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Transportation Logistics

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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 commodity/goods are typically transported by railroads in the US?
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.
100 tons
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Coal - farm products - chemicals - transportation equipment

2. Commercial Invoice
ton-miles
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
One method moves the trailer on its wheels while the other moves the container
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

3. How many Class 1 freight railroads are there?
To promote interstate commerce and strengthen the defenses of the country
Yes
7
Less than 25 carriers handle 75 to 80% of total freight dollar.

4. Land Bridge
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
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

5. Three kinds of ocean carriers
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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.
Showed a marked decline
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

6. Far-shoring
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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.
Yes
Completely different continent - different time zones.

7. The whole history of the US railroads is a history of...
High price for price insensitive customers.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Consolidation
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

8. Trackage

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9. Freight Revenue for Truck/Motor (per ton-mile)
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
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
About 25 cents per dollar
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

10. What terms describe a type of operation in trucking?
Special Rates
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Break bulk - Relay - Pick up - Delivery
Highway user taxes

11. What are the generally accepted classifications of railroads?
Terminal
Class 1 - Regional - Shortline - Switching and Terminal
Declaration of where product was made so that appropriate duties are charged
30 - 000 lbs and 300 miles

12. Land Bridge Services
Not the government - the railroads themselves
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
Intermodal in character
The intermodal competition has increased dramatically since WW 2

13. Four types of Liner Service
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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.
To promote interstate commerce and strengthen the defenses of the country
About 25 cents per dollar

14. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
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
Far east to east coast or Europe to west coast - final destination is US port city
15%~13%
Interior Non-port cities

15. Non-vessel operating common carriers (NVOCC)
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
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Special Rates
Terminal

16. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Specialized: $73 Billion - General: $146 Billion
Highway user taxes
Terminal

17. What are the two primary operational indicators in the railroad industry?
Move 1 single commodity and are non-stop to destination.
Carloads and Ton-miles
Break bulk - Relay - Pick up - Delivery
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

18. Unit trains
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Move 1 single commodity and are non-stop to destination.
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
Wyoming

19. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
High price for price insensitive customers.
7
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
A pumping station

20. What do the users of truck service benefit?
484
Economies of scale
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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.

21. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
250 - 000
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

22. What are the major causes of general traffic congestions?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Covered Hopper
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.
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

23. Which type of railroad cargo has the highest tonnage share in the US?
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
To save the railroads by giving them a chance to compete with other modes on equal footing
Consolidation
Coal

24. Social Responsibility pricing
Covered Hopper
The intermodal competition has increased dramatically since WW 2
Labor and Fuel
Society and customer first.

25. What is a public benefit of railroads?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Move 1 single commodity and are non-stop to destination.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

26. What are the issues facing the US railroads?
7%
Transfer of function to another country - can stay within the same company!
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Intermodal in character

27. Types of vehicles for 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
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
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
1500 tons

28. The current share of railroads in total transportation expenses is closest to...
Moving a corporations internal activities to outside providers - mainly for cheap labor
7%
Coal - farm products - chemicals - transportation equipment
Coal

29. Consular Invoice

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30. Certificate of Inspection
Sysco - Tyson Foods - Coca-Cola - and Walmart
Main penalty is the cost of lost of sales by holding the shipment.
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

31. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Air
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
To save the railroads by giving them a chance to compete with other modes on equal footing
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.

32. The problem of driver shortage in the US...
anywhere between a quarter and a third of all highway travel
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.
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
Is likely to stay and even get worse in the future

33. Service competition areas in airline industry
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

34. What is a road train?
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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.
Consolidation
A longer combination vehicle towing more than one trailer

35. What are the current trends in the US railroad?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
To save the railroads by giving them a chance to compete with other modes on equal footing

36. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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
A batching pig

37. Which modes have the following cost structure: Low Variable and High Fixed?
Coal - farm products - chemicals - transportation equipment
Specialized: $73 Billion - General: $146 Billion
Pipeline and Rail
Service levels - Frequent flyer programs - Timing of flights - In advance registration

38. 1 Barge is equivalent to how many tons?
Carloads and Ton-miles
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
1500 tons
NTSB

39. What factors lead to reduction of air pollution by trucks?
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
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.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

40. 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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
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.
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

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

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42. Highway weight limitation
80 - 000 lbs
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.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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

43. FOB Origin/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
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

44. 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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Transfers accountability between domestic and international carrier at the terminal
Service levels - Frequent flyer programs - Timing of flights - In advance registration

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
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
30%

46. Which mode has the highest carrying capacity?
After World War 2
Carloads and Ton-miles
Water
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.

47. Dock receipt
Transfers accountability between domestic and international carrier at the terminal
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
FedEx - YRC - Conway - UPS - ABF
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

48. Which US federal government agency enforces safety regulations for railroads?
11 hours straight or anything beyond 70 hours in 8 days
1500 tons
Federal Railroad Administration (FRA)
Consolidation

49. Flags of Convenience
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Used for tax - manning - and relaxed regulation.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Is likely to stay and even get worse in the future

50. 1 Barge ship is equivalent to how many trucks?
7%
58
Moving a corporations internal activities to outside providers - mainly for cheap labor
Special Rates