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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 was the golden age of railroads?
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.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
1850-1950
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.

2. 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
Water
The competition is intense in both TL and LTL segments
Substantially higher

3. Pricing adjustment conditions
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Interior Non-port cities
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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

4. It is common for an operating ratio of motor carriers to be around these numbers...
Special Rates
58
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
90-s

5. What was the rationale behind passing the Staggers Act of 1980?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Not the government - the railroads themselves
To save the railroads by giving them a chance to compete with other modes on equal footing
The competition is intense in both TL and LTL segments

6. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Sysco - Tyson Foods - Coca-Cola - and Walmart
1500 tons
Wyoming

7. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
Society and customer first.
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

8. Which mode has the highest carrying capacity?
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.
Water
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Moving a corporations internal activities to outside providers - mainly for cheap labor

9. Certificate of Inspection
Attests to authenticity and accuracy of the goods. Performs by third party independent company
100 tons
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Showed a marked decline

10. Near-shoring
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Water

11. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Service levels - Frequent flyer programs - Timing of flights - In advance registration
anywhere between a quarter and a third of all highway travel
Pipeline and Rail

12. Name the 3 types of water carriers
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.
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
Coastal/Intercoastal - Great Lakes - Internal

13. Three kinds of ocean carriers
High price for price insensitive customers.
30 - 000 lbs and 300 miles
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.
NTSB

14. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Completely different continent - different time zones.
Covering variable costs - volume and equipment utilization - and cash flow.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

15. A barge tow is capable of moving how many barges?
15
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
About 2 cents per dollar
Water

16. Far-shoring
1500 tons
Transfer of function to another country - can stay within the same company!
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.
Completely different continent - different time zones.

17. Benefits of hub and spoke system
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
100 tons
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
A batching pig

18. 1 Barge ship is equivalent to how many trucks?
Society and customer first.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
58
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

19. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
ton-miles
83.8%
Interior Non-port cities

20. 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
Substantially higher
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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

21. Types of vehicles for trucking
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
FedEx - YRC - Conway - UPS - ABF
Labor and Fuel

22. Commercial Invoice
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
1500 tons
83.8%
Water

23. What are the highest variable costs in the railroad industry?
1500 tons
Labor and Fuel
Completely different continent - different time zones.
7%

24. What is the truck driving time limitations?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
11 hours straight or anything beyond 70 hours in 8 days
Water
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

25. Which economies are present in the US railroad industry?
Coastal/Intercoastal - Great Lakes - Internal
Not the government - the railroads themselves
Economies of scale
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

26. FOB Origin/Destination
Coal
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Water

27. Cost of Service Pricing
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
About 2 cents per dollar
Completely different continent - different time zones.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

28. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Air
Attests to authenticity and accuracy of the goods. Performs by third party independent company
One method moves the trailer on its wheels while the other moves the container

29. What is the approximate share of fixed costs of US railroads?
Completely different continent - different time zones.
58
30%
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

30. What are the issues facing the US railroads?
Moderate
30 - 000 lbs and 300 miles
58
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

31. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
Used for tax - manning - and relaxed regulation.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

32. What commodity/goods are typically transported by railroads in the US?
The intermodal competition has increased dramatically since WW 2
Coastal/Intercoastal - Great Lakes - Internal
Coal - farm products - chemicals - transportation equipment
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

33. Flags of Convenience
Used for tax - manning - and relaxed regulation.
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
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

34. How are interstate highways numbered?
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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
484
Economies of scale

35. Funding the railroads?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
To promote interstate commerce and strengthen the defenses of the country
About 25 cents per dollar
Not the government - the railroads themselves

36. Freight Revenue for Rail (per ton-mile)
Pipeline and Rail
To promote interstate commerce and strengthen the defenses of the country
Wyoming
About 2 cents per dollar

37. Which government agency will investigate a major railroad accident involving public safety?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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
NTSB
To promote interstate commerce and strengthen the defenses of the country

38. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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
30 - 000 lbs and 300 miles
Covering variable costs - volume and equipment utilization - and cash flow.

39. Which type of a railcar has the highest share in terms of its numbers in service in the US?
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
484
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

40. Unit trains
Move 1 single commodity and are non-stop to destination.
7
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
To promote interstate commerce and strengthen the defenses of the country

41. Which economies are most prominent in the trucking industry?
1850-1950
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Economies of scope and density
Break bulk - Relay - Pick up - Delivery

42. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
Substantially higher
Consolidate orders for several customers and stop along the way for partial unloading.
250 - 000

43. Ways to classify the motor carriers
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
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

44. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
Transfers accountability between domestic and international carrier at the terminal
Moving a corporations internal activities to outside providers - mainly for cheap labor

45. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Air
Society and customer first.

46. Value of Service pricing
7
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
Move 1 single commodity and are non-stop to destination.
Break bulk - Relay - Pick up - Delivery

47. Four types of Liner Service
Moving a corporations internal activities to outside providers - mainly for cheap labor
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
The intermodal competition has increased dramatically since WW 2
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

48. What is a public benefit of railroads?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
To promote interstate commerce and strengthen the defenses of the country

49. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
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.
250 - 000
Move 1 single commodity and are non-stop to destination.
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

50. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Economies of scope and density
Consolidate orders for several customers and stop along the way for partial unloading.
1850-1950
To promote interstate commerce and strengthen the defenses of the country