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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. What factors lead to reduction of air pollution by trucks?
Declaration of where product was made so that appropriate duties are charged
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)
Showed a marked decline

2. What is the approximate number of railroads in the US?
563
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.
Special Rates
About 25 cents per dollar

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

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4. Pooling
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.
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
Consolidation of shipments to different destinations within the same general area.
484

5. Land Bridge Services
Intermodal in character
Economies of scale
Highway user taxes
Terminal

6. Which phrase best characterizes the level of competition in the motor carrier industry?
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Class 1 - Regional - Shortline - Switching and Terminal
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
The competition is intense in both TL and LTL segments

7. What is Amtrak?
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
Covering variable costs - volume and equipment utilization - and cash flow.
Highway user taxes
15

8. 20/80 Rule
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
ton-miles
Less than 25 carriers handle 75 to 80% of total freight dollar.
Expanding capacity to benefit from large volume traffic efficiencies and economies of scale - Strengthening financial position and eliminating duplication through side-by-side mergers - Ensuring fair intramodal competition through 'soft' mergers - St

9. Service competition areas in airline industry
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.
Water
A pumping station
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

10. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Fixed Costs: 30% - Semi-Variable Costs: 40% - Variable Costs: Labor and Gas
Break bulk - Relay - Pick up - Delivery
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

11. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Covered Hopper
83.8%
A trucking operation that only hauls freight for the firm which owns it
One method moves the trailer on its wheels while the other moves the container

12. What are the highest variable costs in the railroad industry?
A pumping station
Labor and Fuel
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
Is likely to stay and even get worse in the future

13. What is a typical fixed cost item in the motor carrier industry?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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
Terminal
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

14. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Far east to east coast or Europe to west coast - final destination is US port city
Specialized: $73 Billion - General: $146 Billion
A pumping station
Special Rates

15. Main forms of Charter Ships
80 - 000 lbs
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
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

16. Private Carrier
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.
563
A trucking operation that only hauls freight for the firm which owns it
High price for price insensitive customers.

17. How are interstate highways numbered?
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Labor and Fuel
Move 1 single commodity and are non-stop to destination.
11 hours straight or anything beyond 70 hours in 8 days

18. Which economies are most prominent in the trucking industry?
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
Economies of scope and density
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...
Attests to authenticity and accuracy of the goods. Performs by third party independent company

19. What are the generally accepted classifications of railroads?
Class 1 - Regional - Shortline - Switching and Terminal
1850-1950
80 - 000 lbs
Water

20. The whole history of the US railroads is a history of...
1850-1950
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
Consolidation
The intermodal competition has increased dramatically since WW 2

21. What is the current share of trucking in total transportation expenses is closest to...
83.8%
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
Consolidation of shipments to different destinations within the same general area.
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight

22. Which modes have the following cost structure: Low Variable and High Fixed?
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Pipeline and Rail
100 cars x 100 tons
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M

23. A barge tow is capable of moving how many barges?
250 - 000
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.
15
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

24. Price variation factors in airline service
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
Service levels - Frequent flyer programs - Timing of flights - In advance registration
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
15

25. The current share of railroads in total transportation expenses is closest to...
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Sysco - Tyson Foods - Coca-Cola - and Walmart
7%
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

26. What are the revenues of the specialized and general cargo?
Class 1 - Regional - Shortline - Switching and Terminal
Specialized: $73 Billion - General: $146 Billion
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
80 - 000 lbs

27. What could be the rationale for railroad mergers?

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28. What terms describe a type of operation in trucking?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Moving a corporations internal activities to outside providers - mainly for cheap labor
Federal Railroad Administration (FRA)
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

29. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
To promote interstate commerce and strengthen the defenses of the country
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Coal - farm products - chemicals - transportation equipment

30. Factors affecting Pricing decisions
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

31. Carriers' Technological and Equipment strategies to minimize costs
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
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.
About 25 cents per dollar
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

32. What is an approximate capacity of a hopper?
NTSB
100 tons
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

33. Near-shoring
Society and customer first.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
100 cars x 100 tons
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

34. Which type of railroad cargo has the highest tonnage share in the US?
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Coal
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.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

35. Consolidation
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
Main penalty is the cost of lost of sales by holding the shipment.
11 hours straight or anything beyond 70 hours in 8 days
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment

36. Who has the highest number of coal carloads?
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).
Wyoming
1850-1950

37. Consular Invoice

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38. What companies are players in private carriage?
Break bulk - Container service - LASH service (lighter aboard ship) - RORO service (roll on/off ship).
Sysco - Tyson Foods - Coca-Cola - and Walmart
563
The competition is intense in both TL and LTL segments

39. Name the 3 types of water carriers
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Coastal/Intercoastal - Great Lakes - Internal
Wyoming
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C

40. Trackage

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41. 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
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.
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
100 tons

42. Did the US railroads have anything to do with the creation of world time zones?
High price for price insensitive customers.
83.8%
Yes
1500 tons

43. What is the difference between TOFC and COFC service?
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
anywhere between a quarter and a third of all highway travel
Coastal/Intercoastal - Great Lakes - Internal
One method moves the trailer on its wheels while the other moves the container

44. What are the characteristics of a block train?
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
The intermodal competition has increased dramatically since WW 2
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
About 2 cents per dollar

45. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
High price for price insensitive customers.
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.
Expanding capacity to benefit from large volume traffic efficiencies and economies of scale - Strengthening financial position and eliminating duplication through side-by-side mergers - Ensuring fair intramodal competition through 'soft' mergers - St
15%~13%

46. What is the difference between class 1 and class 2 carriers?
Completely different continent - different time zones.
Intermodal in character
(Trucking) Class 1: income > $10M - Class 2: $3M<income<$10M
Federal Railroad Administration (FRA)

47. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Water
Special Rates
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
About 25 cents per dollar

48. What is a road train?
Wyoming
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
A longer combination vehicle towing more than one trailer
80 - 000 lbs

49. What is the truck driving time limitations?
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
80 - 000 lbs
11 hours straight or anything beyond 70 hours in 8 days
Transfer of function to another country - can stay within the same company!

50. How many Class 1 freight railroads are there?
7
After World War 2
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