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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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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?
Substantially higher
Not the government - the railroads themselves
The competition is intense in both TL and LTL segments
83.8%

2. The current share of railroads in total transportation expenses is closest to...
A longer combination vehicle towing more than one trailer
7%
Substantially higher
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

3. Which mode has the lowest cost per ton mile?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Highway user taxes

4. Which mode has the highest carrying capacity?
Water
30%
To promote interstate commerce and strengthen the defenses of the country
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

5. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
Air
7%
Labor and Fuel
30%

6. How many Class 1 freight railroads are there?
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
7
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
After World War 2

7. What are the highest variable costs in the 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)
Labor and Fuel
15
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.

8. 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?
Service levels - Frequent flyer programs - Timing of flights - In advance registration
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
A batching pig
100 tons

9. Mistakes in pricing strategy
Wyoming
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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
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.

10. What are the types of railcars?
15%~13%
Federal Railroad Administration (FRA)
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Far east to east coast or Europe to west coast - final destination is US port city

11. What are the major causes of general traffic congestions?
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
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

12. Carriers' Technological and Equipment strategies to minimize costs
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.
Air
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.
Covering variable costs - volume and equipment utilization - and cash flow.

13. Survival Based pricing
250 - 000
Declaration of where product was made so that appropriate duties are charged
Covering variable costs - volume and equipment utilization - and cash flow.
NTSB

14. The problem of driver shortage in the US...
To promote interstate commerce and strengthen the defenses of the country
Is likely to stay and even get worse in the future
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
Completely different continent - different time zones.

15. LTL terminals are used for connections with these operations...
15
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
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

16. Flags of Convenience
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
1500 tons
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
Used for tax - manning - and relaxed regulation.

17. It is common for an operating ratio of motor carriers to be around these numbers...
Air
90-s
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

18. 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?
Economies of scope and density
After World War 2
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
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

19. 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
100 cars x 100 tons
250 - 000
563

20. Trackage

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21. What is the trend for the miles of road over the past 50 years in the US railroad industry?
After World War 2
1850-1950
Showed a marked decline
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas

22. Main forms of Charter Ships
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Federal Railroad Administration (FRA)
83.8%
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

23. Terms of Payment
Transfers accountability between domestic and international carrier at the terminal
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Class 1 - Regional - Shortline - Switching and Terminal
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

24. How are airport hub/spoke and LTL breakbulk similar?
Yes
100 cars x 100 tons
Showed a marked decline
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.

25. What are the issues facing the US railroads?
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
To save the railroads by giving them a chance to compete with other modes on equal footing
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

26. The status of competition within the US railroad industry?
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Break bulk - Relay - Pick up - Delivery
Moderate
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

27. A barge tow is capable of moving how many barges?
Substantially higher
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
Used for tax - manning - and relaxed regulation.
15

28. What could be the rationale for railroad mergers?

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29. What do the users of truck service benefit?
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
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

30. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Class 1 - Regional - Shortline - Switching and Terminal
Less than 25 carriers handle 75 to 80% of total freight dollar.
15%~13%

31. Pooling
Consolidation of shipments to different destinations within the same general area.
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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Moving a corporations internal activities to outside providers - mainly for cheap labor

32. What are the reasons for the relative decline of the US railroads after World War 2?
Highway user taxes
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
Substantially higher
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.

33. Intermodal Transportation
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
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
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 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.

34. Value of Service pricing
The intermodal competition has increased dramatically since WW 2
Air
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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

35. Who has the highest number of coal carloads?
A trucking operation that only hauls freight for the firm which owns it
90-s
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Wyoming

36. Names of the Class 1 railroads?
High price for price insensitive customers.
30 - 000 lbs and 300 miles
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

37. Government is involved in which aspects of the railroad business?
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
Used for tax - manning - and relaxed regulation.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

38. Which US federal government agency enforces safety regulations for railroads?
1850-1950
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Federal Railroad Administration (FRA)
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.

39. What is a typical fixed cost item in the motor carrier industry?
1500 tons
Move 1 single commodity and are non-stop to destination.
Terminal
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

40. Bill of Lading
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
A contract for transportation between a shipper and the carrier - also is a cargo receipt
Declaration of where product was made so that appropriate duties are charged
Water

41. 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.
83.8%
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
100 cars x 100 tons

42. 20/80 Rule
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
Less than 25 carriers handle 75 to 80% of total freight dollar.
Transfers accountability between domestic and international carrier at the terminal
563

43. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
One method moves the trailer on its wheels while the other moves the container
Consolidation
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard

44. What were the reasons for the erosion of the railroad dominance in transportation in the US?

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45. Pricing adjustment conditions
After World War 2
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.
Used for tax - manning - and relaxed regulation.

46. How are interstate highways numbered?
Break bulk - Relay - Pick up - Delivery
ton-miles
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

47. Which Mode of Transportation has the highest volume in tonnage?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Specialized: $73 Billion - General: $146 Billion
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Moderate

48. Outsourcing
Far east to east coast or Europe to west coast - final destination is US port city
About 25 cents per dollar
Moving a corporations internal activities to outside providers - mainly for cheap labor
Coal

49. Certificate of origin
15
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
Water
Declaration of where product was made so that appropriate duties are charged

50. Dock receipt
The competition is intense in both TL and LTL segments
1500 tons
Transfers accountability between domestic and international carrier at the terminal
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.