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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. What are the current trends in the US railroad?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
FedEx - YRC - Conway - UPS - ABF
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
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

2. Which modes have the following cost structure: Low Variable and High Fixed?
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.
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.
Pipeline and Rail

3. Carrier's Operational strategies to minimize cost
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Used for tax - manning - and relaxed regulation.

4. How many Class 1 freight railroads are there?
Break bulk - Relay - Pick up - Delivery
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
7
FedEx - YRC - Conway - UPS - ABF

5. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
A contract for transportation between a shipper and the carrier - also is a cargo receipt
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
15%~13%
ton-miles

6. Invoices
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
1500 tons
Coal - farm products - chemicals - transportation equipment
Air

7. Value of Service pricing
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Completely different continent - different time zones.
Main penalty is the cost of lost of sales by holding the shipment.
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

8. Mini Bridge
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Covered Hopper
One method moves the trailer on its wheels while the other moves the container
Far east to east coast or Europe to west coast - final destination is US port city

9. 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
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

10. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Coal
Consolidation of shipments to different destinations within the same general area.
ton-miles

11. Stop-off
anywhere between a quarter and a third of all highway travel
Used for tax - manning - and relaxed regulation.
Consolidate orders for several customers and stop along the way for partial unloading.
Covered Hopper

12. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
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
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.
About 2 cents per dollar
To promote interstate commerce and strengthen the defenses of the country

13. 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
Not the government - the railroads themselves
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Coal

14. Which type of railroad cargo has the highest tonnage share in the US?
Coal
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
After World War 2

15. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
After World War 2
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Far east to east coast or Europe to west coast - final destination is US port city

16. Which mode has the lowest cost per ton mile?
Consolidate orders for several customers and stop along the way for partial unloading.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
30 - 000 lbs and 300 miles
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

17. Which US federal government agency enforces safety regulations for railroads?
Federal Railroad Administration (FRA)
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.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
A trucking operation that only hauls freight for the firm which owns it

18. Which mode has the highest carrying capacity?
Water
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
15

19. Funding the railroads?
About 25 cents per dollar
Not the government - the railroads themselves
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.
ton-miles

20. Certificate of Inspection
Attests to authenticity and accuracy of the goods. Performs by third party independent company
1850-1950
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

21. Factors affecting Pricing decisions
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
100 cars x 100 tons

22. The problem of driver shortage in the US...
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Is likely to stay and even get worse in the future
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.
After World War 2

23. Name the types of trucking terminals
NTSB
Break bulk - Relay - Pick up - Delivery
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Water

24. Cost of Service Pricing
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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.
563

25. Which Mode of Transportation has the highest volume in tonnage?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Substantially higher

26. What are the revenues of the specialized and general cargo?
90-s
80 - 000 lbs
Specialized: $73 Billion - General: $146 Billion
Covered Hopper

27. Consolidation
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Main penalty is the cost of lost of sales by holding the shipment.
Break bulk - Relay - Pick up - Delivery
Sysco - Tyson Foods - Coca-Cola - and Walmart

28. Three kinds of ocean carriers
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
To promote interstate commerce and strengthen the defenses of the country
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.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

29. What is a road train?
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.
A longer combination vehicle towing more than one trailer
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...
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

30. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Highway user taxes
80 - 000 lbs

31. Terms of Payment
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
30 - 000 lbs and 300 miles

32. Pricing adjustment conditions
Pipeline and Rail
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Interior Non-port cities

33. What are the major causes of general traffic congestions?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
To save the railroads by giving them a chance to compete with other modes on equal footing
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
1850-1950

34. Benefits of hub and spoke system
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Water
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
1850-1950

35. Names of the Class 1 railroads?
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

36. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
After World War 2
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Covering variable costs - volume and equipment utilization - and cash flow.

37. A pumping station requires 3-6000HP to move oil through a pipeline. To move more than 1 grade at same time what do you use?
A batching pig
To save the railroads by giving them a chance to compete with other modes on equal footing
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

38. How does the US railroad industry compete with other modes?
Class 1 - Regional - Shortline - Switching and Terminal
Main penalty is the cost of lost of sales by holding the shipment.
To promote interstate commerce and strengthen the defenses of the country
The intermodal competition has increased dramatically since WW 2

39. Mistakes in pricing strategy
Wyoming
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.
90-s
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.

40. Haulage

41. What factors lead to reduction of air pollution by trucks?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
1850-1950
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.

42. Service competition areas in airline industry
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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 intermodal competition has increased dramatically since WW 2

43. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Covering variable costs - volume and equipment utilization - and cash flow.
1850-1950
anywhere between a quarter and a third of all highway travel
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

44. Intermodal Transportation
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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
Labor and Fuel

45. What could be the rationale for railroad mergers?

46. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
Declaration of where product was made so that appropriate duties are charged
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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

47. Types and shares of cost in railroads
Coastal/Intercoastal - Great Lakes - Internal
Showed a marked decline
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Substantially higher

48. Pooling
Used for tax - manning - and relaxed regulation.
Consolidation of shipments to different destinations within the same general area.
100 tons
Showed a marked decline

49. Price variation factors in airline service
Water
Service levels - Frequent flyer programs - Timing of flights - In advance registration
250 - 000
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

50. Certificate of origin
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
563
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.
Declaration of where product was made so that appropriate duties are charged