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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. What are the major causes of general traffic congestions?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Service levels - Frequent flyer programs - Timing of flights - In advance registration

2. 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
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Break bulk - Relay - Pick up - Delivery

3. Which Mode of Transportation has the highest volume in tonnage?
High price for price insensitive customers.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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
Break bulk - Relay - Pick up - Delivery

4. What are the revenues of the specialized and general cargo?
Specialized: $73 Billion - General: $146 Billion
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Coastal/Intercoastal - Great Lakes - Internal

5. FOB Origin/Destination
Is likely to stay and even get worse in the future
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Moving a corporations internal activities to outside providers - mainly for cheap labor
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

6. Pro-Forma Invoice
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
High price for price insensitive customers.

7. Which economies are present in the US railroad industry?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Economies of scale
Coal
Coastal/Intercoastal - Great Lakes - Internal

8. Which government agency will investigate a major railroad accident involving public safety?
Coastal/Intercoastal - Great Lakes - Internal
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
NTSB
Special Rates

9. Main forms of Charter Ships
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
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
About 2 cents per dollar
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

10. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
A pumping station
Sysco - Tyson Foods - Coca-Cola - and Walmart
Specialized: $73 Billion - General: $146 Billion
Special Rates

11. Freight Revenue for Rail (per ton-mile)
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.
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
Air
About 2 cents per dollar

12. Pricing adjustment conditions
Water
100 tons
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

13. Survival Based pricing
A trucking operation that only hauls freight for the firm which owns it
Water
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Covering variable costs - volume and equipment utilization - and cash flow.

14. On the average - per gallon of fuel - US railroads move a ton of freight...
80 - 000 lbs
484
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
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

15. What was the golden age of railroads?
1850-1950
Yes
Sysco - Tyson Foods - Coca-Cola - and Walmart
Moderate

16. Carriers' Technological and Equipment strategies to minimize costs
Water
NTSB
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.
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

17. Benefits of hub and spoke system
A pumping station
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
11 hours straight or anything beyond 70 hours in 8 days

18. What is the difference between class 1 and class 2 carriers?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
100 tons
Transfer of function to another country - can stay within the same company!

19. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Covered Hopper
Society and customer first.

20. What are the characteristics of a block train?
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
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
Special Rates

21. Examples of general freight
Move 1 single commodity and are non-stop to destination.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
58
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.

22. Micro Bridge
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
Interior Non-port cities
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

23. What are the LTL carriers?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
30 - 000 lbs and 300 miles
Is likely to stay and even get worse in the future
FedEx - YRC - Conway - UPS - ABF

24. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Transfers accountability between domestic and international carrier at the terminal

25. Three kinds of ocean carriers
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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.
Carloads and Ton-miles

26. Major commodities hauled by each mode
Society and customer first.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Coastal/Intercoastal - Great Lakes - Internal

27. What are the types of railcars?
About 2 cents per dollar
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Moving a corporations internal activities to outside providers - mainly for cheap labor
Terminal

28. How are airport hub/spoke and LTL breakbulk similar?
Coastal/Intercoastal - Great Lakes - Internal
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
Far east to east coast or Europe to west coast - final destination is US port city

29. Private Carrier
Economies of scope and density
A trucking operation that only hauls freight for the firm which owns it
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
Coastal/Intercoastal - Great Lakes - Internal

30. Intermodal Transportation
83.8%
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.
Break bulk - Relay - Pick up - Delivery
7

31. 20/80 Rule
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Less than 25 carriers handle 75 to 80% of total freight dollar.
Moving a corporations internal activities to outside providers - mainly for cheap labor

32. 1 Barge ship is equivalent to how many trucks?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
58
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

33. What term is related to railroad operations?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Consolidation of shipments to different destinations within the same general area.
563
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.

34. Certificate of Inspection
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Used for tax - manning - and relaxed regulation.
Economies of scale
Consolidation

35. Which US federal government agency enforces safety regulations for railroads?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
About 25 cents per dollar
250 - 000
Federal Railroad Administration (FRA)

36. Categories of major pricing decisions
The intermodal competition has increased dramatically since WW 2
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.
484
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

37. Name the 3 types of water carriers
Coastal/Intercoastal - Great Lakes - Internal
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
After World War 2
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

38. Which economies are most prominent in the trucking industry?
Coal
Economies of scope and density
Coastal/Intercoastal - Great Lakes - Internal
Pipeline and Rail

39. What aspects of the trucking industry is the US involved in?
The competition is intense in both TL and LTL segments
Special Rates
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...

40. Which mode has the highest carrying capacity?
anywhere between a quarter and a third of all highway travel
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Water
Covering variable costs - volume and equipment utilization - and cash flow.

41. Flags of Convenience
Crushed stone - gravel and sand
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
563
Used for tax - manning - and relaxed regulation.

42. 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?
Interior Non-port cities
Coal - farm products - chemicals - transportation equipment
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
A batching pig

43. What is the approximate share of fixed costs of US railroads?
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.
Economies of scope and density
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
30%

44. Haulage

45. The problem of driver shortage in the US...
High price for price insensitive customers.
Is likely to stay and even get worse in the future
Pipeline and Rail
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.

46. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Highway user taxes
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Used for tax - manning - and relaxed regulation.
anywhere between a quarter and a third of all highway travel

47. Factors contributing to the decline of Railroad use
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Terminal
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Transfer of function to another country - can stay within the same company!

48. Labor relations in the US railroad industry?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
A pumping station
58

49. Freight Revenue for Truck/Motor (per ton-mile)
90-s
About 25 cents per dollar
Main penalty is the cost of lost of sales by holding the shipment.
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

50. Name the types of trucking terminals
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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
Break bulk - Relay - Pick up - Delivery
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