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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. Certificate of origin
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Coastal/Intercoastal - Great Lakes - Internal
Declaration of where product was made so that appropriate duties are charged
Covering variable costs - volume and equipment utilization - and cash flow.

2. What was the rationale behind passing the Staggers Act of 1980?
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
One method moves the trailer on its wheels while the other moves the container
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
To save the railroads by giving them a chance to compete with other modes on equal footing

3. 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
Coastal/Intercoastal - Great Lakes - Internal
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...
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

4. Micro Bridge
Interior Non-port cities
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Pipeline and Rail
The intermodal competition has increased dramatically since WW 2

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

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6. Freight revenue for Modes (per ton-mile)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
About 25 cents per dollar
Highway user taxes
High price for price insensitive customers.

7. The current share of railroads in total transportation expenses is closest to...
484
Terminal
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
7%

8. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Far east to east coast or Europe to west coast - final destination is US port city
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

9. Types of vehicles for trucking
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
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
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
Coal - farm products - chemicals - transportation equipment

10. Social Responsibility pricing
Society and customer first.
About 2 cents per dollar
A batching pig
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

11. What are the characteristics of a block train?
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Move 1 single commodity and are non-stop to destination.
Coal

12. Which Mode of Transportation has the highest volume in tonnage?
Economies of scope and density
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.
15
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

13. On the average - per gallon of fuel - US railroads move a ton of freight...
The intermodal competition has increased dramatically since WW 2
About 25 cents per dollar
484
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

14. Pooling
Consolidation of shipments to different destinations within the same general area.
Economies of scope and density
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

15. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Terminal
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

16. Carriers' Technological and Equipment strategies to minimize costs
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
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
Move 1 single commodity and are non-stop 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.

17. Highway weight limitation
80 - 000 lbs
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.
Main penalty is the cost of lost of sales by holding the shipment.
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.

18. A barge tow is capable of moving how many barges?
Special Rates
15
Specialized: $73 Billion - General: $146 Billion
1850-1950

19. 1 Barge ship is equivalent to how many trucks?
Substantially higher
58
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
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

20. Benefits of hub and spoke system
Coal - farm products - chemicals - transportation equipment
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Transfers accountability between domestic and international carrier at the terminal

21. What is the difference between class 1 and class 2 carriers?
Consolidation
Specialized: $73 Billion - General: $146 Billion
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

22. What was the golden age of railroads?
1850-1950
A pumping station
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Coal

23. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
One method moves the trailer on its wheels while the other moves the container
250 - 000
Highway user taxes
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

24. 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
Highway user taxes
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

25. Carrier's Operational strategies to minimize cost
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.

26. Where does funding for the roads come from?
Highway user taxes
Less than 25 carriers handle 75 to 80% of total freight dollar.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

27. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
After World War 2
Air
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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

28. The problem of driver shortage in the US...
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Main penalty is the cost of lost of sales by holding the shipment.
Transfer of function to another country - can stay within the same company!
Is likely to stay and even get worse in the future

29. Bill of Lading
Special Rates
Covering variable costs - volume and equipment utilization - and cash flow.
A batching pig
A contract for transportation between a shipper and the carrier - also is a cargo receipt

30. UNCTAD liner code 40-40-20
Economies of scope and density
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Covering variable costs - volume and equipment utilization - and cash flow.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

31. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Yes
563
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
15%~13%

32. Types and shares of cost in railroads
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
30 - 000 lbs and 300 miles
11 hours straight or anything beyond 70 hours in 8 days
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

33. Price variation factors in airline service
Society and customer first.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
1850-1950
100 cars x 100 tons

34. Core Carrier concept
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.
Interior Non-port cities
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.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

35. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
anywhere between a quarter and a third of all highway travel
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Coal
Specialized: $73 Billion - General: $146 Billion

36. Offshoring
Covering variable costs - volume and equipment utilization - and cash flow.
Transfer of function to another country - can stay within the same company!
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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.

37. Value of Service pricing
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
After World War 2
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
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

38. Trackage

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39. Government is involved in which aspects of the railroad business?
Move 1 single commodity and are non-stop to destination.
Carloads and Ton-miles
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

40. Far-shoring
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Completely different continent - different time zones.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

41. Class Rate Calculations
High price for price insensitive customers.
Far east to east coast or Europe to west coast - final destination is US port city
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.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

42. What is the difference between TOFC and COFC service?
Water
One method moves the trailer on its wheels while the other moves the container
15
Pipeline and Rail

43. Mistakes in pricing strategy
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
Less than 25 carriers handle 75 to 80% of total freight dollar.
30%
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.

44. It is common for an operating ratio of motor carriers to be around these numbers...
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
90-s
A trucking operation that only hauls freight for the firm which owns it
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

45. What aspects of the trucking industry is the US involved in?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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 - farm products - chemicals - transportation 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

46. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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...

47. 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?
Carloads and Ton-miles
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
Special Rates
A batching pig

48. 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.
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.
563

49. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Main penalty is the cost of lost of sales by holding the shipment.
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
Coal

50. Name the types of trucking terminals
Water
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Break bulk - Relay - Pick up - Delivery