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Transportation Logistics

Instructions:

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. Which mode has the highest carrying capacity?
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.
Air
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.
Water

2. Intermodal Transportation
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
250 - 000
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.
After World War 2

3. Labor relations in the US railroad industry?
A longer combination vehicle towing more than one trailer
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Is likely to stay and even get worse in the future
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

4. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Not the government - the railroads themselves
30%
Showed a marked decline

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

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6. What is the difference between class 1 and class 2 carriers?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
One method moves the trailer on its wheels while the other moves the container
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Carloads and Ton-miles

7. What do the users of truck service benefit?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Crushed stone - gravel and sand
Less than 25 carriers handle 75 to 80% of total freight dollar.

8. Freight Revenue for Rail (per ton-mile)
Special Rates
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
About 2 cents per dollar

9. Trackage

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10. What terms describe a type of operation in trucking?
Not the government - the railroads themselves
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.
Coastal/Intercoastal - Great Lakes - Internal
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

11. Which government agency will investigate a major railroad accident involving public safety?
NTSB
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Consolidation

12. What are the current trends in the US railroad?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

13. What could be the rationale for railroad mergers?

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14. What is the approximate share of fixed costs of US railroads?
Transfers accountability between domestic and international carrier at the terminal
Completely different continent - different time zones.
30%
One method moves the trailer on its wheels while the other moves the container

15. Name the types of trucking terminals
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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.
Break bulk - Relay - Pick up - Delivery

16. Skimming pricing
1850-1950
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Economies of scope and density
High price for price insensitive customers.

17. Factors contributing to the decline of Railroad use
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

18. Micro Bridge
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
Interior Non-port cities
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.
One method moves the trailer on its wheels while the other moves the container

19. 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.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
30 - 000 lbs and 300 miles
Transfers accountability between domestic and international carrier at the terminal

20. 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.
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).
Coal - farm products - chemicals - transportation equipment

21. Examples of general freight
To save the railroads by giving them a chance to compete with other modes on equal footing
Crushed stone - gravel and sand
Coal
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

22. Bill of Lading
To promote interstate commerce and strengthen the defenses of the country
30 - 000 lbs and 300 miles
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Main penalty is the cost of lost of sales by holding the shipment.

23. What is the approximate number of railroads in the US?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
563
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

24. What are the characteristics of a block train?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
1500 tons
30%

25. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
To save the railroads by giving them a chance to compete with other modes on equal footing
Completely different continent - different time zones.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Air

26. Who has the highest number of coal carloads?
Crushed stone - gravel and sand
Intermodal in character
Wyoming
NTSB

27. Names of the Class 1 railroads?
Consolidate orders for several customers and stop along the way for partial unloading.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

28. Commercial Invoice
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Transfer of function to another country - can stay within the same company!
A longer combination vehicle towing more than one trailer
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

29. Ways to classify the motor carriers
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
To save the railroads by giving them a chance to compete with other modes on equal footing
Coal - farm products - chemicals - transportation equipment

30. What aspects of the trucking industry is the US involved in?
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
484
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.

31. Consular Invoice

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32. Which modes have the following cost structure: Low Variable and High Fixed?
Pipeline and Rail
FedEx - YRC - Conway - UPS - ABF
Coastal/Intercoastal - Great Lakes - Internal
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

33. Which phrase best characterizes the level of competition in the motor carrier industry?
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 competition is intense in both TL and LTL segments
Yes
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

34. What is the empirical formula of the typical coal unit train in the US?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
100 cars x 100 tons
The intermodal competition has increased dramatically since WW 2
Consolidate orders for several customers and stop along the way for partial unloading.

35. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Moving a corporations internal activities to outside providers - mainly for cheap labor
Transfers accountability between domestic and international carrier at the terminal
A trucking operation that only hauls freight for the firm which owns it
Covered Hopper

36. What is the current share of trucking in total transportation expenses is closest to...
563
83.8%
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
15

37. FOB Origin/Destination
Used for tax - manning - and relaxed regulation.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Labor and Fuel

38. Cost of Service Pricing
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 trucking operation that only hauls freight for the firm which owns it
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Consolidate orders for several customers and stop along the way for partial unloading.

39. Types of vehicles for trucking
Showed a marked decline
ton-miles
563
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

40. Certificate of Inspection
Substantially higher
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Yes

41. Which mode has the lowest cost per ton mile?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Terminal
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

42. Which US federal government agency enforces safety regulations for railroads?
Coal - farm products - chemicals - transportation equipment
Federal Railroad Administration (FRA)
Coal
484

43. What are the types of railcars?
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

44. Stop-off
A trucking operation that only hauls freight for the firm which owns it
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
100 tons
Consolidate orders for several customers and stop along the way for partial unloading.

45. Funding the railroads?
Not the government - the railroads themselves
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

46. Offshoring
Coastal/Intercoastal - Great Lakes - Internal
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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
Transfer of function to another country - can stay within the same company!

47. What is a public benefit of railroads?
ton-miles
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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

48. Survival Based pricing
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Covering variable costs - volume and equipment utilization - and cash flow.

49. Price variation factors in airline service
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Labor and Fuel
Main penalty is the cost of lost of sales by holding the shipment.
Service levels - Frequent flyer programs - Timing of flights - In advance registration

50. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
90-s
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods