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Transportation Logistics

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Answer 50 questions in 15 minutes.
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1. 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
NTSB
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

2. The status of competition within the US railroad industry?
Main penalty is the cost of lost of sales by holding the shipment.
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Moderate

3. What was the rationale behind passing the Staggers Act of 1980?
Interior Non-port cities
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
To save the railroads by giving them a chance to compete with other modes on equal footing
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

4. 1. Character of shipment rates: LTL/TL rates - multiple-car rates - incentive rates - unit train rates - density rates... 2. Area - location or route rates: Local rates - joint rates - proportional rates - differential rates - per mile rate.
Special Rates
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.
To save the railroads by giving them a chance to compete with other modes on equal footing
After World War 2

5. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
58
Water
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
Crushed stone - gravel and sand

6. Micro Bridge
Interior Non-port cities
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
1850-1950
Service levels - Frequent flyer programs - Timing of flights - In advance registration

7. Non-vessel operating common carriers (NVOCC)
Covering variable costs - volume and equipment utilization - and cash flow.
Coastal/Intercoastal - Great Lakes - Internal
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

8. Near-shoring
Declaration of where product was made so that appropriate duties are charged
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.
Less than 25 carriers handle 75 to 80% of total freight dollar.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

9. 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
Special Rates
7
A trucking operation that only hauls freight for the firm which owns it

10. Certificate of Inspection
Service levels - Frequent flyer programs - Timing of flights - In advance registration
One method moves the trailer on its wheels while the other moves the container
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Break bulk - Relay - Pick up - Delivery

11. What commodity/goods are typically transported by railroads in the US?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Coal - farm products - chemicals - transportation equipment
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Consolidation of shipments to different destinations within the same general area.

12. Did the US railroads have anything to do with the creation of world time zones?
Main penalty is the cost of lost of sales by holding the shipment.
Yes
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

13. 1 Barge is equivalent to how many tons?
1500 tons
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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

14. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Moderate
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
Showed a marked decline
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

15. Four types of Liner Service
Is likely to stay and even get worse in the future
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Specialized: $73 Billion - General: $146 Billion
Special Rates

16. Name the types of trucking terminals
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
30%
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
Break bulk - Relay - Pick up - Delivery

17. What are the characteristics of a block train?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Economies of scale
90-s
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

18. Outsourcing
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.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Moving a corporations internal activities to outside providers - mainly for cheap labor
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

19. On the average - per gallon of fuel - US railroads move a ton of freight...
484
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...
Economies of scope and density
Move 1 single commodity and are non-stop to destination.

20. 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
Moderate
Is likely to stay and even get worse in the future
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

21. Freight revenue for Modes (per ton-mile)
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

22. Which modes have the following cost structure: Low Variable and High Fixed?
58
Specialized: $73 Billion - General: $146 Billion
Pipeline and Rail
Transfers accountability between domestic and international carrier at the terminal

23. 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?
A batching pig
Substantially higher
Consolidate orders for several customers and stop along the way for partial unloading.
100 tons

24. What are the major causes of general traffic congestions?
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
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

25. Carrier's Operational strategies to minimize cost
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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.
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
Showed a marked decline

26. What companies are players in private carriage?
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
Sysco - Tyson Foods - Coca-Cola - and Walmart
Consolidation
Transfer of function to another country - can stay within the same company!

27. How are interstate highways numbered?
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...
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

28. Survival Based pricing
Crushed stone - gravel and sand
Covering variable costs - volume and equipment utilization - and cash flow.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

29. Value of Service pricing
Specialized: $73 Billion - General: $146 Billion
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
1500 tons
Consolidation

30. Carriers' Technological and Equipment strategies to minimize costs
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.
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.
Showed a marked decline
Attests to authenticity and accuracy of the goods. Performs by third party independent company

31. Line of credit process

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32. FOB Origin/Destination
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
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

33. What are the LTL carriers?
FedEx - YRC - Conway - UPS - ABF
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Economies of scale
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

34. Certificate of origin
Not the government - the railroads themselves
Declaration of where product was made so that appropriate duties are charged
Coastal/Intercoastal - Great Lakes - Internal
30 - 000 lbs and 300 miles

35. What is the difference between TOFC and COFC service?
One method moves the trailer on its wheels while the other moves the container
15%~13%
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.
ton-miles

36. Which mode has the highest carrying capacity?
Declaration of where product was made so that appropriate duties are charged
A contract for transportation between a shipper and the carrier - also is a cargo receipt
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

37. Which US federal government agency enforces safety regulations for railroads?
Federal Railroad Administration (FRA)
A longer combination vehicle towing more than one trailer
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

38. It is common for an operating ratio of motor carriers to be around these numbers...
90-s
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Interior Non-port cities
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

39. What is the truck driving time limitations?
Coal - farm products - chemicals - transportation equipment
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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
11 hours straight or anything beyond 70 hours in 8 days

40. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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.
Air
Sysco - Tyson Foods - Coca-Cola - and Walmart

41. What are the metrics to measure freight traffic in the motor carrier industry?
Consolidation of shipments to different destinations within the same general area.
Completely different continent - different time zones.
ton-miles
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

42. Which type of railroad cargo has the highest tonnage share in the US?
Coal
Is likely to stay and even get worse in the future
Water
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

43. Trackage

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44. Social Responsibility pricing
The competition is intense in both TL and LTL segments
Society and customer first.
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
1500 tons

45. The current share of railroads in total transportation expenses is closest to...
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
7%
Declaration of where product was made so that appropriate duties are charged
FedEx - YRC - Conway - UPS - ABF

46. What are the generally accepted classifications of railroads?
A batching pig
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.
Class 1 - Regional - Shortline - Switching and Terminal
Crushed stone - gravel and sand

47. Core Carrier concept
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Transfers accountability between domestic and international carrier at the terminal
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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.

48. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Labor and Fuel
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

49. Names of the Class 1 railroads?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
One method moves the trailer on its wheels while the other moves the container

50. Consular Invoice

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Transportation Logistics

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