Transportation Logistics

Instructions:

• Answer 50 questions in 15 minutes.
• If you are not ready to take this test, you can study here.
• Match each statement with the correct term.
• Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

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. Consular Invoice

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2. 20/80 Rule
About 2 cents per dollar
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Less than 25 carriers handle 75 to 80% of total freight dollar.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement


3. Pooling
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
7%
Consolidation of shipments to different destinations within the same general area.
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.


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

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5. Name the 3 types of water carriers
Coastal/Intercoastal - Great Lakes - Internal
Is likely to stay and even get worse in the future
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Used for tax - manning - and relaxed regulation.


6. Outsourcing
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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Moving a corporations internal activities to outside providers - mainly for cheap labor
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track


7. Which economies are present in the US railroad industry?
Economies of scale
15
Declaration of where product was made so that appropriate duties are charged
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.


8. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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


9. Price variation factors in airline service
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Main penalty is the cost of lost of sales by holding the shipment.
Service levels - Frequent flyer programs - Timing of flights - In advance registration


10. What is the current share of trucking in total transportation expenses is closest to...
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
83.8%
After World War 2
15%~13%


11. What companies are players in private carriage?
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Special Rates
Break bulk - Relay - Pick up - Delivery


12. Who has the highest number of coal carloads?
Wyoming
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
58
To save the railroads by giving them a chance to compete with other modes on equal footing


13. Government is involved in which aspects of the railroad business?
30 - 000 lbs and 300 miles
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Not the government - the railroads themselves


14. What is the approximate share of fixed costs of US railroads?
100 cars x 100 tons
83.8%
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.
30%


15. Funding the railroads?
Not the government - the railroads themselves
Consolidate orders for several customers and stop along the way for partial unloading.
1500 tons
Highway user taxes


16. Mistakes in pricing strategy
Covering variable costs - volume and equipment utilization - and cash flow.
The intermodal competition has increased dramatically since WW 2
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.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.


17. What is an approximate capacity of a hopper?
15%~13%
100 tons
anywhere between a quarter and a third of all highway travel
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


18. Haulage

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19. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Completely different continent - different time zones.
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
30 - 000 lbs and 300 miles
Moderate


20. What factors lead to reduction of air pollution by trucks?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
90-s
Used for tax - manning - and relaxed regulation.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery


21. The problem of driver shortage in the US...
Is likely to stay and even get worse in the future
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives


22. Which US federal government agency enforces safety regulations for railroads?
Federal Railroad Administration (FRA)
80 - 000 lbs
Used for tax - manning - and relaxed regulation.
Sysco - Tyson Foods - Coca-Cola - and Walmart


23. What is a public benefit of railroads?
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
15


24. 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.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Special Rates
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).


25. Factors affecting Pricing decisions
15%~13%
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
30 - 000 lbs and 300 miles
Market Forces (customers) - Governmental Controls - Other channel member - Competition.


26. What are the generally accepted classifications of railroads?
Consolidate orders for several customers and stop along the way for partial unloading.
Labor and Fuel
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Class 1 - Regional - Shortline - Switching and Terminal


27. Trackage

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28. Which phrase best characterizes the level of competition in the motor carrier industry?
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
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 competition is intense in both TL and LTL segments
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track


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
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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.


30. 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
Not the government - the railroads themselves
58
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard


31. The whole history of the US railroads is a history of...
15%~13%
Society and customer first.
A trucking operation that only hauls freight for the firm which owns it
Consolidation


32. Survival Based pricing
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
Covering variable costs - volume and equipment utilization - and cash flow.
The intermodal competition has increased dramatically since WW 2


33. What are the service and public benefits of the railroad industry?

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34. How are airport hub/spoke and LTL breakbulk similar?
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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
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.


35. What aspects of the trucking industry is the US involved in?
Coal - farm products - chemicals - transportation equipment
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Covering variable costs - volume and equipment utilization - and cash flow.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement


36. What terms describe a type of operation in trucking?
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.
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
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook


37. Stop-off
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
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.


38. Drayage
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Terminal
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement


39. The current share of railroads in total transportation expenses is closest to...
Covering variable costs - volume and equipment utilization - and cash flow.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Terminal
7%


40. Non-vessel operating common carriers (NVOCC)
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Water
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


41. Which government agency will investigate a major railroad accident involving public safety?
FedEx - YRC - Conway - UPS - ABF
NTSB
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%


42. What do the users of truck service benefit?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Coastal/Intercoastal - Great Lakes - Internal
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks


43. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Crushed stone - gravel and sand
Substantially higher
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads


44. What are the two primary operational indicators in the railroad industry?
A trucking operation that only hauls freight for the firm which owns it
Carloads and Ton-miles
Air
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).


45. Main forms of Charter Ships
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
15
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
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


46. On the average - per gallon of fuel - US railroads move a ton of freight...
484
Air
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
Main penalty is the cost of lost of sales by holding the shipment.


47. Carriers' Technological and Equipment strategies to minimize costs
Coal
90-s
About 25 cents per dollar
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.


48. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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
To promote interstate commerce and strengthen the defenses of the country


49. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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


50. Cost of Service Pricing
58
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%