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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
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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. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
ton-miles
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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

2. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
Consolidation of shipments to different destinations within the same general area.
Less than 25 carriers handle 75 to 80% of total freight dollar.
A pumping station

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

4. Which phrase best characterizes the level of competition in the motor carrier industry?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Terminal
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
The competition is intense in both TL and LTL segments

5. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
11 hours straight or anything beyond 70 hours in 8 days
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

6. Four types of Liner Service
30 - 000 lbs and 300 miles
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

7. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
A pumping station

8. What are the characteristics of a block train?
Terminal
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

9. Consular Invoice

10. Major commodities hauled by each mode
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.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Water
Transfer of function to another country - can stay within the same company!

11. Pro-Forma Invoice
About 2 cents per dollar
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

12. Which type of railroad cargo has the highest tonnage share in the US?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
The competition is intense in both TL and LTL segments
Coal

13. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

14. Outsourcing
One method moves the trailer on its wheels while the other moves the container
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 trucking operation that only hauls freight for the firm which owns it
Moving a corporations internal activities to outside providers - mainly for cheap labor

15. What is a road train?
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...
A longer combination vehicle towing more than one trailer
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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.

16. What is an approximate capacity of a hopper?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Consolidation of shipments to different destinations within the same general area.
100 tons

17. Stop-off
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.
Consolidate orders for several customers and stop along the way for partial unloading.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

18. Which Mode of Transportation has the highest volume in tonnage?
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
Water
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

19. Factors contributing to the decline of Railroad use
Transfer of function to another country - can stay within the same company!
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
100 cars x 100 tons
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

20. Commercial Invoice
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
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
FedEx - YRC - Conway - UPS - ABF

21. Pooling
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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
15%~13%
Consolidation of shipments to different destinations within the same general area.

22. Carrier's Operational strategies to minimize cost
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Coastal/Intercoastal - Great Lakes - Internal
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
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.

23. Which economies are most prominent in the trucking industry?
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
Economies of scope and density
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart

24. 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.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Far east to east coast or Europe to west coast - final destination is US port city
90-s

25. The status of competition within the US railroad industry?
High price for price insensitive customers.
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
Moderate
30%

26. Invoices
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

27. Which mode has the lowest cost per ton mile?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
NTSB
About 2 cents per dollar

28. Offshoring
11 hours straight or anything beyond 70 hours in 8 days
Transfer of function to another country - can stay within the same company!
Terminal
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

29. Which economies are present in the US railroad industry?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Pipeline and Rail
Economies of scale
Not the government - the railroads themselves

30. Service competition areas in airline industry
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Air
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Consolidation of shipments to different destinations within the same general area.

31. Freight Revenue for Truck/Motor (per ton-mile)
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
About 25 cents per dollar
Showed a marked decline
Pipeline and Rail

32. Pricing adjustment conditions
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.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Labor and Fuel
Yes

33. What could be the rationale for railroad mergers?

34. Which government agency will investigate a major railroad accident involving public safety?
NTSB
Economies of scope and density
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
To promote interstate commerce and strengthen the defenses of the country

35. What terms describe a type of operation in trucking?
7
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
90-s
Move 1 single commodity and are non-stop to destination.

36. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
FedEx - YRC - Conway - UPS - ABF
Yes
Special Rates
Air

37. Line of credit process

38. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

39. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Economies of scope and density
To save the railroads by giving them a chance to compete with other modes on equal footing
Special Rates

40. Certificate of Inspection
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.
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
A trucking operation that only hauls freight for the firm which owns it

41. What aspects of the trucking industry is the US involved in?
To promote interstate commerce and strengthen the defenses of the country
NTSB
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

42. Which modes have the following cost structure: Low Variable and High Fixed?
Substantially higher
Pipeline and Rail
ton-miles
Used for tax - manning - and relaxed regulation.

43. Name the 3 types of water carriers
250 - 000
Coastal/Intercoastal - Great Lakes - Internal
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
The intermodal competition has increased dramatically since WW 2

44. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
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.
7%
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

45. How are interstate highways numbered?
563
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
About 25 cents per dollar
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

46. Third Party Logistics
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
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...
Sysco - Tyson Foods - Coca-Cola - and Walmart
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

47. What is the primary railroad cargo out of Arkansas by tonnage?
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.
About 25 cents per dollar
30 - 000 lbs and 300 miles
Crushed stone - gravel and sand

48. What are the current trends in the US railroad?
Special Rates
Covering variable costs - volume and equipment utilization - and cash flow.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
A pumping station

49. Government is involved in which aspects of the railroad business?
7%
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.

50. A barge tow is capable of moving how many barges?
Coastal/Intercoastal - Great Lakes - Internal
15
Consolidation
To save the railroads by giving them a chance to compete with other modes on equal footing