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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. Examples of general freight
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
A longer combination vehicle towing more than one trailer
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

2. What is the empirical formula of the typical coal unit train in the US?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
100 cars x 100 tons
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

3. Which modes have the following cost structure: Low Variable and High Fixed?
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
Substantially higher
Pipeline and Rail
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

4. What do the users of truck service benefit?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Transfers accountability between domestic and international carrier at the terminal
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.

5. Stop-off
Water
Consolidate orders for several customers and stop along the way for partial unloading.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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

6. Mistakes in pricing strategy
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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.
Consolidate orders for several customers and stop along the way for partial unloading.
Less than 25 carriers handle 75 to 80% of total freight dollar.

7. The whole history of the US railroads is a history of...
Consolidation
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.
Main penalty is the cost of lost of sales by holding the shipment.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

8. What are the revenues of the specialized and general cargo?
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
Specialized: $73 Billion - General: $146 Billion
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

9. A barge tow is capable of moving how many barges?
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 closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
15
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

10. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
About 25 cents per dollar
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

11. Unit trains
15%~13%
Consolidate orders for several customers and stop along the way for partial unloading.
Showed a marked decline
Move 1 single commodity and are non-stop to destination.

12. Did the US railroads have anything to do with the creation of world time zones?
About 2 cents per dollar
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
To promote interstate commerce and strengthen the defenses of the country
Yes

13. Line of credit process

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14. Carrier's Operational strategies to minimize cost
Consolidation
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.
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.
83.8%

15. 1 Barge is equivalent to how many tons?
1500 tons
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
NTSB

16. What are the metrics to measure freight traffic in the motor carrier industry?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
ton-miles
Transfers accountability between domestic and international carrier at the terminal

17. 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
anywhere between a quarter and a third of all highway travel
Interior Non-port cities
100 tons

18. Which economies are most prominent in the trucking industry?
30 - 000 lbs and 300 miles
The intermodal competition has increased dramatically since WW 2
Economies of scope and density
58

19. Intermodal Transportation
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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

20. What is the current share of trucking in total transportation expenses is closest to...
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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
83.8%
Society and customer first.

21. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Consolidation of shipments to different destinations within the same general area.

22. Dock receipt
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Transfers accountability between domestic and international carrier at the terminal
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.
90-s

23. Factors contributing to the decline of Railroad use
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...
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Is likely to stay and even get worse in the future

24. What is a typical fixed cost item in the motor carrier industry?
563
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.
Terminal
Coastal/Intercoastal - Great Lakes - Internal

25. What was the golden age of railroads?
Substantially higher
1850-1950
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
The competition is intense in both TL and LTL segments

26. Factors affecting Pricing decisions
Specialized: $73 Billion - General: $146 Billion
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
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

27. Far-shoring
Completely different continent - different time zones.
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
83.8%
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

28. Major commodities hauled by each mode
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Wyoming
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Intermodal in character

29. Name the types of trucking terminals
Break bulk - Relay - Pick up - Delivery
A trucking operation that only hauls freight for the firm which owns it
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
A batching pig

30. On the average - per gallon of fuel - US railroads move a ton of freight...
Highway user taxes
Substantially higher
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
484

31. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Yes
15%~13%
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

32. What are the LTL carriers?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Substantially higher
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
FedEx - YRC - Conway - UPS - ABF

33. Which type of railroad cargo has the highest tonnage share in the US?
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Coal
Coastal/Intercoastal - Great Lakes - Internal
Transfers accountability between domestic and international carrier at the terminal

34. What are the highest variable costs in the railroad industry?
Labor and Fuel
Covering variable costs - volume and equipment utilization - and cash flow.
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
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. What could be the rationale for railroad mergers?

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36. Pricing adjustment conditions
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.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
To save the railroads by giving them a chance to compete with other modes on equal footing
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

37. What was the rationale behind passing the Staggers Act of 1980?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Far east to east coast or Europe to west coast - final destination is US port city
To save the railroads by giving them a chance to compete with other modes on equal footing

38. What is the approximate number of railroads in the US?
563
Break bulk - Relay - Pick up - Delivery
To promote interstate commerce and strengthen the defenses of the country
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

39. Main forms of Charter Ships
About 2 cents per dollar
Coal - farm products - chemicals - transportation equipment
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

40. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
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
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
anywhere between a quarter and a third of all highway travel
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

41. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Completely different continent - different time zones.
100 cars x 100 tons
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
30 - 000 lbs and 300 miles

42. Which mode has the highest carrying capacity?
Air
Declaration of where product was made so that appropriate duties are charged
Substantially higher
Water

43. Price variation factors in airline service
Service levels - Frequent flyer programs - Timing of flights - In advance registration
7%
About 2 cents per dollar
Showed a marked decline

44. Social Responsibility pricing
Interior Non-port cities
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Water
Society and customer first.

45. 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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

46. What are the current trends in the US railroad?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
7
Is likely to stay and even get worse in the future
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

47. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
To save the railroads by giving them a chance to compete with other modes on equal footing
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
A pumping station
1850-1950

48. Consolidation
Interior Non-port cities
Main penalty is the cost of lost of sales by holding the shipment.
Used for tax - manning - and relaxed regulation.
Economies of scope and density

49. Carriers' Technological and Equipment strategies to minimize costs
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.
Economies of scope and density
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.
Consolidation

50. The current share of railroads in total transportation expenses is closest to...
7%
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Covering variable costs - volume and equipment utilization - and cash flow.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.