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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. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
563
30 - 000 lbs and 300 miles
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
484

2. Micro Bridge
Interior Non-port cities
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Special Rates

3. Types of vehicles for trucking
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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
Intermodal in character
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

4. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Move 1 single commodity and are non-stop to destination.
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.

5. 20/80 Rule
Less than 25 carriers handle 75 to 80% of total freight dollar.
Not the government - the railroads themselves
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.
30 - 000 lbs and 300 miles

6. What is the truck driving time limitations?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
11 hours straight or anything beyond 70 hours in 8 days
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Transfer of function to another country - can stay within the same company!

7. Examples of general freight
Crushed stone - gravel and sand
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Air

8. Intermodal Transportation
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.
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.
A pumping station

9. What was the rationale behind passing the Staggers Act of 1980?
100 cars x 100 tons
To save the railroads by giving them a chance to compete with other modes on equal footing
Interior Non-port cities
A longer combination vehicle towing more than one trailer

10. What is a road train?
A longer combination vehicle towing more than one trailer
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Water
Yes

11. What aspects of the trucking industry is the US involved in?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
30%
A longer combination vehicle towing more than one trailer
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

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?
Break bulk - Relay - Pick up - Delivery
563
To promote interstate commerce and strengthen the defenses of the country
A batching pig

13. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
FedEx - YRC - Conway - UPS - ABF
Water
After World War 2
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

14. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
58
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
A pumping station
7

15. Trackage

16. What could be the rationale for railroad mergers?

17. Commercial Invoice
A pumping station
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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
563

18. Social Responsibility pricing
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
A batching pig
Society and customer first.

19. Which modes have the following cost structure: Low Variable and High Fixed?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
563
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
Pipeline and Rail

20. Certificate of Inspection
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Break bulk - Relay - Pick up - Delivery
FedEx - YRC - Conway - UPS - ABF
Attests to authenticity and accuracy of the goods. Performs by third party independent company

21. Which phrase best characterizes the level of competition in the motor carrier industry?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The competition is intense in both TL and LTL segments
30%
Coal

22. Skimming pricing
Sysco - Tyson Foods - Coca-Cola - and Walmart
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
High price for price insensitive customers.
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

23. How are interstate highways numbered?
Move 1 single commodity and are non-stop to destination.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
250 - 000

24. 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.
Economies of scale
anywhere between a quarter and a third of all highway travel
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

25. 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?
484
Move 1 single commodity and are non-stop to destination.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
After World War 2

26. Line of credit process

27. Flags of Convenience
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Used for tax - manning - and relaxed regulation.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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

28. What is the trend for the miles of road over the past 50 years in the US railroad industry?
About 2 cents per dollar
Showed a marked decline
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Federal Railroad Administration (FRA)

29. Offshoring
Is likely to stay and even get worse in the future
Transfer of function to another country - can stay within the same company!
1850-1950
83.8%

30. Where does funding for the roads come from?
About 2 cents per dollar
Highway user taxes
Pipeline and Rail
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

31. What is the current share of trucking in total transportation expenses is closest to...
83.8%
Service levels - Frequent flyer programs - Timing of flights - In advance registration
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Sysco - Tyson Foods - Coca-Cola - and Walmart

32. What are the highest variable costs in the railroad industry?
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
Labor and Fuel
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
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

33. It is common for an operating ratio of motor carriers to be around these numbers...
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.
15
90-s
58

34. Factors affecting Pricing decisions
Interior Non-port cities
Crushed stone - gravel and sand
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

35. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

36. What are the issues facing the US railroads?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Far east to east coast or Europe to west coast - final destination is US port city

37. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Less than 25 carriers handle 75 to 80% of total freight dollar.
Labor and Fuel

38. What is the primary railroad cargo out of Arkansas by tonnage?
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 number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Crushed stone - gravel and sand
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

39. What are the current trends in trucking?
Society and customer first.
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
Water
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

40. Bill of Lading
Covered Hopper
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Consolidate orders for several customers and stop along the way for partial unloading.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

41. Types and shares of cost in railroads
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
Water
To save the railroads by giving them a chance to compete with other modes on equal footing
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

42. What term is related to railroad operations?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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
FedEx - YRC - Conway - UPS - ABF

43. Unit trains
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
The intermodal competition has increased dramatically since WW 2
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Move 1 single commodity and are non-stop to destination.

44. Who has the highest number of coal carloads?
Covered Hopper
Moving a corporations internal activities to outside providers - mainly for cheap labor
Wyoming
Economies of scale

45. Mistakes in pricing strategy
Moderate
484
Intermodal in character
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.

46. Main forms of Charter Ships
To save the railroads by giving them a chance to compete with other modes on equal footing
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
100 tons
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

47. Categories of major pricing decisions
A batching pig
Moderate
30 - 000 lbs and 300 miles
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.

48. Which economies are most prominent in the trucking industry?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
A pumping station
Economies of scope and density
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

49. What was the golden age of railroads?
484
1850-1950
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Transfer of function to another country - can stay within the same company!

50. What are the current trends in the US railroad?
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
30%