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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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1. Factors contributing to the decline of Railroad use
ton-miles
Wyoming
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
FedEx - YRC - Conway - UPS - ABF

2. Funding the railroads?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Not the government - the railroads themselves
30%
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

3. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
A batching pig
58
Main penalty is the cost of lost of sales by holding the shipment.

4. What are the types of railcars?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Labor and Fuel

5. Certificate of origin
Not the government - the railroads themselves
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Declaration of where product was made so that appropriate duties are charged
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.

6. Who has the highest number of coal carloads?
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
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.
Wyoming
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

7. Main forms of Charter Ships
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
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

8. Pricing adjustment conditions
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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
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.

9. Names of the Class 1 railroads?
A batching pig
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
7

10. Which modes have the following cost structure: Low Variable and High Fixed?
To promote interstate commerce and strengthen the defenses of the country
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
7
Pipeline and Rail

11. What aspects of the trucking industry is the US involved in?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Special Rates
Yes

12. Did the US railroads have anything to do with the creation of world time zones?
Used for tax - manning - and relaxed regulation.
58
Yes
Pipeline and Rail

13. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
7%

14. Name the types of trucking terminals
Break bulk - Relay - Pick up - Delivery
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.
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
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

15. Class Rate Calculations
Terminal
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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.

16. Which economies are present in the US railroad industry?
Declaration of where product was made so that appropriate duties are charged
The competition is intense in both TL and LTL segments
ton-miles
Economies of scale

17. Freight Revenue for Truck/Motor (per ton-mile)
Federal Railroad Administration (FRA)
Terminal
About 25 cents per dollar
58

18. How many Class 1 freight railroads are there?
Society and customer first.
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

19. A barge tow is capable of moving how many barges?
anywhere between a quarter and a third of all highway travel
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Coal
15

20. What is an approximate capacity of a hopper?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
100 tons
About 25 cents per dollar
Consolidate orders for several customers and stop along the way for partial unloading.

21. Four types of Liner Service
Coal - farm products - chemicals - transportation equipment
Crushed stone - gravel and sand
Water
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

22. Carrier's Operational strategies to minimize cost
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.
Covered Hopper
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.

23. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.

24. Third Party Logistics
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...
About 2 cents per dollar
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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

25. What are the revenues of the specialized and general cargo?
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
Coal - farm products - chemicals - transportation equipment
Specialized: $73 Billion - General: $146 Billion
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

26. Skimming pricing
Moderate
90-s
100 tons
High price for price insensitive customers.

27. What was the golden age of railroads?
30%
1850-1950
7
Transfers accountability between domestic and international carrier at the terminal

28. What are the issues facing the US railroads?
Not the government - the railroads themselves
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
7%
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

29. Which government agency will investigate a major railroad accident involving public safety?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Attests to authenticity and accuracy of the goods. Performs by third party independent company
563
NTSB

30. Haulage

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31. On the average - per gallon of fuel - US railroads move a ton of freight...
Special Rates
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Completely different continent - different time zones.
484

32. What is a road train?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
A longer combination vehicle towing more than one trailer
Move 1 single commodity and are non-stop to destination.
Yes

33. Service competition areas in airline industry
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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.
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.
Labor and Fuel

34. What is the primary railroad cargo out of Arkansas by tonnage?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Crushed stone - gravel and sand
Water
30%

35. Benefits of hub and spoke system
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.
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.
Moderate
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

36. What commodity/goods are typically transported by railroads in the US?
Consolidation of shipments to different destinations within the same general area.
Covering variable costs - volume and equipment utilization - and cash flow.
Not the government - the railroads themselves
Coal - farm products - chemicals - transportation equipment

37. What is a typical fixed cost item in the motor carrier industry?
Terminal
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Covered Hopper
Special Rates

38. 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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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

39. Cost of Service Pricing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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

40. Commercial Invoice
ton-miles
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
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
Substantially higher

41. What is the empirical formula of the typical coal unit train in the US?
563
100 cars x 100 tons
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
Used for tax - manning - and relaxed regulation.

42. Far-shoring
Completely different continent - different time zones.
Carloads and Ton-miles
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.
Economies of scope and density

43. 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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Yes

44. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
250 - 000
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
11 hours straight or anything beyond 70 hours in 8 days

45. 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
Terminal
Crushed stone - gravel and sand
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

46. Invoices
Highway user taxes
7%
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

47. What do the users of truck service benefit?
About 25 cents per dollar
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
11 hours straight or anything beyond 70 hours in 8 days
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

48. What could be the rationale for railroad mergers?

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49. Which mode has the lowest cost per ton mile?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
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
The intermodal competition has increased dramatically since WW 2

50. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Transfer of function to another country - can stay within the same company!
Water
7