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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. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Labor and Fuel
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

2. Pro-Forma Invoice
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.
Far east to east coast or Europe to west coast - final destination is US port city
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

3. Benefits of hub and spoke system
After World War 2
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Water
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

4. Government is involved in which aspects of the railroad business?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
30%

5. Carrier's Operational strategies to minimize cost
A pumping station
Wyoming
Pipeline and Rail
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.

6. Which type of a railcar has the highest share in terms of its numbers in service in the US?
90-s
Covered Hopper
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Sysco - Tyson Foods - Coca-Cola - and Walmart

7. Value of Service pricing
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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
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

8. Funding the railroads?
Not the government - the railroads themselves
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
7%
83.8%

9. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
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
58

10. UNCTAD liner code 40-40-20
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Federal Railroad Administration (FRA)
1850-1950

11. Terms of Payment
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Water

12. Types of vehicles for trucking
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.

13. What factors lead to reduction of air pollution by trucks?
Transfers accountability between domestic and international carrier at the terminal
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

14. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
90-s
15%~13%
Covering variable costs - volume and equipment utilization - and cash flow.

15. What are the current trends in trucking?
1500 tons
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Showed a marked decline
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

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

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17. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Move 1 single commodity and are non-stop to destination.
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
484
Substantially higher

18. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
Break bulk - Relay - Pick up - Delivery
Sysco - Tyson Foods - Coca-Cola - and Walmart
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

19. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
To promote interstate commerce and strengthen the defenses of the country
Water
80 - 000 lbs

20. Haulage

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21. What do the users of truck service benefit?
7%
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

22. The status of competition within the US railroad industry?
The intermodal competition has increased dramatically since WW 2
11 hours straight or anything beyond 70 hours in 8 days
Moderate
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

23. 1 Barge ship is equivalent to how many trucks?
Terminal
58
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Less than 25 carriers handle 75 to 80% of total freight dollar.

24. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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
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.

25. Freight revenue for Modes (per ton-mile)
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Completely different continent - different time zones.
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. Which modes have the following cost structure: Low Variable and High Fixed?
1850-1950
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Pipeline and Rail

27. What is an approximate capacity of a hopper?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
100 tons
Sysco - Tyson Foods - Coca-Cola - and Walmart
Transfers accountability between domestic and international carrier at the terminal

28. Land Bridge
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...
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
Not the government - the railroads themselves
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

29. What term is related to railroad operations?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Interior Non-port cities
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Labor and Fuel

30. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
484
15%~13%
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

31. 1 Barge is equivalent to how many tons?
Far east to east coast or Europe to west coast - final destination is US port city
1500 tons
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
A batching pig

32. What are the highest variable costs in the railroad industry?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Labor and Fuel

33. Unit trains
30 - 000 lbs and 300 miles
A longer combination vehicle towing more than one trailer
Move 1 single commodity and are non-stop to destination.
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

34. Name the 3 types of water carriers
Federal Railroad Administration (FRA)
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Coastal/Intercoastal - Great Lakes - Internal

35. 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
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Moderate

36. How are interstate highways numbered?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Air
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Consolidate orders for several customers and stop along the way for partial unloading.

37. 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.
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
Far east to east coast or Europe to west coast - final destination is US port city
Terminal
Special Rates

38. Intermodal Transportation
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Transfer of function to another country - can stay within the same company!
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.
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

39. What are the major causes of general traffic congestions?
Consolidate orders for several customers and stop along the way for partial unloading.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
One method moves the trailer on its wheels while the other moves the container
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

40. Which government agency will investigate a major railroad accident involving public safety?
About 25 cents per dollar
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
The competition is intense in both TL and LTL segments
NTSB

41. Pooling
Carloads and Ton-miles
Consolidation of shipments to different destinations within the same general area.
About 25 cents per dollar
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

42. What are the metrics to measure freight traffic in the motor carrier industry?
Substantially higher
ton-miles
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
15%~13%

43. Factors affecting Pricing decisions
Less than 25 carriers handle 75 to 80% of total freight dollar.
FedEx - YRC - Conway - UPS - ABF
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
83.8%

44. Who has the highest number of coal carloads?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Wyoming
Terminal
Sysco - Tyson Foods - Coca-Cola - and Walmart

45. Non-vessel operating common carriers (NVOCC)
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.

46. Class Rate Calculations
A longer combination vehicle towing more than one trailer
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.
Not the government - the railroads themselves
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

47. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Economies of scale

48. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Transfer of function to another country - can stay within the same company!
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Declaration of where product was made so that appropriate duties are charged

49. Stop-off
Air
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
Consolidate orders for several customers and stop along the way for partial unloading.

50. What was the rationale behind passing the Staggers Act of 1980?
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
To save the railroads by giving them a chance to compete with other modes on equal footing
The intermodal competition has increased dramatically since WW 2