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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. Micro Bridge
Interior Non-port cities
A longer combination vehicle towing more than one trailer
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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

2. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Interior Non-port cities
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
Moving a corporations internal activities to outside providers - mainly for cheap labor

3. What are the LTL carriers?
Interior Non-port cities
Transfer of function to another country - can stay within the same company!
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
FedEx - YRC - Conway - UPS - ABF

4. Terms of Payment
58
Carloads and Ton-miles
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

5. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Covered Hopper
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

6. Main forms of Charter Ships
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
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

7. Did the US railroads have anything to do with the creation of world time zones?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Main penalty is the cost of lost of sales by holding the shipment.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Yes

8. Certificate of Inspection
Attests to authenticity and accuracy of the goods. Performs by third party independent company
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Crushed stone - gravel and sand
NTSB

9. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Wyoming
Economies of scale
FedEx - YRC - Conway - UPS - ABF
To promote interstate commerce and strengthen the defenses of the country

10. What commodity/goods are typically transported by railroads in the US?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Coal - farm products - chemicals - transportation equipment
7%
Carloads and Ton-miles

11. What is the current share of trucking in total transportation expenses is closest to...
83.8%
80 - 000 lbs
Coastal/Intercoastal - Great Lakes - Internal
Federal Railroad Administration (FRA)

12. Labor relations in the US railroad industry?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Federal Railroad Administration (FRA)

13. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Specialized: $73 Billion - General: $146 Billion
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.
Air
To promote interstate commerce and strengthen the defenses of the country

14. Skimming pricing
Special Rates
High price for price insensitive customers.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Air

15. Which type of railroad cargo has the highest tonnage share in the US?
Break bulk - Relay - Pick up - Delivery
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
After World War 2
Coal

16. Consular Invoice

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17. Types of vehicles for trucking
Labor and Fuel
Less than 25 carriers handle 75 to 80% of total freight dollar.
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
Yes

18. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Showed a marked decline
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

19. Trackage

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20. Flags of Convenience
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Used for tax - manning - and relaxed regulation.
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

21. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Carloads and Ton-miles
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
83.8%

22. Which modes have the following cost structure: Low Variable and High Fixed?
Moderate
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Pipeline and Rail
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

23. Near-shoring
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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
Special Rates
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

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

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25. The status of competition within the US railroad industry?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Used for tax - manning - and relaxed regulation.
Moderate

26. What are the current trends in the US railroad?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
After World War 2
Completely different continent - different time zones.
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

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

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28. Which US federal government agency enforces safety regulations for railroads?
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.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
About 25 cents per dollar
Federal Railroad Administration (FRA)

29. Carriers' Technological and Equipment strategies to minimize costs
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
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
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.

30. What is Amtrak?
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
15%~13%
Consolidate orders for several customers and stop along the way for partial unloading.
To promote interstate commerce and strengthen the defenses of the country

31. How to assess the operating ratio?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Completely different continent - different time zones.
30%

32. UNCTAD liner code 40-40-20
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...
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
About 2 cents per dollar
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

33. What is an approximate capacity of a hopper?
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.
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
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

34. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

35. Which mode has the highest carrying capacity?
30%
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Terminal
Water

36. Highway weight limitation
80 - 000 lbs
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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

37. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Specialized: $73 Billion - General: $146 Billion
NTSB

38. Who has the highest number of coal carloads?
Special Rates
Wyoming
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Covered Hopper

39. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
11 hours straight or anything beyond 70 hours in 8 days
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

40. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
FedEx - YRC - Conway - UPS - ABF
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Coal - farm products - chemicals - transportation equipment

41. On the average - per gallon of fuel - US railroads move a ton of freight...
30 - 000 lbs and 300 miles
80 - 000 lbs
484
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

42. Private Carrier
83.8%
484
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
A trucking operation that only hauls freight for the firm which owns it

43. Which phrase best characterizes the level of competition in the motor carrier industry?
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
Break bulk - Relay - Pick up - Delivery
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.
The competition is intense in both TL and LTL segments

44. Unit trains
Move 1 single commodity and are non-stop to destination.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

45. Which economies are present in the US railroad industry?
Economies of scale
Covered Hopper
15%~13%
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

46. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Crushed stone - gravel and sand
83.8%
A pumping station
Water

47. What was the rationale behind passing the Staggers Act of 1980?
To save the railroads by giving them a chance to compete with other modes on equal footing
Federal Railroad Administration (FRA)
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

48. What are the two primary operational indicators in the railroad industry?
Water
Is likely to stay and even get worse in the future
Carloads and Ton-miles
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

49. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
100 tons
484
Labor and Fuel

50. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Water
30 - 000 lbs and 300 miles
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

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Transportation Logistics

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