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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. Land Bridge Services
Intermodal in character
ton-miles
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
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

2. 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.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Consolidation
Special Rates
Moderate

3. What is the approximate share of fixed costs of US railroads?
Consolidate orders for several customers and stop along the way for partial unloading.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
30%
15

4. Did the US railroads have anything to do with the creation of world time zones?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Yes
Far east to east coast or Europe to west coast - final destination is US port city
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

5. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Is likely to stay and even get worse in the future

6. Intermodal Transportation
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.
Showed a marked decline
A longer combination vehicle towing more than one trailer
250 - 000

7. What is a public benefit of railroads?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
A batching pig

8. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
Transfers accountability between domestic and international carrier at the terminal
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
90-s

9. What term is related to railroad operations?
Used for tax - manning - and relaxed regulation.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Break bulk - Relay - Pick up - Delivery
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

10. Micro Bridge
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Interior Non-port cities
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
484

11. How are interstate highways numbered?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

12. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
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
Transfer of function to another country - can stay within the same company!
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

13. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Terminal
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Water
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

14. Survival Based pricing
Economies of scale
Moderate
Covering variable costs - volume and equipment utilization - and cash flow.
Main penalty is the cost of lost of sales by holding the shipment.

15. What factors lead to reduction of air pollution by trucks?
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.
Completely different continent - different time zones.
11 hours straight or anything beyond 70 hours in 8 days

16. Which phrase best characterizes the level of competition in the motor carrier industry?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
The competition is intense in both TL and LTL segments
Move 1 single commodity and are non-stop to destination.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

17. Which type of railroad cargo has the highest tonnage share in the US?
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.
Covering variable costs - volume and equipment utilization - and cash flow.
Coal
Carloads and Ton-miles

18. Bill of Lading
100 cars x 100 tons
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.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Consolidate orders for several customers and stop along the way for partial unloading.

19. Types and shares of cost in railroads
Coastal/Intercoastal - Great Lakes - Internal
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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Carloads and Ton-miles

20. What was the rationale behind passing the Staggers Act of 1980?
Federal Railroad Administration (FRA)
80 - 000 lbs
About 25 cents per dollar
To save the railroads by giving them a chance to compete with other modes on equal footing

21. What are the major causes of general traffic congestions?
The competition is intense in both TL and LTL segments
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
To promote interstate commerce and strengthen the defenses of the country
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

22. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Move 1 single commodity and are non-stop to destination.

23. What are the metrics to measure freight traffic in the motor carrier industry?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
ton-miles
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

24. Government is involved in which aspects of the railroad business?
Far east to east coast or Europe to west coast - final destination is US port city
Less than 25 carriers handle 75 to 80% of total freight dollar.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

25. Which mode has the lowest cost per ton mile?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
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
After World War 2
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

26. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
One method moves the trailer on its wheels while the other moves the container
7%
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

27. Which US federal government agency enforces safety regulations for railroads?
NTSB
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
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Federal Railroad Administration (FRA)

28. What are the types of railcars?
About 2 cents per dollar
Highway user taxes
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

29. 1 Barge is equivalent to how many tons?
1500 tons
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
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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. Outsourcing
Break bulk - Relay - Pick up - Delivery
Water
Moving a corporations internal activities to outside providers - mainly for cheap labor
Moderate

31. 1 Barge ship is equivalent to how many trucks?
58
Substantially higher
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...
Crushed stone - gravel and sand

32. Private Carrier
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.
Coal
About 2 cents per dollar
A trucking operation that only hauls freight for the firm which owns it

33. What was the golden age of railroads?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
1850-1950
Coastal/Intercoastal - Great Lakes - Internal
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

34. Who has the highest number of coal carloads?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Crushed stone - gravel and sand
Wyoming
Specialized: $73 Billion - General: $146 Billion

35. Line of credit process

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36. What could be the rationale for railroad mergers?

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37. Price variation factors in airline service
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
About 25 cents per dollar
250 - 000

38. What is the empirical formula of the typical coal unit train in the US?
15%~13%
100 cars x 100 tons
83.8%
The intermodal competition has increased dramatically since WW 2

39. How many Class 1 freight railroads are there?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
7
83.8%
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

40. How are airport hub/spoke and LTL breakbulk similar?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
Specialized: $73 Billion - General: $146 Billion
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

41. What is the approximate number of railroads in the US?
A trucking operation that only hauls freight for the firm which owns it
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...
563
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

42. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Service levels - Frequent flyer programs - Timing of flights - In advance registration

43. Third Party Logistics
anywhere between a quarter and a third of all highway travel
Consolidation of shipments to different destinations within the same general area.
Carloads and Ton-miles
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...

44. Unit trains
A trucking operation that only hauls freight for the firm which owns it
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Move 1 single commodity and are non-stop to destination.
About 25 cents per dollar

45. What are the two primary operational indicators in the railroad industry?
High price for price insensitive customers.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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
Carloads and Ton-miles

46. Main forms of Charter Ships
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
To save the railroads by giving them a chance to compete with other modes on equal footing
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

47. Non-vessel operating common carriers (NVOCC)
Coal - farm products - chemicals - transportation equipment
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Yes

48. Name the 3 types of water carriers
30%
Coastal/Intercoastal - Great Lakes - Internal
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.
Terminal

49. Ways to classify the motor carriers
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
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Consolidation

50. What is the difference between TOFC and COFC service?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
One method moves the trailer on its wheels while the other moves the container
Far east to east coast or Europe to west coast - final destination is US port city
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