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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. Freight Revenue for Rail (per ton-mile)
About 2 cents per dollar
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Terminal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

2. 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.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Labor and Fuel
30%

3. Outsourcing
Moving a corporations internal activities to outside providers - mainly for cheap labor
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Break bulk - Relay - Pick up - Delivery
Labor and Fuel

4. Which phrase best characterizes the level of competition in the motor carrier industry?
Intermodal in character
The competition is intense in both TL and LTL segments
58
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

5. Third Party Logistics
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Class 1 - Regional - Shortline - Switching and 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...
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.

6. Did the US railroads have anything to do with the creation of world time zones?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Water
Yes
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

7. What is the empirical formula of the typical coal unit train in the US?
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.
Labor and Fuel
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
100 cars x 100 tons

8. Unit trains
Move 1 single commodity and are non-stop to destination.
Coastal/Intercoastal - Great Lakes - Internal
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
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

9. Stop-off
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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

10. Price variation factors in airline service
A longer combination vehicle towing more than one trailer
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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

11. Pooling
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Consolidation of shipments to different destinations within the same general area.

12. The status of competition within the US railroad industry?
Moderate
Federal Railroad Administration (FRA)
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
30 - 000 lbs and 300 miles

13. What was the golden age of railroads?
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.
The intermodal competition has increased dramatically since WW 2
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
1850-1950

14. What is the approximate share of fixed costs of US railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
1500 tons
30%
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

15. Government is involved in which aspects of the railroad business?
Highway user taxes
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
To save the railroads by giving them a chance to compete with other modes on equal footing

16. Certificate of origin
Federal Railroad Administration (FRA)
Intermodal in character
100 tons
Declaration of where product was made so that appropriate duties are charged

17. Which government agency will investigate a major railroad accident involving public safety?
Wyoming
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
NTSB
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

18. Line of credit process

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19. Service competition areas in airline 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)
58
100 tons
Coal

20. Name the types of trucking terminals
A longer combination vehicle towing more than one trailer
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Break bulk - Relay - Pick up - Delivery
Sysco - Tyson Foods - Coca-Cola - and Walmart

21. What are the characteristics of a block train?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Far east to east coast or Europe to west coast - final destination is US port city
7%

22. What terms describe a type of operation in trucking?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

23. How many Class 1 freight railroads are there?
7
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
To promote interstate commerce and strengthen the defenses of the country
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.

24. Mini Bridge
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Far east to east coast or Europe to west coast - final destination is US port city
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

25. What are the current trends in trucking?
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
30 - 000 lbs and 300 miles
NTSB
Federal Railroad Administration (FRA)

26. What is the approximate number of railroads in the US?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
563
Yes
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

27. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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

28. On the average - per gallon of fuel - US railroads move a ton of freight...
484
One method moves the trailer on its wheels while the other moves the container
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Service levels - Frequent flyer programs - Timing of flights - In advance registration

29. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Class 1 - Regional - Shortline - Switching and Terminal
7
Less than 25 carriers handle 75 to 80% of total freight dollar.
Covered Hopper

30. Factors contributing to the decline of Railroad use
Showed a marked decline
A trucking operation that only hauls freight for the firm which owns it
Transfers accountability between domestic and international carrier at the terminal
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

31. Labor relations in the US railroad industry?
30%
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
The intermodal competition has increased dramatically since WW 2
Break bulk - Relay - Pick up - Delivery

32. What factors lead to reduction of air pollution by trucks?
Interior Non-port cities
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

33. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Substantially higher
Intermodal in character
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

34. What are the two primary operational indicators in the railroad industry?
80 - 000 lbs
Carloads and Ton-miles
11 hours straight or anything beyond 70 hours in 8 days
30 - 000 lbs and 300 miles

35. What are the metrics to measure freight traffic in the motor carrier industry?
ton-miles
Move 1 single commodity and are non-stop to destination.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

36. What are the issues facing the US railroads?
11 hours straight or anything beyond 70 hours in 8 days
90-s
Consolidation of shipments to different destinations within the same general area.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

37. Which US federal government agency enforces safety regulations for railroads?
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
Covered Hopper
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.
Federal Railroad Administration (FRA)

38. Pro-Forma Invoice
About 2 cents per dollar
Declaration of where product was made so that appropriate duties are charged
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

39. LTL terminals are used for connections with these operations...
Is likely to stay and even get worse in the future
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Consolidation
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

40. The problem of driver shortage in the US...
Far east to east coast or Europe to west coast - final destination is US port city
83.8%
Is likely to stay and even get worse in the future
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.

41. Carriers' Technological and Equipment strategies to minimize costs
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

42. Core Carrier concept
80 - 000 lbs
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
15
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

43. What companies are players in private carriage?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Sysco - Tyson Foods - Coca-Cola - and Walmart
15
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

44. Funding the railroads?
Labor and Fuel
Declaration of where product was made so that appropriate duties are charged
Not the government - the railroads themselves
To promote interstate commerce and strengthen the defenses of the country

45. How to assess the operating ratio?
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
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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.
Coastal/Intercoastal - Great Lakes - Internal

46. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Break bulk - Relay - Pick up - Delivery
Covering variable costs - volume and equipment utilization - and cash flow.

47. Class Rate Calculations
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.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
15%~13%
Air

48. 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.
Covered Hopper
Economies of scope and density
Move 1 single commodity and are non-stop to destination.
Special Rates

49. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Moving a corporations internal activities to outside providers - mainly for cheap labor
Special Rates

50. What is an approximate capacity of a hopper?
100 tons
58
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.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment