Test your basic knowledge |

Transportation Logistics

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

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. 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?
To save the railroads by giving them a chance to compete with other modes on equal footing
A batching pig
Carloads and Ton-miles
Less than 25 carriers handle 75 to 80% of total freight dollar.

2. Non-vessel operating common carriers (NVOCC)
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Class 1 - Regional - Shortline - Switching and Terminal
Consolidation of shipments to different destinations within the same general area.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

3. What are the revenues of the specialized and general cargo?
100 tons
Consolidate orders for several customers and stop along the way for partial unloading.
The competition is intense in both TL and LTL segments
Specialized: $73 Billion - General: $146 Billion

4. Did the US railroads have anything to do with the creation of world time zones?
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
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.
Yes

5. Factors contributing to the decline of Railroad use
About 2 cents per dollar
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

6. Survival Based pricing
Wyoming
83.8%
Covering variable costs - volume and equipment utilization - and cash flow.
Not the government - the railroads themselves

7. UNCTAD liner code 40-40-20
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Sysco - Tyson Foods - Coca-Cola - and Walmart

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

9. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Special Rates
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Coal

10. What is a road train?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.
Consolidation
A longer combination vehicle towing more than one trailer

11. The whole history of the US railroads is a history of...
Federal Railroad Administration (FRA)
Consolidation
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
A trucking operation that only hauls freight for the firm which owns it

12. How many Class 1 freight railroads are there?
7
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

13. What are the LTL carriers?
100 cars x 100 tons
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
FedEx - YRC - Conway - UPS - ABF
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

14. Invoices
The intermodal competition has increased dramatically since WW 2
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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.

15. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
11 hours straight or anything beyond 70 hours in 8 days
Declaration of where product was made so that appropriate duties are charged
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...
30 - 000 lbs and 300 miles

16. FOB Origin/Destination
1850-1950
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Coal - farm products - chemicals - transportation equipment
A trucking operation that only hauls freight for the firm which owns it

17. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
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.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Coal

18. Examples of general freight
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Less than 25 carriers handle 75 to 80% of total freight dollar.
Federal Railroad Administration (FRA)
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

19. Trackage

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

20. Skimming pricing
High price for price insensitive customers.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
100 tons
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

21. What is the difference between class 1 and class 2 carriers?
Substantially higher
250 - 000
Consolidation of shipments to different destinations within the same general area.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

22. Which phrase best characterizes the level of competition in the motor carrier industry?
484
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.
The competition is intense in both TL and LTL segments

23. 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
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.
About 2 cents per dollar

24. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Sysco - Tyson Foods - Coca-Cola - and Walmart
Water

25. It is common for an operating ratio of motor carriers to be around these numbers...
The competition is intense in both TL and LTL segments
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
90-s
Attests to authenticity and accuracy of the goods. Performs by third party independent company

26. What was the rationale behind passing the Staggers Act of 1980?
7
Terminal
Pipeline and Rail
To save the railroads by giving them a chance to compete with other modes on equal footing

27. What are the current trends in trucking?
A pumping station
Class 1 - Regional - Shortline - Switching and Terminal
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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

28. What is a typical fixed cost item in the motor carrier industry?
Completely different continent - different time zones.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Interior Non-port cities
Terminal

29. What are the current trends in the US railroad?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
The competition is intense in both TL and LTL segments
A longer combination vehicle towing more than one trailer

30. What term is related to railroad operations?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Federal Railroad Administration (FRA)
The competition is intense in both TL and LTL segments

31. Pooling
Moderate
484
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Consolidation of shipments to different destinations within the same general area.

32. Certificate of Inspection
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Less than 25 carriers handle 75 to 80% of total freight dollar.
11 hours straight or anything beyond 70 hours in 8 days

33. Freight Revenue for Truck/Motor (per ton-mile)
90-s
About 25 cents per dollar
Substantially higher
One method moves the trailer on its wheels while the other moves the container

34. Who has the highest number of coal carloads?
anywhere between a quarter and a third of all highway travel
Society and customer first.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Wyoming

35. Drayage
A batching pig
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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

36. Pricing adjustment conditions
The intermodal competition has increased dramatically since WW 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.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

37. Third Party Logistics
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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...

38. Near-shoring
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Coastal/Intercoastal - Great Lakes - Internal
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
To promote interstate commerce and strengthen the defenses of the country

39. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Labor and Fuel
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Coastal/Intercoastal - Great Lakes - Internal

40. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
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
Declaration of where product was made so that appropriate duties are charged
Break bulk - Relay - Pick up - Delivery

41. Stop-off
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Consolidate orders for several customers and stop along the way for partial unloading.
Intermodal in character

42. Labor relations in the US railroad industry?
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
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Consolidation of shipments to different destinations within the same general area.
Yes

43. What is the approximate number of railroads in the US?
563
Main penalty is the cost of lost of sales by holding the shipment.
Used for tax - manning - and relaxed regulation.
30 - 000 lbs and 300 miles

44. What commodity/goods are typically transported by railroads in the US?
Specialized: $73 Billion - General: $146 Billion
To promote interstate commerce and strengthen the defenses of the country
Coal - farm products - chemicals - transportation equipment
Interior Non-port cities

45. Mini Bridge
Is likely to stay and even get worse in the future
Coastal/Intercoastal - Great Lakes - Internal
Far east to east coast or Europe to west coast - final destination is US port city
Pipeline and Rail

46. On the average - per gallon of fuel - US railroads move a ton of freight...
One method moves the trailer on its wheels while the other moves the container
484
90-s
Coal

47. The status of competition within the US railroad industry?
58
Substantially higher
Moderate
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

48. What is the approximate share of fixed costs of US railroads?
30%
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
Coal - farm products - chemicals - transportation equipment
100 cars x 100 tons

49. Far-shoring
Completely different continent - different time zones.
To save the railroads by giving them a chance to compete with other modes on equal footing
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 longer combination vehicle towing more than one trailer

50. Categories of major pricing decisions
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.
7
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Intermodal in character