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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. Land Bridge Services
Intermodal in character
Crushed stone - gravel and sand
90-s
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.

2. Flags of Convenience
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Used for tax - manning - and relaxed regulation.
A batching pig
Special Rates

3. The whole history of the US railroads is a history of...
ton-miles
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Consolidation
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

4. What are the reasons for the relative decline of the US railroads after World War 2?
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
After World War 2
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Economies of scope and density

5. Categories of major pricing decisions
250 - 000
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

6. A barge tow is capable of moving how many barges?
15
ton-miles
NTSB
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

7. Carriers' Technological and Equipment strategies to minimize costs
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
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
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.
Carloads and Ton-miles

8. Outsourcing
Moving a corporations internal activities to outside providers - mainly for cheap labor
About 2 cents per dollar
ton-miles
To promote interstate commerce and strengthen the defenses of the country

9. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Far east to east coast or Europe to west coast - final destination is US port city
Attests to authenticity and accuracy of the goods. Performs by third party independent company

10. What is the empirical formula of the typical coal unit train in the US?
Main penalty is the cost of lost of sales by holding the shipment.
100 cars x 100 tons
To save the railroads by giving them a chance to compete with other modes on equal footing
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

11. Types of vehicles for trucking
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
484
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
Economies of scale

12. What was the golden age of railroads?
1850-1950
Federal Railroad Administration (FRA)
7%
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

13. What is the primary railroad cargo out of Arkansas by tonnage?
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.
Crushed stone - gravel and sand
7
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

14. Who has the highest number of coal carloads?
Wyoming
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%
A longer combination vehicle towing more than one trailer

15. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

16. What is the approximate share of fixed costs of US railroads?
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
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Coal - farm products - chemicals - transportation equipment
30%

17. What is the current share of trucking in total transportation expenses is closest to...
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
83.8%
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Coal

18. 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.
The intermodal competition has increased dramatically since WW 2
80 - 000 lbs
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

19. What are the LTL carriers?
30%
FedEx - YRC - Conway - UPS - ABF
Not the government - the railroads themselves
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

20. Freight Revenue for Rail (per ton-mile)
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).
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
About 2 cents per dollar

21. What could be the rationale for railroad mergers?

22. Value of Service pricing
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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
Not the government - the railroads themselves
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

23. Which economies are most prominent in the trucking industry?
After World War 2
Economies of scope and density
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
250 - 000

24. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
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
15%~13%
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
A pumping station

25. Ways to classify the motor carriers
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Service levels - Frequent flyer programs - Timing of flights - In advance registration
250 - 000
A batching pig

26. Types and shares of cost in railroads
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Interior Non-port cities
Coastal/Intercoastal - Great Lakes - Internal
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

27. What are the two primary operational indicators in the railroad industry?
100 tons
NTSB
Carloads and Ton-miles
Pipeline and Rail

28. 1 Barge is equivalent to how many tons?
The competition is intense in both TL and LTL segments
Economies of scale
1500 tons
Moving a corporations internal activities to outside providers - mainly for cheap labor

29. Social Responsibility pricing
Society and customer first.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Coal - farm products - chemicals - transportation equipment
58

30. 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?
Class 1 - Regional - Shortline - Switching and Terminal
Economies of scale
A batching pig
To promote interstate commerce and strengthen the defenses of the country

31. Government is involved in which aspects of the railroad business?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

32. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
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
To promote interstate commerce and strengthen the defenses of the country
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Water

33. What is an approximate capacity of a hopper?
About 25 cents per dollar
100 tons
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
7%

34. Name the types of trucking terminals
Water
Break bulk - Relay - Pick up - Delivery
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

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

36. Drayage
Covered Hopper
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
A batching pig

37. What are the generally accepted classifications of railroads?
100 tons
Class 1 - Regional - Shortline - Switching and Terminal
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Main penalty is the cost of lost of sales by holding the shipment.

38. LTL terminals are used for connections with these operations...
anywhere between a quarter and a third of all highway travel
Water
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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

39. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Main penalty is the cost of lost of sales by holding the shipment.
A pumping station
30%
Far east to east coast or Europe to west coast - final destination is US port city

40. Mini Bridge
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
To save the railroads by giving them a chance to compete with other modes on equal footing
Far east to east coast or Europe to west coast - final destination is US port city

41. Third Party Logistics
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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...
Water
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

42. What are the current trends in trucking?
30%
90-s
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
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

43. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Interior Non-port cities
Water
Pipeline and Rail
Consolidate orders for several customers and stop along the way for partial unloading.

44. Pricing adjustment conditions
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Main penalty is the cost of lost of sales by holding the shipment.
Society and customer first.
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. Certificate of Inspection
Wyoming
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Used for tax - manning - and relaxed regulation.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

46. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Water
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Covered Hopper
Sysco - Tyson Foods - Coca-Cola - and Walmart

47. Micro Bridge
Highway user taxes
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Interior Non-port cities

48. Major commodities hauled by each mode
Substantially higher
11 hours straight or anything beyond 70 hours in 8 days
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Showed a marked decline

49. Certificate of origin
Highway user taxes
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Declaration of where product was made so that appropriate duties are charged
90-s

50. What is the difference between TOFC and COFC service?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
One method moves the trailer on its wheels while the other moves the container
High price for price insensitive customers.
Declaration of where product was made so that appropriate duties are charged