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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 was the golden age of railroads?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
1850-1950
Air
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

2. Offshoring
Break bulk - Relay - Pick up - Delivery
250 - 000
Transfer of function to another country - can stay within the same company!
Moving a corporations internal activities to outside providers - mainly for cheap labor

3. Where does funding for the roads come from?
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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
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.
Highway user taxes

4. Mini Bridge
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
7%
Far east to east coast or Europe to west coast - final destination is US port city
Not the government - the railroads themselves

5. How to assess the operating ratio?
ton-miles
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
One method moves the trailer on its wheels while the other moves the container
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

6. Four types of Liner Service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Far east to east coast or Europe to west coast - final destination is US port city
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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.

7. 1 Barge ship is equivalent to how many trucks?
80 - 000 lbs
58
High price for price insensitive customers.
Coal - farm products - chemicals - transportation equipment

8. 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
Economies of scope and density
Far east to east coast or Europe to west coast - final destination is US port city
90-s

9. Which government agency will investigate a major railroad accident involving public safety?
15
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
NTSB
Is likely to stay and even get worse in the future

10. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
A pumping station
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
One method moves the trailer on its wheels while the other moves the container

11. Price variation factors in airline service
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
One method moves the trailer on its wheels while the other moves the container
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Showed a marked decline

12. Which economies are most prominent in the trucking industry?
Specialized: $73 Billion - General: $146 Billion
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Economies of scope and density
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. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
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
Air
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
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.

14. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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.
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.

15. Carrier's Operational strategies to minimize cost
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Intermodal in character
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.
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.

16. Drayage
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
100 cars x 100 tons
Move 1 single commodity and are non-stop to destination.
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

17. 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.
High price for price insensitive customers.
58
Intermodal in character

18. LTL terminals are used for connections with these operations...
To promote interstate commerce and strengthen the defenses of the country
After World War 2
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

19. Service competition areas in airline industry
Less than 25 carriers handle 75 to 80% of total freight dollar.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Declaration of where product was made so that appropriate duties are charged
ton-miles

20. Which Mode of Transportation has the highest volume in tonnage?
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.
The competition is intense in both TL and LTL segments
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%

21. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
Coastal/Intercoastal - Great Lakes - Internal
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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.

22. Pro-Forma Invoice
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Crushed stone - gravel and sand
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Pipeline and Rail

23. Categories of major pricing decisions
Wyoming
30%
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.
Terminal

24. How does the US railroad industry compete with other modes?
The intermodal competition has increased dramatically since WW 2
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
Society and customer first.
Covered Hopper

25. Commercial Invoice
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.
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.
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
Wyoming

26. Labor relations in the US railroad industry?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Air
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

27. Three kinds of ocean carriers
NTSB
Coal - farm products - chemicals - transportation equipment
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.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

28. Factors affecting Pricing decisions
Coastal/Intercoastal - Great Lakes - Internal
Economies of scope and density
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Air

29. Freight Revenue for Rail (per ton-mile)
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
About 2 cents per dollar
Used for tax - manning - and relaxed regulation.
To promote interstate commerce and strengthen the defenses of the country

30. Survival Based pricing
A longer combination vehicle towing more than one trailer
A trucking operation that only hauls freight for the firm which owns it
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Covering variable costs - volume and equipment utilization - and cash flow.

31. The status of competition within the US railroad industry?
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
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

32. Consular Invoice

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33. On the average - per gallon of fuel - US railroads move a ton of freight...
7%
Completely different continent - different time zones.
484
About 25 cents per dollar

34. 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.
One method moves the trailer on its wheels while the other moves the container
Interior Non-port cities
Covered Hopper

35. Which mode has the highest carrying capacity?
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Water

36. Name the types of trucking terminals
Yes
Break bulk - Relay - Pick up - Delivery
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

37. What is the trend for the miles of road over the past 50 years in the US railroad industry?
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
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
High price for price insensitive customers.
Showed a marked decline

38. What are the metrics to measure freight traffic in the motor carrier industry?
Consolidate orders for several customers and stop along the way for partial unloading.
250 - 000
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
ton-miles

39. Benefits of hub and spoke system
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
100 cars x 100 tons
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

40. What are the revenues of the specialized and general cargo?
100 cars x 100 tons
Specialized: $73 Billion - General: $146 Billion
To promote interstate commerce and strengthen the defenses of the country
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

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

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42. Which US federal government agency enforces safety regulations for railroads?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Federal Railroad Administration (FRA)
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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.

43. Third Party Logistics
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
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
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...
100 tons

44. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Special Rates
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
250 - 000
Moving a corporations internal activities to outside providers - mainly for cheap labor

45. Names of the Class 1 railroads?
About 25 cents per dollar
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

46. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
80 - 000 lbs
anywhere between a quarter and a third of all highway travel
100 cars x 100 tons

47. Did the US railroads have anything to do with the creation of world time zones?
Yes
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
Carloads and Ton-miles

48. FOB Origin/Destination
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Sysco - Tyson Foods - Coca-Cola - and Walmart
7%

49. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents 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

50. Cost of Service Pricing
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Water
To promote interstate commerce and strengthen the defenses of the country
NTSB