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. Government is involved in which aspects of the railroad business?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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
Moderate

2. Types and shares of cost in railroads
Substantially higher
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
1850-1950
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

3. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
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
Water
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

4. 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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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.
anywhere between a quarter and a third of all highway travel
Special Rates

5. Main forms of Charter Ships
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Covered Hopper
Transfer of function to another country - can stay within the same company!
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

6. The problem of driver shortage in the US...
Coal
Is likely to stay and even get worse in the future
To save the railroads by giving them a chance to compete with other modes on equal footing
About 25 cents per dollar

7. Land Bridge
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
Main penalty is the cost of lost of sales by holding the shipment.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
A pumping station

8. What is Amtrak?
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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
To save the railroads by giving them a chance to compete with other modes on equal footing
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

9. The average annual salary of a locomotive operator compared to a TL driver in the US is...
A batching pig
Substantially higher
Is likely to stay and even get worse in the future
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

10. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
Used for tax - manning - and relaxed regulation.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

11. What factors lead to reduction of air pollution by trucks?
100 tons
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
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

12. Drayage
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
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

13. What is the approximate number of railroads in the US?
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
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
563
To save the railroads by giving them a chance to compete with other modes on equal footing

14. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
1850-1950
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
ton-miles

15. Name the 3 types of water carriers
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Coastal/Intercoastal - Great Lakes - Internal
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

16. What companies are players in private carriage?
11 hours straight or anything beyond 70 hours in 8 days
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Sysco - Tyson Foods - Coca-Cola - and Walmart

17. Which type of railroad cargo has the highest tonnage share in the US?
Special Rates
Coal
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Society and customer first.

18. Far-shoring
Completely different continent - different time zones.
anywhere between a quarter and a third of all highway travel
Specialized: $73 Billion - General: $146 Billion
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

19. Which government agency will investigate a major railroad accident involving public safety?
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
NTSB
Economies of scope and density
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

20. 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)
Intermodal in character
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

21. Near-shoring
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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%

22. How are interstate highways numbered?
Class 1 - Regional - Shortline - Switching and Terminal
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

23. Invoices
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Highway user taxes

24. What is the empirical formula of the typical coal unit train in the US?
90-s
100 cars x 100 tons
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

25. Class Rate Calculations
Consolidation
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.
Showed a marked decline
484

26. Third Party Logistics
Water
Transfers accountability between domestic and international carrier at the terminal
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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...

27. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Consolidate orders for several customers and stop along the way for partial unloading.
Completely different continent - different time zones.
30 - 000 lbs and 300 miles

28. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
Intermodal in character
Class 1 - Regional - Shortline - Switching and Terminal
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

29. Terms of Payment
563
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

30. Three kinds of ocean carriers
Special Rates
Transfers accountability between domestic and international carrier at the terminal
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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.

31. Offshoring
Coal - farm products - chemicals - transportation equipment
Labor and Fuel
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Transfer of function to another country - can stay within the same company!

32. 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
Class 1 - Regional - Shortline - Switching and Terminal
250 - 000
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

33. The status of competition within the US railroad industry?
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
1500 tons
Moderate
Attests to authenticity and accuracy of the goods. Performs by third party independent company

34. What is a public benefit 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.
anywhere between a quarter and a third of all highway travel
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

35. Pricing adjustment conditions
A longer combination vehicle towing more than one trailer
Not the government - the railroads themselves
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Carloads and Ton-miles

36. Which modes have the following cost structure: Low Variable and High Fixed?
Pipeline and Rail
Water
After World War 2
Coal - farm products - chemicals - transportation equipment

37. The current share of railroads in total transportation expenses is closest to...
Far east to east coast or Europe to west coast - final destination is US port city
7%
ton-miles
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.

38. What are the revenues of the specialized and general cargo?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Federal Railroad Administration (FRA)
Specialized: $73 Billion - General: $146 Billion
Intermodal in character

39. What is the difference between TOFC and COFC 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
Air
One method moves the trailer on its wheels while the other moves the container
Wyoming

40. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
To save the railroads by giving them a chance to compete with other modes on equal footing
250 - 000
58
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

41. Major commodities hauled by each mode
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.
Water
Sysco - Tyson Foods - Coca-Cola - and Walmart
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

42. What is the primary railroad cargo out of Arkansas by tonnage?
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.
Crushed stone - gravel and sand
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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

43. What terms describe a type of operation in trucking?
Pipeline and Rail
Large carrying capacity - versatility of cargo - reduced pollution due to higher fuel efficiency compared to trucking - coast-to-coast 'land bridge' with shorter total transit sea+land times for prevailing import container routes
Completely different continent - different time zones.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

44. Which economies are present in the US railroad industry?
Transfers accountability between domestic and international carrier at the terminal
Economies of scale
1850-1950
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

45. Micro Bridge
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
Declaration of where product was made so that appropriate duties are charged
Coal - farm products - chemicals - transportation equipment
Interior Non-port cities

46. Commercial Invoice
Moving a corporations internal activities to outside providers - mainly for cheap labor
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
Coal
Consolidation of shipments to different destinations within the same general area.

47. What are the two primary operational indicators in the railroad industry?
The intermodal competition has increased dramatically since WW 2
Carloads and Ton-miles
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Interior Non-port cities

48. Pooling
Consolidation of shipments to different destinations within the same general area.
Covered Hopper
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

49. Stop-off
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Consolidate orders for several customers and stop along the way for partial unloading.
The intermodal competition has increased dramatically since WW 2
About 2 cents per dollar

50. The whole history of the US railroads is a history of...
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Consolidation
Labor and Fuel