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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. UNCTAD liner code 40-40-20
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
100 tons
Consolidate orders for several customers and stop along the way for partial unloading.

2. Terms of Payment
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

3. Intermodal Transportation
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Main penalty is the cost of lost of sales by holding the shipment.

4. Which US federal government agency enforces safety regulations for railroads?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Federal Railroad Administration (FRA)
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
High price for price insensitive customers.

5. How are interstate highways numbered?
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...
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

6. What are the LTL carriers?
563
FedEx - YRC - Conway - UPS - ABF
Crushed stone - gravel and sand
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

7. Name the 3 types of water carriers
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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.
About 25 cents per dollar
Coastal/Intercoastal - Great Lakes - Internal

8. Outsourcing
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.
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
Showed a marked decline
Moving a corporations internal activities to outside providers - mainly for cheap labor

9. Which phrase best characterizes the level of competition in the motor carrier industry?
90-s
ton-miles
The competition is intense in both TL and LTL segments
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.

10. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
Attests to authenticity and accuracy of the goods. Performs by third party independent company
90-s
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.

11. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Class 1 - Regional - Shortline - Switching and Terminal
A batching pig

12. Survival Based pricing
Covering variable costs - volume and equipment utilization - and cash flow.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Class 1 - Regional - Shortline - Switching and Terminal

13. Freight Revenue for Rail (per ton-mile)
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.
About 2 cents per dollar
Coal - farm products - chemicals - transportation equipment
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

14. The status of competition within the US railroad industry?
Moderate
Consolidate orders for several customers and stop along the way for partial unloading.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

15. Highway weight limitation
30 - 000 lbs and 300 miles
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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.
80 - 000 lbs

16. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Federal Railroad Administration (FRA)
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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

17. Types of vehicles for trucking
Wyoming
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Transfers accountability between domestic and international carrier at the terminal
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

18. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Substantially higher
Special Rates
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

19. Third Party Logistics
Consolidate orders for several customers and stop along the way for partial unloading.
100 tons
About 2 cents per dollar
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...

20. Where does funding for the roads come from?
Covering variable costs - volume and equipment utilization - and cash flow.
Used for tax - manning - and relaxed regulation.
Highway user taxes
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

21. Benefits of hub and spoke system
Is likely to stay and even get worse in the future
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
15%~13%

22. 20/80 Rule
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...
563
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
Less than 25 carriers handle 75 to 80% of total freight dollar.

23. The current share of railroads in total transportation expenses is closest to...
ton-miles
7%
Moving a corporations internal activities to outside providers - mainly for cheap labor
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

24. Flags of Convenience
Used for tax - manning - and relaxed regulation.
90-s
Covered Hopper
Water

25. Price variation factors in airline service
58
Service levels - Frequent flyer programs - Timing of flights - In advance registration
After World War 2
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

26. Carriers' Technological and Equipment strategies to minimize costs
Break bulk - Relay - Pick up - Delivery
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Yes
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.

27. How are airport hub/spoke and LTL breakbulk similar?
Crushed stone - gravel and sand
A batching pig
Showed a marked decline
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.

28. What term is related to railroad operations?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
90-s
Covered Hopper

29. What are the types of railcars?
Yes
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

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.
A batching pig
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...
Showed a marked decline

31. Service competition areas in airline industry
30 - 000 lbs and 300 miles
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
FedEx - YRC - Conway - UPS - ABF
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

32. Micro Bridge
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.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Interior Non-port cities
Attests to authenticity and accuracy of the goods. Performs by third party independent company

33. What is the difference between TOFC and COFC service?
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.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
100 cars x 100 tons
One method moves the trailer on its wheels while the other moves the container

34. Which Mode of Transportation has the highest volume in tonnage?
Labor and Fuel
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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

35. What are the current trends in trucking?
Covered Hopper
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
563
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

36. Pricing adjustment conditions
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Intermodal in character
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
The intermodal competition has increased dramatically since WW 2

37. Invoices
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

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

39. What is Amtrak?
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.
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
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
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.

40. What commodity/goods are typically transported by railroads in the US?
Labor and Fuel
Moderate
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Coal - farm products - chemicals - transportation equipment

41. Land Bridge
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
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
About 25 cents per dollar
The competition is intense in both TL and LTL segments

42. What terms describe a type of operation in trucking?
Not the government - the railroads themselves
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Break bulk - Relay - Pick up - Delivery
Society and customer first.

43. Carrier's Operational strategies to minimize cost
Used for tax - manning - and relaxed regulation.
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.
90-s
Covering variable costs - volume and equipment utilization - and cash flow.

44. What was the rationale behind passing the Staggers Act of 1980?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
To save the railroads by giving them a chance to compete with other modes on equal footing
Federal Railroad Administration (FRA)
Carloads and Ton-miles

45. Private Carrier
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
A trucking operation that only hauls freight for the firm which owns it
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.

46. 1. Character of shipment rates: LTL/TL rates - multiple-car rates - incentive rates - unit train rates - density rates... 2. Area - location or route rates: Local rates - joint rates - proportional rates - differential rates - per mile rate.
Consolidate orders for several customers and stop along the way for partial unloading.
To promote interstate commerce and strengthen the defenses of the country
Special Rates
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

47. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
Far east to east coast or Europe to west coast - final destination is US port city
The competition is intense in both TL and LTL segments
Air

48. 1 Barge is equivalent to how many tons?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Consolidate orders for several customers and stop along the way for partial unloading.
1500 tons
Water

49. Main forms of Charter Ships
FedEx - YRC - Conway - UPS - ABF
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
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
One method moves the trailer on its wheels while the other moves the container

50. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
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.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Covered Hopper
Water