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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. Haulage

2. Carrier's Operational strategies to minimize cost
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.
A pumping station
250 - 000
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

3. Survival Based pricing
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
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
Covering variable costs - volume and equipment utilization - and cash flow.
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

4. Did the US railroads have anything to do with the creation of world time zones?
Substantially higher
Yes
High price for price insensitive customers.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

5. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Showed a marked decline
Water
Covered Hopper
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.

6. What term is related to railroad operations?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
15%~13%
Moderate
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

7. Freight Revenue for Rail (per ton-mile)
Special Rates
Highway user taxes
About 2 cents per dollar
Covered Hopper

8. Cost of Service Pricing
Moderate
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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 cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

9. What do the users of truck service benefit?
Wyoming
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
FedEx - YRC - Conway - UPS - ABF

10. What is Amtrak?
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
Less than 25 carriers handle 75 to 80% of total freight dollar.
Yes
anywhere between a quarter and a third of all highway travel

11. The current share of railroads in total transportation expenses is closest to...
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
7%
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Declaration of where product was made so that appropriate duties are charged

12. A pumping station requires 3-6000HP to move oil through a pipeline. To move more than 1 grade at same time what do you use?
A batching pig
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Less than 25 carriers handle 75 to 80% of total freight dollar.
Highway user taxes

13. What are the major causes of general traffic congestions?
Yes
High price for price insensitive customers.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

14. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
After World War 2
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

15. Pricing adjustment conditions
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
90-s
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

16. Third Party Logistics
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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...
11 hours straight or anything beyond 70 hours in 8 days
Moderate

17. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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
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.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

18. How are airport hub/spoke and LTL breakbulk similar?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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 intermodal competition has increased dramatically since WW 2
Move 1 single commodity and are non-stop to destination.

19. Factors contributing to the decline of Railroad use
Special Rates
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
90-s
FedEx - YRC - Conway - UPS - ABF

20. Which US federal government agency enforces safety regulations for railroads?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Federal Railroad Administration (FRA)
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 a second carrier to transport its freight using the second carrier's crew and power equipment

21. Service competition areas in airline industry
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Intermodal in character
NTSB
Move 1 single commodity and are non-stop to destination.

22. A barge tow is capable of moving how many barges?
About 2 cents per dollar
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
15
A contract for transportation between a shipper and the carrier - also is a cargo receipt

23. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Pipeline and Rail
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.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

24. Social Responsibility pricing
Society and customer first.
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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

25. Name the types of trucking terminals
Transfer of function to another country - can stay within the same company!
7
Break bulk - Relay - Pick up - Delivery
About 25 cents per dollar

26. What is the primary railroad cargo out of Arkansas by tonnage?
Specialized: $73 Billion - General: $146 Billion
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Crushed stone - gravel and sand
NTSB

27. How to assess the operating ratio?
100 tons
11 hours straight or anything beyond 70 hours in 8 days
Substantially higher
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

28. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
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
Water
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

29. Private Carrier
A trucking operation that only hauls freight for the firm which owns it
Service levels - Frequent flyer programs - Timing of flights - In advance registration
After World War 2
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

30. Far-shoring
Class 1 - Regional - Shortline - Switching and Terminal
A longer combination vehicle towing more than one trailer
Economies of scale
Completely different continent - different time zones.

31. Trackage

32. 1 Barge is equivalent to how many tons?
Interior Non-port cities
Special Rates
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
1500 tons

33. Certificate of Inspection
Water
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Substantially higher

34. The whole history of the US railroads is a history of...
Used for tax - manning - and relaxed regulation.
Consolidation
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.
Attests to authenticity and accuracy of the goods. Performs by third party independent company

35. How many Class 1 freight railroads are there?
7
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

36. UNCTAD liner code 40-40-20
Is likely to stay and even get worse in the future
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
ton-miles

37. Flags of Convenience
Used for tax - manning - and relaxed regulation.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
After World War 2
A trucking operation that only hauls freight for the firm which owns it

38. Pooling
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Consolidation of shipments to different destinations within the same general area.
To promote interstate commerce and strengthen the defenses of the country
90-s

39. What is the difference between TOFC and COFC service?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
One method moves the trailer on its wheels while the other moves the container
Used for tax - manning - and relaxed regulation.

40. Skimming pricing
High price for price insensitive customers.
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.
Terminal
A pumping station

41. Where does funding for the roads come from?
15
Highway user taxes
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Main penalty is the cost of lost of sales by holding the shipment.

42. Examples of general freight
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
The competition is intense in both TL and LTL segments
Terminal
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

43. Invoices
Not the government - the railroads themselves
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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
FedEx - YRC - Conway - UPS - ABF

44. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
The intermodal competition has increased dramatically since WW 2
Main penalty is the cost of lost of sales by holding the shipment.
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.
Air

45. Drayage
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
Air
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

46. Categories of major pricing decisions
Completely different continent - different time zones.
30%
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.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

47. What is the current share of trucking in total transportation expenses is closest to...
A trucking operation that only hauls freight for the firm which owns it
83.8%
Federal Railroad Administration (FRA)
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

48. What could be the rationale for railroad mergers?

49. Carriers' Technological and Equipment strategies to minimize costs
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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.
One method moves the trailer on its wheels while the other moves the container

50. Freight Revenue for Truck/Motor (per ton-mile)
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
About 2 cents per dollar
FedEx - YRC - Conway - UPS - ABF
About 25 cents per dollar