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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 metrics to measure freight traffic in the motor carrier industry?
Water
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
ton-miles
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.

2. Where does funding for the roads come from?
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.
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
Highway user taxes
Covered Hopper

3. What is a road train?
A longer combination vehicle towing more than one trailer
About 2 cents per dollar
Water
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

4. Which government agency will investigate a major railroad accident involving public safety?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
NTSB

5. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Moderate
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.
Break bulk - Relay - Pick up - Delivery

6. Which US federal government agency enforces safety regulations for railroads?
1500 tons
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Federal Railroad Administration (FRA)
Not the government - the railroads themselves

7. The whole history of the US railroads is a history of...
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Consolidation
FedEx - YRC - Conway - UPS - ABF
58

8. What are the reasons for the relative decline of the US railroads after World War 2?
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
15
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
30 - 000 lbs and 300 miles

9. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Water
Far east to east coast or Europe to west coast - final destination is US port city
Substantially higher

10. Names of the Class 1 railroads?
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
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Move 1 single commodity and are non-stop to destination.

11. Which type of railroad cargo has the highest tonnage share in the US?
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 pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Coal
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

12. The current share of railroads in total transportation expenses is closest to...
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Moving a corporations internal activities to outside providers - mainly for cheap labor
7%
Transfer of function to another country - can stay within the same company!

13. 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.
To promote interstate commerce and strengthen the defenses of the country
30%
Coal

14. Government is involved in which aspects of the railroad business?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Water
15
About 2 cents per dollar

15. What are the generally accepted classifications of railroads?
The intermodal competition has increased dramatically since WW 2
Intermodal in character
Class 1 - Regional - Shortline - Switching and Terminal
Completely different continent - different time zones.

16. Private Carrier
A trucking operation that only hauls freight for the firm which owns it
7%
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Federal Railroad Administration (FRA)

17. Invoices
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Water
Wyoming
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

18. What are the issues facing the US railroads?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Highway user taxes
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Yes

19. Highway weight limitation
A pumping station
Consolidate orders for several customers and stop along the way for partial unloading.
58
80 - 000 lbs

20. What are the service and public benefits of the railroad industry?

21. Which mode has the highest carrying capacity?
FedEx - YRC - Conway - UPS - ABF
Water
After World War 2
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.

22. Price variation factors in airline service
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.
58
15
Service levels - Frequent flyer programs - Timing of flights - In advance registration

23. Line of credit process

24. Non-vessel operating common carriers (NVOCC)
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
15
Wyoming
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

25. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Move 1 single commodity and are non-stop to destination.
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...
To promote interstate commerce and strengthen the defenses of the country

26. Flags of Convenience
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Used for tax - manning - and relaxed regulation.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
A pumping station

27. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
To promote interstate commerce and strengthen the defenses of the country
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...
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
A pumping station

28. Factors affecting Pricing decisions
A batching pig
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
80 - 000 lbs

29. 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.
FedEx - YRC - Conway - UPS - ABF
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.
Federal Railroad Administration (FRA)

30. What are the characteristics of a block train?
Covering variable costs - volume and equipment utilization - and cash flow.
58
A batching pig
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

31. What was the rationale behind passing the Staggers Act of 1980?
100 cars x 100 tons
To save the railroads by giving them a chance to compete with other modes on equal footing
Intermodal in character
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

32. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
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
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

33. Name the 3 types of water carriers
Sysco - Tyson Foods - Coca-Cola - and Walmart
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Coastal/Intercoastal - Great Lakes - Internal
11 hours straight or anything beyond 70 hours in 8 days

34. What is the empirical formula of the typical coal unit train in the US?
High price for price insensitive customers.
To save the railroads by giving them a chance to compete with other modes on equal footing
100 cars x 100 tons
A contract for transportation between a shipper and the carrier - also is a cargo receipt

35. 20/80 Rule
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Less than 25 carriers handle 75 to 80% of total freight dollar.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

36. Dock receipt
Consolidate orders for several customers and stop along the way for partial unloading.
7%
Transfers accountability between domestic and international carrier at the terminal
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

37. Near-shoring
Showed a marked decline
Water
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
NTSB

38. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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
Yes

39. Which modes have the following cost structure: Low Variable and High Fixed?
Federal Railroad Administration (FRA)
11 hours straight or anything beyond 70 hours in 8 days
Pipeline and Rail
ton-miles

40. Pricing adjustment conditions
11 hours straight or anything beyond 70 hours in 8 days
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.

41. LTL terminals are used for connections with these operations...
Moving a corporations internal activities to outside providers - mainly for cheap labor
Terminal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
250 - 000

42. What is the approximate number of railroads in the US?
58
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
563
Showed a marked decline

43. What is the current share of trucking in total transportation expenses is closest to...
Transfer of function to another country - can stay within the same company!
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
83.8%
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.

44. Far-shoring
About 25 cents per dollar
Completely different continent - different time zones.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

45. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
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.
15
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. Skimming pricing
High price for price insensitive customers.
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
After World War 2
Wyoming

47. 1 Barge is equivalent to how many tons?
Consolidation
1500 tons
15%~13%
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

48. Haulage

49. What is a typical fixed cost item in the motor carrier industry?
Substantially higher
Terminal
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.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

50. Major commodities hauled by each mode
After World War 2
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Coal
Intermodal in character