Principles of Transportation: Final Exam

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(in Elastic)

injunction

(law) a judicial remedy issued in order to prohibit a party from doing or continuing to do a certain activity ex. declare ppl cant strike

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(unit Elasticity) EX. luxury items demand doesn't change

Business Cycles- Transportation

*Order Processing*: - Pro-forma invoice -Commercial Invoice *Export Clearance* -Shipper's Declaration *Shipment* -Bill of Lading -Freight Bill and FOB terms *Import Clearance* -Customs Forms

Business Cycles External Causes

- War increase GDP Science increase New Resources Weather Pop Growth (vs. economic & per capita)

Weapons of Firms

1. Lockout 2. Move Company 3. Injunction 4. Blacklist

Process includes doing the following to the products:

Advertising Selling Storing Shipping (transportation)

Integrator

Air cargo carrier offering Door-to-Door Services -own trucks and aircrafts ex. UPS and FEDEX

Selling Capacity vs. Finding Capacity

Brokers sell capacity and freight forwarders find capacity for its consignment

Elasticity Formula

Change in demand/ Change (1) in supply

Heavy & Tractor trailer truck drivers

Check vehicles to ensure that mechanical, safety, and emergency equipment is in good working order. Follow appropriate safety procedures for transporting dangerous goods. Inspect loads to ensure that cargo is secure. Maintain logs of working hours or of vehicle service or repair status, following applicable state and federal regulations. Secure cargo for transport, using ropes, blocks, chain, binders, or covers

move company

Companies use it as Weapons, Outsourcing company!

Carrier Consideration

Cost, transit time & reliability, capability accessibility, security

Overhead

Costs of transport firm that aren't directly billed to customers and not related to labor, fuel, or maintenance.

sabotage

Illegal (n.) an action taken to destroy something or to prevent it from working properly; (v.) to take such destructive action

blacklist

Illegal A list circulated among employers containing the names of persons who should not be hired

Strike-picket

Industrial action by unionized workers (called pickets) who either are on, or are trying to gather support for, a strike by assembling near the entrance to the employer's premises. ... To be lawful, picketing is usually required to be approved in a union ballot.

Haulage

Inland transportation of cartage The inland transport service which is offered by the carrier under the terms and conditions of the tariff and of the relative transport document.

Optimization

Minimizing or maximizing one or more performance measures

Recession

a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Transportation

The *movement* by which passengers or goods are moved or delivered from one place to another.

Load Type

The approach of loading cargo in consideration of vehicles, cargo and containers

Loading Sequence

The order in which a vessel is stuffed, according to multiple stops or priority

Shipper/Consighner/Originator

The owner of the goods that need to be transported; the carrier's principal. AKA consignor (originator).

Set Ratio

The relationship between two cargo units (different boxes) that must be shipped in sets

(freight class)

designed to help you get common standardized freight pricing for your shipment when working with different carriers, warehouses and brokers. Freight class is based on weight, length and height, density, ease of handling, value and liability from things like theft, damage, break-ability and spoilage.. *QUICK CHEAT* density and value (& liability) stow-ability handling

Manifest

details claims of what is on the vessel

Trough

is a low turning point or a local minimum of a business cycle. May be defined as the period between two consecutive peaks. -At the lowest level of real GDP.

Contraction

is a phase of the business cycle in which the economy as a whole is in decline. ... According to most economists, a contraction is said to occur when a country's real GDP has declined for two or more consecutive quarters. Income levels fall, less purchasing, more and more workers are unemployed. -2Q or more, Depression longer

Cross Elasticities

the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the quantity demanded when there is a change in price of OTHER goods. Ex. What happens to the demand of bread when the price of milk changes provide an understanding of the substitution between vehicle types given an increase in access charges.

Own Price

the elasticity of a mode of transport for a unit of change of its own price

Cross-Price

the elasticity of one mode of transport for a unit change of another mode of transport

Diminishing Returns

the law stating there is a point at which profits/benefits gained is less than the amount of money/energy invested

Balance Control

the layout within the container of the cargo load, affecting the center of gravity and axle weight of shipment

Logistics

the planning, execution and control of the movement and placement of goods, information, services

Elastic Definition

the quantity demanded changes a lot when prices change a little. EX. Products or services for which there are many alternatives, or for which consumers are relatively price sensitive. For example, if the price of Cola A doubles, the quantity demanded for Cola A will fall when consumers switch to less-expensive Cola B.

Total Costs

the sum of transportation fixed costs, like for terminals, and operating costs, like how much links are used.

Stacking Order

the vertical location of boxes in a vessel

Carrier Services

transit time reliability, negotiated rates, shipment consolidation, financial stability, sales reps, special equipment

Law of diminishing returns

used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.

Business Cycles Internal Causes

-Psychology (expectations) Investment Money Supply (Interest Rates)

Freight Bill

-Similar to Bill of Lading -Series as an invoice The carrier's invoice for payment of transport services rendered.

Cartage

1) Fee charged for transporting (picking up or delivering) freight between inland destinations.

Know the 2 documents that every shipment must have. What is the third document for international shipments?

1. Bill of Lading 2. Freight Bill 3. (international): Custom Claims

Weapons of Unions?

1. Collective Bargaining 2. Strike-Picket 3. Boycott 4. Slow Down 5. Sabotage

What are the 3 functions of a bill of lading?

1. Evidence of Contract of Carriage: shipper & carrier 2. Receipt of Goods are in carrier's possession 3. Document of Title to the goods (Whoever has original owns goods)

The 6 types of distribution prcesses

1. Manufacturer storage with direct shipping 2. Manufacturer storage with direct shipping and in-transit merge 3. Distributor storage with package carrier delivery 4. Distributor storage with last mile delivery 5. Manufacturer/ distributor storage with costumer pickup 6. Retail Storage with customer pickup

2 Stage- Loading

1. Prepare Tertiary Packaging 2. Then You put it in the container

Freight Forwarder

1. get freight from shipper 2. combines (consolidates) freight from many shippers into 1 consignment 3. Arranges with 1 or more carriers for better rates than single shipper consignment forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Broker

1. get large volume capacity from carrier 2. sells that capacity to shipper

Supply Chain Managmenent

1. sourcing, procurement, conversion logistics planning and management 2. coordination & collaboration-integrating firm management activities

Logistics Cost

83% of GDP

Private carrier

A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries.

Contract Carrier

A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate.

boycott

A group's refusal to have commercial dealings with some organization in protest against its policies

Class Rates

A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates."

Unit Load

A load type maximizing # loads for a single vehicle or the # of cargo types for a container or pallet

Set Load

A load type maximizing # loads for a single vehicle with different cargo types with set ratios

Multi-Set Load

A load type minimizing # vehicles for different cargo types and quantities, may or may not have set ratios

Mix load

A load type minimizing the number of vehicles for loads with different cargo types and quantities

External Costs

A negative externality (also called "external cost" or "external diseconomy") is an economic activity that imposes a negative effect on an unrelated third party. It can arise either during the production or the consumption of a good or service.

Distance Zones

A type of transportation rate that sets different price points based on distance traveled

Distribution process

Determining the best ways for customers to locate,obtain,and use the products and services of an organization. Involves moving the product each step from the design idea to the consumer. *process* by which items or ppl are moved

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Elastic

EEI (used to be SED)

Electronic Export Information The EEI reports all pertinent export data of an international shipment transaction.

How are Unions related to Associations and how do they differ?

Every one is a subset of associations They differ because they have a right to negotiate!

Claims

Filed with carrier (9 months) A charge made against carrier for Lost, damaged, delayed or carrier overcharged 120 days to close

Slow down

Legal is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties.

Drayage

Local/ Short Haul of Cargo The service offered by a motor carrier for pick-up and delivery of ocean containers or rail containers. Drayage agents usually handle full-load containers for ocean and rail carriers. (AKA delivery/ pick up from ocean port to a rail ramp or vice versa)

NVOCC

Non vessel operating common carriers same as freight forwarder A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They also consolidate and disperse international containers that originate at or are bound for inland ports. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.

Orientation

On which side of its secondary or tertiary packaging cargo is placed into the vessel

Distribution

People who shape jobs "below" them by designing (planning) the process by which goods will be transported or implementing (choosing among existing processes) a distribution to a specific consignment (they plan activities by talking to senior managers and balancing target service levels with minimal cost, they implement activities by guiding transportation people, they control both cost and service levles)

Reciever/Consignee

Person who receives consignment

Direct Elasticities

Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price.

Collective bargaining

Process by which a union representing a group of workers negotiates with management for a contract

IAC (Indirect Air Carrier)

Same as NVOCC but for AIR

Dead Stacking

Stuffing a container without pallets, directly onto container floor

FOB Destination/Delivered

Title passes at destination, and seller has total responsibility until shipment is delivered.

FOB Origin

Title passes at origin, and buyer has total responsibility over the goods while in shipment.

(Common) Carrier:

Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic.

Transloading

Unloading of freight from international shipping containers to domestic truck trailers

lockout

When management closes the doors to the place of work and keeps the workers from entering until an agreement is reached (employees can't work)

Heuristic

Where finding an optimal solution isn't possible or practical, a sufficient rule of thumb

Depression

a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.

Bill of Lading

a detailed list of a shipment of goods in the form of a receipt given by the carrier to the person consigning the goods. -contract b/w shipper & carrier -proof of ownership of the cargo -orignial ownership

Derived Demand

a need for an item or service stemming from the need for some other item or service

Mediator

a negotiator who acts as a link between parties 1. Broker 2. Freight Forwarder 3. NVOCC 4. NAC

Elasticity

a number that defines the degree of responsiveness of transportation demand to a unit change in service or supply

Core Carrier

a set of carriers that a shipper organization has identified as business partners that execute on mutually agreed performance and price commitments. ... Well defined carrier satisfaction measures.

Inelastic Defintion

a small change in demand when prices change a lot. EX. General inelastic demand is that for gasoline. As the price of gasoline increases, the quantity demanded doesn't decrease all that much. This is because there are very few good substitutes for gasoline and consumers are still willing to buy it even at relatively high prices.

Blanket

a type of transportation rate that sets the same price for service to a varying range of distance

Lanes

affect pricing depending on both distance and outbound/inbound traffic

Peak

is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall. A peak is at the highest level of real GDP.

Expansion

is the phase of the business cycle when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak. A period of expansion is also known as an economic recovery. Income level rise, firms profit and hire more and more workers.

Support Activities

people who enable all of the activities "above" them by managing any tools (ppl, info, money, facilities, equipment) MANAGE (maintain, repair) tools in 4 areaS: 1. people or firms 2. Mobile equipment 3. Facilities 4. Info or money

Storage

people who plan for receipt of goods, who hold on to them until the next phase (until end-user purchase, or reversing back to suppliers) & who keep track of them while under their control

Transportation

people who shape jobs "below" them (planning transportation scheduling, carrying out the carriage activities, controlling both at pick-up and drop-off)

Unions and Associations

people who shape jobs into a sector by serving as a link between workers and employees or workers and government (they plan activities by talking to members, implement them by talking to employers or government, control them by following employer or government implementation to see accordance)

Mode- Related considerations

product, characteristics, modal capabilities, modal freight pricing

Law of Increasing returns of Scale

refers to principle of value "increasing and diminishing returns"; applies when money spent on improvements produces an increase in income or value or diminishing cost refers to a situation when all factors of production are increased, output increases at a higher rate. It means if all inputs are doubled, output will also increase at the faster rate than double.