Evaluation of Transportation Modes - Chapter 7
What are Ro-Ro vessels?
Roll-on/Roll-Off ships where motorized cargo on driven on and off ships.
What is the international standard for containers?
20 feet and 40 feet 53 feet containers are modified for road transportation.
Advantage of ____________ is they can usually deliver freight in less time than other modes for shipments shorter than 500 miles. They can can be loaded before the actual transportation begins. A Truck B Air C Rail D Water
A Truck
These are different types of _______________ delivery: common, contract, line haul, express and private fleet carriers A Truck B Air C Rail D Water
A Truck
What is a container?
A box that is between 10 and 53 feet long. Most made of steel are general purpose in nature.
Which of the following forms of transportation accepts responsibility for carrying goods at anytime, to any place, and for all shippers? A common carrier B private C contract D exempt E line-haul
A common carrier
What are Exempt Carriers?
A for hire carrier that is free from economic regulation.
What are Private Carriers?
A group that provides transportation exclusively within an organization.
The transportation modes selected affects the ________________ required and carrier classification rules dictate the _____________ choice. A packaging, package B traveling, travel C handling, handle D transporting, transport
A packaging, package
How are transportation routes and networks connected?
A route is like a path along which products move. Networks are composed of paths and facilities connected by those paths.
What are Bulk carriers?
A tanker which moves bulk liquid cargo like crude oil.
What are fixed costs?
An expenditure that does not vary with the production volume; for example, rent property tax, and salaries of certain personnel.
What are variable costs?
An operating cost that varies directly with a change of one unit in the production volume.
Advantage of _____ is the fastest way to move products, especially over long distances or overseas. The main advantage of this transport is speed. A Truck B Air C Rail D Water
B Air
Disadvantage of _____ is they are the most expensive type of transportation to operate. They have high fuel and maintenance costs. They bear heavy fixed and variable costs. A Truck B Air C Rail D Water
B Air
Which mode of transportation is often used for emergency, overnight shipments? A Truck B Air C Rail D Water
B Air
Which mode of transportation is the fastest for long distances? A Truck B Air C Rail D Water
B Air
Which mode of transportation is the most expensive? A Truck B Air C Rail D Water
B Air
A load from one customer fills up the entire truck; cater to customers who usually ship in bulk. A LTL B FTL C FAA D ADA
B FTL
Which mode of transportation is best for moving items very quickly? A truck B air C rail D water
B air
What are the advantages of rail transportation?
Best suited for large volumes ver long distance. Highly cost efficient. Speed/distance Work in conjunction with truck shipments
This mode of transportation moves only gas, oil and refined products. Operating costs are very low. A Truck B Water C Pipeline D Rail
C Pipeline
Disadvantage of ________ is the infrastructure costs are high and equire large orders to be cost effective. Require more delivery time must be allocated. A Truck B Air C Rail D Water
C Rail
A merge in transit in which the multiple shipments are sent to a distribution center near the customer site where items are reloaded onto a single truck and sent as a single delivery is most cost-effectively done by _____________, a technique in which goods are moved directly from a receiving dock to a shipping dock without intermediate storage. A freight forwarding B specialty carrying C cross-docking D direct shipping
C cross-docking
What determines what mode of transportation to use?
Calculation of cost Speed Reliability Capability Capacity Flexibility
What is Time Definite?
Carriers that offer specialized equipment and precise pick up and delivery time commitments that are guaranteed.
What are common carriers?
Carry goods at any time, at any place for all shippers.
Waterways transport what products?
Coal, petroleum and iron ore. Farm products and wood. 90% of all import merchandise comes U.S. via ocean container.
What are several modes of truck delivery carriers?
Common Contract Line Haul Express Private Fleet
What are the legal forms of transportation?
Common Carriers Private Carriers Contract Carriers Exempt Carriers Line-Haul Carriers
What are 4 primary types of cargo vessels?
Container ships Bulk carriers Ro-Ro vessels Break-bulk
What are variable costs?
Costs of operation which depend on fuel, maintenance, labor and how the loads are handled.
What are fixed costs?
Costs that do not change with the amount or volume or goods carried.
This mode of transport moves products such as coa, petroleum and iron ore. Farm products and wood are also transported this way in bulk. About 90% of all import merchandise comes into the U.S. via container. A Truck B Air C Rail D Water
D Water
What considerations determine the best mode?
Decisions made by traffic managers and clerks. Packaging required Classification rules Material Handling Dock Design Cost
What is yard control?
Determines the time that the delivery truck is allowed at an unloading dock. Trailer yard movement and control are very important functions.
What are the disadvantages of rail transportation?
Do not leave as often as trucks. Schedule around limitations Need large shipments to be cost effective. Delivery time must be allocated as much as 10 days.
What is "the mix"?
Each mode of transportation has its own mix of speed, cost, availability and capability. It depends on what is being shipped and what attribute is most important.
What is Less Than Truckload (LTL)?
Either a small shipment that does not fill the truck or a shipment of not enough weight to qualify for a truckload quantity rate discount, offered to a general commodity trucker.
What is the difference between FTL and LTL?
FTL - cheaper delay shipment/builds inventory LTL - more shipments/more expensive, faster
What are some fast facts about Air Transportation?
Focused mostly on movement of high value goods that delivery in a few hours. A large cargo plane can carry as much cargo as roughly five truck containers. Globally, more than 60 million tons of freight are moved by commercial airlines annually. There are nearly 900 planes in the U.S. air cargo fleet. The Largest flow of air cargo is between East Asia and the U.S. The five largest air cargo hubs in the U.S. are: Memphis, TN, Anchorage, AK, Louisville, KY, Los Angeles, CA and Miami, FL.
What factors impact total transportation costs?
Freight Fleet Fuel Maintenance Labor Insurance Pick up and delivery Loading and unloading costs Terminal Handling Idle time Billing and Collecting Taxes and Tolls International fees Plants and warehouses location Vendors Retail Locations Customers Lane capacities limit
What are the disadvantages of truck transportation?
Fuel, license fees and tolls. Costs vary by load. Fleet vehicles require additional in-house routing and schedule work. Power costs to heat/cool loads.
What is FTL?
Full truckload FTL means the load from one customer fills up the entire truck.
What are Specialty Carriers?
Handle freight that requires special equipment which may include bulk freight, large difficult to handle freight or freight requiring temperature controls.
What are Line-Haul carriers?
Haul full loads long distances for one stop delivery.
What are the uses for rail transportation?
Heavy volume shipping. Bulk Products
What are the disadvantages of pipeline transportation?
High cost of infrastructure/Right of Way permits Limited product.
Who are freight forwarders?
Important participants in global supply chain logistics. They serve as intermediaries between the shipper and the carrier. They have large-scale relationships with both ocean freight and airfreight carriers.
What helps rate the time it takes for delivery or cycle time?
In-transit time variability Vehicle load/unload time Detention time Delayed in traffic time
How can various measures can be used to reduce costs?
Increase the weight Reduce the number of pick-ups Decrease the number of parcels by consolidating shipments. Decrease billing and collecting costs by consolidating shipments. Not overwhelm vehicle Lane capacities limits.
What is Intermodal Shipping involve?
It involves using multiple transportation modes to move products to consumers in the most cost-effective and secure manner. Multiple modes are used to transport a shipment from its origin to its destination without the contents being reloaded or disturbed.
What is Perfect Delivery percentage (PDP)?
It measures the percentage of shipments delivered without defects, including damage, documentation, arrival time, arrival location, loss, accidents and claims of any kind for each delivery, driver, lane and carrier.
What are the advantages of Water Transportation?
Larger capacity Reliable Cost effective.
What is LTL?
Less than truckload LTL means that the load from one customer does not take up the entire available space on truck.
What two major categories can FTL and LTL be broken-up into?
Long haul and Short Haul
What is the advantage of pipelines?
Low operating costs
What is air freight used for?
Low-weight, high value products like electronics or jewelry. Emergency deliveries.
What are the disadvantages of air transportation?
Most expensive Limited based on physical characteristics of the goods Heavy fixed and variable costs, paying user fees. Fuel and maintenance costs
What are Exempt Carriers?
Not regulated by federal and/or state mandates.
What are Contract carriers?
Operate on a selective basis and may charge variable rates to customers based on negotiated terms.
What are private carriers?
Owned by firms that produce goods.
What are backhauls?
Shipments in the opposite direction.
What is the difference between FTL and LTL?
Shippers that use FTL deal in bulk. Shippers that use LTL deal in smaller items or items that do not fill an entire truck. Cost effective if you are shipping 10,000lbs or more. LTL the customer only pays for the amount of space used on the truck. LTL could take longer to reach its destination because it might be sharing the truck.
What are Break-bulk ships?
Ships that accommodate dry goods too large to stow in a container.
What are the advantages of air transportation?
Speed. Flexibility
What are the advantages of truck transportation?
Suited for small volume of goods to many destinations. Fastest delivery for shipments shorter than 500 miles Pre-loaded capability Relatively low cost Provide fast, flexible service. Easier temperature control
What is On-Time departure percentage (OTAP)?
The percentage of loads departing on time for each driver, carrier and lane.
What is Perfect Route percentage?
The percentage of routes or trips with a perfect delivery.
What is On-Time arrival percentage (OTAP)?
The percentage of shipments arriving on time for each driver, carrier and lane.
What is Claims-free shipment percentage?
The percentage of shipments without claims for each driver or carrier on each lane at each location.
What is Damage-free shipment percentage?
The percentage of shipments without damage for each driver or carrier on each lane at each lane at each location.
What is efficient transportation?
The physical movement of goods and people between two points and its vital for successful supply chain operations,
What is Delayed in traffic time?
The time spent idling or at reduced speed due to traffic congestion for each driver, carrier, lane and pick-up/delivery location.
What is cross docking?
To merge in transit multiple shipments sent to a DC near the customer site, reloaded onto a single truck and sent as a single delivery.
What are the disadvantages of Water Transportation?
Very slow Best service areas near water Can be affected by water levels and icing.
What is a Full Truckload (FTL)?
When the load from one customer fills up the whole truck.
When does intermodal transportation occur?
When two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
What are container ships?
Where the freight is stowed in either 20-feet or 40-feet weather tight ocean containers.
Who are yard jockeys?
Workers who do nothing but spot trailers all day or night.
_______________ is the most expensive logistics activity, representing over 40 percent of most corporation's logistics expenses. A Accounting B Transportation C Sales D Marketing
B Transportation
What are common measures of transportation quality?
Claims-free shipment percentage Damage-free shipment percentage. Distance between accidents. On-time arrival percentage (OTAP) On-time departure percentage (OTDP) Perfect delivery percentage (PDP) Perfect Route Percentage (PRP)
What are Next Flight Out Services?
Counter to counter service is for critical shipments that must be delivered the same day they are shipped. Usually with commercial passenger airlines.
What is Decoupling?
Creating independence between supply and use of material. Commonly denotes providing inventory between operations so that fluctuation in the production rate of the supplying operation do not constrain production or use rates of the next operation.
What are Expedited Carries?
Critical shipments that cannot be delivered on time using LTL carriers can be sent by expedited carriers that meet required delivery times cheaper than by air freight.
A carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract. A Cross-Docking B Private Carriers C Common Carriers D Contract Carriers
D Contract Carriers
These carriers are NOT regulated by federal and/or state mandates; carriage of fishing and agricultural products has been traditionally labeled exempt from regulatory practices. A Common Carriers B Private Carriers C Contract Carriers D Exempt Carriers
D Exempt Carriers
A mode's performance is dependent on what?
Quality of its supporting infrastructure. Roads Airports Ports Canals Rivers Coastal Mains
What is In-transit variability?
Point-to-point in transit time variability by driver carrier, land and location.
What are container ports?
Ports dedicated to receiving container ships.
What use are there for water transportation?
Primarily large bulk materials/long distances
What are fast facts about pipeline transportation?
The U.S. has more petroleum pipelines than any nation. Pipelines range in diameter from 2 inches to 4 feet. In the U.S., about 3 million of pipelines deliver trillions of cubic feet of natural gas and billions of tons of liquid petroleum equal the volume moved by a modes sized pipeline.
What are some fast facts of rail transportation?
The entire U.S. rail network is 155,300 miles. 80% of the U.S. rail network is used for freight. About 700 railroad companies operate common carrier freight service operations. The volume of goods transported by rail in the U.S. is 1.6 trillion ton miles. There are more than 26,500 Class 1 rail locomotives. The rail industry adds more than $45 billion to the U.S. economy annually. Railroad operations and capital investment support more than 1.1 million jobs.
What Freight Forwarders?
The middle man between the carrier and the organization shipping the product. Often combines smaller shipments to take advantage of lower bulk costs.
What are some Fast Facts about Water transportation?
The seaborne international shipping industry moves about 90% of the worlds goods. Goods moved ships range from bulk materials to finished goods to electronics to apparel. More than 500,000 merchant ships registered in 150 nations carrying freight. 5 busiest ports in the U.S are Port of Los Angeles, Port of Long Beach, Port of New York and New Jersey, Georgia Ports and Port of Seattle and Tacoma. These 5 ports handle more than 32 million TEUs annually. The inland waterways of the U.S. include more than 25,000 miles of navigable waters.
What is Vehicle load/unload time?
The times at each pick up/delivery location by driver, carrier, lane and location.
What use are there for Pipelines?
The transport of gas, oil and refined products.
What are long haul carriers?
They generally serve most destinations within the lower 48 states.
What are short haul carriers?
They have a service area within a specific geographic region. Also called regional carriers.
What are integrated carriers?
They offer complete door-to-door service like FedEx, UPS and DHL.
What is Detention time?
Time spent waiting for loading or unloading times at each pick up/ delivery location due to dock congestion and/ or delays by the shipper or the consignee.
What are the methods that material movers use via air freight.
To tender the freight directly to an airline. Use all cargo airline like FedEx, UPS, and DHL. Use passenger airlines like American Airlines or Delta. Amazon has its own airline called Amazon Air.
What are some fast facts about truck transportation?
Trucks move more than 70% Gross freight revenues from trucking exceeds $730 billion annually. 38 million trucks are registered for business. Registered trucks travel more than 300 billion miles annually, consuming 45 million gallons of fuel. Roughly 1 million private carrier firms on file with the Federal Motor Carrier Safety Administration. Nearly 3.4 million truck drivers on the job, with annual turnover of 99%
What are the various truck receiving activities?
Yard control Vendor delivery truck Container Dock scheduling Unloading product Verifying product quality and quantity Entering Receipts Identifying products Transporting Product to storage area
