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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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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. 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.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Water
A batching pig

2. What is the approximate number of railroads in the US?
563
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Water
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

3. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

4. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
A batching pig
Substantially higher

5. Cost of Service Pricing
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
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Water
Specialized: $73 Billion - General: $146 Billion

6. Micro Bridge
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
To save the railroads by giving them a chance to compete with other modes on equal footing
Interior Non-port cities
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

7. What could be the rationale for railroad mergers?

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8. Bill of Lading
Federal Railroad Administration (FRA)
Yes
A contract for transportation between a shipper and the carrier - also is a cargo receipt
A pumping station

9. What commodity/goods are typically transported by railroads in the US?
Crushed stone - gravel and sand
Special Rates
Coal - farm products - chemicals - transportation equipment
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

10. Outsourcing
To save the railroads by giving them a chance to compete with other modes on equal footing
Moving a corporations internal activities to outside providers - mainly for cheap labor
1500 tons
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

11. Freight revenue for Modes (per ton-mile)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Federal Railroad Administration (FRA)
The competition is intense in both TL and LTL segments
Consolidate orders for several customers and stop along the way for partial unloading.

12. Trackage

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13. Which modes have the following cost structure: Low Variable and High Fixed?
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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
Pipeline and Rail
A contract for transportation between a shipper and the carrier - also is a cargo receipt

14. What was the golden age of railroads?
Specialized: $73 Billion - General: $146 Billion
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
1850-1950

15. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
ton-miles
Intermodal in character
Transfers accountability between domestic and international carrier at the terminal
Water

16. What are the revenues of the specialized and general cargo?
15%~13%
Specialized: $73 Billion - General: $146 Billion
Coal
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

17. Carriers' Technological and Equipment strategies to minimize costs
Consolidation of shipments to different destinations within the same general area.
7%
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.
30 - 000 lbs and 300 miles

18. Third Party Logistics
30 - 000 lbs and 300 miles
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.
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 pumping station

19. Class Rate Calculations
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
Sysco - Tyson Foods - Coca-Cola - and Walmart
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
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.

20. A barge tow is capable of moving how many barges?
Transfer of function to another country - can stay within the same company!
15
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.
ton-miles

21. What are the types of railcars?
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.
11 hours straight or anything beyond 70 hours in 8 days
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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

22. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

23. Land Bridge Services
Intermodal in character
83.8%
A batching pig
Crushed stone - gravel and sand

24. 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
Specialized: $73 Billion - General: $146 Billion
Coal - farm products - chemicals - transportation equipment
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

25. Service competition areas in airline industry
A batching pig
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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

26. Mini Bridge
Far east to east coast or Europe to west coast - final destination is US port city
The competition is intense in both TL and LTL segments
Declaration of where product was made so that appropriate duties are charged
Break bulk - Relay - Pick up - Delivery

27. Pricing adjustment conditions
Economies of scope and density
Transfer of function to another country - can stay within the same company!
Covered Hopper
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

28. Consular Invoice

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29. Highway weight limitation
7
80 - 000 lbs
250 - 000
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.

30. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Transfer of function to another country - can stay within the same company!
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
To promote interstate commerce and strengthen the defenses of the country
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

31. FOB Origin/Destination
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Yes
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
563

32. What are the issues facing the US railroads?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
A trucking operation that only hauls freight for the firm which owns it
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

33. What was the rationale behind passing the Staggers Act of 1980?
Economies of scale
To save the railroads by giving them a chance to compete with other modes on equal footing
7%
100 tons

34. The status of competition within the US railroad industry?
Moderate
Highway user taxes
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
Specialized: $73 Billion - General: $146 Billion

35. The current share of railroads in total transportation expenses is closest to...
7%
1500 tons
80 - 000 lbs
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

36. Terms of Payment
15
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Economies of scale
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

37. Freight Revenue for Truck/Motor (per ton-mile)
Consolidate orders for several customers and stop along the way for partial unloading.
Consolidation
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
About 25 cents per dollar

38. Name the 3 types of water carriers
30 - 000 lbs and 300 miles
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Coastal/Intercoastal - Great Lakes - Internal

39. Categories of major pricing decisions
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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.
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
Consolidation of shipments to different destinations within the same general area.

40. What aspects of the trucking industry is the US involved in?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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 longer combination vehicle towing more than one trailer

41. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Substantially higher
15%~13%
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
A batching pig

42. Skimming pricing
High price for price insensitive customers.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Federal Railroad Administration (FRA)
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

43. What are the current trends in trucking?
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
To save the railroads by giving them a chance to compete with other modes on equal footing
Less than 25 carriers handle 75 to 80% of total freight dollar.
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

44. What are the metrics to measure freight traffic in the motor carrier industry?
FedEx - YRC - Conway - UPS - ABF
ton-miles
30%
Consolidation of shipments to different destinations within the same general area.

45. Major commodities hauled by each mode
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
30 - 000 lbs and 300 miles
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Terminal

46. What is Amtrak?
563
Economies of scope and density
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
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery

47. Dock receipt
Society and customer first.
Special Rates
Sysco - Tyson Foods - Coca-Cola - and Walmart
Transfers accountability between domestic and international carrier at the terminal

48. What are the reasons for the relative decline of the US railroads after World War 2?
NTSB
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
1500 tons
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

49. Name the types of trucking terminals
Break bulk - Relay - Pick up - Delivery
The intermodal competition has increased dramatically since WW 2
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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

50. 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?
The competition is intense in both TL and LTL segments
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
After World War 2
90-s