Transportation Logistics

Instructions:

• Answer 50 questions in 15 minutes.
• If you are not ready to take this test, you can study here.
• Match each statement with the correct term.
• Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Not the government - the railroads themselves
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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


2. Mistakes in pricing strategy
Consolidation of shipments to different destinations within the same general area.
7
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.
Coal - farm products - chemicals - transportation equipment


3. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Water


4. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
30 - 000 lbs and 300 miles
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
80 - 000 lbs


5. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Carloads and Ton-miles
A pumping station
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
15


6. What companies are players in private carriage?
250 - 000
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Sysco - Tyson Foods - Coca-Cola - and Walmart
Terminal


7. Non-vessel operating common carriers (NVOCC)
Crushed stone - gravel and sand
Economies of scale
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas


8. The current share of railroads in total transportation expenses is closest to...
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Water
7%
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


9. What is the primary railroad cargo out of Arkansas by tonnage?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Crushed stone - gravel and sand
7
Federal Railroad Administration (FRA)


10. Factors contributing to the decline of Railroad use
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Service levels - Frequent flyer programs - Timing of flights - In advance registration
30%


11. Types of vehicles for trucking
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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
Federal Railroad Administration (FRA)


12. Which mode has the lowest cost per ton mile?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative


13. Value of Service pricing
Transfers accountability between domestic and international carrier at the terminal
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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north


14. What term is related to railroad operations?
Interior Non-port cities
7
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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


15. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
250 - 000
Pipeline and Rail
High price for price insensitive customers.
A longer combination vehicle towing more than one trailer


16. Carriers' Technological and Equipment strategies to minimize costs
58
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
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


17. What is the truck driving time limitations?
100 tons
Labor and Fuel
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
11 hours straight or anything beyond 70 hours in 8 days


18. Trackage

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19. What could be the rationale for railroad mergers?

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20. What were the reasons for the erosion of the railroad dominance in transportation in the US?

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21. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Air
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.
58
Terminal


22. Consular Invoice

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23. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
To promote interstate commerce and strengthen the defenses of the country
Carloads and Ton-miles
Economies of scope and density
Air


24. On the average - per gallon of fuel - US railroads move a ton of freight...
Specialized: $73 Billion - General: $146 Billion
484
83.8%
Economies of scale


25. Ways to classify the motor carriers
Yes
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook


26. The whole history of the US railroads is a history of...
Consolidation
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Coal


27. What are the LTL carriers?
A contract for transportation between a shipper and the carrier - also is a cargo receipt
FedEx - YRC - Conway - UPS - ABF
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


28. Offshoring
Substantially higher
Transfer of function to another country - can stay within the same company!
Society and customer first.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight


29. What terms describe a type of operation in trucking?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
100 cars x 100 tons
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook


30. A barge tow is capable of moving how many barges?
15
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Declaration of where product was made so that appropriate duties are charged
7


31. Freight Revenue for Truck/Motor (per ton-mile)
11 hours straight or anything beyond 70 hours in 8 days
About 25 cents per dollar
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Terminal


32. Carrier's Operational strategies to minimize cost
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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.
484


33. Although the Interstate Highway System accounts for about 1% of total public road mileage - it carries...
Covering variable costs - volume and equipment utilization - and cash flow.
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
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.


34. Consolidation
Economies of scale
A longer combination vehicle towing more than one trailer
Main penalty is the cost of lost of sales by holding the shipment.
Class 1 - Regional - Shortline - Switching and Terminal


35. Micro Bridge
1850-1950
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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.
Interior Non-port cities


36. Line of credit process

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37. What are the two primary operational indicators in the railroad industry?
80 - 000 lbs
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Carloads and Ton-miles


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


39. Skimming pricing
A pumping station
Economies of scope and density
High price for price insensitive customers.
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.


40. Social Responsibility pricing
Consolidation
15%~13%
Society and customer first.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north


41. Service competition areas in airline industry
Main penalty is the cost of lost of sales by holding the shipment.
58
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)


42. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
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
30 - 000 lbs and 300 miles
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
7%


43. Pro-Forma Invoice
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
A pumping station
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion


44. What do the users of truck service benefit?
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.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
15
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.


45. What was the rationale behind passing the Staggers Act of 1980?
To save the railroads by giving them a chance to compete with other modes on equal footing
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.
A batching pig


46. Which economies are most prominent in the trucking industry?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Economies of scope and density
Pipeline and Rail


47. What is the approximate number of railroads in the US?
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.
563
Consolidation
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard


48. What is an approximate capacity of a hopper?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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
NTSB
100 tons


49. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage


50. Which government agency will investigate a major railroad accident involving public safety?
NTSB
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
To promote interstate commerce and strengthen the defenses of the country