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Transportation Logistics

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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. What is a typical fixed cost item in the motor carrier industry?
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.
Terminal
100 tons
Consolidation

2. Class Rate Calculations
anywhere between a quarter and a third of all highway travel
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 development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

3. What are the issues facing the US railroads?
11 hours straight or anything beyond 70 hours in 8 days
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
1500 tons
One method moves the trailer on its wheels while the other moves the container

4. 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
Crushed stone - gravel and sand
Moderate
Water

5. 1 Barge is equivalent to how many tons?
1500 tons
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Society and customer first.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

6. 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.
100 tons
Special Rates
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
Substantially higher

7. Funding the railroads?
Not the government - the railroads themselves
Labor and Fuel
100 cars x 100 tons
Consolidation

8. Pooling
Moving a corporations internal activities to outside providers - mainly for cheap labor
Showed a marked decline
Consolidation of shipments to different destinations within the same general area.
The competition is intense in both TL and LTL segments

9. Government is involved in which aspects of the railroad business?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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)

10. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
250 - 000

11. Line of credit process

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12. FOB Origin/Destination
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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.
Economies of scale

13. Which mode has the lowest cost per ton mile?
Special Rates
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
Moderate
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

14. Which economies are present in the US railroad industry?
After World War 2
30 - 000 lbs and 300 miles
Transfer of function to another country - can stay within the same company!
Economies of scale

15. A barge tow is capable of moving how many barges?
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...
15
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 cars x 100 tons

16. What is the empirical formula of the typical coal unit train in the US?
The intermodal competition has increased dramatically since WW 2
ton-miles
1500 tons
100 cars x 100 tons

17. Mistakes in pricing strategy
Declaration of where product was made so that appropriate duties are charged
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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.
Consolidate orders for several customers and stop along the way for partial unloading.

18. Factors affecting Pricing decisions
One method moves the trailer on its wheels while the other moves the container
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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

19. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
83.8%
Terminal
Class 1 - Regional - Shortline - Switching and Terminal

20. Four types of Liner Service
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Coastal/Intercoastal - Great Lakes - Internal
A batching pig

21. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Water
Class 1 - Regional - Shortline - Switching and Terminal

22. What are the current trends in the US railroad?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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 - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Less than 25 carriers handle 75 to 80% of total freight dollar.

23. Mini Bridge
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
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.
Far east to east coast or Europe to west coast - final destination is US port city
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

24. Invoices
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Wyoming

25. Unit trains
Move 1 single commodity and are non-stop to destination.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
A batching pig
Coal - farm products - chemicals - transportation equipment

26. Which economies are most prominent in the trucking industry?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Economies of scope and density
Moderate

27. Private Carrier
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
A trucking operation that only hauls freight for the firm which owns it
Terminal
Crushed stone - gravel and sand

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

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29. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
One method moves the trailer on its wheels while the other moves the container
Covered Hopper
Is likely to stay and even get worse in the future

30. Trackage

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31. Drayage
One method moves the trailer on its wheels while the other moves the container
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.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

32. What is the difference between class 1 and class 2 carriers?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
1850-1950
Water

33. Certificate of Inspection
The intermodal competition has increased dramatically since WW 2
Service levels - Frequent flyer programs - Timing of flights - In advance registration
A pumping station
Attests to authenticity and accuracy of the goods. Performs by third party independent company

34. Which US federal government agency enforces safety regulations for railroads?
Break bulk - Relay - Pick up - Delivery
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
Federal Railroad Administration (FRA)
563

35. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
A batching pig
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Showed a marked decline

36. What are the two primary operational indicators in the railroad 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.
Carloads and Ton-miles
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
250 - 000

37. 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.
11 hours straight or anything beyond 70 hours in 8 days
Coal - farm products - chemicals - transportation equipment
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

38. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

39. What is an approximate capacity of a hopper?
A trucking operation that only hauls freight for the firm which owns it
11 hours straight or anything beyond 70 hours in 8 days
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
100 tons

40. Outsourcing
Moderate
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
100 tons
Moving a corporations internal activities to outside providers - mainly for cheap labor

41. Where does funding for the roads come from?
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.
Coastal/Intercoastal - Great Lakes - Internal
Highway user taxes
Interior Non-port cities

42. Types and shares of cost in railroads
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Coastal/Intercoastal - Great Lakes - Internal
Transfers accountability between domestic and international carrier at the terminal

43. Offshoring
Transfer of function to another country - can stay within the same company!
Class 1 - Regional - Shortline - Switching and Terminal
NTSB
15

44. Major commodities hauled by each mode
After World War 2
Sysco - Tyson Foods - Coca-Cola - and Walmart
anywhere between a quarter and a third of all highway travel
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

45. Three kinds of ocean carriers
A longer combination vehicle towing more than one trailer
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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.
NTSB

46. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
To save the railroads by giving them a chance to compete with other modes on equal footing
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Used for tax - manning - and relaxed regulation.
Air

47. What is the current share of trucking in total transportation expenses is closest to...
ton-miles
83.8%
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
The competition is intense in both TL and LTL segments

48. Pro-Forma Invoice
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
15
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

49. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
A longer combination vehicle towing more than one trailer
Covered Hopper

50. Consular Invoice

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