4. Key operations and equipment of road transportation

Question 1

What are the individual roles and contractual relationships between the actors involved in the following case?: The forwarder EUROCARGO got an order from the company “Franken Electronic” to transport 32 pallets from Nuremberg to the wholesaler “Benedetti” in Verona, Italy. EUROCARGO use the subcontractor “Bleifuß” for the transport.

i) Franken and Eurocargo
ii) Eurocargo and Bleifuß
iii) Franken Electronic and Benedetti
iv) Eurocargo and Benedetti

Answer 1

i) Franken and Eurocargo = Freight forwarding contract
ii) Eurocargo and Bleifuß = Contract of carriage
iii) Franken Electronic and Benedetti = Sales contract
iv) Eurocargo and Benedetti = No contractual relationship

Question 2

Assume you are a logistics service provider and have to plan the transport of ten pallets of machinery goods from an industrial company in Schweinfurt to an automotive supplier in Munich. i) Name five of the basic component of the planning model and discuss in brief for each of the components practical examples that you have to consider for the transportation task described above. ii) Name the four kinds of efficiency in transport, what are the influencing factors and how you could improve each kind for the transportation task described above.

Answer 2

i) Basic components of transportation system
1. Transport objects: size of object, weight, necessary documents, storing
2. Loading Unit: loading securing, return of loading units like pallets, containers, single packages or consolidated
3. Mode & Means of Transport: time & cost restrictions, chosen service product (is road the only way to deliver?), type and capacity of vehicles
4. Depot: location, opening times, service area, capacity
5. Street, Road, Channel: navigation and route planning, round-trip planning, constraints (canals, borders etc)
6. Source or Origin: location, opening times, loading or unloading procedure
7. Sink or destination: location, opening times, loading or unloading procedure, organization of reverse flows

Question 3

What is EPAL and what are the functions?

Answer 3

European Pallet Association is a non-profit organization for designing and controlling the production process and quality of wooden pallets as loading unit

The functions are;
1. EPAL issues licenses for producing and repairing EPAL pallets according to EPAL standard

2. EPAL organizes the controlling of Pallet quality before, during, and after production and/or repair of EPAL pallets.

Question 4

Name and describe in brief one possible organizational models of pallet exchange between sender and receiver and the role of the forwarder in each model.

Answer 4

1. Simple pallet exchange without repatriation obligation
2. Pallet exchange with repatriation obligation
3. Double Exchange
4. Pallet exchange with transfer of risk on consignee side

Double exchange is the most preferable one because there are two loops (between LSP and shipper + LSP and consignee). It is more flexible and timely independent in the organization of the empty pallet backloads

Question 5

Mention 3 Pros of the EPAL pallet pooling system

Answer 5

1. The life of the pallet is extended by the system
2. High quality of the pallets helps to prevent avoidable acidents
3. Security of products

Question 6

Mention 3 Cons of the EPAL pallet pooling system

Answer 6

1. Monopolistic market features; EPAL can set price higher, high market entry barriers
2. Innovation is driven down because of lack of competition
3. Lack of choice

Question 7

Name at least 3 reasons for the increasing usage of “curtain siders”

Answer 7

1. Possibility to load from rear and also from the sides
2. Higher flexibility in the delivery sequence
3. the high availability of used curtain siders on the seller-buyer market

Question 8

What are the typical daily time patterns of the traffic flow in Germany

Answer 8

Peak movement

1. Morning 7am - 9am — Business and commuting traffic
2. Afternoon 12pm - 2pm — Commuting traffic, short stops at home
3. Evening 3pm - 7pm — End of the work day