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Transportation Logistics

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Answer 50 questions in 15 minutes.
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1. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
A batching pig
Main penalty is the cost of lost of sales by holding the shipment.
Terminal

2. How does the US railroad industry compete with other modes?
Moderate
Move 1 single commodity and are non-stop to destination.
Water
The intermodal competition has increased dramatically since WW 2

3. Which US federal government agency enforces safety regulations for railroads?
Crushed stone - gravel and sand
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Federal Railroad Administration (FRA)
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

4. What is an approximate capacity of a hopper?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
100 tons

5. Three kinds of ocean carriers
7
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
Society and customer first.

6. What was the golden age of railroads?
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.
1850-1950
Service levels - Frequent flyer programs - Timing of flights - In advance registration
About 2 cents per dollar

7. What is the truck driving time limitations?
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Water
11 hours straight or anything beyond 70 hours in 8 days

8. 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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Consolidation of shipments to different destinations within the same general area.
Special Rates
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.

9. 1 Barge ship is equivalent to how many trucks?
58
100 cars x 100 tons
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

10. How are airport hub/spoke and LTL breakbulk similar?
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.
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.
To promote interstate commerce and strengthen the defenses of the country
Air

11. Funding the railroads?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
11 hours straight or anything beyond 70 hours in 8 days
Not the government - the railroads themselves
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

12. What are the revenues of the specialized and general cargo?
Water
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
Moving a corporations internal activities to outside providers - mainly for cheap labor
Specialized: $73 Billion - General: $146 Billion

13. Which phrase best characterizes the level of competition in the motor carrier industry?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
The competition is intense in both TL and LTL segments
58
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

14. What is Amtrak?
A longer combination vehicle towing more than one trailer
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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
To save the railroads by giving them a chance to compete with other modes on equal footing

15. Did the US railroads have anything to do with the creation of world time zones?
A longer combination vehicle towing more than one trailer
Water
Move 1 single commodity and are non-stop to destination.
Yes

16. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
58
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

17. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Crushed stone - gravel and sand
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

18. What are the LTL carriers?
Special Rates
FedEx - YRC - Conway - UPS - ABF
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.
1850-1950

19. Land Bridge
A trucking operation that only hauls freight for the firm which owns it
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
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
NTSB

20. Ways to classify the motor carriers
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
The competition is intense in both TL and LTL segments
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
anywhere between a quarter and a third of all highway travel

21. What are the metrics to measure freight traffic in the motor carrier industry?
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
11 hours straight or anything beyond 70 hours in 8 days
ton-miles

22. What aspects of the trucking industry is the US involved in?
Transfer of function to another country - can stay within the same 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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

23. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Covering variable costs - volume and equipment utilization - and cash flow.
Class 1 - Regional - Shortline - Switching and Terminal
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 pumping station

24. How to assess the operating ratio?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
15%~13%
Not the government - the railroads themselves
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

25. Benefits of hub and spoke system
Wyoming
One method moves the trailer on its wheels while the other moves the container
The competition is intense in both TL and LTL segments
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

26. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Consolidate orders for several customers and stop along the way for partial unloading.
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.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

27. On the average - per gallon of fuel - US railroads move a ton of freight...
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
484
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

28. What are the two primary operational indicators in the railroad industry?
A batching pig
Carloads and Ton-miles
A trucking operation that only hauls freight for the firm which owns it
Move 1 single commodity and are non-stop to destination.

29. Trackage

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30. Far-shoring
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Completely different continent - different time zones.
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

31. LTL terminals are used for connections with these operations...
Labor and Fuel
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

32. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
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.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
250 - 000
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

33. Which Mode of Transportation has the highest volume in tonnage?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Main penalty is the cost of lost of sales by holding the shipment.
Coal

34. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
Economies of scope and density
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
High price for price insensitive customers.

35. What companies are players in private carriage?
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Sysco - Tyson Foods - Coca-Cola - and Walmart
30 - 000 lbs and 300 miles

36. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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
After World War 2
A pumping station

37. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Pipeline and Rail
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

38. 1 Barge is equivalent to how many tons?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Break bulk - Relay - Pick up - Delivery
1500 tons
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

39. Invoices
7
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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

40. Outsourcing
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Moving a corporations internal activities to outside providers - mainly for cheap labor
30 - 000 lbs and 300 miles

41. What terms describe a type of operation in trucking?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Moderate
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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

42. Near-shoring
100 tons
Class 1 - Regional - Shortline - Switching and Terminal
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

43. What are the types of railcars?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Transfer of function to another country - can stay within the same company!
ton-miles
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

44. What commodity/goods are typically transported by railroads in the US?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
30 - 000 lbs and 300 miles
Coal - farm products - chemicals - transportation equipment
7

45. Which modes have the following cost structure: Low Variable and High Fixed?
250 - 000
Carloads and Ton-miles
Covered Hopper
Pipeline and Rail

46. Names of the Class 1 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
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

47. Which type of railroad cargo has the highest tonnage share in the US?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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
Coal
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

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

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49. Carriers' Technological and Equipment strategies to minimize costs
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

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

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Transportation Logistics

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