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

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2. What companies are players in private carriage?
11 hours straight or anything beyond 70 hours in 8 days
Interior Non-port cities
A batching pig
Sysco - Tyson Foods - Coca-Cola - and Walmart


3. What was the golden age of railroads?
1850-1950
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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.
Covered Hopper


4. Four types of Liner Service
80 - 000 lbs
Sysco - Tyson Foods - Coca-Cola - and Walmart
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
The intermodal competition has increased dramatically since WW 2


5. Survival Based pricing
Specialized: $73 Billion - General: $146 Billion
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Covering variable costs - volume and equipment utilization - and cash flow.


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

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7. Where does funding for the roads come from?
Highway user taxes
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
A batching pig
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas


8. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
250 - 000
100 tons
80 - 000 lbs
Consolidation of shipments to different destinations within the same general area.


9. What is a public benefit of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Economies of scale
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods


10. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
100 cars x 100 tons
Specialized: $73 Billion - General: $146 Billion
Break bulk - Relay - Pick up - Delivery


11. What are the two primary operational indicators in the railroad industry?
Intermodal in character
Carloads and Ton-miles
Terminal
Economies of scale


12. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Covering variable costs - volume and equipment utilization - and cash flow.
Substantially higher


13. Labor relations in the US railroad industry?
Wyoming
563
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Consolidate orders for several customers and stop along the way for partial unloading.


14. Freight Revenue for Rail (per ton-mile)
A trucking operation that only hauls freight for the firm which owns it
About 2 cents per dollar
Coastal/Intercoastal - Great Lakes - Internal
Attests to authenticity and accuracy of the goods. Performs by third party independent company


15. 1 Barge is equivalent to how many tons?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
58
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
1500 tons


16. What are the highest variable costs in the railroad industry?
Consolidate orders for several customers and stop along the way for partial unloading.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Labor and Fuel
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.


17. Class Rate Calculations
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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
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.


18. It is common for an operating ratio of motor carriers to be around these numbers...
Coal
100 cars x 100 tons
90-s
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


19. Freight revenue for Modes (per ton-mile)
90-s
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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...


20. Terms of Payment
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Yes
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track


21. What is the difference between class 1 and class 2 carriers?
90-s
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
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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


22. What do the users of truck service benefit?
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
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
250 - 000
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes


23. Which Mode of Transportation has the highest volume in tonnage?
Attests to authenticity and accuracy of the goods. Performs by third party independent company
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Far east to east coast or Europe to west coast - final destination is US port city


24. Land Bridge Services
Intermodal in character
Wyoming
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.


25. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.


26. Non-vessel operating common carriers (NVOCC)
FedEx - YRC - Conway - UPS - ABF
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
250 - 000
Commercial Invoice - Pro-Forma Invoice - Consular Invoice


27. Three kinds of ocean carriers
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.
To save the railroads by giving them a chance to compete with other modes on equal footing
Showed a marked decline
Declaration of where product was made so that appropriate duties are charged


28. Dock receipt
Far east to east coast or Europe to west coast - final destination is US port city
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Transfers accountability between domestic and international carrier at the terminal
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%


29. Factors contributing to the decline of Railroad use
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Coal
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight


30. Which US federal government agency enforces safety regulations for railroads?
Federal Railroad Administration (FRA)
Break bulk - Relay - Pick up - 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.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard


31. What are the current trends in the US railroad?
563
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
anywhere between a quarter and a third of all highway travel
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives


32. What is the approximate share of fixed costs of US railroads?
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
30%
The competition is intense in both TL and LTL segments


33. Factors affecting Pricing decisions
Crushed stone - gravel and sand
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
To promote interstate commerce and strengthen the defenses of the country


34. Trackage

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35. Government is involved in which aspects of the railroad business?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
The competition is intense in both TL and LTL segments
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
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard


36. Name the 3 types of water carriers
15
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Consolidation
Coastal/Intercoastal - Great Lakes - Internal


37. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Moderate
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Air


38. Line of credit process

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39. Land Bridge
To save the railroads by giving them a chance to compete with other modes on equal footing
7
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
Labor and Fuel


40. What is a road train?
Sysco - Tyson Foods - Coca-Cola - and Walmart
A longer combination vehicle towing more than one trailer
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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


41. Certificate of origin
7
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Declaration of where product was made so that appropriate duties are charged
11 hours straight or anything beyond 70 hours in 8 days


42. 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
Covering variable costs - volume and equipment utilization - and cash flow.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
A longer combination vehicle towing more than one trailer


43. Outsourcing
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Completely different continent - different time zones.
Moving a corporations internal activities to outside providers - mainly for cheap labor
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


44. Consolidation
Main penalty is the cost of lost of sales by holding the shipment.
Less than 25 carriers handle 75 to 80% of total freight dollar.
Labor and Fuel
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%


45. Third Party Logistics
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
After World War 2
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
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...


46. Offshoring
15
Transfer of function to another country - can stay within the same company!
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.
High price for price insensitive customers.


47. Who has the highest number of coal carloads?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
1850-1950
Wyoming
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.


48. Carrier's Operational strategies to minimize cost
11 hours straight or anything beyond 70 hours in 8 days
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
100 cars x 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.


49. Consular Invoice

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50. Did the US railroads have anything to do with the creation of world time zones?
Yes
Society and customer first.
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
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads