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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. What is the approximate share of fixed costs of US railroads?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
30%
Society and customer first.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

2. Which type of railroad cargo has the highest tonnage share in the US?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
30 - 000 lbs and 300 miles
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Coal

3. Freight Revenue for Rail (per ton-mile)
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.
About 2 cents per dollar
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

4. What is an approximate capacity of a hopper?
After World War 2
100 tons
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Covered Hopper

5. FOB Origin/Destination
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Society and customer first.
Used for tax - manning - and relaxed regulation.
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.

6. What is Amtrak?
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
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
A trucking operation that only hauls freight for the firm which owns it
Air

7. Terms of Payment
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Used for tax - manning - and relaxed regulation.
Less than 25 carriers handle 75 to 80% of total freight dollar.

8. What are the types of railcars?
Interior Non-port cities
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

9. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
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 - Relay - Pick up - Delivery
250 - 000

10. Micro Bridge
563
About 2 cents per dollar
Labor and Fuel
Interior Non-port cities

11. Survival Based pricing
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Covering variable costs - volume and equipment utilization - and cash flow.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

12. 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.
100 tons
Transfers accountability between domestic and international carrier at the terminal
1500 tons

13. What are the reasons for the relative decline of the US railroads after World War 2?
Interior Non-port cities
A batching pig
Declaration of where product was made so that appropriate duties are charged
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

14. What is a typical fixed cost item in the motor carrier industry?
Terminal
90-s
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

15. Invoices
Sysco - Tyson Foods - Coca-Cola - and Walmart
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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

16. Which economies are most prominent in the trucking industry?
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.
Economies of scope and density
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
83.8%

17. Name the types of trucking terminals
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
Break bulk - Relay - Pick up - Delivery
Covering variable costs - volume and equipment utilization - and cash flow.

18. 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.
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Break bulk - Relay - Pick up - Delivery
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.

19. Core Carrier concept
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

20. What do the users of truck service benefit?
Consolidate orders for several customers and stop along the way for partial unloading.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Class 1 - Regional - Shortline - Switching and Terminal
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

21. What are the metrics to measure freight traffic in the motor carrier industry?
563
Water
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
ton-miles

22. What was the golden age of railroads?
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
1850-1950
A longer combination vehicle towing more than one trailer

23. Intermodal Transportation
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
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.
A trucking operation that only hauls freight for the firm which owns it

24. Skimming pricing
High price for price insensitive customers.
Main penalty is the cost of lost of sales by holding the shipment.
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
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

25. What is a public benefit of railroads?
Crushed stone - gravel and sand
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

26. Benefits of hub and spoke system
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Economies of scope and density
Less than 25 carriers handle 75 to 80% of total freight dollar.
After World War 2

27. Types of vehicles for trucking
Economies of scale
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
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

28. Labor relations in the US railroad industry?
Federal Railroad Administration (FRA)
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Less than 25 carriers handle 75 to 80% of total freight dollar.
Consolidate orders for several customers and stop along the way for partial unloading.

29. What could be the rationale for railroad mergers?

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30. Which mode has the highest carrying capacity?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Water
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

31. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Consolidation
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

32. What are the characteristics of a block train?
Main penalty is the cost of lost of sales by holding the shipment.
Transfer of function to another country - can stay within the same company!
Society and customer first.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

33. What aspects of the trucking industry is the US involved in?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

34. LTL terminals are used for connections with these operations...
Break bulk - Relay - Pick up - Delivery
Coal
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
To promote interstate commerce and strengthen the defenses of the country

35. Certificate of origin
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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
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.
Declaration of where product was made so that appropriate duties are charged

36. What commodity/goods are typically transported by railroads in the US?
Not the government - the railroads themselves
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Coal - farm products - chemicals - transportation equipment
30%

37. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
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.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Economies of scale

38. What is the current share of trucking in total transportation expenses is closest to...
83.8%
A pumping station
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Specialized: $73 Billion - General: $146 Billion

39. 1 Barge is equivalent to how many tons?
A longer combination vehicle towing more than one trailer
1500 tons
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
15%~13%

40. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Water
Federal Railroad Administration (FRA)
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

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

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42. What are the revenues of the specialized and general cargo?
1850-1950
58
Specialized: $73 Billion - General: $146 Billion
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

43. What is the difference between class 1 and class 2 carriers?
Highway user taxes
563
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

44. Factors contributing to the decline of Railroad use
484
Carloads and Ton-miles
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Moderate

45. Service competition areas in airline industry
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Crushed stone - gravel and sand
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

46. Which mode has the lowest cost per ton mile?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
One method moves the trailer on its wheels while the other moves the container
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

47. 20/80 Rule
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.
250 - 000
Less than 25 carriers handle 75 to 80% of total freight dollar.
7

48. Which economies are present in the US railroad industry?
Economies of scale
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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
NTSB

49. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Carloads and Ton-miles
Coastal/Intercoastal - Great Lakes - Internal
Moving a corporations internal activities to outside providers - mainly for cheap labor

50. What are the issues facing the US railroads?
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
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Crushed stone - gravel and sand
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service