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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. Which mode has the highest carrying capacity?
Water
Economies of scale
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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.

2. 1 Barge is equivalent to how many tons?
1500 tons
11 hours straight or anything beyond 70 hours in 8 days
Moderate
NTSB

3. Third Party Logistics
Is likely to stay and even get worse in the future
ton-miles
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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...

4. What is Amtrak?
About 25 cents per dollar
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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

5. Line of credit process

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6. Which type of railroad cargo has the highest tonnage share in the US?
Covered Hopper
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
Federal Railroad Administration (FRA)
Coal

7. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
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
A pumping station
Water
Not the government - the railroads themselves

8. The whole history of the US railroads is a history of...
Showed a marked decline
1850-1950
Consolidation
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

9. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Consolidation
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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

10. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Economies of scope and density
Covered Hopper
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Wyoming

11. What factors lead to reduction of air pollution by trucks?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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
Federal Railroad Administration (FRA)
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

12. Mistakes in pricing strategy
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.
About 25 cents per dollar
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
Specialized: $73 Billion - General: $146 Billion

13. Which US federal government agency enforces safety regulations for railroads?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Federal Railroad Administration (FRA)
30 - 000 lbs and 300 miles
80 - 000 lbs

14. Did the US railroads have anything to do with the creation of world time zones?
Coal
Is likely to stay and even get worse in the future
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
Yes

15. Highway weight limitation
Air
Not the government - the railroads themselves
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
80 - 000 lbs

16. What aspects of the trucking industry is the US involved in?
250 - 000
Coastal/Intercoastal - Great Lakes - Internal
A batching pig
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

17. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Yes
80 - 000 lbs
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.
250 - 000

18. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
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.
To promote interstate commerce and strengthen the defenses of the country

19. What are the LTL carriers?
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.
Interior Non-port cities
Highway user taxes
FedEx - YRC - Conway - UPS - ABF

20. Which government agency will investigate a major railroad accident involving public safety?
A longer combination vehicle towing more than one trailer
Declaration of where product was made so that appropriate duties are charged
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
NTSB

21. What are the generally accepted classifications of railroads?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Federal Railroad Administration (FRA)
Class 1 - Regional - Shortline - Switching and Terminal

22. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
58
A contract for transportation between a shipper and the carrier - also is a cargo receipt

23. What term is related to railroad operations?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Labor and Fuel
Transfers accountability between domestic and international carrier at the terminal

24. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Main penalty is the cost of lost of sales by holding the shipment.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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

25. 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.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
A longer combination vehicle towing more than one trailer
Special Rates
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

26. 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?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
A pumping station
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
A batching pig

27. What was the rationale behind passing the Staggers Act of 1980?
To save the railroads by giving them a chance to compete with other modes on equal footing
A pumping station
Economies of scale
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.

28. 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
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Society and customer first.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

29. The status of competition within the US railroad industry?
About 25 cents per dollar
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Moderate

30. What are the metrics to measure freight traffic in the motor carrier industry?
Federal Railroad Administration (FRA)
ton-miles
Showed a marked decline
Not the government - the railroads themselves

31. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A trucking operation that only hauls freight for the firm which owns it
Break bulk - Relay - Pick up - Delivery
Substantially higher

32. Service competition areas in airline industry
Is likely to stay and even get worse in the future
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.
Consolidation of shipments to different destinations within the same general area.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

33. 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
Economies of scope and density
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Highway user taxes

34. Stop-off
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Consolidate orders for several customers and stop along the way for partial unloading.
Special Rates

35. The problem of driver shortage in the US...
Yes
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Is likely to stay and even get worse in the future
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

36. How to assess the operating ratio?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Coastal/Intercoastal - Great Lakes - Internal
11 hours straight or anything beyond 70 hours in 8 days
A contract for transportation between a shipper and the carrier - also is a cargo receipt

37. Haulage

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38. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Transfer of function to another country - can stay within the same company!
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

39. Government is involved in which aspects of the railroad business?
Wyoming
Not the government - the railroads themselves
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

40. Private Carrier
90-s
Air
Transfers accountability between domestic and international carrier at the terminal
A trucking operation that only hauls freight for the firm which owns it

41. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
About 2 cents per dollar
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Attests to authenticity and accuracy of the goods. Performs by third party independent company

42. How many Class 1 freight railroads are there?
High price for price insensitive customers.
15%~13%
563
7

43. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
Move 1 single commodity and are non-stop to destination.
FedEx - YRC - Conway - UPS - ABF
Special Rates

44. What are the reasons for the relative decline of the US railroads after World War 2?
15%~13%
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
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

45. What are the highest variable costs in the railroad industry?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Labor and Fuel
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. Class Rate Calculations
Sysco - Tyson Foods - Coca-Cola - and Walmart
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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.

47. Main forms of Charter Ships
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
A longer combination vehicle towing more than one trailer
Completely different continent - different time zones.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

48. What is a public benefit of railroads?
Covered Hopper
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Transfer of function to another country - can stay within the same company!

49. Which modes have the following cost structure: Low Variable and High Fixed?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Pipeline and Rail

50. LTL terminals are used for connections with these operations...
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.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Main penalty is the cost of lost of sales by holding the shipment.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating