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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. Freight Revenue for Rail (per ton-mile)
Transfer of function to another country - can stay within the same company!
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
About 2 cents per dollar
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

2. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
30 - 000 lbs and 300 miles
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Water

3. Certificate of Inspection
Covering variable costs - volume and equipment utilization - and cash flow.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Attests to authenticity and accuracy of the goods. Performs by third party independent company

4. What are the current trends in trucking?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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
FedEx - YRC - Conway - UPS - ABF
7

5. How to assess the operating ratio?
Coal - farm products - chemicals - transportation equipment
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

6. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
About 2 cents per dollar
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

7. What are the highest variable costs in the railroad industry?
83.8%
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Labor and Fuel
Terminal

8. Pro-Forma Invoice
7
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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

9. What could be the rationale for railroad mergers?

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10. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Covering variable costs - volume and equipment utilization - and cash flow.
Move 1 single commodity and are non-stop to destination.

11. 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%
Coal
Completely different continent - different time zones.
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

12. Did the US railroads have anything to do with the creation of world time zones?
Is likely to stay and even get worse in the future
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
1500 tons
Yes

13. Haulage

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14. Government is involved in which aspects of the railroad business?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
After World War 2
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

15. Carrier's Operational strategies to minimize cost
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
7%

16. Which mode has the highest carrying capacity?
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.
Society and customer first.
Water
Moderate

17. Factors affecting Pricing decisions
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
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
90-s
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

18. What commodity/goods are typically transported by railroads in the US?
About 2 cents per dollar
Coal - farm products - chemicals - transportation equipment
Move 1 single commodity and are non-stop to destination.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

19. Labor relations in the US railroad industry?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
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 number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

20. 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.
7%
Specialized: $73 Billion - General: $146 Billion
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Special Rates

21. Social Responsibility pricing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
The intermodal competition has increased dramatically since WW 2
Society and customer first.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

22. Freight Revenue for Truck/Motor (per ton-mile)
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
About 25 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
Transfer of function to another country - can stay within the same company!

23. Mistakes in pricing strategy
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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
83.8%
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.

24. Which type of railroad cargo has the highest tonnage share in the US?
30%
7
Coal
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

25. 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
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

26. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
Is likely to stay and even get worse in the future
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Main penalty is the cost of lost of sales by holding the shipment.

27. 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.
To promote interstate commerce and strengthen the defenses of the country
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

28. Far-shoring
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Substantially higher
Completely different continent - different time zones.
Pipeline and Rail

29. A barge tow is capable of moving how many barges?
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart
90-s
15

30. Consular Invoice

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31. Which modes have the following cost structure: Low Variable and High Fixed?
Showed a marked decline
To promote interstate commerce and strengthen the defenses of the country
Air
Pipeline and Rail

32. Unit trains
Move 1 single commodity and are non-stop to destination.
Federal Railroad Administration (FRA)
Crushed stone - gravel and sand
Break bulk - Relay - Pick up - Delivery

33. What is the difference between TOFC and COFC service?
Substantially higher
1500 tons
One method moves the trailer on its wheels while the other moves the container
Air

34. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
High price for price insensitive customers.
250 - 000
Water

35. Intermodal Transportation
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.
A pumping station
Completely different continent - different time zones.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

36. 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?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Consolidation of shipments to different destinations within the same general area.
A batching pig
15%~13%

37. Price variation factors in airline service
Consolidate orders for several customers and stop along the way for partial unloading.
563
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Substantially higher

38. What is the empirical formula of the typical coal unit train in the US?
90-s
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
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
100 cars x 100 tons

39. Which government agency will investigate a major railroad accident involving public safety?
Completely different continent - different time zones.
A batching pig
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
NTSB

40. Name the 3 types of water carriers
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Coastal/Intercoastal - Great Lakes - Internal
Coal - farm products - chemicals - transportation equipment
Consolidation of shipments to different destinations within the same general area.

41. Which economies are most prominent in the trucking industry?
11 hours straight or anything beyond 70 hours in 8 days
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Economies of scope and density
Special Rates

42. The whole history of the US railroads is a history of...
Less than 25 carriers handle 75 to 80% of total freight dollar.
Consolidation
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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

43. Funding the railroads?
Not the government - the railroads themselves
100 cars x 100 tons
NTSB
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.

44. Bill of Lading
Consolidate orders for several customers and stop along the way for partial unloading.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
A contract for transportation between a shipper and the carrier - also is a cargo receipt

45. Stop-off
Main penalty is the cost of lost of sales by holding the shipment.
7%
Economies of scale
Consolidate orders for several customers and stop along the way for partial unloading.

46. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
The intermodal competition has increased dramatically since WW 2
Air
To promote interstate commerce and strengthen the defenses of the country

47. Trackage

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48. What is Amtrak?
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.
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
90-s

49. Commercial Invoice
Wyoming
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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
Carloads and Ton-miles

50. Land Bridge
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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
Economies of scale
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