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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. 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?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
After World War 2
A batching pig

2. What are the current trends in the US railroad?
Water
Attests to authenticity and accuracy of the goods. Performs by third party independent company
To promote interstate commerce and strengthen the defenses of the country
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

3. FOB Origin/Destination
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
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

4. Social Responsibility pricing
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
Society and customer first.
After World War 2

5. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
250 - 000
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
7%
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

6. 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.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Special Rates
Wyoming
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

7. Survival Based pricing
Highway user taxes
Water
Covering variable costs - volume and equipment utilization - and cash flow.
Break bulk - Relay - Pick up - Delivery

8. What are the LTL carriers?
Moderate
Crushed stone - gravel and sand
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

9. Far-shoring
Completely different continent - different time zones.
Special Rates
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Moving a corporations internal activities to outside providers - mainly for cheap labor

10. Outsourcing
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 pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Moving a corporations internal activities to outside providers - mainly for cheap labor
Highway user taxes

11. Micro Bridge
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Attests to authenticity and accuracy of the goods. Performs by third party independent company
Showed a marked decline
Interior Non-port cities

12. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Pipeline and Rail

13. Benefits of hub and spoke system
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Special Rates
100 tons
Completely different continent - different time zones.

14. Which mode has the highest carrying capacity?
Specialized: $73 Billion - General: $146 Billion
Water
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
A contract for transportation between a shipper and the carrier - also is a cargo receipt

15. Line of credit process

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16. Drayage
Less than 25 carriers handle 75 to 80% of total freight dollar.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
A longer combination vehicle towing more than one trailer
Wyoming

17. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
100 cars x 100 tons
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
A pumping station

18. Stop-off
Class 1 - Regional - Shortline - Switching and Terminal
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.
The intermodal competition has increased dramatically since WW 2
Consolidate orders for several customers and stop along the way for partial unloading.

19. How are interstate highways numbered?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Pipeline and Rail
After World War 2
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

20. What are the types of railcars?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
FedEx - YRC - Conway - UPS - ABF
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

21. Unit trains
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Move 1 single commodity and are non-stop to destination.
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Pipeline and Rail

22. Consular Invoice

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23. What are the major causes of general traffic congestions?
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
100 cars x 100 tons
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

24. Non-vessel operating common carriers (NVOCC)
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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

25. Carrier's Operational strategies to minimize cost
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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.
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. Terms of Payment
About 25 cents per dollar
30%
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

27. Certificate of origin
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Declaration of where product was made so that appropriate duties are charged
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

28. Mistakes in pricing strategy
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.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
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.
A longer combination vehicle towing more than one trailer

29. Types of vehicles for trucking
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...
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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
58

30. Commercial Invoice
Class 1 - Regional - Shortline - Switching and Terminal
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
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

31. Examples of general freight
484
Federal Railroad Administration (FRA)
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

32. Labor relations in the US railroad industry?
563
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Federal Railroad Administration (FRA)
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

33. What are the revenues of the specialized and general cargo?
7%
High price for price insensitive customers.
Labor and Fuel
Specialized: $73 Billion - General: $146 Billion

34. Haulage

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35. Who has the highest number of coal carloads?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Wyoming
Class 1 - Regional - Shortline - Switching and Terminal
Society and customer first.

36. Main forms of Charter Ships
ton-miles
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
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
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

37. The current share of railroads in total transportation expenses is closest to...
Break bulk - Relay - Pick up - Delivery
Sysco - Tyson Foods - Coca-Cola - and Walmart
7%
15

38. Value of Service pricing
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
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
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.
Showed a marked decline

39. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
83.8%
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
30%

40. The status of competition within the US railroad industry?
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
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.
Moderate
250 - 000

41. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
Moving a corporations internal activities to outside providers - mainly for cheap labor
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Intermodal in character

42. Service competition areas in airline industry
Main penalty is the cost of lost of sales by holding the shipment.
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

43. 20/80 Rule
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Less than 25 carriers handle 75 to 80% of total freight dollar.
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.
anywhere between a quarter and a third of all highway travel

44. Carriers' Technological and Equipment strategies to minimize costs
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
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.
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
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

45. What is a public benefit of railroads?
30 - 000 lbs and 300 miles
Intermodal in character
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Water

46. What was the golden age of railroads?
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
1850-1950
Substantially higher
anywhere between a quarter and a third of all highway travel

47. What are the highest variable costs in the railroad industry?
Economies of scale
Labor and Fuel
80 - 000 lbs
Pipeline and Rail

48. Types and shares of cost in railroads
Wyoming
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Used for tax - manning - and relaxed regulation.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

49. What is the truck driving time limitations?
11 hours straight or anything beyond 70 hours in 8 days
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Class 1 - Regional - Shortline - Switching and Terminal
To save the railroads by giving them a chance to compete with other modes on equal footing

50. What are the characteristics of a block train?
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Covering variable costs - volume and equipment utilization - and cash flow.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%