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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. Terms of Payment
Crushed stone - gravel and sand
100 cars x 100 tons
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Special Rates

2. What are the two primary operational indicators in the railroad industry?
After World War 2
Carloads and Ton-miles
Covering variable costs - volume and equipment utilization - and cash flow.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

3. Freight Revenue for Rail (per ton-mile)
Moving a corporations internal activities to outside providers - mainly for cheap labor
About 2 cents per dollar
Society and customer first.
Carloads and Ton-miles

4. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Labor and Fuel
15%~13%
After World War 2

5. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Yes
Break bulk - Relay - Pick up - Delivery
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.

6. Price variation factors in airline service
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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.

7. Benefits of hub and spoke system
Consolidation of shipments to different destinations within the same general area.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
FedEx - YRC - Conway - UPS - ABF

8. Categories of major pricing decisions
Intermodal in character
Highway user taxes
90-s
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.

9. How to assess the operating ratio?
30 - 000 lbs and 300 miles
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Showed a marked decline
1850-1950

10. Land Bridge
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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
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.
Coal

11. Near-shoring
Wyoming
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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.
Moving a corporations internal activities to outside providers - mainly for cheap labor

12. Drayage
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
About 2 cents per dollar
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

13. What commodity/goods are typically transported by railroads in the US?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Coal - farm products - chemicals - transportation equipment
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Moving a corporations internal activities to outside providers - mainly for cheap labor

14. Which Mode of Transportation has the highest volume in tonnage?
11 hours straight or anything beyond 70 hours in 8 days
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
Carloads and Ton-miles

15. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Consolidate orders for several customers and stop along the way for partial unloading.
anywhere between a quarter and a third of all highway travel
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

16. What are the reasons for the relative decline of the US railroads after World War 2?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Coastal/Intercoastal - Great Lakes - Internal
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
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

17. The whole history of the US railroads is a history of...
Consolidation
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.
Water
The competition is intense in both TL and LTL segments

18. It is common for an operating ratio of motor carriers to be around these numbers...
High price for price insensitive customers.
250 - 000
90-s
7

19. What are the generally accepted classifications of railroads?
Showed a marked decline
Class 1 - Regional - Shortline - Switching and Terminal
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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.

20. Types and shares of cost in railroads
About 25 cents per dollar
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

21. Factors affecting Pricing decisions
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
NTSB
Not the government - the railroads themselves

22. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Specialized: $73 Billion - General: $146 Billion
To save the railroads by giving them a chance to compete with other modes on equal footing
30 - 000 lbs and 300 miles
Not the government - the railroads themselves

23. What do the users of truck service benefit?
Not the government - the railroads themselves
A batching pig
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
The competition is intense in both TL and LTL segments

24. What are the current trends in the US railroad?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Intermodal in character
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

25. Mistakes in pricing strategy
A longer combination vehicle towing more than one trailer
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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.
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.

26. What could be the rationale for railroad mergers?

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27. 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
1850-1950
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.

28. What is the approximate number of railroads in the US?
To promote interstate commerce and strengthen the defenses of the country
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.
About 2 cents per dollar
563

29. The problem of driver shortage in the US...
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
A batching pig
80 - 000 lbs
Is likely to stay and even get worse in the future

30. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Move 1 single commodity and are non-stop to destination.
11 hours straight or anything beyond 70 hours in 8 days
Showed a marked decline
Water

31. 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
Service levels - Frequent flyer programs - Timing of flights - In advance registration
A trucking operation that only hauls freight for the firm which owns it
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

32. Pro-Forma Invoice
484
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
The intermodal competition has increased dramatically since WW 2
Transfers accountability between domestic and international carrier at the terminal

33. A pumping station requires 3-6000HP to move oil through a pipeline. To move more than 1 grade at same time what do you use?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
To save the railroads by giving them a chance to compete with other modes on equal footing
A batching pig
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

34. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
83.8%
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

35. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Economies of scale
FedEx - YRC - Conway - UPS - ABF
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

36. Who has the highest number of coal carloads?
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.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
100 tons
Wyoming

37. Freight revenue for Modes (per ton-mile)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Not the government - the railroads themselves
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

38. Class Rate Calculations
Is likely to stay and even get worse in the future
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store 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.
To save the railroads by giving them a chance to compete with other modes on equal footing

39. Private Carrier
Coastal/Intercoastal - Great Lakes - Internal
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
To promote interstate commerce and strengthen the defenses of the country
A trucking operation that only hauls freight for the firm which owns it

40. Haulage

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41. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Showed a marked decline
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
11 hours straight or anything beyond 70 hours in 8 days

42. Certificate of origin
Completely different continent - different time zones.
Covered Hopper
Declaration of where product was made so that appropriate duties are charged
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

43. Which modes have the following cost structure: Low Variable and High Fixed?
Intermodal in character
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Pipeline and Rail
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

44. What aspects of the trucking industry is the US involved in?
Declaration of where product was made so that appropriate duties are charged
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
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...

45. What are the metrics to measure freight traffic in the motor carrier industry?
ton-miles
Economies of scope and density
A pumping station
Break bulk - Relay - Pick up - Delivery

46. Non-vessel operating common carriers (NVOCC)
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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
15
30 - 000 lbs and 300 miles

47. Pooling
30 - 000 lbs and 300 miles
Completely different continent - different time zones.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Consolidation of shipments to different destinations within the same general area.

48. What is the empirical formula of the typical coal unit train in the US?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
484
100 cars x 100 tons
Coal

49. What is the truck driving time limitations?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Moderate
11 hours straight or anything beyond 70 hours in 8 days
Is likely to stay and even get worse in the future

50. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Economies of scope and density
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Move 1 single commodity and are non-stop to destination.