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Transportation Logistics

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Answer 50 questions in 15 minutes.
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1. What was the golden age of railroads?
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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.
1850-1950
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

2. What is the difference between TOFC and COFC service?
Less than 25 carriers handle 75 to 80% of total freight dollar.
One method moves the trailer on its wheels while the other moves the container
A batching pig
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.

3. LTL terminals are used for connections with these operations...
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
90-s
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
100 tons

4. Pooling
Main penalty is the cost of lost of sales by holding the shipment.
High price for price insensitive customers.
Crushed stone - gravel and sand
Consolidation of shipments to different destinations within the same general area.

5. Unit trains
Special Rates
Move 1 single commodity and are non-stop to destination.
30 - 000 lbs and 300 miles
Transfer of function to another country - can stay within the same company!

6. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
anywhere between a quarter and a third of all highway travel

7. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
30%
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.
250 - 000

8. What are the major causes of general traffic congestions?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Coal - farm products - chemicals - transportation equipment
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
A pumping station

9. Micro Bridge
Interior Non-port cities
15%~13%
Specialized: $73 Billion - General: $146 Billion
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

10. How are airport hub/spoke and LTL breakbulk similar?
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
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.
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
Used for tax - manning - and relaxed regulation.

11. Outsourcing
NTSB
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Moving a corporations internal activities to outside providers - mainly for cheap labor

12. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Air
Highway user taxes
To promote interstate commerce and strengthen the defenses of the country
1850-1950

13. Highway weight limitation
80 - 000 lbs
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.
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.
7%

14. What is the primary railroad cargo out of Arkansas by tonnage?
83.8%
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
30%
Crushed stone - gravel and sand

15. Which US federal government agency enforces safety regulations for railroads?
Wyoming
Completely different continent - different time zones.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Federal Railroad Administration (FRA)

16. Near-shoring
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Coal
Special Rates
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook

17. It is common for an operating ratio of motor carriers to be around these numbers...
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.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
90-s
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

18. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Air

19. What is an approximate capacity of a hopper?
The competition is intense in both TL and LTL segments
100 tons
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Attests to authenticity and accuracy of the goods. Performs by third party independent company

20. The problem of driver shortage in the US...
A pumping station
About 25 cents per dollar
Is likely to stay and even get worse in the future
ton-miles

21. Who has the highest number of coal carloads?
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
Wyoming
Transfer of function to another country - can stay within the same company!
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

22. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
30%
Intermodal in character
Showed a marked decline

23. Labor relations in the US railroad industry?
83.8%
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

24. Which government agency will investigate a major railroad accident involving public safety?
Society and customer first.
A contract for transportation between a shipper and the carrier - also is a cargo receipt
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
NTSB

25. Names of the Class 1 railroads?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Pipeline and Rail
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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

26. 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
Labor and Fuel
Water
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

27. Did the US railroads have anything to do with the creation of world time zones?
ton-miles
Yes
Consolidate orders for several customers and stop along the way for partial unloading.
NTSB

28. Land Bridge
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
Moving a corporations internal activities to outside providers - mainly for cheap labor
Substantially higher
Move 1 single commodity and are non-stop to destination.

29. 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
15
About 2 cents per dollar
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

30. Dock receipt
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Not the government - the railroads themselves
Transfers accountability between domestic and international carrier at the terminal
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

31. Pro-Forma Invoice
Specialized: $73 Billion - General: $146 Billion
Completely different continent - different time zones.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Class 1 - Regional - Shortline - Switching and Terminal

32. What is a public benefit of railroads?
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Covering variable costs - volume and equipment utilization - and cash flow.

33. What is a road train?
A longer combination vehicle towing more than one trailer
Consolidation of shipments to different destinations within the same general area.
Declaration of where product was made so that appropriate duties are charged
Economies of scale

34. Which economies are most prominent in the trucking industry?
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
About 25 cents per dollar
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Economies of scope and density

35. What are the issues facing the US railroads?
Completely different continent - different time zones.
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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.

36. What are the types of railcars?
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.
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Coal - farm products - chemicals - transportation equipment
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

37. What is the current share of trucking in total transportation expenses is closest to...
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
One method moves the trailer on its wheels while the other moves the container
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
83.8%

38. Three kinds of ocean carriers
Far east to east coast or Europe to west coast - final destination is US port city
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

39. Carriers' Technological and Equipment strategies to minimize costs
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
Not the government - the railroads themselves

40. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
250 - 000
Sysco - Tyson Foods - Coca-Cola - and Walmart

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

42. 1 Barge ship is equivalent to how many trucks?
58
NTSB
Far east to east coast or Europe to west coast - final destination is US port city
30 - 000 lbs and 300 miles

43. Private Carrier
To promote interstate commerce and strengthen the defenses of the country
A trucking operation that only hauls freight for the firm which owns it
Consolidate orders for several customers and stop along the way for partial unloading.
Water

44. Which economies are present in the US railroad industry?
Economies of scale
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
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
15%~13%

45. Which Mode of Transportation has the highest volume in tonnage?
Special Rates
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
30%
Consolidate orders for several customers and stop along the way for partial unloading.

46. Intermodal Transportation
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Far east to east coast or Europe to west coast - final destination is US port city
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.

47. Freight Revenue for Rail (per ton-mile)
80 - 000 lbs
Intermodal in character
About 2 cents per dollar
30 - 000 lbs and 300 miles

48. Certificate of Inspection
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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
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.

49. Non-vessel operating common carriers (NVOCC)
Covered Hopper
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
anywhere between a quarter and a third of all highway travel

50. Name the 3 types of water carriers
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Water
Coastal/Intercoastal - Great Lakes - Internal
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

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Transportation Logistics

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