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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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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. Three kinds of ocean carriers
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
A pumping station

2. Terms of Payment
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
One method moves the trailer on its wheels while the other moves the container
484

3. Certificate of Inspection
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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.
Pipeline and Rail
Attests to authenticity and accuracy of the goods. Performs by third party independent company

4. Commercial Invoice
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Move 1 single commodity and are non-stop to destination.
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
15

5. Types and shares of cost in railroads
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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
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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

6. What are the current trends in the US railroad?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.
Intermodal in character
Consolidate orders for several customers and stop along the way for partial unloading.

7. Social Responsibility 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
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Society and customer first.

8. Main forms of Charter Ships
Showed a marked decline
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
100 tons
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

9. Consular Invoice

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10. Carriers' Technological and Equipment strategies to minimize costs
Air
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
To promote interstate commerce and strengthen the defenses of the country

11. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Move 1 single commodity and are non-stop to destination.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Covered Hopper
15

12. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
A pumping station
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

13. What are the generally accepted classifications of railroads?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Economies of scope and density
Class 1 - Regional - Shortline - Switching and Terminal
Labor and Fuel

14. 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.
Yes
Special Rates
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Economies of scope and density

15. Freight Revenue for Rail (per ton-mile)
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Less than 25 carriers handle 75 to 80% of total freight dollar.
About 2 cents per dollar
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

16. Value of Service pricing
30%
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
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.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

17. What are the major causes of general traffic congestions?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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.
Consolidation

18. What are the two primary operational indicators in the railroad industry?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Carloads and Ton-miles
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

19. Types of vehicles for trucking
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
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
Pipeline and Rail
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

20. What is the current share of trucking in total transportation expenses is closest to...
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...
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.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
83.8%

21. Who has the highest number of coal carloads?
Wyoming
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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
Terminal

22. What was the rationale behind passing the Staggers Act of 1980?
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.
To save the railroads by giving them a chance to compete with other modes on equal footing
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
One method moves the trailer on its wheels while the other moves the container

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

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24. Examples of general freight
About 25 cents per dollar
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

25. Which government agency will investigate a major railroad accident involving public safety?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
NTSB

26. Bill of Lading
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
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
FedEx - YRC - Conway - UPS - ABF
A contract for transportation between a shipper and the carrier - also is a cargo receipt

27. What was the golden age of railroads?
About 25 cents per dollar
250 - 000
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
1850-1950

28. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
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 pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Class 1 - Regional - Shortline - Switching and Terminal

29. Did the US railroads have anything to do with the creation of world time zones?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Used for tax - manning - and relaxed regulation.
Yes
Coal - farm products - chemicals - transportation equipment

30. Names of the Class 1 railroads?
Federal Railroad Administration (FRA)
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

31. What is the approximate number of railroads in the US?
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.
83.8%
563
Attests to authenticity and accuracy of the goods. Performs by third party independent company

32. 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
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.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Water

33. Flags of Convenience
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Used for tax - manning - and relaxed regulation.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Economies of scope and density

34. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
anywhere between a quarter and a third of all highway travel
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

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

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36. What is the difference between class 1 and class 2 carriers?
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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

37. What is an approximate capacity of a hopper?
100 tons
Not the government - the railroads themselves
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
NTSB

38. What do the users of truck service benefit?
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
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

39. What are the highest variable costs in the railroad industry?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Labor and Fuel
Sysco - Tyson Foods - Coca-Cola - and Walmart
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

40. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
1850-1950
58
30 - 000 lbs and 300 miles

41. Consolidation
Not the government - the railroads themselves
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Main penalty is the cost of lost of sales by holding the shipment.

42. Class Rate Calculations
Terminal
90-s
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.
A pumping station

43. Haulage

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44. A barge tow is capable of moving how many barges?
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.
30%
15
Federal Railroad Administration (FRA)

45. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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
Air
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.

46. Which modes have the following cost structure: Low Variable and High Fixed?
Pipeline and Rail
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...
Covering variable costs - volume and equipment utilization - and cash flow.
Economies of scope and density

47. Service competition areas in airline industry
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
To promote interstate commerce and strengthen the defenses of the country
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.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

48. Private Carrier
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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
A trucking operation that only hauls freight for the firm which owns it
A contract for transportation between a shipper and the carrier - also is a cargo receipt

49. What is the empirical formula of the typical coal unit train in the US?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
anywhere between a quarter and a third of all highway travel
100 cars x 100 tons
Pipeline and Rail

50. What is a typical fixed cost item in the motor carrier industry?
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.
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.
Terminal
Society and customer first.