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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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1. What aspects of the trucking industry is the US involved in?
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Water
To promote interstate commerce and strengthen the defenses of the country
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

2. What is the trend for the miles of road over the past 50 years in the US railroad industry?
58
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Showed a marked decline
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

3. Private Carrier
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
A longer combination vehicle towing more than one trailer
A trucking operation that only hauls freight for the firm which owns it

4. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage

5. What are the metrics to measure freight traffic in the motor carrier industry?
563
ton-miles
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

6. Flags of Convenience
250 - 000
Intermodal in character
Used for tax - manning - and relaxed regulation.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

7. Freight Revenue for Truck/Motor (per ton-mile)
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
About 25 cents per dollar
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Transfers accountability between domestic and international carrier at the terminal

8. How many Class 1 freight railroads are there?
A longer combination vehicle towing more than one trailer
7
Coal - farm products - chemicals - transportation equipment
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.

9. The current share of railroads in total transportation expenses is closest to...
7%
30 - 000 lbs and 300 miles
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Air

10. How are interstate highways numbered?
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Coastal/Intercoastal - Great Lakes - Internal

11. What are the two primary operational indicators in the railroad industry?
Carloads and 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
563
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

12. Class Rate Calculations
The intermodal competition has increased dramatically since WW 2
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.
Water

13. Four types of Liner Service
Transfers accountability between domestic and international carrier at the terminal
To save the railroads by giving them a chance to compete with other modes on equal footing
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).

14. Which US federal government agency enforces safety regulations for railroads?
11 hours straight or anything beyond 70 hours in 8 days
Federal Railroad Administration (FRA)
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Used for tax - manning - and relaxed regulation.

15. Which type of railroad cargo has the highest tonnage share in the US?
15
Coal
Transfer of function to another country - can stay within the same company!
Moderate

16. Main forms of Charter Ships
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
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Water
58

17. Highway weight limitation
80 - 000 lbs
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.
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

18. Which mode has the lowest cost per ton mile?
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
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

19. What is Amtrak?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
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
Interior Non-port cities
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

20. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Transfers accountability between domestic and international carrier at the terminal
Class 1 - Regional - Shortline - Switching and Terminal
Commercial Invoice - Pro-Forma Invoice - Consular Invoice

21. Freight Revenue for Rail (per ton-mile)
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
About 2 cents per dollar
Coastal/Intercoastal - Great Lakes - Internal
Water

22. What is the primary railroad cargo out of Arkansas by tonnage?
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.

23. Did the US railroads have anything to do with the creation of world time zones?
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.
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
Yes
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

24. Three kinds of ocean carriers
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
About 25 cents per dollar

25. UNCTAD liner code 40-40-20
A contract for transportation between a shipper and the carrier - also is a cargo receipt
83.8%
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Federal Railroad Administration (FRA)

26. What commodity/goods are typically transported by railroads in the US?
A pumping station
Coal - farm products - chemicals - transportation equipment
Transfer of function to another country - can stay within the same company!
Yes

27. 1 Barge is equivalent to how many tons?
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
Coastal/Intercoastal - Great Lakes - Internal
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

28. Stop-off
1500 tons
Consolidate orders for several customers and stop along the way for partial unloading.
Economies of scope and density
Crushed stone - gravel and sand

29. 20/80 Rule
Break bulk - Relay - Pick up - Delivery
Society and customer first.
7
Less than 25 carriers handle 75 to 80% of total freight dollar.

30. At about what time did trucking become the predominant mode of transportation in the US by gradually surpassing the railroads in terms of tonnage and revenues?
ton-miles
After World War 2
To promote interstate commerce and strengthen the defenses of the country
484

31. Starting from which cargo weight and movement distance does it normally make sense to ship by rail?
30 - 000 lbs and 300 miles
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
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
A batching pig

32. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Less than 25 carriers handle 75 to 80% of total freight dollar.
A batching pig

33. Skimming pricing
To promote interstate commerce and strengthen the defenses of the country
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
High price for price insensitive customers.
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.

34. What are the current trends in trucking?
Economies of scale
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
563
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

35. 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
484
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

36. What was the rationale behind passing the Staggers Act of 1980?
30%
To save the railroads by giving them a chance to compete with other modes on equal footing
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
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

37. Commercial Invoice
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
Crushed stone - gravel and sand
Economies of scope and density
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

38. Types and shares of cost in railroads
1500 tons
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

39. Core Carrier concept
80 - 000 lbs
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
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.

40. Dock receipt
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Consolidate orders for several customers and stop along the way for partial unloading.
Transfers accountability between domestic and international carrier at the terminal
7%

41. Which phrase best characterizes the level of competition in the motor carrier industry?
The competition is intense in both TL and LTL segments
Federal Railroad Administration (FRA)
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
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

42. On the average - per gallon of fuel - US railroads move a ton of freight...
Coal
Sysco - Tyson Foods - Coca-Cola - and Walmart
484
The intermodal competition has increased dramatically since WW 2

43. It is common for an operating ratio of motor carriers to be around these numbers...
Move 1 single commodity and are non-stop to destination.
90-s
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Showed a marked decline

44. Ways to classify the motor carriers
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.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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
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.

45. What is the difference between class 1 and class 2 carriers?
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
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.
563
Sysco - Tyson Foods - Coca-Cola - and Walmart

46. What are the current trends in the US railroad?
Pipeline and Rail
To promote interstate commerce and strengthen the defenses of the country
The competition is intense in both TL and LTL segments
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

47. Drayage
Break bulk - Relay - Pick up - Delivery
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Main penalty is the cost of lost of sales by holding the shipment.
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. What companies are players in private carriage?
About 2 cents per dollar
Sysco - Tyson Foods - Coca-Cola - and Walmart
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

49. Name the 3 types of water carriers
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Coastal/Intercoastal - Great Lakes - Internal
83.8%
Economies of scale

50. What factors lead to reduction of air pollution by trucks?
Consolidation of shipments to different destinations within the same general area.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Water
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion

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Transportation Logistics

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