How many Class 1 freight railroads are there?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
15
7
To save the railroads by giving them a chance to compete with other modes on equal footing

3. The status of competition within the US railroad industry?
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.
Moderate
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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

4. What is an approximate capacity of a hopper?
Air
7%
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
100 tons

5. What is the empirical formula of the typical coal unit train in the US?
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.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
100 cars x 100 tons
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

6. What could be the rationale for railroad mergers?

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7. Freight revenue for Modes (per ton-mile)
Consolidate orders for several customers and stop along the way for partial unloading.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
15%~13%
7%

8. Class Rate Calculations
Special Rates
1850-1950
NTSB
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.

9. What is a typical fixed cost item in the motor carrier industry?
Terminal
Covered Hopper
15%~13%
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

10. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Air
Covered Hopper
58
Federal Railroad Administration (FRA)

11. How does the US railroad industry compete with other modes?
80 - 000 lbs
Labor and Fuel
The intermodal competition has increased dramatically since WW 2
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

12. What do the users of truck service benefit?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

13. Unit trains
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Move 1 single commodity and are non-stop to destination.
A trucking operation that only hauls freight for the firm which owns it
Less than 25 carriers handle 75 to 80% of total freight dollar.

14. What was the rationale behind passing the Staggers Act of 1980?
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.
To save the railroads by giving them a chance to compete with other modes on equal footing
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
7%

15. 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
100 cars x 100 tons
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

16. Third Party Logistics
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...
Moderate
58
Class 1 - Regional - Shortline - Switching and Terminal

17. Major commodities hauled by each mode
The competition is intense in both TL and LTL segments
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

18. Name the 3 types of water carriers
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
Far east to east coast or Europe to west coast - final destination is US port city
Completely different continent - different time zones.

19. What are the current trends in the US railroad?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.
Water
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.

20. Freight Revenue for Truck/Motor (per ton-mile)
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
About 25 cents per dollar
Economies of scale

21. 1 Barge ship is equivalent to how many trucks?
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
58
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
Sysco - Tyson Foods - Coca-Cola - and Walmart

22. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
A trucking operation that only hauls freight for the firm which owns it

23. Which phrase best characterizes the level of competition in the motor carrier industry?
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.
A pumping station
The competition is intense in both TL and LTL segments
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.

24. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

25. Non-vessel operating common carriers (NVOCC)
Crushed stone - gravel and sand
Completely different continent - different time zones.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

26. Mistakes in pricing strategy
90-s
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.
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
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

27. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Pipeline and Rail
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

28. Which government agency will investigate a major railroad accident involving public safety?
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Wyoming
NTSB
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

29. What are the metrics to measure freight traffic in the motor carrier industry?
Yes
anywhere between a quarter and a third of all highway travel
ton-miles
90-s

30. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
anywhere between a quarter and a third of all highway travel
7
Showed a marked decline

31. Service competition areas in airline industry
Moderate
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Coal - farm products - chemicals - transportation equipment

32. What is a road train?
A longer combination vehicle towing more than one trailer
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
100 tons
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

33. Ways to classify the motor carriers
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
7%
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

34. Funding the railroads?
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
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

35. How are airport hub/spoke and LTL breakbulk similar?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Water
Highway user taxes
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.

36. Benefits of hub and spoke system
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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
Intermodal in character
Highway user taxes

37. Intermodal Transportation
Economies of scope and density
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.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Labor and Fuel

38. What is the primary railroad cargo out of Arkansas by tonnage?
Crushed stone - gravel and sand
100 tons
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Covered Hopper

39. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
Is likely to stay and even get worse in the future
Substantially higher
Economies of scope and density
After World War 2

40. Examples of general freight
Completely different continent - different time zones.
Far east to east coast or Europe to west coast - final destination is US port city
Wyoming
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

41. Cost of Service Pricing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

42. Certificate of origin
Economies of scope and density
Is likely to stay and even get worse in the future
Declaration of where product was made so that appropriate duties are charged
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

43. Near-shoring
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
58
Labor and Fuel
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

44. Bill of Lading
Yes
1500 tons
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Interior Non-port cities

45. What terms describe a type of operation in trucking?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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
NTSB
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

46. What companies are players in private carriage?
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Sysco - Tyson Foods - Coca-Cola - and Walmart

47. What is the truck driving time limitations?
anywhere between a quarter and a third of all highway travel
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
11 hours straight or anything beyond 70 hours in 8 days
30 - 000 lbs and 300 miles

48. 1 Barge is equivalent to how many tons?
The competition is intense in both TL and LTL segments
1500 tons
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Service levels - Frequent flyer programs - Timing of flights - In advance registration

49. What is the difference between TOFC and COFC service?
A longer combination vehicle towing more than one trailer
One method moves the trailer on its wheels while the other moves the container
Seller asks buyer for l/c - buyer asks its bank to issue l/c - after approving buyer's credit line - buyer's bank notifies seller's bank it has issued l/c - seller's bank either adds confirmation or simply advises seller that l/c has been issued
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

50. Which economies are most prominent in the trucking industry?
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.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Economies of scope and density
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads