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. Benefits of hub and spoke system
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).


2. 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.
Showed a marked decline
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Consolidation of shipments to different destinations within the same general area.


3. Private Carrier
Break bulk - Relay - Pick up - Delivery
A trucking operation that only hauls freight for the firm which owns it
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Transfers accountability between domestic and international carrier at the terminal


4. Freight revenue for Modes (per ton-mile)
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.
Is likely to stay and even get worse in the future
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%


5. Invoices
Coal
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Sysco - Tyson Foods - Coca-Cola - and Walmart
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement


6. Survival Based pricing
Intermodal in character
Covering variable costs - volume and equipment utilization - and cash flow.
Consolidation
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


7. Who has the highest number of coal carloads?
15
Terminal
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Wyoming


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

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9. Skimming pricing
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
High price for price insensitive customers.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad


10. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Covering variable costs - volume and equipment utilization - and cash flow.
A trucking operation that only hauls freight for the firm which owns it


11. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Economies of scale
Water
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


12. Carriers' Technological and Equipment strategies to minimize costs
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
1850-1950
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.
A pumping station


13. Class Rate Calculations
Coastal/Intercoastal - Great Lakes - Internal
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.
Covered Hopper
Pipeline and Rail


14. What terms describe a type of operation in trucking?
Wyoming
90-s
Substantially higher
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook


15. Types of vehicles for trucking
Moderate
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
Terminal


16. What aspects of the trucking industry is the US involved in?
90-s
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
To save the railroads by giving them a chance to compete with other modes on equal footing
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.


17. Carrier's Operational strategies to minimize cost
Highway user taxes
Pipeline and Rail
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.
Completely different continent - different time zones.


18. What commodity/goods are typically transported by railroads in the US?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Coal - farm products - chemicals - transportation equipment
Terminal
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit


19. Micro Bridge
A longer combination vehicle towing more than one trailer
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Interior Non-port cities
Intermodal in character


20. Highway weight limitation
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
80 - 000 lbs
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
Moderate


21. Consular Invoice

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22. What is a road train?
A trucking operation that only hauls freight for the firm which owns it
A longer combination vehicle towing more than one trailer
Transfers accountability between domestic and international carrier at the terminal
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service


23. Social Responsibility pricing
Society and customer first.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
100 cars x 100 tons
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions


24. What could be the rationale for railroad mergers?

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25. What is a public benefit of railroads?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.


26. What factors lead to reduction of air pollution by trucks?
About 2 cents per dollar
90-s
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement


27. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
58
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Air
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage


28. Stop-off
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Coal - farm products - chemicals - transportation equipment
Society and customer first.
Consolidate orders for several customers and stop along the way for partial unloading.


29. Mistakes in pricing strategy
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
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
A longer combination vehicle towing more than one trailer


30. 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?
After World War 2
Transfer of function to another country - can stay within the same company!
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.
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


31. What is the truck driving time limitations?
Moderate
Transfer of function to another country - can stay within the same company!
Wyoming
11 hours straight or anything beyond 70 hours in 8 days


32. Line of credit process

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33. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
1500 tons
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
Coastal/Intercoastal - Great Lakes - Internal


34. Which type of railroad cargo has the highest tonnage share in the US?
Declaration of where product was made so that appropriate duties are charged
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Coal
Is likely to stay and even get worse in the future


35. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Moving a corporations internal activities to outside providers - mainly for cheap labor
30 - 000 lbs and 300 miles
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives


36. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Covering variable costs - volume and equipment utilization - and cash flow.
anywhere between a quarter and a third of all highway travel
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
High price for price insensitive customers.


37. The status of competition within the US railroad industry?
Is likely to stay and even get worse in the future
Moderate
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
58


38. What is the approximate number of railroads in the US?
Less than 25 carriers handle 75 to 80% of total freight dollar.
250 - 000
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.
563


39. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
11 hours straight or anything beyond 70 hours in 8 days
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Showed a marked decline


40. What are the reasons for the relative decline of the US railroads after World War 2?
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...
Highway user taxes
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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit


41. The whole history of the US railroads is a history of...
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
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.
Consolidation


42. Consolidation
ton-miles
Is likely to stay and even get worse in the future
Main penalty is the cost of lost of sales by holding the shipment.
Less than 25 carriers handle 75 to 80% of total freight dollar.


43. Trackage

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44. Haulage

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45. A barge tow is capable of moving how many barges?
15
Society and customer first.
80 - 000 lbs
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.


46. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Far east to east coast or Europe to west coast - final destination is US port city
A pumping station
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service


47. How many Class 1 freight railroads are there?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
7
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
30 - 000 lbs and 300 miles


48. The average annual salary of a locomotive operator compared to a TL driver in the US is...
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Substantially higher
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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


49. Core Carrier concept
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
83.8%
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Specialized: $73 Billion - General: $146 Billion


50. How to assess the operating ratio?
Crushed stone - gravel and sand
Pipeline and Rail
Far east to east coast or Europe to west coast - final destination is US port city
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues