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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. Funding the railroads?
About 25 cents per dollar
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%
Not the government - the railroads themselves

2. Micro Bridge
1850-1950
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.
Sysco - Tyson Foods - Coca-Cola - and Walmart
Interior Non-port cities

3. What are the highest variable costs in the railroad industry?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Labor and Fuel
Main penalty is the cost of lost of sales by holding the shipment.

4. Certificate of origin
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Transfers accountability between domestic and international carrier at the terminal
Sysco - Tyson Foods - Coca-Cola - and Walmart
Declaration of where product was made so that appropriate duties are charged

5. Freight Revenue for Rail (per ton-mile)
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
About 2 cents per dollar
100 cars x 100 tons
7

6. What are the issues facing the US railroads?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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.
A batching pig
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

7. Mistakes in pricing strategy
Transfers accountability between domestic and international carrier at the terminal
Carloads and Ton-miles
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.
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

8. Which type of a railcar has the highest share in terms of its numbers in service 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.
Covered Hopper
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
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

9. Drayage
11 hours straight or anything beyond 70 hours in 8 days
A longer combination vehicle towing more than one trailer
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
15%~13%

10. What are the revenues of the specialized and general cargo?
Intermodal in character
To save the railroads by giving them a chance to compete with other modes on equal footing
Specialized: $73 Billion - General: $146 Billion
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

11. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Air

12. Core Carrier concept
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
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

13. It is common for an operating ratio of motor carriers to be around these numbers...
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
90-s
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

14. What was the rationale behind passing the Staggers Act of 1980?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
To save the railroads by giving them a chance to compete with other modes on equal footing
Transfer of function to another country - can stay within the same company!
Main penalty is the cost of lost of sales by holding the shipment.

15. 1 Barge is equivalent to how many tons?
250 - 000
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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
1500 tons

16. Pooling
11 hours straight or anything beyond 70 hours in 8 days
Consolidation of shipments to different destinations within the same general area.
A longer combination vehicle towing more than one trailer
Transfer of function to another country - can stay within the same company!

17. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
A pumping station
Crushed stone - gravel and sand

18. 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
100 cars x 100 tons
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
About 2 cents per dollar

19. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
Break bulk - Relay - Pick up - Delivery
250 - 000
30 - 000 lbs and 300 miles
Highway user taxes

20. A barge tow is capable of moving how many barges?
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.
15
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

21. What are the generally accepted classifications of railroads?
15
Moderate
Class 1 - Regional - Shortline - Switching and Terminal
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

22. Certificate of Inspection
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
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
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Attests to authenticity and accuracy of the goods. Performs by third party independent company

23. What are the current trends in the US railroad?
Completely different continent - different time zones.
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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.
Interior Non-port cities

24. How does the US railroad industry compete with other modes?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
The intermodal competition has increased dramatically since WW 2
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
Water

25. What is a typical fixed cost item in the motor carrier industry?
Terminal
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Water
Coastal/Intercoastal - Great Lakes - Internal

26. The status of competition within the US railroad industry?
Moderate
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
High price for price insensitive customers.
The intermodal competition has increased dramatically since WW 2

27. How to assess the operating ratio?
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues

28. What term is related to railroad operations?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
A trucking operation that only hauls freight for the firm which owns it
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Moving a corporations internal activities to outside providers - mainly for cheap labor

29. What are the metrics to measure freight traffic in the motor carrier industry?
Transfer of function to another country - can stay within the same company!
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
ton-miles
11 hours straight or anything beyond 70 hours in 8 days

30. UNCTAD liner code 40-40-20
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Air
Pipeline and Rail
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

31. Non-vessel operating common carriers (NVOCC)
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Covered Hopper
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

32. 20/80 Rule
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Coastal/Intercoastal - Great Lakes - Internal
Less than 25 carriers handle 75 to 80% of total freight dollar.

33. Which Mode of Transportation has the highest volume in tonnage?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

34. What are the major causes of general traffic congestions?
After World War 2
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Consolidation of shipments to different destinations within the same general area.

35. Examples of general freight
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
Showed a marked decline
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Sysco - Tyson Foods - Coca-Cola - and Walmart

36. On the average - per gallon of fuel - US railroads move a ton of freight...
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
484
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

37. Which type of railroad cargo has the highest tonnage share in the US?
Coal
80 - 000 lbs
15
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes

38. 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.
Moderate
Is likely to stay and even get worse in the future
Special Rates
Covered Hopper

39. Land Bridge
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.
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
NTSB
30%

40. Carrier's Operational strategies to minimize cost
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.
58
Federal Railroad Administration (FRA)
Covered Hopper

41. Invoices
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Showed a marked decline
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
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

42. What do the users of truck service benefit?
NTSB
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
A pumping station
Specialized: $73 Billion - General: $146 Billion

43. What are the two primary operational indicators in the railroad industry?
The competition is intense in both TL and LTL segments
Carloads and Ton-miles
Transfers accountability between domestic and international carrier at the terminal
Break bulk - Relay - Pick up - Delivery

44. The average annual salary of a locomotive operator compared to a TL driver in the US is...
Substantially higher
Consolidate orders for several customers and stop along the way for partial unloading.
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.
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

45. Intermodal Transportation
Coastal/Intercoastal - Great Lakes - Internal
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.
7%
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

46. 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
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
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
Attests to authenticity and accuracy of the goods. Performs by third party independent company

47. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
Air
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
Terminal

48. Which economies are present in the US railroad industry?
Specialized: $73 Billion - General: $146 Billion
563
Economies of scale
100 tons

49. Value of Service pricing
11 hours straight or anything beyond 70 hours in 8 days
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
Terminal
Transfers accountability between domestic and international carrier at the terminal

50. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
Consolidation
Used for tax - manning - and relaxed regulation.
1500 tons
30 - 000 lbs and 300 miles