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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. Funding the railroads?
Not the government - the railroads themselves
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
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.
Coastal/Intercoastal - Great Lakes - Internal

2. What are the current trends in trucking?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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

3. Haulage

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4. Trackage

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5. What are the two primary operational indicators in the railroad industry?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Carloads and Ton-miles
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.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

6. Consular Invoice

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7. Factors contributing to the decline of Railroad use
Wyoming
Used for tax - manning - and relaxed regulation.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
90-s

8. Value of Service pricing
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
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.
Water
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

9. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Pipeline and Rail
7
30 - 000 lbs and 300 miles
Covering variable costs - volume and equipment utilization - and cash flow.

10. The problem of driver shortage in the US...
Special Rates
To promote interstate commerce and strengthen the defenses of the country
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
Is likely to stay and even get worse in the future

11. Land Bridge Services
Intermodal in character
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...
Terminal
7

12. On the average - per gallon of fuel - US railroads move a ton of freight...
anywhere between a quarter and a third of all highway travel
484
Consolidation of shipments to different destinations within the same general area.
A longer combination vehicle towing more than one trailer

13. What are the characteristics of a block train?
Consolidation
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
High price for price insensitive customers.

14. Ways to classify the motor carriers
anywhere between a quarter and a third of all highway travel
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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

15. Which type of railroad cargo has the highest tonnage share in the US?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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
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
Coal

16. Far-shoring
After World War 2
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
Completely different continent - different time zones.
Economies of scale

17. Which economies are most prominent in the trucking industry?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Economies of scope and density
A contract for transportation between a shipper and the carrier - also is a cargo receipt
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

18. Categories of major pricing decisions
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.
A batching pig
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Move 1 single commodity and are non-stop to destination.

19. Outsourcing
Used for tax - manning - and relaxed regulation.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Moving a corporations internal activities to outside providers - mainly for cheap labor
250 - 000

20. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
anywhere between a quarter and a third of all highway travel
58
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
NTSB

21. Freight Revenue for Rail (per ton-mile)
About 2 cents per dollar
To save the railroads by giving them a chance to compete with other modes on equal footing
Wyoming
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

22. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Used for tax - manning - and relaxed regulation.
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.
250 - 000

23. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Declaration of where product was made so that appropriate duties are charged

24. What is a road train?
Specialized: $73 Billion - General: $146 Billion
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

25. What are the current trends in the US railroad?
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
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
1850-1950
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

26. Carriers' Technological and Equipment strategies to minimize costs
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.
7%
The intermodal competition has increased dramatically since WW 2
Economies of scope and density

27. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
FedEx - YRC - Conway - UPS - ABF

28. Which phrase best characterizes the level of competition in the motor carrier industry?
Pipeline and Rail
About 2 cents per dollar
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
The competition is intense in both TL and LTL segments

29. 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.
Less than 25 carriers handle 75 to 80% of total freight dollar.
15
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

30. Examples of general freight
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Completely different continent - different time zones.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

31. 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?
Not the government - the railroads themselves
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
After World War 2
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.

32. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
7%
Coal - farm products - chemicals - transportation equipment

33. Certificate of Inspection
30 - 000 lbs and 300 miles
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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
Transfers accountability between domestic and international carrier at the terminal

34. What are the types of railcars?
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
7

35. Freight Revenue for Truck/Motor (per ton-mile)
A longer combination vehicle towing more than one trailer
Attests to authenticity and accuracy of the goods. Performs by third party independent company
About 25 cents per dollar
Transfer of function to another country - can stay within the same company!

36. Pricing adjustment conditions
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
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

37. What is the primary railroad cargo out of Arkansas by tonnage?
Covered Hopper
Crushed stone - gravel and sand
NTSB
100 tons

38. Near-shoring
To promote interstate commerce and strengthen the defenses of the country
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
One method moves the trailer on its wheels while the other moves the container
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

39. What is a public benefit of railroads?
1500 tons
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Intermodal in character

40. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
Moving a corporations internal activities to outside providers - mainly for cheap labor
Economies of scope and density
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

41. Which mode has the highest carrying capacity?
Water
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...
Coastal/Intercoastal - Great Lakes - Internal
Not the government - the railroads themselves

42. 1 Barge ship is equivalent to how many trucks?
Terminal
15%~13%
58
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

43. It is common for an operating ratio of motor carriers to be around these numbers...
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
80 - 000 lbs
90-s
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

44. How many Class 1 freight railroads are there?
7
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
250 - 000
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

45. 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
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Covering variable costs - volume and equipment utilization - and cash flow.

46. Class Rate Calculations
Yes
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...
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
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. Land Bridge
Covering variable costs - volume and equipment utilization - and cash flow.
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
1500 tons
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

48. Which mode has the lowest cost per ton mile?
NTSB
Coal - farm products - chemicals - transportation equipment
Main penalty is the cost of lost of sales by holding the shipment.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

49. 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.
Special Rates
11 hours straight or anything beyond 70 hours in 8 days
Economies of scope and density
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

50. Which government agency will investigate a major railroad accident involving public safety?
7
NTSB
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion