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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 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
Covering variable costs - volume and equipment utilization - and cash flow.
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

2. What is the trend for the miles of road over the past 50 years in the US railroad industry?
Showed a marked decline
An agreement whereby one railroad pays a second carrier to transport its freight using the second carrier's crew and power equipment
LTL vs TL - Local vs Intercity Carriers - Publicly owned vs Privately owned - Specialized vs general freight
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

3. LTL terminals are used for connections with these operations...
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination

4. Land Bridge
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
Economies of scope and density
Act as a consolidator and domestic freight forwarder - inbound/outbound container arrangement
One method moves the trailer on its wheels while the other moves the container

5. The current share of railroads in total transportation expenses is closest to...
7%
Not the government - the railroads themselves
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
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

6. 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
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
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
Move 1 single commodity and are non-stop to destination.

7. Which government agency will investigate a major railroad accident involving public safety?
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
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
NTSB

8. Examples of general freight
About 2 cents per dollar
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating
Society and customer first.
Cargo can fit in an enclosed van trailer - Food - consumer staples - manufactured goods

9. What are the two primary operational indicators in the railroad industry?
Carloads and Ton-miles
80 - 000 lbs
Covered Hopper
Consolidation of shipments to different destinations within the same general area.

10. 1 Barge is equivalent to how many tons?
Less than 25 carriers handle 75 to 80% of total freight dollar.
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
1500 tons
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.

11. Freight Revenue for Truck/Motor (per ton-mile)
About 25 cents per dollar
Move 1 single commodity and are non-stop to destination.
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Is likely to stay and even get worse in the future

12. Core Carrier concept
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
Switching - Piggybacking - Double-Stacking - Car-Loading - Trackage - Haulage - Drayage - Demurrage
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Bottlenecks - Traffic accidents - Major snowfalls - Projects to improve existing highways

13. The number of for-hire motor carriers in the US currently falls somewhere in the middle of this range...
The development of the highway system - Limited access points - Long transit times - Safety of cargo during transit
Not an invoice but a quote. must be carefully written to avoid discrepancies w/ L of C
250 - 000
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

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

15. Invoices
Consolidate orders for several customers and stop along the way for partial unloading.
Commercial Invoice - Pro-Forma Invoice - Consular Invoice
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
11 hours straight or anything beyond 70 hours in 8 days

16. Certificate of origin
Water
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
Declaration of where product was made so that appropriate duties are charged
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives

17. Trackage

18. Carriers' Technological and Equipment strategies to minimize costs
100 cars x 100 tons
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
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.
Truck safety requirements - Driver hours of service - User fee charges - Reduction of pollution from trucks

19. Offshoring
Transfer of function to another country - can stay within the same company!
About 2 cents per dollar
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
83.8%

20. In terms of tonnage moved by the whole US transportation - the share of railroads is close to this rounded number...
15%~13%
Water
BNSF - CSX Transportation - Kansas City Southern Railway - Grand Truck Corporation - Norfolk Southern - Union Pacific Railroad - Soo Line Railroad
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

21. What are the issues facing the US railroads?
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
90-s
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Alcoholism in the workplace - Challenges of implementing new technology - Need to increase customer service - Challenges of growing intermodal service

22. Where does funding for the roads come from?
Transfer of function to another country - can stay within the same company!
80 - 000 lbs
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
Highway user taxes

23. 20/80 Rule
Terminal
Less than 25 carriers handle 75 to 80% of total freight dollar.
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads
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.

24. Which modes have the following cost structure: Low Variable and High Fixed?
Pipeline and Rail
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
The competition is intense in both TL and LTL segments

25. What could be the rationale for railroad mergers?

26. Price variation factors in airline service
A trucking operation that only hauls freight for the firm which owns it
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
Service levels - Frequent flyer programs - Timing of flights - In advance registration
90-s

27. What is a public benefit of railroads?
Consolidate orders for several customers and stop along the way for partial unloading.
Reduced highway congestion - damage and pollution as a result of replacing trucks as an alternative
Crushed stone - gravel and sand
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car

28. Intermodal Transportation
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.
High price for price insensitive customers.
Wyoming
Market Forces (customers) - Governmental Controls - Other channel member - Competition.

29. Which economies are most prominent in the trucking industry?
Economies of scope and density
The intermodal competition has increased dramatically since WW 2
7
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

30. Major commodities hauled by each mode
Motor: HH Goods - Heavy Machinery - Petroleum Products - Dump Trucking - Ag Commodities - Motor Vehicles - Retail Store Delivery
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.
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

31. 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.
83.8%
Special Rates
100 cars x 100 tons
Highway user taxes

32. What must be used in intervals when transporting pulverized coal mixed with water at long distances?
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
Class 1 - Regional - Shortline - Switching and Terminal
Less than 25 carriers handle 75 to 80% of total freight dollar.
A pumping station

33. Near-shoring
Use of low-sulfur diesel fuel - Use of biodiesel fuel - Cutting down on idling - Reducing traffic congestion
Interior Non-port cities
484
Moving to neighboring country - NAFTA - because the places may have close cultural affinity.

34. Highway weight limitation
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
Economies of scope and density
80 - 000 lbs
The intermodal competition has increased dramatically since WW 2

35. What is the empirical formula of the typical coal unit train in the US?
anywhere between a quarter and a third of all highway travel
One method moves the trailer on its wheels while the other moves the container
Slip-Seating - Bob-Tailing - Hub-And-Spoke System - Drop-and-Hook
100 cars x 100 tons

36. What is the approximate share of fixed costs of US railroads?
40% each to trade partners & 20% to 3rd world country to develop 3rd world ocean shipping industry - it happened to be inefficient.
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
1850-1950
30%

37. What do the users of truck service benefit?
The closer the operating ratio is to 100 - the more indicative of the possible need to raise rates to increase total revenues
The competition is intense in both TL and LTL segments
Accessibility - Speed - Universal Connector - Reliability - Frequency - Lower Loss and Damage Rates - Lower Inventory levels due to smaller shipments than other modes
15%~13%

38. Skimming pricing
Is likely to stay and even get worse in the future
High price for price insensitive customers.
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
Free on Board- Origin (seller pays shipping costs); Destination (Buyer pays).

39. Line of credit process

40. Value of Service pricing
Commercial invoice printed on stationery of importing country's consulate and stamped by consulate.
The competition is intense in both TL and LTL segments
Coal - farm products - chemicals - transportation equipment
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

41. What is the current share of trucking in total transportation expenses is closest to...
83.8%
High price for price insensitive customers.
Special Rates
100 cars x 100 tons

42. What is an approximate capacity of a hopper?
100 tons
Water (Barge Ships) at 0.72 per ton mile. The second lowest is Rail at 2.24 cents per ton mile.
Declaration of where product was made so that appropriate duties are charged
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.

43. Freight revenue for Modes (per ton-mile)
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%
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.
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
Safety regulations - Evaluating fairness of disputed charged rates - Monitoring profitability of railroads - and Mergers and acquisitions

44. How are interstate highways numbered?
Used for tax - manning - and relaxed regulation.
Motor/Truck - around 69-70% - Revenue % for Rail: 5.6%
Odd numbers: North to South highways - increase from west to east - Even numbers: East to West highways - increase from south to north
Water

45. What is the rationale behind passing a federal act in 1956 to create a national system of interstate highways?
Few carriers handle more than 25% of total shipment - service disruptions problems if cease operation.
A longer combination vehicle towing more than one trailer
To promote interstate commerce and strengthen the defenses of the country
Air carrier: highest at 80.4% - Truck: 26.6% - Rail:2.24% - Barge Ship: .72% - Oil Pipeline: 1.47%

46. Which phrase best characterizes the level of competition in the motor carrier industry?
Priority service schedule - often empty backhaul - often cars owned by the shipper - and direct movement from origin to destination
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.
The competition is intense in both TL and LTL segments
Break Bulk - Pickup and Delivery - Line Haul - Slip-Seating

47. Drayage
Boxcar - Hopper Car - Covered Hopper - Flatcar - Gondola - Tank Car
Coastal/Intercoastal - Great Lakes - Internal
Consolidate orders for several customers and stop along the way for partial unloading.
The pickup and delivery of trailers and containers in conjunction with a line-haul rail movement

48. What is a typical fixed cost item in the motor carrier industry?
Carloads and Ton-miles
Increased use of technology - Gradual increase in the number of smaller railroads - Increase in intermodal shipments - Sharp growth in fuel efficiency of locomotives
Pricing according to cost incurred to serve - Customer covers all costs - seller sets prices to maximize profits.
Terminal

49. Labor relations in the US railroad industry?
An agreement whereby one railroad pays another for the right to operate its trains over the second carrier's track
Intermodal in character
Wyoming
The number of unions and the degree of their involvement in operations and labor management contributes to inefficiencies of the railroads

50. Land Bridge Services
Intermodal in character
About 2 cents per dollar
Consolidate orders for several customers and stop along the way for partial unloading.
Air