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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. A barge tow is capable of moving how many barges?
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.
Completely different continent - different time zones.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
15

2. 20/80 Rule
30 - 000 lbs and 300 miles
Pipeline and Rail
Less than 25 carriers handle 75 to 80% of total freight dollar.
Special Rates

3. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
100 cars x 100 tons
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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

4. Micro Bridge
Interior Non-port cities
Attests to authenticity and accuracy of the goods. Performs by third party independent company
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Special Rates

5. 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.
1850-1950
80 - 000 lbs

6. Commercial Invoice
Society and customer first.
Move 1 single commodity and are non-stop to destination.
100 tons
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

7. Which government agency will investigate a major railroad accident involving public safety?
1500 tons
Less than 25 carriers handle 75 to 80% of total freight dollar.
NTSB
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

8. Ways to classify the motor carriers
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Less than 25 carriers handle 75 to 80% of total freight dollar.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

9. Private Carrier
Not the government - the railroads themselves
A trucking operation that only hauls freight for the firm which owns it
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

10. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Main penalty is the cost of lost of sales by holding the shipment.
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
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

11. Factors contributing to the decline of Railroad use
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
About 25 cents per dollar

12. What is an approximate capacity of a hopper?
30%
83.8%
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
100 tons

13. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
The competition is intense in both TL and LTL segments
Transfer of function to another country - can stay within the same company!
Covering variable costs - volume and equipment utilization - and cash flow.

14. It is common for an operating ratio of motor carriers to be around these numbers...
Transfer of function to another country - can stay within the same company!
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
90-s
Less than 25 carriers handle 75 to 80% of total freight dollar.

15. Offshoring
1850-1950
About 25 cents per dollar
Sysco - Tyson Foods - Coca-Cola - and Walmart
Transfer of function to another country - can stay within the same company!

16. What are the metrics to measure freight traffic in the motor carrier industry?
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...
250 - 000
A contract for transportation between a shipper and the carrier - also is a cargo receipt
ton-miles

17. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
90-s
Wyoming

18. Which type of railroad cargo has the highest tonnage share in the US?
Federal Railroad Administration (FRA)
Coal
Covering variable costs - volume and equipment utilization - and cash flow.
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

19. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
Consolidate orders for several customers and stop along the way for partial unloading.
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
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

20. What was the golden age of railroads?
1500 tons
1850-1950
Moving a corporations internal activities to outside providers - mainly for cheap labor
Air

21. What are the LTL carriers?
484
Water
FedEx - YRC - Conway - UPS - ABF
To save the railroads by giving them a chance to compete with other modes on equal footing

22. 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.
Is likely to stay and even get worse in the future
Coal - farm products - chemicals - transportation equipment
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

23. What are the current trends in trucking?
Society and customer first.
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
Covered Hopper
Moderate

24. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Completely different continent - different time zones.
83.8%
To promote interstate commerce and strengthen the defenses of the country
A pumping station

25. How are interstate highways numbered?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Crushed stone - gravel and sand
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

26. Third Party Logistics
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Society and customer first.
Move 1 single commodity and are non-stop to destination.
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. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

28. Bill of Lading
15%~13%
Highway user taxes
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
A contract for transportation between a shipper and the carrier - also is a cargo receipt

29. The status of competition within the US railroad industry?
FedEx - YRC - Conway - UPS - ABF
Crushed stone - gravel and sand
Consolidate orders for several customers and stop along the way for partial unloading.
Moderate

30. Mini Bridge
Economies of scale
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
To save the railroads by giving them a chance to compete with other modes on equal footing
Far east to east coast or Europe to west coast - final destination is US port city

31. Where does funding for the roads come from?
Completely different continent - different time zones.
100 tons
Consolidation of shipments to different destinations within the same general area.
Highway user taxes

32. The whole history of the US railroads is a history of...
Main penalty is the cost of lost of sales by holding the shipment.
Consolidation
Highway user taxes
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

33. Three kinds of ocean carriers
250 - 000
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
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

34. What are the generally accepted classifications of railroads?
90-s
Moving a corporations internal activities to outside providers - mainly for cheap labor
Class 1 - Regional - Shortline - Switching and Terminal
Transfers accountability between domestic and international carrier at the terminal

35. What is the empirical formula of the typical coal unit train in the US?
90-s
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
100 cars x 100 tons
Intermodal in character

36. Trackage

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37. Which phrase best characterizes the level of competition in the motor carrier industry?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
The competition is intense in both TL and LTL segments
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.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

38. Intermodal Transportation
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Highway user taxes
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.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

39. Names of the Class 1 railroads?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

40. Service competition areas in airline industry
1500 tons
Economies of scope and density
A batching pig
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

41. What is the trend for the miles of road over the past 50 years in 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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Showed a marked decline
Covering variable costs - volume and equipment utilization - and cash flow.

42. The problem of driver shortage in the US...
Pipeline and Rail
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
The competition is intense in both TL and LTL segments
Is likely to stay and even get worse in the future

43. Carriers' Technological and Equipment strategies to minimize costs
To promote interstate commerce and strengthen the defenses of the country
15
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.
High price for price insensitive customers.

44. Freight Revenue for Rail (per ton-mile)
100 cars x 100 tons
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
About 2 cents per dollar
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

45. What are the reasons for the relative decline of the US railroads after World War 2?
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
To promote interstate commerce and strengthen the defenses of the country
About 25 cents per dollar
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

46. Pro-Forma Invoice
Class 1 - Regional - Shortline - Switching and Terminal
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

47. Flags of Convenience
11 hours straight or anything beyond 70 hours in 8 days
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Used for tax - manning - and relaxed regulation.
Completely different continent - different time zones.

48. Survival Based pricing
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Covering variable costs - volume and equipment utilization - and cash flow.
30 - 000 lbs and 300 miles

49. What factors lead to reduction of air pollution by trucks?
Economies of scale
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

50. What are the revenues of the specialized and general cargo?
Specialized: $73 Billion - General: $146 Billion
Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives