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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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1. Class Rate Calculations
ton-miles
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.
FedEx - YRC - Conway - UPS - ABF
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

2. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
A longer combination vehicle towing more than one trailer
Water
Covered Hopper
563

3. Land Bridge Services
Intermodal in character
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...
Covering variable costs - volume and equipment utilization - and cash flow.
A longer combination vehicle towing more than one trailer

4. Which mode has the highest carrying capacity?
Class 1 - Regional - Shortline - Switching and Terminal
Water
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Break bulk - Relay - Pick up - Delivery

5. What is the approximate number of railroads in the US?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
563
Specialized: $73 Billion - General: $146 Billion

6. Funding the railroads?
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...
Less than 25 carriers handle 75 to 80% of total freight dollar.
Not the government - the railroads themselves
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

7. Types and shares of cost in railroads
1850-1950
30 - 000 lbs and 300 miles
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
High price for price insensitive customers.

8. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Interior Non-port cities
Coal
83.8%
15%~13%

9. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Air
Specialized: $73 Billion - General: $146 Billion
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
90-s

10. Names of the Class 1 railroads?
Transfer of function to another country - can stay within the same company!
Economies of scale
11 hours straight or anything beyond 70 hours in 8 days
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

11. 1 Barge ship is equivalent to how many trucks?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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
About 25 cents per dollar
58

12. Major commodities hauled by each mode
15%~13%
7
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

13. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Yes
Water
100 tons
Showed a marked decline

14. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
anywhere between a quarter and a third of all highway travel
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Pipeline and Rail

15. Bill of Lading
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
A contract for transportation between a shipper and the carrier - also is a cargo receipt
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
About 25 cents per dollar

16. Three kinds of ocean carriers
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
Federal Railroad Administration (FRA)
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

17. What is the difference between TOFC and COFC service?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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
One method moves the trailer on its wheels while the other moves the container

18. Line of credit process

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19. Factors contributing to the decline of Railroad use
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.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

20. What is a public benefit of railroads?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Showed a marked decline
Interior Non-port cities
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

21. What is the truck driving time limitations?
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
11 hours straight or anything beyond 70 hours in 8 days
15
About 25 cents per dollar

22. Categories of major pricing decisions
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.
NTSB
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

23. Which mode has the lowest cost per ton mile?
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
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
anywhere between a quarter and a third of all highway travel

24. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
A longer combination vehicle towing more than one trailer
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

25. Outsourcing
Consolidation
Moving a corporations internal activities to outside providers - mainly for cheap labor
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
A batching pig

26. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
A pumping station
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
30 - 000 lbs and 300 miles
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

27. Benefits of hub and spoke system
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%~13%
Labor and Fuel
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

28. Haulage

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29. Main forms of Charter Ships
1850-1950
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
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
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

30. FOB Origin/Destination
Air
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
80 - 000 lbs

31. Mistakes in pricing strategy
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.
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.
Economies of scope and density
Less than 25 carriers handle 75 to 80% of total freight dollar.

32. What are the service and public benefits of the railroad industry?

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33. Cost of Service Pricing
Covered Hopper
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Service levels - Frequent flyer programs - Timing of flights - In advance registration

34. Pro-Forma Invoice
83.8%
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
563
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

35. How are interstate highways numbered?
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
Consolidation of shipments to different destinations within the same general area.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Class 1 - Regional - Shortline - Switching and Terminal

36. What term is related to railroad operations?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
Federal Railroad Administration (FRA)
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

37. What terms describe a type of operation in trucking?
Intermodal in character
Transfers accountability between domestic and international carrier at the terminal
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
About 25 cents per dollar

38. Non-vessel operating common carriers (NVOCC)
250 - 000
A trucking operation that only hauls freight for the firm which owns it
15%~13%
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

39. Labor relations in the US railroad industry?
80 - 000 lbs
To promote interstate commerce and strengthen the defenses of the country
About 2 cents per dollar
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

40. What are the generally accepted classifications of railroads?
Interior Non-port cities
ton-miles
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Class 1 - Regional - Shortline - Switching and Terminal

41. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Covered Hopper
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

42. Certificate of Inspection
A trucking operation that only hauls freight for the firm which owns it
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
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Crushed stone - gravel and sand

43. Factors affecting Pricing decisions
Consolidation of shipments to different destinations within the same general area.
100 tons
To promote interstate commerce and strengthen the defenses of the country
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

44. What are the reasons for the relative decline of the US railroads after World War 2?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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
NTSB

45. Land Bridge
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.
To promote interstate commerce and strengthen the defenses of the country
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
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

46. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
After World War 2
Class 1 - Regional - Shortline - Switching and Terminal
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

47. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
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 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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

48. Pooling
83.8%
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
Declaration of where product was made so that appropriate duties are charged
Consolidation of shipments to different destinations within the same general area.

49. Highway weight limitation
80 - 000 lbs
1500 tons
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.
Far east to east coast or Europe to west coast - final destination is US port city

50. 20/80 Rule
Less than 25 carriers handle 75 to 80% of total freight dollar.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
563
Consolidation of shipments to different destinations within the same general area.