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Transportation Logistics

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Answer 50 questions in 15 minutes.
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1. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
58
Air
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

2. 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.
A pumping station
Water
30 - 000 lbs and 300 miles

3. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
11 hours straight or anything beyond 70 hours in 8 days
Substantially higher
Wyoming

4. Certificate of origin
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Declaration of where product was made so that appropriate duties are charged
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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.

5. What companies are players in private carriage?
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

6. Where does funding for the roads come from?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Highway user taxes
Consolidate orders for several customers and stop along the way for partial unloading.
Transfer of function to another country - can stay within the same company!

7. Pricing adjustment conditions
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Class 1 - Regional - Shortline - Switching and Terminal
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
About 2 cents per dollar

8. Trackage

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9. Carriers' Technological and Equipment strategies to minimize costs
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Specialized: $73 Billion - General: $146 Billion
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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.

10. How are interstate highways numbered?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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.
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

11. What is the trend for the miles of road over the past 50 years in the US railroad industry?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Showed a marked decline
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
One method moves the trailer on its wheels while the other moves the container

12. Names of the Class 1 railroads?
Transfer of function to another country - can stay within the same company!
1850-1950
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Attests to authenticity and accuracy of the goods. Performs by third party independent company

13. Far-shoring
Used for tax - manning - and relaxed regulation.
A longer combination vehicle towing more than one trailer
Sysco - Tyson Foods - Coca-Cola - and Walmart
Completely different continent - different time zones.

14. Freight Revenue for Rail (per ton-mile)
Substantially higher
About 2 cents per dollar
NTSB
Interior Non-port cities

15. Which modes have the following cost structure: Low Variable and High Fixed?
A longer combination vehicle towing more than one trailer
Coastal/Intercoastal - Great Lakes - Internal
To promote interstate commerce and strengthen the defenses of the country
Pipeline and Rail

16. What are the characteristics of a block train?
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Break bulk - Relay - Pick up - Delivery
Highway user taxes

17. What are the reasons for the relative decline of the US railroads after World War 2?
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 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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Moderate

18. What are the revenues of the specialized and general cargo?
83.8%
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
Specialized: $73 Billion - General: $146 Billion
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.

19. Social Responsibility pricing
Not the government - the railroads themselves
Society and customer first.
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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

20. Which economies are present in the US railroad industry?
After World War 2
NTSB
Interior Non-port cities
Economies of scale

21. What is the truck driving time limitations?
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Break bulk - Relay - Pick up - Delivery

22. Categories of major pricing decisions
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.

23. The problem of driver shortage in the US...
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
anywhere between a quarter and a third of all highway travel
Is likely to stay and even get worse in the future
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

24. What are the major causes of general traffic congestions?
250 - 000
Used for tax - manning - and relaxed regulation.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
100 tons

25. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
1500 tons
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Move 1 single commodity and are non-stop to destination.

26. Factors affecting Pricing decisions
A batching pig
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

27. Highway weight limitation
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Declaration of where product was made so that appropriate duties are charged
80 - 000 lbs

28. Certificate of Inspection
Consolidation
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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
Far east to east coast or Europe to west coast - final destination is US port city

29. What is Amtrak?
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
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.
Federal Railroad Administration (FRA)
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

30. Land Bridge Services
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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
Moving a corporations internal activities to outside providers - mainly for cheap labor
Intermodal in character

31. 1 Barge is equivalent to how many tons?
7%
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.
1850-1950
1500 tons

32. 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.
11 hours straight or anything beyond 70 hours in 8 days
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Consolidation

33. Service competition areas in airline industry
Coal - farm products - chemicals - transportation equipment
About 2 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
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

34. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
7%
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Water
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

35. Third Party Logistics
About 25 cents per dollar
After World War 2
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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...

36. Which US federal government agency enforces safety regulations for railroads?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Federal Railroad Administration (FRA)
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.
Economies of scope and density

37. Skimming pricing
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
High price for price insensitive customers.
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
NTSB

38. Unit trains
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
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Not the government - the railroads themselves
Move 1 single commodity and are non-stop to destination.

39. Stop-off
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Consolidate orders for several customers and stop along the way for partial unloading.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Is likely to stay and even get worse in the future

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

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41. Three kinds of ocean carriers
7
One method moves the trailer on its wheels while the other moves the container
About 25 cents per 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.

42. Class Rate Calculations
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
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
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.
1850-1950

43. 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?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
7
After World War 2
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.

44. Consular Invoice

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45. Labor relations in the US railroad industry?
563
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
ton-miles
A longer combination vehicle towing more than one trailer

46. What is the primary railroad cargo out of Arkansas by tonnage?
Crushed stone - gravel and sand
The intermodal competition has increased dramatically since WW 2
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Yes

47. It is common for an operating ratio of motor carriers to be around these numbers...
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
Consolidate orders for several customers and stop along the way for partial unloading.
90-s
Coal

48. Freight revenue for Modes (per ton-mile)
The competition is intense in both TL and LTL segments
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

49. Land Bridge
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
484
Pipeline and Rail

50. What is the approximate number of railroads in the US?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
1850-1950
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
563

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