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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. Non-vessel operating common carriers (NVOCC)
Interior Non-port cities
Moderate
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Showed a marked decline

2. What is the current share of trucking in total transportation expenses is closest to...
Society and customer first.
83.8%
Coal
Completely different continent - different time zones.

3. How to assess the operating ratio?
Break bulk - Relay - Pick up - Delivery
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
The intermodal competition has increased dramatically since WW 2
Main penalty is the cost of lost of sales by holding the shipment.

4. What are the issues facing the US railroads?
Declaration of where product was made so that appropriate duties are charged
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Crushed stone - gravel and sand
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

5. Private Carrier
FedEx - YRC - Conway - UPS - ABF
83.8%
Interior Non-port cities
A trucking operation that only hauls freight for the firm which owns it

6. The current share of railroads in total transportation expenses is closest to...
Specialized: $73 Billion - General: $146 Billion
Consolidate orders for several customers and stop along the way for partial unloading.
7%
83.8%

7. What was the golden age of railroads?
1850-1950
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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...
Yes

8. Carrier's Operational strategies to minimize cost
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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.
100 cars x 100 tons
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

9. Offshoring
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
Transfer of function to another country - can stay within the same company!
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Is likely to stay and even get worse in the future

10. Survival Based pricing
Is likely to stay and even get worse in the future
15%~13%
Covering variable costs - volume and equipment utilization - and cash flow.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

11. Carriers' Technological and Equipment strategies to minimize costs
Far east to east coast or Europe to west coast - final destination is US port city
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Water
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.

12. It is common for an operating ratio of motor carriers to be around these numbers...
Not the government - the railroads themselves
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
58
90-s

13. Mistakes in pricing strategy
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
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.
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

14. What is the approximate number of railroads in the US?
484
About 2 cents per dollar
Attests to authenticity and accuracy of the goods. Performs by third party independent company
563

15. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
FedEx - YRC - Conway - UPS - ABF
100 cars x 100 tons
Not the government - the railroads themselves

16. FOB Origin/Destination
Air
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Sysco - Tyson Foods - Coca-Cola - and Walmart

17. Major commodities hauled by each mode
Declaration of where product was made so that appropriate duties are charged
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

18. Which mode has the highest carrying capacity?
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Crushed stone - gravel and sand
Water

19. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
The competition is intense in both TL and LTL segments
58
90-s

20. Which government agency will investigate a major railroad accident involving public safety?
Transfer of function to another country - can stay within the same company!
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.
11 hours straight or anything beyond 70 hours in 8 days
NTSB

21. What are the characteristics of a block train?
NTSB
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
A longer combination vehicle towing more than one trailer
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

22. Pricing adjustment conditions
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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
Break bulk - Relay - Pick up - Delivery
Substantially higher

23. Benefits of hub and spoke system
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Special Rates
FedEx - YRC - Conway - UPS - ABF
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

24. Invoices
A pumping station
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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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

25. Pooling
Consolidation of shipments to different destinations within the same general area.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
58
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.

26. Skimming pricing
High price for price insensitive customers.
Move 1 single commodity and are non-stop to destination.
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.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

27. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Consolidate orders for several customers and stop along the way for partial unloading.
Substantially higher
Air
250 - 000

28. Near-shoring
Transfers accountability between domestic and international carrier at the terminal
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

29. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

30. Price variation factors in airline service
Class 1 - Regional - Shortline - Switching and Terminal
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
A longer combination vehicle towing more than one trailer

31. What are the generally accepted classifications of railroads?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Class 1 - Regional - Shortline - Switching and Terminal
Pipeline and Rail
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

32. Unit trains
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Labor and Fuel
Move 1 single commodity and are non-stop to destination.
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

33. What was the rationale behind passing the Staggers Act of 1980?
Wyoming
To save the railroads by giving them a chance to compete with other modes on equal footing
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
Main penalty is the cost of lost of sales by holding the shipment.

34. Commercial Invoice
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
Far east to east coast or Europe to west coast - final destination is US port city
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Class 1 - Regional - Shortline - Switching and Terminal

35. Which Mode of Transportation has the highest volume in tonnage?
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
90-s
Coal - farm products - chemicals - transportation equipment

36. How are interstate highways numbered?
1850-1950
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Highway user taxes
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

37. Certificate of Inspection
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
Specialized: $73 Billion - General: $146 Billion
Coal - farm products - chemicals - transportation equipment
Attests to authenticity and accuracy of the goods. Performs by third party independent company

38. Types and shares of cost in railroads
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
Moderate
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

39. Line of credit process

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40. Labor relations in the US railroad industry?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
A trucking operation that only hauls freight for the firm which owns it
Intermodal in character
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

41. Types of vehicles for trucking
Transfers accountability between domestic and international carrier at the terminal
anywhere between a quarter and a third of all highway travel
Move 1 single commodity and are non-stop to destination.
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

42. Class Rate Calculations
A batching pig
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
Society and customer first.

43. 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.
To promote interstate commerce and strengthen the defenses of the country
Used for tax - manning - and relaxed regulation.
To save the railroads by giving them a chance to compete with other modes on equal footing

44. Government is involved in which aspects of the railroad business?
Break bulk - Relay - Pick up - Delivery
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.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Service levels - Frequent flyer programs - Timing of flights - In advance registration

45. What aspects of the trucking industry is the US involved in?
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
Interior Non-port cities
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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.

46. Which economies are present in the US railroad industry?
Not the government - the railroads themselves
Economies of scale
Completely different continent - different time zones.
Pipeline and Rail

47. Which US federal government agency enforces safety regulations for railroads?
The competition is intense in both TL and LTL segments
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Federal Railroad Administration (FRA)
After World War 2

48. Factors affecting Pricing decisions
Consolidate orders for several customers and stop along the way for partial unloading.
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
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

49. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Used for tax - manning - and relaxed regulation.
Moderate

50. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Break bulk - Relay - Pick up - Delivery
Consolidation of shipments to different destinations within the same general area.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
To promote interstate commerce and strengthen the defenses of the country