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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. Class Rate Calculations
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
1850-1950
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.

2. Three kinds of ocean carriers
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The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.
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.

3. What is the truck driving time limitations?
83.8%
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
11 hours straight or anything beyond 70 hours in 8 days
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

4. What is the empirical formula of the typical coal unit train in the US?
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
Interior Non-port cities
100 cars x 100 tons
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.

5. Four types of Liner Service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
1850-1950
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
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

6. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
A longer combination vehicle towing more than one trailer
Economies of scope and density
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

7. Categories of major pricing decisions
The competition is intense in both TL and LTL segments
One method moves the trailer on its wheels while the other moves the container
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 number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

8. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
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.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Economies of scope and density

9. What is a typical fixed cost item in the motor carrier industry?
About 25 cents per dollar
Terminal
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Showed a marked decline

10. What terms describe a type of operation in trucking?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

11. 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
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
250 - 000

12. Which mode has the highest carrying capacity?
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
Water
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.

13. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Water
Interior Non-port cities
Coal - farm products - chemicals - transportation equipment
FedEx - YRC - Conway - UPS - ABF

14. Non-vessel operating common carriers (NVOCC)
High price for price insensitive customers.
About 2 cents per dollar
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

15. Terms of Payment
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
1500 tons
Covering variable costs - volume and equipment utilization - and cash flow.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

16. Value of Service pricing
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
58
A batching pig
Transfer of function to another country - can stay within the same company!

17. What factors lead to reduction of air pollution by trucks?
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
ton-miles
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.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

18. Flags of Convenience
Used for tax - manning - and relaxed regulation.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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 development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

19. Skimming pricing
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Transfers accountability between domestic and international carrier at the terminal
High price for price insensitive customers.
80 - 000 lbs

20. What were the reasons for the erosion of the railroad dominance in transportation in the US?

21. What are the current trends in the US railroad?
Society and customer first.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.
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

22. 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
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.
Used for tax - manning - and relaxed regulation.
58

23. FOB Origin/Destination
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
To promote interstate commerce and strengthen the defenses of the country
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

24. Pro-Forma Invoice
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
A trucking operation that only hauls freight for the firm which owns it
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

25. Dock receipt
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.

26. How many Class 1 freight railroads are there?
7
Labor and Fuel
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Sysco - Tyson Foods - Coca-Cola - and Walmart

27. What are the highest variable costs in the railroad industry?
Transfers accountability between domestic and international carrier at the terminal
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Coal
Labor and Fuel

28. Which phrase best characterizes the level of competition in the motor carrier industry?
Wyoming
A longer combination vehicle towing more than one trailer
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
The competition is intense in both TL and LTL segments

29. What is a road train?
A longer combination vehicle towing more than one trailer
Water
Specialized: $73 Billion - General: $146 Billion
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

30. Core Carrier concept
Moderate
High price for price insensitive customers.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

31. 1 Barge ship is equivalent to how many trucks?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
58
484
80 - 000 lbs

32. Carriers' Technological and Equipment strategies to minimize costs
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.
Federal Railroad Administration (FRA)
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Break bulk - Relay - Pick up - Delivery

33. UNCTAD liner code 40-40-20
Carloads and 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
Used for tax - manning - and relaxed regulation.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

34. 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?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
The competition is intense in both TL and LTL segments
A batching pig

35. Which economies are most prominent in the trucking industry?
Coastal/Intercoastal - Great Lakes - Internal
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Not the government - the railroads themselves
Economies of scope and density

36. What are the metrics to measure freight traffic in the motor carrier industry?
ton-miles
A trucking operation that only hauls freight for the firm which owns it
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.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

37. 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
Substantially higher
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

38. What is the primary railroad cargo out of Arkansas by tonnage?
1850-1950
11 hours straight or anything beyond 70 hours in 8 days
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Crushed stone - gravel and sand

39. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Terminal
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

40. Survival Based pricing
Covering variable costs - volume and equipment utilization - and cash flow.
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
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

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

42. Types and shares of cost in railroads
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Yes
83.8%
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

43. Labor relations in the US railroad industry?
To save the railroads by giving them a chance to compete with other modes on equal footing
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Consolidation of shipments to different destinations within the same general area.

44. Who has the highest number of coal carloads?
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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...
Terminal
Wyoming

45. What are the generally accepted classifications of railroads?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Class 1 - Regional - Shortline - Switching and Terminal

46. Pooling
Consolidation of shipments to different destinations within the same general area.
The competition is intense in both TL and LTL segments
Moderate
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

47. Types of vehicles for trucking
Labor and Fuel
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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
Carloads and Ton-miles

48. Freight Revenue for Rail (per ton-mile)
Less than 25 carriers handle 75 to 80% of total freight dollar.
About 2 cents per dollar
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

49. How are airport hub/spoke and LTL breakbulk similar?
About 25 cents per dollar
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.
Showed a marked decline
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

50. What is an approximate capacity of a hopper?
Interior Non-port cities
100 tons
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%