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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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1. How does the US railroad industry compete with other modes?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
The intermodal competition has increased dramatically since WW 2
Transfers accountability between domestic and international carrier at the terminal
Service levels - Frequent flyer programs - Timing of flights - In advance registration

2. Which phrase best characterizes the level of competition in the motor carrier industry?
About 2 cents per dollar
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
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
The competition is intense in both TL and LTL segments

3. What terms describe a type of operation in trucking?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
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
7%

4. What is the current share of trucking in total transportation expenses is closest to...
Break bulk - Relay - Pick up - Delivery
83.8%
Less than 25 carriers handle 75 to 80% of total freight dollar.
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

5. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Special Rates
15%~13%
1500 tons
15

6. Land Bridge
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.
Substantially higher
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
58

7. On the average - per gallon of fuel - US railroads move a ton of freight...
Specialized: $73 Billion - General: $146 Billion
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
484
A trucking operation that only hauls freight for the firm which owns it

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

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9. What are the issues facing the US railroads?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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
484

10. What term is related to railroad operations?
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Highway user taxes
Water
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

11. What is the truck driving time limitations?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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.
11 hours straight or anything beyond 70 hours in 8 days
The intermodal competition has increased dramatically since WW 2

12. What is an approximate capacity of a hopper?
Is likely to stay and even get worse in the future
100 tons
Main penalty is the cost of lost of sales by holding the shipment.
11 hours straight or anything beyond 70 hours in 8 days

13. A barge tow is capable of moving how many barges?
15
Interior Non-port cities
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

14. The average annual salary of a locomotive operator compared to a TL driver in the US is...
58
Substantially higher
Yes
Moderate

15. Invoices
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
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.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

16. What is the empirical formula of the typical coal unit train in the US?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
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...
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
100 cars x 100 tons

17. The current share of railroads in total transportation expenses is closest to...
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Declaration of where product was made so that appropriate duties are charged
7%
Special Rates

18. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
NTSB
To promote interstate commerce and strengthen the defenses of the country
15%~13%
Main penalty is the cost of lost of sales by holding the shipment.

19. Types of vehicles for trucking
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
Sysco - Tyson Foods - Coca-Cola - and Walmart
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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

20. Consular Invoice

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21. Bill of Lading
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Is likely to stay and even get worse in the future

22. Haulage

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23. Outsourcing
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
After World War 2
100 cars x 100 tons
Moving a corporations internal activities to outside providers - mainly for cheap labor

24. Core Carrier concept
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
Special Rates

25. What are the reasons for the relative decline of the US railroads after World War 2?
Economies of scale
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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

26. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Transfer of function to another country - can stay within the same company!
Coastal/Intercoastal - Great Lakes - Internal
Move 1 single commodity and are non-stop to destination.
30 - 000 lbs and 300 miles

27. Funding the railroads?
Specialized: $73 Billion - General: $146 Billion
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Not the government - the railroads themselves
ton-miles

28. Name the 3 types of water carriers
Special Rates
7%
Coastal/Intercoastal - Great Lakes - Internal
Main penalty is the cost of lost of sales by holding the shipment.

29. Categories of major pricing decisions
Special Rates
Water
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.
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.

30. Government is involved in which aspects of the railroad business?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
250 - 000
1500 tons
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

31. Intermodal Transportation
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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.

32. What is the trend for the miles of road over the past 50 years in the US railroad industry?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Showed a marked decline
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

33. Offshoring
Transfer of function to another country - can stay within the same company!
30 - 000 lbs and 300 miles
Main penalty is the cost of lost of sales by holding the shipment.
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.

34. Value of Service pricing
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
Declaration of where product was made so that appropriate duties are charged
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
Coal

35. What companies are players in private carriage?
Sysco - Tyson Foods - Coca-Cola - and Walmart
Consolidation
About 25 cents per dollar
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

36. Where does funding for the roads come from?
The intermodal competition has increased dramatically since WW 2
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
80 - 000 lbs
Highway user taxes

37. Skimming pricing
High price for price insensitive customers.
Consolidation
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Showed a marked decline

38. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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
58

39. Which type of railroad cargo has the highest tonnage share in the US?
1500 tons
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Coal
Intermodal in character

40. What was the rationale behind passing the Staggers Act of 1980?
To promote interstate commerce and strengthen the defenses of the country
Economies of scope and density
To save the railroads by giving them a chance to compete with other modes on equal footing
Terminal

41. What are the highest variable costs in the railroad industry?
7
Transfer of function to another country - can stay within the same company!
To save the railroads by giving them a chance to compete with other modes on equal footing
Labor and Fuel

42. Commercial Invoice
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
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
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
83.8%

43. How are airport hub/spoke and LTL breakbulk similar?
Coastal/Intercoastal - Great Lakes - Internal
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
Covering variable costs - volume and equipment utilization - and cash flow.
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.

44. Micro Bridge
Interior Non-port cities
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
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Coastal/Intercoastal - Great Lakes - Internal

45. Dock receipt
Not the government - the railroads themselves
Transfers accountability between domestic and international carrier at the terminal
A pumping station
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

46. Certificate of origin
100 cars x 100 tons
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
About 25 cents per dollar
Declaration of where product was made so that appropriate duties are charged

47. Factors contributing to the decline of Railroad use
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.
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 - 000 lbs and 300 miles
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit

48. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
484
A longer combination vehicle towing more than one trailer
Air

49. What aspects of the trucking industry is the US involved in?
1850-1950
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

50. How many Class 1 freight railroads are there?
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
7
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%