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Transportation Logistics

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Answer 50 questions in 15 minutes.
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1. Names of the Class 1 railroads?
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
Labor and Fuel
NTSB

2. What are the types of railcars?
Class 1 - Regional - Shortline - Switching and Terminal
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart

3. What is the current share of trucking in total transportation expenses is closest to...
Specialized: $73 Billion - General: $146 Billion
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
83.8%
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

4. Which Mode of Transportation has the highest volume in tonnage?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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
7%
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

5. What is an approximate capacity of a hopper?
100 tons
80 - 000 lbs
Special Rates
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

6. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Economies of scale
7%
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

7. How many Class 1 freight railroads are there?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
90-s
7
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

8. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Society and customer first.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

9. Drayage
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Special Rates
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

10. 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?
After World War 2
Wyoming
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
A batching pig

11. What aspects of the trucking industry is the US involved in?
anywhere between a quarter and a third of all highway travel
563
30%
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

12. Social Responsibility pricing
Is likely to stay and even get worse in the future
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
563
Society and customer first.

13. Major commodities hauled by each mode
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
7
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

14. Which US federal government agency enforces safety regulations for railroads?
Federal Railroad Administration (FRA)
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
FedEx - YRC - Conway - UPS - ABF
Transfers accountability between domestic and international carrier at the terminal

15. 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.
Special Rates
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Attests to authenticity and accuracy of the goods. Performs by third party independent company

16. 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
Air
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
80 - 000 lbs

17. Invoices
83.8%
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Less than 25 carriers handle 75 to 80% of total freight dollar.

18. Examples of general freight
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
To promote interstate commerce and strengthen the defenses of the country
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Crushed stone - gravel and sand

19. Which modes have the following cost structure: Low Variable and High Fixed?
anywhere between a quarter and a third of all highway travel
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Pipeline and Rail

20. How are interstate highways numbered?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
484
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

21. Pro-Forma Invoice
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Highway user taxes
Covered Hopper

22. Outsourcing
Water
Moving a corporations internal activities to outside providers - mainly for cheap labor
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Transfer of function to another country - can stay within the same company!

23. What factors lead to reduction of air pollution by trucks?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
563
Sysco - Tyson Foods - Coca-Cola - and Walmart
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

24. What commodity/goods are typically transported by railroads in the US?
15
Economies of scope and density
Coal - farm products - chemicals - transportation equipment
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

25. Main forms of Charter Ships
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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

26. What is the primary railroad cargo out of Arkansas by tonnage?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Covering variable costs - volume and equipment utilization - and cash flow.
One method moves the trailer on its wheels while the other moves the container
Crushed stone - gravel and sand

27. Ways to classify the motor carriers
15%~13%
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
7
About 25 cents per dollar

28. Highway weight limitation
80 - 000 lbs
100 tons
15
The intermodal competition has increased dramatically since WW 2

29. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Class 1 - Regional - Shortline - Switching and Terminal
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
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

30. Line of credit process

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31. Core Carrier concept
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
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Yes

32. FOB Origin/Destination
484
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
80 - 000 lbs
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

33. Factors contributing to the decline of Railroad use
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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...
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

34. Haulage

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35. 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?
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
A batching pig
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Wyoming

36. What is the truck driving time limitations?
58
High price for price insensitive customers.
11 hours straight or anything beyond 70 hours in 8 days
1500 tons

37. It is common for an operating ratio of motor carriers to be around these numbers...
To save the railroads by giving them a chance to compete with other modes on equal footing
Consolidation of shipments to different destinations within the same general area.
Federal Railroad Administration (FRA)
90-s

38. Micro Bridge
Interior Non-port cities
Moving a corporations internal activities to outside providers - mainly for cheap labor
To promote interstate commerce and strengthen the defenses of the country
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

39. On the average - per gallon of fuel - US railroads move a ton of freight...
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Carloads and Ton-miles
The intermodal competition has increased dramatically since WW 2
484

40. Class Rate Calculations
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
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.
Consolidation of shipments to different destinations within the same general area.
Attests to authenticity and accuracy of the goods. Performs by third party independent company

41. Service competition areas in airline industry
Class 1 - Regional - Shortline - Switching and Terminal
Substantially higher
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
100 tons

42. Carrier's Operational strategies to minimize cost
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.
15
7
Intermodal in character

43. Government is involved in which aspects of the railroad business?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Class 1 - Regional - Shortline - Switching and Terminal
About 25 cents per dollar

44. Name the 3 types of water carriers
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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
Coastal/Intercoastal - Great Lakes - Internal
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

45. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
About 25 cents per dollar
NTSB
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
15%~13%

46. Skimming pricing
80 - 000 lbs
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.
High price for price insensitive customers.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

47. Third Party Logistics
1850-1950
Air
Is likely to stay and even get worse in the future
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...

48. The whole history of the US railroads is a history of...
Intermodal in character
Consolidation
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
250 - 000

49. What were the reasons for the erosion of the railroad dominance in transportation in the US?

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50. Which government agency will investigate a major railroad accident involving public safety?
About 2 cents per dollar
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Intermodal in character
NTSB

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