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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. Bill of Lading
NTSB
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Crushed stone - gravel and sand
Declaration of where product was made so that appropriate duties are charged

2. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
ton-miles
Substantially higher
7%

3. Labor relations in the US railroad industry?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Society and customer first.
Move 1 single commodity and are non-stop to destination.

4. Land Bridge Services
Intermodal in character
484
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
7%

5. Name the types of trucking terminals
15
To promote interstate commerce and strengthen the defenses of the country
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Break bulk - Relay - Pick up - Delivery

6. Carriers' Technological and Equipment strategies to minimize costs
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.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Completely different continent - different time zones.
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.

7. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Coal
About 2 cents per dollar

8. What companies are players in private carriage?
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Sysco - Tyson Foods - Coca-Cola - and Walmart
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
563

9. Types of vehicles for trucking
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
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
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.
Moving a corporations internal activities to outside providers - mainly for cheap labor

10. Survival Based pricing
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
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
Covering variable costs - volume and equipment utilization - and cash flow.
Less than 25 carriers handle 75 to 80% of total freight dollar.

11. What is the difference between TOFC and COFC service?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
To save the railroads by giving them a chance to compete with other modes on equal footing
One method moves the trailer on its wheels while the other moves the container
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

12. Highway weight limitation
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Attests to authenticity and accuracy of the goods. Performs by third party independent 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
80 - 000 lbs

13. The status of competition within the US railroad industry?
Moderate
1500 tons
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

14. What is the difference between class 1 and class 2 carriers?
58
Covering variable costs - volume and equipment utilization - and cash flow.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Substantially higher

15. What are the major causes of general traffic congestions?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

16. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Specialized: $73 Billion - General: $146 Billion
Water
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Completely different continent - different time zones.

17. Name the 3 types of water carriers
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.
Coastal/Intercoastal - Great Lakes - Internal
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
7

18. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Far east to east coast or Europe to west coast - final destination is US port city
Terminal
About 25 cents per dollar

19. What are the metrics to measure freight traffic in the motor carrier industry?
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
ton-miles
High price for price insensitive customers.

20. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
7
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
Transfers accountability between domestic and international carrier at the terminal

21. Which mode has the highest carrying capacity?
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
15
Break bulk - Relay - Pick up - Delivery
Water

22. It is common for an operating ratio of motor carriers to be around these numbers...
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Carloads and Ton-miles
90-s
Wyoming

23. Pooling
Far east to east coast or Europe to west coast - final destination is US port city
Consolidation of shipments to different destinations within the same general area.
Class 1 - Regional - Shortline - Switching and Terminal
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

24. Categories of major pricing decisions
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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.

25. What aspects of the trucking industry is the US involved in?
Used for tax - manning - and relaxed regulation.
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
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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

26. Intermodal Transportation
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Pipeline and Rail
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.
Class 1 - Regional - Shortline - Switching and Terminal

27. Stop-off
Consolidate orders for several customers and stop along the way for partial unloading.
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...
A batching pig
90-s

28. Types and shares of cost in railroads
Is likely to stay and even get worse in the future
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
484
563

29. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
NTSB
anywhere between a quarter and a third of all highway travel
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
Wyoming

30. Factors contributing to the decline of Railroad use
Society and customer first.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.
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.

31. Trackage

32. Consular Invoice

33. What are the reasons for the relative decline of the US railroads after World War 2?
Interior Non-port cities
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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
15%~13%

34. Government is involved in which aspects of the railroad business?
Consolidate orders for several customers and stop along the way for partial unloading.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Special Rates
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

35. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Coal - farm products - chemicals - transportation equipment
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Transfer of function to another country - can stay within the same company!
Air

36. What do the users of truck service benefit?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
58
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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.

37. Certificate of origin
30 - 000 lbs and 300 miles
Declaration of where product was made so that appropriate duties are charged
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
Covered Hopper

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

39. What is the approximate share of fixed costs of US railroads?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Showed a marked decline
30%
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

40. What is Amtrak?
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.
anywhere between a quarter and a third of all highway travel
Terminal
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

41. LTL terminals are used for connections with these operations...
High price for price insensitive customers.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Transfers accountability between domestic and international carrier at the terminal
anywhere between a quarter and a third of all highway travel

42. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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
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
The intermodal competition has increased dramatically since WW 2

43. On the average - per gallon of fuel - US railroads move a ton of freight...
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
484
15

44. Four types of Liner Service
Declaration of where product was made so that appropriate duties are charged
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

45. 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?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
A batching pig
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
A pumping station

46. What are the revenues of the specialized and general cargo?
Specialized: $73 Billion - General: $146 Billion
Attests to authenticity and accuracy of the goods. Performs by third party independent company
After World War 2
11 hours straight or anything beyond 70 hours in 8 days

47. How are airport hub/spoke and LTL breakbulk similar?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.
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.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

48. How many Class 1 freight railroads are there?
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.
Covered Hopper
7
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.

49. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
30 - 000 lbs and 300 miles
15%~13%
15
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

50. Benefits of hub and spoke system
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
11 hours straight or anything beyond 70 hours in 8 days