Transportation Logistics

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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. Service competition areas in airline industry
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
Specialized: $73 Billion - General: $146 Billion
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)


2. What is the truck driving time limitations?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Main penalty is the cost of lost of sales by holding the shipment.
11 hours straight or anything beyond 70 hours in 8 days
Not the government - the railroads themselves


3. 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.
100 cars x 100 tons
1500 tons
The competition is intense in both TL and LTL segments
Special Rates


4. Ways to classify the motor carriers
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
The competition is intense in both TL and LTL segments
Consolidate orders for several customers and stop along the way for partial unloading.


5. Line of credit process

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6. UNCTAD liner code 40-40-20
7%
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.


7. Outsourcing
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Not the government - the railroads themselves
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Moving a corporations internal activities to outside providers - mainly for cheap labor


8. Name the 3 types of water carriers
Consolidation of shipments to different destinations within the same general area.
Coastal/Intercoastal - Great Lakes - Internal
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
563


9. Names of the Class 1 railroads?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Economies of scope and density
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad


10. 20/80 Rule
Interior Non-port cities
Less than 25 carriers handle 75 to 80% of total freight dollar.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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


11. Types and shares of cost in railroads
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)


12. Near-shoring
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Moving a corporations internal activities to outside providers - mainly for cheap labor


13. Carrier's Operational strategies to minimize cost
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.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.
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


14. What aspects of the trucking industry is the US involved in?
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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Substantially higher
Air


15. What are the highest variable costs in the railroad industry?
Main penalty is the cost of lost of sales by holding the shipment.
Declaration of where product was made so that appropriate duties are charged
Labor and Fuel
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.


16. Factors affecting Pricing decisions
484
563
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement


17. How are interstate highways numbered?
anywhere between a quarter and a third of all highway travel
Special Rates
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Substantially higher


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

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19. What could be the rationale for railroad mergers?

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20. Major commodities hauled by each mode
Sysco - Tyson Foods - Coca-Cola - and Walmart
Water
Consolidation of shipments to different destinations within the same general area.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery


21. What are the revenues of the specialized and general cargo?
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.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Class 1 - Regional - Shortline - Switching and Terminal
Specialized: $73 Billion - General: $146 Billion


22. Haulage

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23. Highway weight limitation
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
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
80 - 000 lbs
Attests to authenticity and accuracy of the goods. Performs by third party independent company


24. What is an approximate capacity of a hopper?
A pumping station
7%
100 tons
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


25. Which type of railroad cargo has the highest tonnage share 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.
Intermodal in character
Coal
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M


26. The whole history of the US railroads is a history of...
A longer combination vehicle towing more than one trailer
Consolidation
Coal - farm products - chemicals - transportation equipment
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track


27. Did the US railroads have anything to do with the creation of world time zones?
Society and customer first.
58
Yes
About 2 cents per dollar


28. Funding the railroads?
Carloads and Ton-miles
Not the government - the railroads themselves
Is likely to stay and even get worse in the future
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard


29. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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.


30. What is the difference between TOFC and COFC service?
Completely different continent - different time zones.
Move 1 single commodity and are non-stop to destination.
Specialized: $73 Billion - General: $146 Billion
One method moves the trailer on its wheels while the other moves the container


31. Private Carrier
A trucking operation that only hauls freight for the firm which owns it
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
30%
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.


32. 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%
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
7%
A pumping station


33. Trackage

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34. Cost of Service Pricing
Economies of scale
15%~13%
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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...


35. Factors contributing to the decline of Railroad use
Water
Moderate
Main penalty is the cost of lost of sales by holding the shipment.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit


36. What is Amtrak?
1500 tons
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Consolidation


37. Which economies are present in the US railroad industry?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Economies of scale
15
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


38. LTL terminals are used for connections with these operations...
The intermodal competition has increased dramatically since WW 2
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Far east to east coast or Europe to west coast - final destination is US port city
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating


39. Land Bridge
Coastal/Intercoastal - Great Lakes - Internal
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
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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


40. What factors lead to reduction of air pollution by trucks?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Highway user taxes
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


41. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
Moderate
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Carloads and Ton-miles


42. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
One method moves the trailer on its wheels while the other moves the container
484
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas


43. The problem of driver shortage in the US...
Is likely to stay and even get worse in the future
100 cars x 100 tons
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Declaration of where product was made so that appropriate duties are charged


44. Consular Invoice

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45. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
1850-1950
250 - 000


46. Unit trains
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Labor and Fuel
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Move 1 single commodity and are non-stop to destination.


47. Which government agency will investigate a major railroad accident involving public safety?
NTSB
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Break bulk - Relay - Pick up - Delivery
A contract for transportation between a shipper and the carrier - also is a cargo receipt


48. Which economies are most prominent in the trucking industry?
Main penalty is the cost of lost of sales by holding the shipment.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Economies of scope and density


49. What are the current trends in trucking?
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
484
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks


50. What are the characteristics of a block train?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
About 2 cents per dollar