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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 is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
To promote interstate commerce and strengthen the defenses of the country
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.
Less than 25 carriers handle 75 to 80% of total freight dollar.

2. Skimming pricing
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
High price for price insensitive customers.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
11 hours straight or anything beyond 70 hours in 8 days

3. What is the approximate share of fixed costs of US railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Used for tax - manning - and relaxed regulation.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
30%

4. Value of Service pricing
About 25 cents per dollar
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
15
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

5. Name the types of trucking terminals
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
About 2 cents per dollar
Break bulk - Relay - Pick up - Delivery
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

6. What are the revenues of the specialized and general cargo?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
About 2 cents per dollar
Specialized: $73 Billion - General: $146 Billion
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

7. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Economies of scale
250 - 000
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

8. Highway weight limitation
Highway user taxes
Economies of scope and density
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
80 - 000 lbs

9. Survival Based pricing
ton-miles
Class 1 - Regional - Shortline - Switching and Terminal
Covered Hopper
Covering variable costs - volume and equipment utilization - and cash flow.

10. What is the primary railroad cargo out of Arkansas by tonnage?
Completely different continent - different time zones.
Crushed stone - gravel and sand
Intermodal in character
Yes

11. Land Bridge Services
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.
Intermodal in character
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Substantially higher

12. What factors lead to reduction of air pollution by trucks?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.
Less than 25 carriers handle 75 to 80% of total freight dollar.

13. What is Amtrak?
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
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Water

14. LTL terminals are used for connections with these operations...
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
About 25 cents per dollar
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

15. What is the empirical formula of the typical coal unit train in the US?
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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Federal Railroad Administration (FRA)
100 cars x 100 tons

16. What are the generally accepted classifications of railroads?
30 - 000 lbs and 300 miles
Specialized: $73 Billion - General: $146 Billion
Class 1 - Regional - Shortline - Switching and Terminal
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

17. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
Special Rates
Covering variable costs - volume and equipment utilization - and cash flow.
Is likely to stay and even get worse in the future

18. Which mode has the highest carrying capacity?
A trucking operation that only hauls freight for the firm which owns it
Water
7%
Pipeline and Rail

19. 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.
Is likely to stay and even get worse in the future
Special Rates
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

20. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
90-s

21. 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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
The competition is intense in both TL and LTL segments
15

22. UNCTAD liner code 40-40-20
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...
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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

23. How many Class 1 freight railroads are there?
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.
7
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Covered Hopper

24. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

25. What companies are players in private carriage?
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
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
Economies of scale
Sysco - Tyson Foods - Coca-Cola - and Walmart

26. The whole history of the US railroads is a history of...
Consolidation
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Economies of scale
1850-1950

27. Labor relations in the US railroad industry?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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

28. Bill of Lading
15
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Consolidate orders for several customers and stop along the way for partial unloading.
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

29. Which mode has the lowest cost per ton mile?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Consolidation of shipments to different destinations within the same general area.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

30. Ways to classify the motor carriers
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
To save the railroads by giving them a chance to compete with other modes on equal footing
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

31. Haulage

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32. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Used for tax - manning - and relaxed regulation.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

33. Intermodal Transportation
100 tons
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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
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.

34. Which phrase best characterizes the level of competition in the motor carrier industry?
The competition is intense in both TL and LTL segments
Water
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
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

35. What is a road train?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
A longer combination vehicle towing more than one trailer
100 tons

36. On the average - per gallon of fuel - US railroads move a ton of freight...
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
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
484
High price for price insensitive customers.

37. Where does funding for the roads come from?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Highway user taxes
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.

38. It is common for an operating ratio of motor carriers to be around these numbers...
High price for price insensitive customers.
90-s
Move 1 single commodity and are non-stop to destination.
Sysco - Tyson Foods - Coca-Cola - and Walmart

39. Service competition areas in airline industry
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
100 cars x 100 tons
Yes
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

40. Main forms of Charter Ships
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Highway user taxes
1850-1950
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

41. Certificate of Inspection
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.
484
Transfer of function to another country - can stay within the same company!
Attests to authenticity and accuracy of the goods. Performs by third party independent company

42. What do the users of truck service benefit?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Not the government - the railroads themselves
Transfers accountability between domestic and international carrier at the terminal
Consolidation

43. Offshoring
Intermodal in character
anywhere between a quarter and a third of all highway travel
Transfer of function to another country - can stay within the same company!
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

44. Non-vessel operating common carriers (NVOCC)
563
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Attests to authenticity and accuracy of the goods. Performs by third party independent company

45. Price variation factors in airline service
Moving a corporations internal activities to outside providers - mainly for cheap labor
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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
Declaration of where product was made so that appropriate duties are charged

46. What are the types of railcars?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

47. How are interstate highways numbered?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
90-s

48. Types of vehicles for trucking
Society and customer first.
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
80 - 000 lbs
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

49. Invoices
A longer combination vehicle towing more than one trailer
Moving a corporations internal activities to outside providers - mainly for cheap labor
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Attests to authenticity and accuracy of the goods. Performs by third party independent company

50. What is an approximate capacity of a hopper?
Consolidation of shipments to different destinations within the same general area.
High price for price insensitive customers.
100 tons
Sysco - Tyson Foods - Coca-Cola - and Walmart