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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. 20/80 Rule
Yes
Less than 25 carriers handle 75 to 80% of total freight dollar.
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...
One method moves the trailer on its wheels while the other moves the container

2. Stop-off
Consolidate orders for several customers and stop along the way for partial unloading.
NTSB
A batching pig
30 - 000 lbs and 300 miles

3. Which US federal government agency enforces safety regulations for railroads?
FedEx - YRC - Conway - UPS - ABF
Moving a corporations internal activities to outside providers - mainly for cheap labor
Federal Railroad Administration (FRA)
100 cars x 100 tons

4. On the average - per gallon of fuel - US railroads move a ton of freight...
484
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.
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

5. Commercial Invoice
A batching pig
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
Coal - farm products - chemicals - transportation equipment
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

6. Three kinds of ocean carriers
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.
Covering variable costs - volume and equipment utilization - and cash flow.
Labor and Fuel
A pumping station

7. Skimming pricing
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.
Is likely to stay and even get worse in the future
High price for price insensitive customers.
7

8. 1 Barge ship is equivalent to how many trucks?
58
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
ton-miles
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

9. Major commodities hauled by each mode
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.
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
7%
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

10. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
1500 tons
anywhere between a quarter and a third of all highway travel
11 hours straight or anything beyond 70 hours in 8 days
Consolidation of shipments to different destinations within the same general area.

11. What are the metrics to measure freight traffic in the motor carrier industry?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Consolidation
ton-miles
Main penalty is the cost of lost of sales by holding the shipment.

12. 1 Barge is equivalent to how many tons?
1500 tons
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
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.
Moderate

13. 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
Far east to east coast or Europe to west coast - final destination is US port city
80 - 000 lbs
About 25 cents per dollar

14. Non-vessel operating common carriers (NVOCC)
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
A contract for transportation between a shipper and the carrier - also is a cargo receipt

15. What are the current trends in the US railroad?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

16. What was the golden age of railroads?
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.
1850-1950
Completely different continent - different time zones.
7

17. What is the truck driving time limitations?
To save the railroads by giving them a chance to compete with other modes on equal footing
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.
ton-miles
11 hours straight or anything beyond 70 hours in 8 days

18. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Special Rates
A trucking operation that only hauls freight for the firm which owns it
30 - 000 lbs and 300 miles

19. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15
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.
Break bulk - Relay - Pick up - Delivery
15%~13%

20. What are the highest variable costs in the railroad industry?
Labor and Fuel
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Society and customer first.
Water

21. Labor relations in the US railroad industry?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

22. 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.
58
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

23. Offshoring
Transfer of function to another country - can stay within the same company!
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

24. Which phrase best characterizes the level of competition in the motor carrier industry?
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
15
To promote interstate commerce and strengthen the defenses of the country
The competition is intense in both TL and LTL segments

25. What are the characteristics of a block train?
Consolidation of shipments to different destinations within the same general area.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
30 - 000 lbs and 300 miles
484

26. Third Party Logistics
Water
A longer combination vehicle towing more than one trailer
7%
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...

27. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
High price for price insensitive customers.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

28. 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.
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.
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
Special Rates
Covering variable costs - volume and equipment utilization - and cash flow.

29. Pro-Forma Invoice
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

30. What are the revenues of the specialized and general cargo?
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
Specialized: $73 Billion - General: $146 Billion
Showed a marked decline

31. Consolidation
About 2 cents per dollar
Main penalty is the cost of lost of sales by holding the shipment.
58
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

32. Service competition areas in airline industry
Not the government - the railroads themselves
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
A batching pig

33. Pricing adjustment conditions
100 tons
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

34. What are the current trends in trucking?
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
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
Specialized: $73 Billion - General: $146 Billion
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

35. 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?
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.
Covered Hopper
15%~13%
A batching pig

36. Mini Bridge
Transfers accountability between domestic and international carrier at the terminal
Far east to east coast or Europe to west coast - final destination is US port city
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.
1500 tons

37. It is common for an operating ratio of motor carriers to be around these numbers...
Carloads and Ton-miles
90-s
Transfer of function to another country - can stay within the same company!
Pipeline and Rail

38. What is Amtrak?
15
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
Covering variable costs - volume and equipment utilization - and cash flow.
100 cars x 100 tons

39. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Class 1 - Regional - Shortline - Switching and Terminal
Carloads and Ton-miles
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Air

40. What commodity/goods are typically transported by railroads in the US?
Coal - farm products - chemicals - transportation equipment
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.
Break bulk - Relay - Pick up - Delivery
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

41. What was the rationale behind passing the Staggers Act of 1980?
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
The intermodal competition has increased dramatically since WW 2
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

42. What is the difference between TOFC and COFC service?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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
One method moves the trailer on its wheels while the other moves the container
Less than 25 carriers handle 75 to 80% of total freight dollar.

43. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Terminal
Less than 25 carriers handle 75 to 80% of total freight dollar.
Intermodal in character
Water

44. Certificate of origin
A longer combination vehicle towing more than one trailer
Covered Hopper
Declaration of where product was made so that appropriate duties are charged
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

45. What terms describe a type of operation 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
58
1850-1950
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

46. Intermodal Transportation
Coastal/Intercoastal - Great Lakes - Internal
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.
Transfers accountability between domestic and international carrier at the terminal
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.

47. Types and shares of cost in railroads
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Is likely to stay and even get worse in the future
58
A longer combination vehicle towing more than one trailer

48. Carrier's Operational strategies to minimize cost
Wyoming
Society and customer first.
Class 1 - Regional - Shortline - Switching and Terminal
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.

49. Factors contributing to the decline of Railroad use
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
Coal - farm products - chemicals - transportation equipment
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

50. Far-shoring
1500 tons
Completely different continent - different time zones.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Wyoming