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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. Factors affecting Pricing decisions
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
One method moves the trailer on its wheels while the other moves the container
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...
Consolidation

2. What is the current share of trucking in total transportation expenses is closest to...
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods
83.8%
Highway user taxes
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.

3. Third Party Logistics
Transfer of function to another country - can stay within the same company!
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...
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.
A pumping station

4. FOB Origin/Destination
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
One method moves the trailer on its wheels while the other moves the container
30 - 000 lbs and 300 miles
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

5. Main forms of Charter Ships
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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
Used for tax - manning - and relaxed regulation.
58

6. Which type of a railcar has the highest share in terms of its numbers in service in the US?
Transfers accountability between domestic and international carrier at the terminal
484
Covered Hopper
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. How does the US railroad industry compete with other modes?
High price for price insensitive customers.
Covered Hopper
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
The intermodal competition has increased dramatically since WW 2

8. What are the LTL carriers?
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
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.
FedEx - YRC - Conway - UPS - ABF
Moderate

9. Cost of Service Pricing
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Covering variable costs - volume and equipment utilization - and cash flow.
A batching pig

10. Land Bridge Services
Moderate
Terminal
Showed a marked decline
Intermodal in character

11. Categories of major pricing decisions
anywhere between a quarter and a third of all highway travel
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.
Moderate
Labor and Fuel

12. 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
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.
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
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track

13. Highway weight limitation
The intermodal competition has increased dramatically since WW 2
80 - 000 lbs
To save the railroads by giving them a chance to compete with other modes on equal footing
Specialized: $73 Billion - General: $146 Billion

14. Micro Bridge
Covered Hopper
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
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

15. What are the types of railcars?
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Water
Consolidation of shipments to different destinations within the same general area.
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.

16. _____ mode is ideal for moving electronics - expensive items - flowers - or time sensitive materials such as organs
15%~13%
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Air
A contract for transportation between a shipper and the carrier - also is a cargo receipt

17. Which Mode of Transportation has the highest volume in tonnage?
A pumping station
Not the government - the railroads themselves
Completely different continent - different time zones.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%

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?
About 2 cents per dollar
Labor and Fuel
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
After World War 2

19. Consolidation
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.
Main penalty is the cost of lost of sales by holding the shipment.
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
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

20. 20/80 Rule
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.
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Less than 25 carriers handle 75 to 80% of total freight dollar.

21. The status of competition within the US railroad industry?
Moderate
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north

22. Funding the railroads?
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
A batching pig
Transfers accountability between domestic and international carrier at the terminal
Not the government - the railroads themselves

23. Freight Revenue for Truck/Motor (per ton-mile)
80 - 000 lbs
30%
A batching pig
About 25 cents per dollar

24. What is the empirical formula of the typical coal unit train in the US?
100 cars x 100 tons
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
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
30 - 000 lbs and 300 miles

25. Pricing adjustment conditions
Air
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.
Discounts: reduction from published price. Volume: TL vs LTL - Seasonal - Cash 2/10 net 30 - Geographical- FOB origin/destination - Uniform delivered pricing: zone pricing.
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.

26. Which government agency will investigate a major railroad accident involving public safety?
To save the railroads by giving them a chance to compete with other modes on equal footing
NTSB
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Far east to east coast or Europe to west coast - final destination is US port city

27. Drayage
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
80 - 000 lbs

28. Far-shoring
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Coastal/Intercoastal - Great Lakes - Internal
Cash in advance - Letter of Credit - Documentary collection - Open account - TradeCard
Completely different continent - different time zones.

29. What commodity/goods are typically transported by railroads in the US?
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.
Showed a marked decline
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative

30. Haulage

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31. Commercial Invoice
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.
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
Water
100 tons

32. What was the rationale behind passing the Staggers Act of 1980?
To save the railroads by giving them a chance to compete with other modes on equal footing
Intermodal in character
484
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

33. Unit trains
Move 1 single commodity and are non-stop to destination.
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.
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad

34. _______ mode would be ideal for moving dry bulk - grains - petroleum - and certain manufactured products not prone to damage during transit
Main penalty is the cost of lost of sales by holding the shipment.
Intermodal in character
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Water

35. Service competition areas in airline industry
Carloads and Ton-miles
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
Break bulk - Relay - Pick up - Delivery
Amenities/Accommodations - Direct flights to destination without layovers - More personal space in flight - In flight service personnel - No frills types of service (no perks)

36. Certificate of origin
Declaration of where product was made so that appropriate duties are charged
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Special Rates
One method moves the trailer on its wheels while the other moves the container

37. What is an approximate capacity of a hopper?
83.8%
100 tons
15
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.

38. What is a road train?
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
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
A longer combination vehicle towing more than one trailer

39. LTL terminals are used for connections with these operations...
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Market Forces (customers) - Governmental Controls - Other channel member - Competition.
83.8%
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

40. Offshoring
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.
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Transfer of function to another country - can stay within the same company!
15%~13%

41. What are the current trends in trucking?
Substantially higher
Attests to authenticity and accuracy of the goods. Performs by third party independent company
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
Main penalty is the cost of lost of sales by holding the shipment.

42. Non-vessel operating common carriers (NVOCC)
Far east to east coast or Europe to west coast - final destination is US port city
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).
Crushed stone - gravel and sand
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement

43. Trackage

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44. Survival Based pricing
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
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
Covering variable costs - volume and equipment utilization - and cash flow.
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

45. Flags of Convenience
Labor and Fuel
563
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Used for tax - manning - and relaxed regulation.

46. Skimming pricing
1850-1950
High price for price insensitive customers.
Economies of scope and density
Transfers accountability between domestic and international carrier at the terminal

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

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48. What aspects of the trucking industry is the US involved in?
Carloads and Ton-miles
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks
Society and customer first.
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...

49. Private Carrier
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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
A trucking operation that only hauls freight for the firm which owns it
FedEx - YRC - Conway - UPS - ABF

50. Outsourcing
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
After World War 2
Moving a corporations internal activities to outside providers - mainly for cheap labor
Maximize the utilization of equipment - increase the efficiency of equipment operations - save transit time and operational costs.