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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
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. Near-shoring
Sysco - Tyson Foods - Coca-Cola - and Walmart
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Intermodal in character
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

2. What term is related to railroad operations?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Consolidation of shipments to different destinations within the same general area.

3. The problem of driver shortage in the US...
Is likely to stay and even get worse in the future
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.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
A pumping station

4. How are airport hub/spoke and LTL breakbulk similar?
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.
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

5. Flags of Convenience
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Used for tax - manning - and relaxed regulation.

6. On the average - per gallon of fuel - US railroads move a ton of freight...
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
484
A batching pig
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. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Specialized: $73 Billion - General: $146 Billion
250 - 000
Interior Non-port cities

8. Class Rate Calculations
The competition is intense in both TL and LTL segments
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.
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.
About 25 cents per dollar

9. Offshoring
Transfer of function to another country - can stay within the same company!
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Highway user taxes
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

10. What was the golden age of railroads?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
1850-1950
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
Less than 25 carriers handle 75 to 80% of total freight dollar.

11. What are the metrics to measure freight traffic in the motor carrier industry?
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
ton-miles
Covering variable costs - volume and equipment utilization - and cash flow.

12. Where does funding for the roads come from?
Highway user taxes
Showed a marked decline
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
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.

13. Social Responsibility pricing
30%
Far east to east coast or Europe to west coast - final destination is US port city
Covered Hopper
Society and customer first.

14. The current share of railroads 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...
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
7%
After World War 2

15. Highway weight limitation
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
7%
80 - 000 lbs

16. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
About 25 cents per dollar
Interior Non-port cities
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.

17. Four types of Liner Service
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Water
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

18. How does the US railroad industry compete with other modes?
Main penalty is the cost of lost of sales by holding the shipment.
FedEx - YRC - Conway - UPS - ABF
Intermodal in character
The intermodal competition has increased dramatically since WW 2

19. Unit trains
Break bulk - Relay - Pick up - Delivery
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Move 1 single commodity and are non-stop to destination.

20. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Main penalty is the cost of lost of sales by holding the shipment.
Is likely to stay and even get worse in the future

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

22. How to assess the operating ratio?
484
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

23. Factors affecting Pricing decisions
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

24. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Federal Railroad Administration (FRA)
Coal
Air

25. Did the US railroads have anything to do with the creation of world time zones?
Yes
1500 tons
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

26. Which Mode of Transportation has the highest volume in tonnage?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

27. Which economies are most prominent in the trucking industry?
Substantially higher
7
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Economies of scope and density

28. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
To save the railroads by giving them a chance to compete with other modes on equal footing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Far east to east coast or Europe to west coast - final destination is US port city

29. How are interstate highways numbered?
1850-1950
Water
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Attests to authenticity and accuracy of the goods. Performs by third party independent company

30. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
15
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
To promote interstate commerce and strengthen the defenses of the country

31. Line of credit process

32. Which type of a railcar has the highest share in terms of its numbers in service in the US?
80 - 000 lbs
A trucking operation that only hauls freight for the firm which owns it
About 25 cents per dollar
Covered Hopper

33. The status of competition within the US railroad industry?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Moderate
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

34. What is the primary railroad cargo out of Arkansas by tonnage?
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
58
Crushed stone - gravel and sand
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.

35. Carriers' Technological and Equipment strategies to minimize costs
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.
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...
Interior Non-port cities
FedEx - YRC - Conway - UPS - ABF

36. What factors lead to reduction of air pollution by trucks?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Water
Terminal

37. Terms of Payment
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Economies of scale
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

38. Freight Revenue for Truck/Motor (per ton-mile)
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Break bulk - Relay - Pick up - Delivery
Interior Non-port cities
About 25 cents per dollar

39. What commodity/goods are typically transported by railroads in the US?
7%
Coal - farm products - chemicals - transportation equipment
Federal Railroad Administration (FRA)
A pumping station

40. What is the approximate number of railroads in the US?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
A trucking operation that only hauls freight for the firm which owns it
Class 1 - Regional - Shortline - Switching and Terminal
563

41. Trackage

42. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Wyoming
15%~13%

43. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Specialized: $73 Billion - General: $146 Billion
Pipeline and Rail
About 25 cents per dollar

44. Survival Based pricing
Consolidation of shipments to different destinations within the same general area.
Covering variable costs - volume and equipment utilization - and cash flow.
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.
Is likely to stay and even get worse in the future

45. 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.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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
About 25 cents per dollar
Special Rates

46. Which mode has the highest carrying capacity?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Water
Air
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

47. Pooling
To promote interstate commerce and strengthen the defenses of the country
Special Rates
Coal
Consolidation of shipments to different destinations within the same general area.

48. What could be the rationale for railroad mergers?

49. Types and shares of cost in railroads
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
ton-miles
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

50. Carrier's Operational strategies to minimize cost
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.
The competition is intense in both TL and LTL segments
About 2 cents per dollar
Federal Railroad Administration (FRA)