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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 types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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
Transfers accountability between domestic and international carrier at the terminal
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.

2. 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.
Used for tax - manning - and relaxed regulation.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
30 - 000 lbs and 300 miles

3. Line of credit process

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4. Dock receipt
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Transfers accountability between domestic and international carrier at the terminal
30 - 000 lbs and 300 miles
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

5. Price variation factors in airline service
anywhere between a quarter and a third of all highway travel
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
Highway user taxes
Service levels - Frequent flyer programs - Timing of flights - In advance registration

6. 1 Barge ship is equivalent to how many trucks?
250 - 000
About 25 cents per dollar
58
100 tons

7. Certificate of origin
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
ton-miles
Declaration of where product was made so that appropriate duties are charged
Labor and Fuel

8. What are the LTL carriers?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
FedEx - YRC - Conway - UPS - ABF
Transfers accountability between domestic and international carrier at the terminal
Covering variable costs - volume and equipment utilization - and cash flow.

9. What was the golden age of railroads?
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
1850-1950
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Interior Non-port cities

10. Which economies are most prominent in the trucking industry?
Labor and Fuel
Economies of scope and density
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
ton-miles

11. Social Responsibility pricing
Not the government - the railroads themselves
Used for tax - manning - and relaxed regulation.
Consolidation
Society and customer first.

12. 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?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Moving a corporations internal activities to outside providers - mainly for cheap labor
After World War 2
To save the railroads by giving them a chance to compete with other modes on equal footing

13. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
NTSB
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Water

14. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
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.
Transfer of function to another country - can stay within the same company!
Attests to authenticity and accuracy of the goods. Performs by third party independent company

15. Pricing adjustment conditions
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
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

16. Certificate of Inspection
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Pipeline and Rail
Break bulk - Relay - Pick up - Delivery
Attests to authenticity and accuracy of the goods. Performs by third party independent company

17. Unit trains
Coal
Highway user taxes
Covered Hopper
Move 1 single commodity and are non-stop to destination.

18. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
anywhere between a quarter and a third of all highway travel
Economies of scale
Covered Hopper

19. What is the truck driving time limitations?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
11 hours straight or anything beyond 70 hours in 8 days
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.
15

20. Skimming pricing
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.
Carloads and Ton-miles
Showed a marked decline
High price for price insensitive customers.

21. What are the current trends in trucking?
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
anywhere between a quarter and a third of all highway travel
Wyoming

22. Mistakes in pricing strategy
Transfers accountability between domestic and international carrier at the terminal
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.
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.
Move 1 single commodity and are non-stop to destination.

23. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
250 - 000
Not the government - the railroads themselves
Water
Used for tax - manning - and relaxed regulation.

24. Non-vessel operating common carriers (NVOCC)
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Far east to east coast or Europe to west coast - final destination is US port city

25. Terms of Payment
Is likely to stay and even get worse in the future
100 cars x 100 tons
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

26. Types of vehicles for trucking
Economies of scope and density
Completely different continent - different time zones.
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

27. Mini Bridge
Transfer of function to another country - can stay within the same company!
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...
Far east to east coast or Europe to west coast - final destination is US port city
58

28. Survival Based pricing
Covering variable costs - volume and equipment utilization - and cash flow.
FedEx - YRC - Conway - UPS - ABF
1850-1950
Water

29. Haulage

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30. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Economies of scope and density
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.
Showed a marked decline

31. What is a typical fixed cost item in the motor carrier industry?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
About 2 cents per dollar
Terminal
The intermodal competition has increased dramatically since WW 2

32. How many Class 1 freight railroads are there?
NTSB
Economies of scope and density
7
ton-miles

33. Stop-off
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.
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
Consolidate orders for several customers and stop along the way for partial unloading.

34. What is the approximate share of fixed costs of US railroads?
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
30%

35. Which phrase best characterizes the level of competition in the motor carrier industry?
7
The competition is intense in both TL and LTL segments
100 tons
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

36. How to assess the operating ratio?
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.
Wyoming
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

37. What factors lead to reduction of air pollution by trucks?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
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.

38. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Consolidation
15%~13%
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Coastal/Intercoastal - Great Lakes - Internal

39. What are the issues facing the US railroads?
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
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

40. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Economies of scale
Far east to east coast or Europe to west coast - final destination is US port city
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

41. The status of competition within the US railroad industry?
Moderate
The competition is intense in both TL and LTL segments
30%
Move 1 single commodity and are non-stop to destination.

42. Factors contributing to the decline of Railroad use
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Break bulk - Relay - Pick up - Delivery
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
FedEx - YRC - Conway - UPS - ABF

43. What is Amtrak?
Carloads and Ton-miles
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Pipeline and Rail
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

44. Commercial Invoice
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Substantially higher
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

45. Categories of major pricing decisions
Special Rates
Yes
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.
Water

46. 1 Barge is equivalent to how many tons?
1500 tons
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
7

47. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
ton-miles
Moderate
Economies of scope and density

48. What are the highest variable costs in the railroad industry?
Labor and Fuel
100 cars x 100 tons
250 - 000
1500 tons

49. What do the users of truck service benefit?
Yes
Coal
Covering variable costs - volume and equipment utilization - and cash flow.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

50. What aspects of the trucking industry is the US involved in?
Covering variable costs - volume and equipment utilization - and cash flow.
Covered Hopper
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage