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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

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. 20/80 Rule
Far east to east coast or Europe to west coast - final destination is US port city
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Less than 25 carriers handle 75 to 80% of total freight dollar.
Coastal/Intercoastal - Great Lakes - Internal

2. Trackage

3. Labor relations in the US railroad industry?
80 - 000 lbs
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Less than 25 carriers handle 75 to 80% of total freight dollar.
Class 1 - Regional - Shortline - Switching and Terminal

4. Which economies are most prominent in the trucking industry?
About 2 cents per dollar
Economies of scope and density
Intermodal in character
ton-miles

5. What were the reasons for the erosion of the railroad dominance in transportation in the US?

6. Haulage

7. What terms describe a type of operation in trucking?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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

8. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Coal - farm products - chemicals - transportation equipment
To promote interstate commerce and strengthen the defenses of the country
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Special Rates

9. What is the difference between class 1 and class 2 carriers?
Special Rates
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Terminal

10. Which modes have the following cost structure: Low Variable and High Fixed?
Federal Railroad Administration (FRA)
Coastal/Intercoastal - Great Lakes - Internal
A batching pig
Pipeline and Rail

11. How to assess the operating ratio?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Special Rates

12. What are the current trends in the US railroad?
Specialized: $73 Billion - General: $146 Billion
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
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

13. Survival Based pricing
Showed a marked decline
Water
Covering variable costs - volume and equipment utilization - and cash flow.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

14. Skimming pricing
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
High price for price insensitive customers.
30 - 000 lbs and 300 miles
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

15. Which US federal government agency enforces safety regulations for railroads?
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
1500 tons
Crushed stone - gravel and sand
Federal Railroad Administration (FRA)

16. Funding the railroads?
FedEx - YRC - Conway - UPS - ABF
Main penalty is the cost of lost of sales by holding the shipment.
Not the government - the railroads themselves
The competition is intense in both TL and LTL segments

17. Non-vessel operating common carriers (NVOCC)
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Consolidate orders for several customers and stop along the way for partial unloading.

18. 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
Consolidate orders for several customers and stop along the way for partial unloading.
Water
Main penalty is the cost of lost of sales by holding the shipment.

19. Categories of major pricing decisions
After World War 2
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.
A pumping station
Highway user taxes

20. Freight Revenue for Rail (per ton-mile)
7%
About 2 cents per dollar
Moving a corporations internal activities to outside providers - mainly for cheap labor
Economies of scope and density

21. Stop-off
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
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Sysco - Tyson Foods - Coca-Cola - and Walmart
Consolidate orders for several customers and stop along the way for partial unloading.

22. Highway weight limitation
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
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
80 - 000 lbs

23. Pro-Forma Invoice
Substantially higher
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

24. Freight revenue for Modes (per ton-mile)
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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 carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

25. What is the current share of trucking in total transportation expenses is closest to...
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
83.8%
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...
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

26. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
484
Yes
Not the government - the railroads themselves

27. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Coal
Showed a marked decline
11 hours straight or anything beyond 70 hours in 8 days
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.

28. Examples of general freight
Terminal
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
250 - 000

29. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Class 1 - Regional - Shortline - Switching and Terminal
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Water

30. What is the approximate share of fixed costs of US railroads?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Moving a corporations internal activities to outside providers - mainly for cheap labor
30%

31. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
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
Far east to east coast or Europe to west coast - final destination is US port city
One method moves the trailer on its wheels while the other moves the container
250 - 000

32. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

33. Consular Invoice

34. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Less than 25 carriers handle 75 to 80% of total freight dollar.
80 - 000 lbs
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
30 - 000 lbs and 300 miles

35. Carriers' Technological and Equipment strategies to minimize costs
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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
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.
Yes

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

37. Ways to classify the motor carriers
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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.
High price for price insensitive customers.

38. Dock receipt
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
After World War 2
Air
Transfers accountability between domestic and international carrier at the terminal

39. 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
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
15%~13%
To promote interstate commerce and strengthen the defenses of the country

40. Pricing adjustment conditions
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
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Water

41. What is a typical fixed cost item in the motor carrier industry?
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
Terminal
Federal Railroad Administration (FRA)

42. How does the US railroad industry compete with other modes?
To promote interstate commerce and strengthen the defenses of the country
The intermodal competition has increased dramatically since WW 2
1850-1950
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

43. Line of credit process

44. Which mode has the highest carrying capacity?
The competition is intense in both TL and LTL segments
Water
Yes
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

45. 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.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

46. Major commodities hauled by each mode
Consolidate orders for several customers and stop along the way for partial unloading.
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
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

47. Which phrase best characterizes the level of competition in the motor carrier 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.
80 - 000 lbs
The competition is intense in both TL and LTL segments
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

48. Pooling
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Consolidation of shipments to different destinations within the same general area.
1500 tons
Water

49. Social Responsibility pricing
Intermodal in character
Economies of scale
Society and customer first.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

50. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Sysco - Tyson Foods - Coca-Cola - and Walmart
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.
Consolidation