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Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
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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. Stop-off
Main penalty is the cost of lost of sales by holding the shipment.
Society and customer first.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Consolidate orders for several customers and stop along the way for partial unloading.

2. Bill of Lading
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
30 - 000 lbs and 300 miles
Coastal/Intercoastal - Great Lakes - Internal

3. Near-shoring
Far east to east coast or Europe to west coast - final destination is US port city
Specialized: $73 Billion - General: $146 Billion
Transfer of function to another country - can stay within the same company!
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

4. Consular Invoice

5. Private Carrier
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A trucking operation that only hauls freight for the firm which owns it
Transfer of function to another country - can stay within the same company!

6. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Covered Hopper

7. What was the rationale behind passing the Staggers Act of 1980?
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 save the railroads by giving them a chance to compete with other modes on equal footing
Crushed stone - gravel and sand
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

8. What is the difference between TOFC and COFC service?
Highway user taxes
One method moves the trailer on its wheels while the other moves the container
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
After World War 2

9. Freight Revenue for Truck/Motor (per ton-mile)
563
15
Class 1 - Regional - Shortline - Switching and Terminal
About 25 cents per dollar

10. Third Party Logistics
A trucking operation that only hauls freight for the firm which owns it
Covering variable costs - volume and equipment utilization - and cash flow.
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

11. Four types of Liner Service
Air
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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

12. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
90-s
Carloads and Ton-miles

13. The current share of railroads in total transportation expenses is closest to...
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Intermodal in character
One method moves the trailer on its wheels while the other moves the container
7%

14. 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.
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
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Sysco - Tyson Foods - Coca-Cola - and Walmart

15. Benefits of hub and spoke system
1500 tons
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

16. Commercial Invoice
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Completely different continent - different time zones.
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
A longer combination vehicle towing more than one trailer

17. Freight Revenue for Rail (per ton-mile)
7
About 2 cents per dollar
80 - 000 lbs
ton-miles

18. A barge tow is capable of moving how many barges?
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
15
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.

19. Highway weight limitation
anywhere between a quarter and a third of all highway travel
Showed a marked decline
80 - 000 lbs
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.

20. 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...
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

21. Social Responsibility pricing
Transfers accountability between domestic and international carrier at the terminal
Covered Hopper
Consolidation of shipments to different destinations within the same general area.
Society and customer first.

22. Consolidation
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Moving a corporations internal activities to outside providers - mainly for cheap labor
Class 1 - Regional - Shortline - Switching and Terminal
Main penalty is the cost of lost of sales by holding the shipment.

23. Pricing adjustment conditions
100 tons
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.
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.

24. Trackage

25. Freight revenue for Modes (per ton-mile)
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
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
7
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

26. 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?
After World War 2
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
1500 tons
Society and customer first.

27. What factors lead to reduction of air pollution by trucks?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Less than 25 carriers handle 75 to 80% of total freight dollar.
Declaration of where product was made so that appropriate duties are charged
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

28. Land Bridge Services
ton-miles
Intermodal in character
Specialized: $73 Billion - General: $146 Billion
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

29. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
250 - 000
High price for price insensitive customers.
The intermodal competition has increased dramatically since WW 2
90-s

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

31. Types and shares of cost in railroads
Coastal/Intercoastal - Great Lakes - Internal
Special Rates
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
A longer combination vehicle towing more than one trailer

32. Invoices
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
1500 tons

33. Which economies are present in the US railroad industry?
About 25 cents per dollar
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Economies of scale
Break bulk - Relay - Pick up - Delivery

34. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
Covering variable costs - volume and equipment utilization - and cash flow.
Water
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

35. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
The competition is intense in both TL and LTL segments
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
7%

36. Main forms of Charter Ships
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
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
Transfers accountability between domestic and international carrier at the terminal

37. What term is related to railroad operations?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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
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

38. Did the US railroads have anything to do with the creation of world time zones?
58
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Specialized: $73 Billion - General: $146 Billion
Yes

39. It is common for an operating ratio of motor carriers to be around these numbers...
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
90-s
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

40. What is the approximate number of railroads in the US?
563
Highway user taxes
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.
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.

41. What are the LTL carriers?
Economies of scope and density
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
Covering variable costs - volume and equipment utilization - and cash flow.
FedEx - YRC - Conway - UPS - ABF

42. Which mode has the lowest cost per ton mile?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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

43. 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.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Society and customer first.
Main penalty is the cost of lost of sales by holding the shipment.
Special Rates

44. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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.
484
After World War 2

45. Drayage
High price for price insensitive customers.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
1850-1950
Water

46. How are interstate highways numbered?
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.
Consolidation
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

47. Who has the highest number of coal carloads?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Wyoming
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
After World War 2

48. Where does funding for the roads come from?
Highway user taxes
58
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
High price for price insensitive customers.

49. Mistakes in pricing strategy
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
Main penalty is the cost of lost of sales by holding the shipment.
83.8%
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.

50. Price variation factors in airline service
Water
Service levels - Frequent flyer programs - Timing of flights - In advance registration
30%
Covering variable costs - volume and equipment utilization - and cash flow.