Global Logistics Exam one study guide (mods 1-6)

on international airfreight shipments, the traditional volume-weight conversion (Although not the one used by fedex and ups) is

166 cubic inches per pound

the european union is an economic community that comprises how many countries?

27

While the beam, length and draft of a ship matter, to go through the Panama Canal, the largest containership should be of capacity about

5,000 TEUs or fewer

Montreal Protocol 4

A 1999 protocol that limits liability of air carriers to SDR 17 per kilogram of cargo. There is no limit for death or bodily injury.

freight forwarder

A company specialized in shipping cargo on behalf of shippers-importers or exporters.

Dry Lease

A lease agreement in which the owner of the aircraft provides only the airplane to the lessee, who is responsible for all other costs.

OBC

A passenger on a regularly scheduled flight who relinquishes his or her baggage allocation to allow cargo in its place

longshoreman

A person who performs manual labor in a port.

Ship Chandler

A retail dealer who specializes in supplies for ships in an international port.

freight corridor

A section of a railroad network dedicated to freight traffic.

Neo-Panamax Ship

A ship of the maximum size that can enter the NEW locks of the Panama Canal.

Panamax ship

A ship of the maximum size that can enter the ORIGINAL locks of the Panama Canal.

Post-Panamax Ship

A ship that is too large to enter the locks of the Panama Canal

Gross Tonnage (GT)

A ship's TOTAL internal volume measured as the space available below deck and expressed in hundreds of cubic feet.

airfreighter

A type of airplane dedicated to carrying cargo, either originally designed or retrofitted former passenger aircraft

Combi Aircraft

A type of airplane that is designed to carry both cargo and passengers at the same time on the main deck

FTK

A unit designed to express cargo volume shipped. It is equal to the number of tonnes of cargo shipped multiplied by the number of kilometers they were shipped.

correct name for document for international air transportation of cargo is

Air waybill

road train

An Australian trucking technique, consisting of one tractor pulling three to five semi trailers.

semi truck

An articulated truck that is made up of a tractor and a trailer

Which aircrafts have upper decks

Boeing- 747/747F and Airbus 380/380F

what are some of the major container shipping line

CMA-CGM, COSCO,OOCL,MSC

Time-Definite Shipments

Cargo or package shipments that must be delivered by a guaranteed, predetermined time and day

Project Cargo

Cargo that is much larger, heavier, or more complex to handle than regular cargo. Project cargo generally requires specialized means of transport.

Co-modality

European way of referring a shipment that takes more than one mode of transportation under a single bill of lading

Which is the worlds largest cargo airline?

FedEx

As ships move through the Panama Canal, the locks they traverse use an inordinate amount of fresh water, including water from the reserve at

Gatun Lake

Which airport handles the most freight in the world?

Hong Kong

World Trade Organization

International organization that regulates international trade, enforcing international trade agreements and for ensuring that countries deal fairly wih one another

Consumer mobility refers to the idea that consumers like to find the same products everywhere. An example of a company that sells products everywhere in the world because its customers are all over the world is

Mcdonalds, intercontinental hotels, fuji film- all of the above

what is the largest container port in the world

Shanghai

International civil aviation organization ICAO

The United Nations agency for developing the principles and techniques of international air navigation to establish safety and security standards for international civil aviation

Bunker

The amount of fuel that a ship carries on board and that it needs to travel.

ACMI Lease

The owner of the aircraft provides the Airplane, crew, maintenance, and insurance

tractor

The part of an articulated truck that is in the front and pulls the trailer.

trailer

The part of an articulated truck that is in the rear and pulled by the tractor.

which is not a popular flag of convenience country for vessel registration

The united states

largest importer in the world?

United States

which is not a major container shipping line

YTK

DRP

a computer based management tool that allows a RETAIL firm to determine what to order from its suppliers in function of what it sells to retail companies

MRP

a computer based management tool that allows manufacturing firm to determine what to produce and in which quantity

JIT

a management philosophy that consists of planning goods in such a way they are produced just before they are needed

Tarrif

a tax collected by an importing country on the value of imported goods

infrastructure

a term that refers to all the public and private goods that facilitate transportation\, communication, and business exchanges

RTK

a unit designed to express total airline activity. It is equal to the number of tonnes of cargo, passenger, baggage, mail shipped multiplied by the number of kilometers they shipped

NVOCCs are

able to handle freight to any destination

four types of aviation services

airmail, express air freight, scheduled freight and charter freight

Suez Canal

allows a ship to not have to go around the entire continent of Africa

Argentina can produce 1 ton of meat (beef) using 0.1 years of labor. It can also produce 1 automobile using 2 years of labor. In order to produce 1 ton of beef, the United States uses 0.2 years of labor. It can produce an automobile using 1.5 years of labor. Argentina has

an absolute advantage in the production of beef.

Wet Lease

an agreeement which the owner provides,aircraft, insurance, crew, maintenance AND fuel

Open Skies Agreement

an agreement between two or more countries whereby air carriers from one of the countries are allowed to serve any of the other countries airports

damp lease

an agreement in which the owner ONLY provides aircraft, maintenance and insurance. NO crew

hatch

an opening of restricted size allowing for passage from one area to another, in particular.

volume weight

artificial weight used by airlines to determine tariff to be paid for a light shipment

Break-bulk ships

can call at just about any port to pick up different kinds of cargo loads

the individuals who are handling goods in the ports, loading and unloading merchandise, can be any of these except,

chandlers

A cargo service that allows an exporter to ship a large quantity of goods to a location not normally served by cargo airlines would be

charter airfreight service

which country is currenty the largest exporter in the world

china

Air Draft refers to...

clearance constraint for waterway wwith a bridge- the distance between the water level at hight tide and the lowest point on the bridge

On occasion, a firm will respond to a competitor's move by retaliating. For example, Linde Gas (an American firm producing industrial gasses) entered the French market when Air Liquide (a French company in the same industry) decided to enter the U.S. market. Such a move is considered a

competition driver

Certified Cargo Screening Facilities are charged with

conducting one-hundred-percent inspections of all shipments tht will eventually travel on passeneger aircraft

Post-Panamax ships have resulted in

cranes being unable to reach across post-Panamax ships.

the total capacity of the ship expressed in long tons is called

deadweight tonnage

DWT

deadweight tonnage- the maximum weight that a ship can carry

upper deck

deck designed to carry cargo on airfreighter and passsengers, located above the main deck

Slow unloading of a vessel often results in:

demurrage

current dollars

dollar amounts or prices that are not adjusted for inflation. Their value is determined by the year they were actually received or paid

constant dollars

dollar amounts or prices that have been adjusted for inflation; so that it is possible to compare dollar values from one period to another

which was not one of the charcteristics of the "early days" of logistics

emphasis on customer satisfaction and supplier realtionship management

The paris convention of 1919

established the concept of sovereignty of a country over its airspace

Warsaw Convention of 1929

first limits of liability for air carriers

countries with an open registry often provide

flags of convenience

Which is not one of the main types of aviation service?

freight forwarder

GRT

gross registered tonnage- the volume capacity of a ship calculated in a way that meets requirements of a specific authority, such as teh Panama Canal Authority or Suez Canal Authority

Which is a typical international air cargo

high valued industrial and consmer goods and time sensitive goods

berth

in a port, the location at which a ship can load and unload its cargo

Russia can produce 25 tons of steel or 5 automobiles using the same amount of resources. Using the exact same amount of resources, India can produce 18 tons of steel and 3 automobiles. According to the theory of comparative advantage, at what price will Russia and India trade automobiles?

india will buy automobiles as long as the price is lower than 6 tons of steel

which of the following entities was created at the Bretton Woods Conference of 1944

international monetary fund

International Monetary Fund (IMF)

international organization created in 1945 to oversee exchange rates and develop an international system of payments

among charcteristics of the saint lawarence seaway is/are

it links the great laskes to the saint lawrence river and the atlantic ocean

Because some ports are becoming increasingly limited in their ability to handle ever-larger ships it is possible that

large ships will go to "hub" ports where "feeder" ships will traverse to and from the smaller ports

Airfreighters are different from passenger airliners in that freight is carried in/on the ______ of the aircraft.

main deck

NVOCCs

non-vessel operating common carrier, similar to a freight forwarder but does NOT own any vessel but acts as a carrier legally

LNG and LPG ships

often operate on long-term contracts

stevedore

one who loads or unloads ships

A firm can respond to one of its competitors' introduction of a lower-priced product by starting to produce its own lower-cost product abroad and importing it. Such a strategy is called

outsourcing

which are popular flag of convenience country for vessel registration

panama, liberia, malta, the bahamas

The only water link between the Black Sea and the oceans is

the Bosporus Strait

In calculating airfreight rates, airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value. As a result,

the airline will charge the higher of the volume weight or the actual weight of the cargo

Euro

the common currency of 19 of the 28 countries of the European Union

the increasing size in containerships may eventually result in

the development of a "hub and spoke" system

draft

the minimum depth of water that a ship needs in order to float

International Trade

the sale of goods and services across international boarders

primary business of integrators

the small package door-to-door segment

standardized units of cargo on a breakbulk ship have a capacity of

there are no standardized units of cargo on a breakbulk ship

International air transport association IATA

trade association comprising almost 230 airlines representing 93 percent of all scheduled air traffic

the united states govermental agency that has primary responsibility for security issues in air transportation whether passenger or cargo is

transportation security administration

air cargo pallet is officially called?

unit load device ULD

MRP-11

uses MRP at its core

Main strengths of air transportation?

very short transit times