Test your basic knowledge |

Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
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. Offshoring
Federal Railroad Administration (FRA)
Transfer of function to another country - can stay within the same company!
30 - 000 lbs and 300 miles
Air

2. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Economies of scope and density
Highway user taxes
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
15%~13%

3. What was the golden age of railroads?
11 hours straight or anything beyond 70 hours in 8 days
1850-1950
250 - 000
About 2 cents per dollar

4. Land Bridge Services
Intermodal in character
Sysco - Tyson Foods - Coca-Cola - and Walmart
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

5. What are the major causes of general traffic congestions?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
58
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
A trucking operation that only hauls freight for the firm which owns it

6. Freight Revenue for Rail (per ton-mile)
Yes
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
About 2 cents per dollar

7. What commodity/goods are typically transported by railroads in the US?
FedEx - YRC - Conway - UPS - ABF
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Coal - farm products - chemicals - transportation equipment
484

8. Land Bridge
Covering variable costs - volume and equipment utilization - and cash flow.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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
Coal

9. 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
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...
Is likely to stay and even get worse in the future
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

10. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Intermodal in character
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

11. The status of competition within the US railroad industry?
Moderate
7%
Special Rates
90-s

12. Four types of Liner Service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Water
Crushed stone - gravel and sand
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

13. Unit trains
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
After World War 2
Federal Railroad Administration (FRA)
Move 1 single commodity and are non-stop to destination.

14. What are the highest variable costs in the railroad industry?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Labor and Fuel
15
Not the government - the railroads themselves

15. What are the metrics to measure freight traffic in the motor carrier industry?
30 - 000 lbs and 300 miles
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...
ton-miles
83.8%

16. What is the difference between class 1 and class 2 carriers?
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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Consolidation of shipments to different destinations within the same general area.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

17. What are the revenues of the specialized and general cargo?
Crushed stone - gravel and sand
Specialized: $73 Billion - General: $146 Billion
The intermodal competition has increased dramatically since WW 2
Consolidation of shipments to different destinations within the same general area.

18. Carriers' Technological and Equipment strategies to minimize costs
NTSB
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Showed a marked decline
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.

19. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Yes
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
30 - 000 lbs and 300 miles
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

20. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
250 - 000
Sysco - Tyson Foods - Coca-Cola - and Walmart
83.8%

21. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
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
Water
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Service levels - Frequent flyer programs - Timing of flights - In advance registration

22. Skimming pricing
FedEx - YRC - Conway - UPS - ABF
Far east to east coast or Europe to west coast - final destination is US port city
After World War 2
High price for price insensitive customers.

23. Three kinds of ocean carriers
Covered Hopper
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.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

24. What could be the rationale for railroad mergers?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

25. What is the primary railroad cargo out of Arkansas by tonnage?
Crushed stone - gravel and sand
100 tons
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

26. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
30%
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

27. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Federal Railroad Administration (FRA)
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

28. 20/80 Rule
Less than 25 carriers handle 75 to 80% of total freight dollar.
100 cars x 100 tons
Air
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

29. What do the users of truck service benefit?
Intermodal in character
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
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Economies of scope and density

30. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
Break bulk - Relay - Pick up - Delivery
Consolidation
Is likely to stay and even get worse in the future

31. Government is involved in which aspects of the railroad business?
Transfers accountability between domestic and international carrier at the terminal
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...
Is likely to stay and even get worse in the future
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

32. Survival Based pricing
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.
Covering variable costs - volume and equipment utilization - and cash flow.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
7%

33. Cost of Service Pricing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
58
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

34. What is the truck driving time limitations?
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...
11 hours straight or anything beyond 70 hours in 8 days
Water
Substantially higher

35. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Specialized: $73 Billion - General: $146 Billion
58
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

36. Pro-Forma Invoice
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Labor and Fuel
Wyoming
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

37. 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
Main penalty is the cost of lost of sales by holding the shipment.
About 25 cents per dollar
7%

38. Which economies are most prominent in the trucking industry?
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
A trucking operation that only hauls freight for the firm which owns it
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Economies of scope and density

39. Social Responsibility pricing
Society and customer first.
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Economies of scale

40. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
484
100 cars x 100 tons

41. What aspects of the trucking industry is the US involved in?
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
The intermodal competition has increased dramatically since WW 2
The competition is intense in both TL and LTL segments

42. LTL terminals are used for connections with these operations...
484
Society and customer first.
Terminal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

43. Stop-off
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
90-s
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

44. The current share of railroads in total transportation expenses is closest to...
7%
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
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.

45. Core Carrier concept
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Water
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

46. What is the approximate share of fixed costs of US railroads?
To save the railroads by giving them a chance to compete with other modes on equal footing
30%
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.
Far east to east coast or Europe to west coast - final destination is US port city

47. What is a road train?
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
About 2 cents per dollar
A longer combination vehicle towing more than one trailer
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

48. What factors lead to reduction of air pollution by trucks?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
A batching pig

49. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Special Rates
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
anywhere between a quarter and a third of all highway travel

50. Categories of major pricing decisions
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.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.