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Transportation Logistics

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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. Land Bridge
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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
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.

2. Consolidation
Highway user taxes
Coal - farm products - chemicals - transportation equipment
Main penalty is the cost of lost of sales by holding the shipment.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

3. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
80 - 000 lbs
anywhere between a quarter and a third of all highway travel
Economies of scale
Showed a marked decline

4. 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.
250 - 000
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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

5. The status of competition within the US railroad industry?
Moderate
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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
250 - 000

6. What are the two primary operational indicators in the railroad industry?
High price for price insensitive customers.
Substantially higher
Carloads and Ton-miles
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

7. Unit trains
Move 1 single commodity and are non-stop to destination.
Less than 25 carriers handle 75 to 80% of total freight dollar.
15
100 cars x 100 tons

8. Third Party Logistics
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...
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Water

9. It is common for an operating ratio of motor carriers to be around these numbers...
Covered Hopper
90-s
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Economies of scale

10. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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

11. Name the 3 types of water carriers
Coastal/Intercoastal - Great Lakes - Internal
Consolidation
To promote interstate commerce and strengthen the defenses of the country
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

12. Pro-Forma Invoice
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
Completely different continent - different time zones.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Declaration of where product was made so that appropriate duties are charged

13. How are interstate highways numbered?
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
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Federal Railroad Administration (FRA)

14. Outsourcing
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Moving a corporations internal activities to outside providers - mainly for cheap labor
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Is likely to stay and even get worse in the future

15. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
58
484

16. What are the major causes of general traffic congestions?
Transfer of function to another country - can stay within the same company!
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Interior Non-port cities
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

17. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Water
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

18. What could be the rationale for railroad mergers?

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19. What do the users of truck service benefit?
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...
Water
7
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

20. On the average - per gallon of fuel - US railroads move a ton of freight...
Specialized: $73 Billion - General: $146 Billion
Coal - farm products - chemicals - transportation equipment
7%
484

21. Which economies are most prominent in the trucking industry?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Economies of scope and density
Society and customer first.
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

22. 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%
Intermodal in character
ton-miles
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

23. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.
Intermodal in character

24. Dock receipt
Less than 25 carriers handle 75 to 80% of total freight dollar.
Transfers accountability between domestic and international carrier at the terminal
A trucking operation that only hauls freight for the firm which owns it
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

25. Examples of general freight
The intermodal competition has increased dramatically since WW 2
A trucking operation that only hauls freight for the firm which owns it
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Sysco - Tyson Foods - Coca-Cola - and Walmart

26. Three kinds of ocean carriers
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.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

27. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Class 1 - Regional - Shortline - Switching and Terminal
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

28. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Pipeline and Rail
Not the government - the railroads themselves
Federal Railroad Administration (FRA)

29. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
A batching pig
Air
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Economies of scale

30. How are airport hub/spoke and LTL breakbulk similar?
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
Crushed stone - gravel and sand
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.

31. Which mode has the highest carrying capacity?
Carloads and Ton-miles
83.8%
7
Water

32. Freight Revenue for Rail (per ton-mile)
Is likely to stay and even get worse in the future
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Special Rates
About 2 cents per dollar

33. Factors contributing to the decline of Railroad use
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 development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
1500 tons
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.

34. Carriers' Technological and Equipment strategies to minimize costs
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.

35. What are the characteristics of a block train?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
250 - 000
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

36. What is a public benefit of railroads?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Labor and Fuel

37. Types of vehicles for trucking
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Covering variable costs - volume and equipment utilization - and cash flow.
Carloads and Ton-miles
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

38. What is the approximate number of railroads in the US?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
563
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

39. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
One method moves the trailer on its wheels while the other moves the container
The intermodal competition has increased dramatically since WW 2
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

40. 20/80 Rule
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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.
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
Less than 25 carriers handle 75 to 80% of total freight dollar.

41. What is the primary railroad cargo out of Arkansas by tonnage?
Coastal/Intercoastal - Great Lakes - Internal
Yes
Crushed stone - gravel and sand
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

42. Certificate of Inspection
Society and customer first.
Far east to east coast or Europe to west coast - final destination is US port city
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

43. Non-vessel operating common carriers (NVOCC)
Declaration of where product was made so that appropriate duties are charged
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

44. What factors lead to reduction of air pollution by 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)
Transfers accountability between domestic and international carrier at the terminal
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Economies of scale

45. What is the difference between class 1 and class 2 carriers?
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.
One method moves the trailer on its wheels while the other moves the container
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

46. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
FedEx - YRC - Conway - UPS - ABF
High price for price insensitive customers.
To promote interstate commerce and strengthen the defenses of the country
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

47. How many Class 1 freight railroads are there?
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
Is likely to stay and even get worse in the future
7
To save the railroads by giving them a chance to compete with other modes on equal footing

48. What is the approximate share of fixed costs of US railroads?
30%
Covered Hopper
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

49. Far-shoring
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
A longer combination vehicle towing more than one trailer
Completely different continent - different time zones.
Moving a corporations internal activities to outside providers - mainly for cheap labor

50. Pooling
Consolidation of shipments to different destinations within the same general area.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Specialized: $73 Billion - General: $146 Billion

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Transportation Logistics

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