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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. Far-shoring
Highway user taxes
Completely different continent - different time zones.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
250 - 000

2. How are airport hub/spoke and LTL breakbulk similar?
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
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.
100 cars x 100 tons
Class 1 - Regional - Shortline - Switching and Terminal

3. Dock receipt
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.
Transfers accountability between domestic and international carrier at the terminal
Is likely to stay and even get worse in the future
Completely different continent - different time zones.

4. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Showed a marked decline
Consolidate orders for several customers and stop along the way for partial unloading.

5. Pricing adjustment conditions
ton-miles
Transfer of function to another country - can stay within the same company!
Less than 25 carriers handle 75 to 80% of total freight dollar.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

6. Funding the railroads?
Labor and Fuel
Transfer of function to another country - can stay within the same company!
Not the government - the railroads themselves
100 tons

7. Commercial Invoice
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
A pumping station
100 cars x 100 tons
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

8. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Intermodal in character
Consolidate orders for several customers and stop along the way for partial unloading.

9. Invoices
484
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Move 1 single commodity and are non-stop to destination.

10. What is the approximate number of railroads in the US?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
563
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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

11. What are the two primary operational indicators in the railroad industry?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
30 - 000 lbs and 300 miles
ton-miles
Carloads and Ton-miles

12. 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.
anywhere between a quarter and a third of all highway travel
Break bulk - Relay - Pick up - Delivery
Special Rates
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

13. Drayage
30 - 000 lbs and 300 miles
563
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 pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

14. What is the truck driving time limitations?
Moving a corporations internal activities to outside providers - mainly for cheap labor
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 cars x 100 tons
11 hours straight or anything beyond 70 hours in 8 days

15. What are the reasons for the relative decline of the US railroads after World War 2?
Showed a marked decline
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
250 - 000
Air

16. What is an approximate capacity of a hopper?
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
100 tons
A contract for transportation between a shipper and the carrier - also is a cargo receipt

17. Pro-Forma Invoice
90-s
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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.

18. 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
Society and customer first.
90-s
NTSB

19. Core Carrier concept
About 25 cents per dollar
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Declaration of where product was made so that appropriate duties are charged
15

20. 1 Barge ship is equivalent to how many trucks?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Labor and Fuel
58
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

21. Unit trains
Move 1 single commodity and are non-stop to destination.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

22. What commodity/goods are typically transported by railroads in the US?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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.
Coal - farm products - chemicals - transportation equipment

23. Skimming pricing
Federal Railroad Administration (FRA)
High price for price insensitive customers.
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.
Used for tax - manning - and relaxed regulation.

24. How many Class 1 freight railroads are there?
Covering variable costs - volume and equipment utilization - and cash flow.
7
Economies of scope and density
After World War 2

25. Third Party Logistics
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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...

26. What was the golden age of railroads?
Completely different continent - different time zones.
Main penalty is the cost of lost of sales by holding the shipment.
Covered Hopper
1850-1950

27. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

28. What are the metrics to measure freight traffic in the motor carrier industry?
One method moves the trailer on its wheels while the other moves the container
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
ton-miles

29. Land Bridge
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Labor and Fuel
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

30. The status of competition within the US railroad industry?
Moderate
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Specialized: $73 Billion - General: $146 Billion
Society and customer first.

31. Mini Bridge
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.
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
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
Far east to east coast or Europe to west coast - final destination is US port city

32. Freight revenue for Modes (per ton-mile)
Special Rates
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
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.

33. What are the current trends in the US railroad?
15
30%
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

34. It is common for an operating ratio of motor carriers to be around these numbers...
Interior Non-port cities
90-s
Consolidate orders for several customers and stop along the way for partial unloading.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

35. Value of Service pricing
Consolidation of shipments to different destinations within the same general area.
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
High price for price insensitive customers.

36. Three kinds of ocean carriers
Completely different continent - different time zones.
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.
FedEx - YRC - Conway - UPS - ABF
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.

37. 1 Barge is equivalent to how many tons?
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
1500 tons
NTSB
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

38. Cost of Service Pricing
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.
Used for tax - manning - and relaxed regulation.
Move 1 single commodity and are non-stop to destination.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

39. 20/80 Rule
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
Main penalty is the cost of lost of sales by holding the shipment.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Less than 25 carriers handle 75 to 80% of total freight dollar.

40. LTL terminals are used for connections with these operations...
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Intermodal in character
The intermodal competition has increased dramatically since WW 2

41. What is the approximate share of fixed costs of US railroads?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Air
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
30%

42. Categories of major pricing decisions
Not the government - the railroads themselves
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.
Coastal/Intercoastal - Great Lakes - Internal
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

43. Labor relations in the US railroad industry?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Sysco - Tyson Foods - Coca-Cola - and Walmart
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Interior Non-port cities

44. What are the revenues of the specialized and general cargo?
A longer combination vehicle towing more than one trailer
Less than 25 carriers handle 75 to 80% of total freight dollar.
Specialized: $73 Billion - General: $146 Billion
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

45. Who has the highest number of coal carloads?
Transfers accountability between domestic and international carrier at the terminal
Wyoming
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
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...

46. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Showed a marked decline
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

47. Certificate of origin
Covering variable costs - volume and equipment utilization - and cash flow.
Declaration of where product was made so that appropriate duties are charged
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.
FedEx - YRC - Conway - UPS - ABF

48. Did the US railroads have anything to do with the creation of world time zones?
Showed a marked decline
Yes
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
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.

49. Price variation factors in airline service
ton-miles
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.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

50. Factors affecting Pricing decisions
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
About 25 cents per dollar