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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. Funding the railroads?
Not the government - the railroads themselves
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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
High price for price insensitive customers.

2. Social Responsibility pricing
Transfer of function to another country - can stay within the same company!
Society and customer first.
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.
Interior Non-port cities

3. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Class 1 - Regional - Shortline - Switching and Terminal
15%~13%
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
anywhere between a quarter and a third of all highway travel

4. What commodity/goods are typically transported by railroads in the US?
A trucking operation that only hauls freight for the firm which owns it
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...
Coal - farm products - chemicals - transportation equipment
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

5. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
After World War 2
Air
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Less than 25 carriers handle 75 to 80% of total freight dollar.

6. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Showed a marked decline
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Is likely to stay and even get worse in the future

7. Highway weight limitation
80 - 000 lbs
Specialized: $73 Billion - General: $146 Billion
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.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

8. Which Mode of Transportation has the highest volume in tonnage?
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
anywhere between a quarter and a third of all highway travel
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
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

9. Far-shoring
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Completely different continent - different time zones.
One method moves the trailer on its wheels while the other moves the container

10. What is the difference between TOFC and COFC service?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
One method moves the trailer on its wheels while the other moves the container
A batching pig
About 2 cents per dollar

11. Examples of general freight
Class 1 - Regional - Shortline - Switching and Terminal
Far east to east coast or Europe to west coast - final destination is US port city
Specialized: $73 Billion - General: $146 Billion
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

12. What companies are players in private carriage?
Class 1 - Regional - Shortline - Switching and Terminal
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

13. Which economies are most prominent in the trucking industry?
Special Rates
ton-miles
Economies of scope and density
Consolidation

14. Invoices
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
ton-miles
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Used for tax - manning - and relaxed regulation.

15. Haulage

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16. Which government agency will investigate a major railroad accident involving public safety?
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Federal Railroad Administration (FRA)
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
NTSB

17. Commercial Invoice
Water
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
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Coastal/Intercoastal - Great Lakes - Internal

18. What are the metrics to measure freight traffic in the motor carrier industry?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
90-s
ton-miles
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

19. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Specialized: $73 Billion - General: $146 Billion
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

20. Did the US railroads have anything to do with the creation of world time zones?
Yes
Coal
Substantially higher
100 cars x 100 tons

21. Which phrase best characterizes the level of competition in the motor carrier industry?
The competition is intense in both TL and LTL segments
7
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
100 cars x 100 tons

22. Micro Bridge
Class 1 - Regional - Shortline - Switching and Terminal
Gov't aid to develop air service - Gov't funding of highways - Construction of inland waterways - Growing preference of shippers for more frequent deliveries and smaller shipments
Interior Non-port cities
Federal Railroad Administration (FRA)

23. LTL terminals are used for connections with these operations...
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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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

24. What aspects of the trucking industry is the US involved in?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
NTSB
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

25. Private Carrier
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Less than 25 carriers handle 75 to 80% of total freight dollar.
Gov't aid to develop air service - Gov't funding of highways - Construction of inland waterways - Growing preference of shippers for more frequent deliveries and smaller shipments
A trucking operation that only hauls freight for the firm which owns it

26. Class Rate Calculations
Gov't aid to develop air service - Gov't funding of highways - Construction of inland waterways - Growing preference of shippers for more frequent deliveries and smaller shipments
83.8%
Coal - farm products - chemicals - transportation equipment
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.

27. What are the major causes of general traffic congestions?
Water
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
To promote interstate commerce and strengthen the defenses of the country

28. Who has the highest number of coal carloads?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Wyoming
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

29. What do the users of truck service benefit?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

30. What are the LTL carriers?
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.
Intermodal in character
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.
FedEx - YRC - Conway - UPS - ABF

31. The problem of driver shortage in the US...
Is likely to stay and even get worse in the future
Highway user taxes
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

32. Bill of Lading
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.
Wyoming
Coal
A contract for transportation between a shipper and the carrier - also is a cargo receipt

33. Intermodal Transportation
250 - 000
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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.
Coal - farm products - chemicals - transportation equipment

34. What is the approximate number of railroads in the US?
1850-1950
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
563
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

35. What factors lead to reduction of air pollution by trucks?
Intermodal in character
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
83.8%
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...

36. Pro-Forma Invoice
A pumping station
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

37. Carrier's Operational strategies to minimize cost
A trucking operation that only hauls freight for the firm which owns it
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.
100 tons
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.

38. 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.
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
A longer combination vehicle towing more than one trailer
30 - 000 lbs and 300 miles

39. What are the characteristics of a block train?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Moderate
100 cars x 100 tons
The competition is intense in both TL and LTL segments

40. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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
15%~13%
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

41. 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
Consolidate orders for several customers and stop along the way for partial unloading.
About 2 cents per dollar

42. Third Party Logistics
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

43. What is a road train?
Is likely to stay and even get worse in the future
A longer combination vehicle towing more than one trailer
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.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

44. Which modes have the following cost structure: Low Variable and High Fixed?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Intermodal in character
Pipeline and Rail
80 - 000 lbs

45. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
A pumping station
Water
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

46. Name the 3 types of water carriers
Coastal/Intercoastal - Great Lakes - Internal
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.
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
Sysco - Tyson Foods - Coca-Cola - and Walmart

47. What is a typical fixed cost item in the motor carrier industry?
Substantially higher
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.
Terminal
Society and customer first.

48. Line of credit process

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49. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
FedEx - YRC - Conway - UPS - ABF
Moving a corporations internal activities to outside providers - mainly for cheap labor
To promote interstate commerce and strengthen the defenses of the country
100 cars x 100 tons

50. A barge tow is capable of moving how many barges?
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
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
15
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car