Chapter 4: Road Transport Flashcards

1
Q

Name reasons for the increasing usage of “Curtain Siders” in freight transport!

A

Important reasons for buying and using of “curtain-siders” are:

  • loading and unloading from both sides is possible
    → speed up of loading/unloading process
  • no need for sequencing the loading process in a logic first shipment should be loaded last (unload from both sides is possible)
  • large market of used vehicles (higher chance for selling and buying old resp. new truck tractors)
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2
Q

What are influencing factors for choosing the right vehicle in road-based freight transports?

A

The choice which vehicle is appropriate depends heavily on the tour profile for which the vehicle is used. Therefore important decision factors are:

  • Length of the tour (need for an expansive gas refill?; a need for two drivers?)
  • Locations for which the vehicle is used (downtown distribution vs. main-haul transports)
  • Average shipment size and total volume to transport on one tour?
  • Special equipment and features needed during transport and/or loading/unloading? (e.g. freight must be cooled; availability of special equipment for loading/unloading)
  • Financial aspects (best financing model)
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3
Q

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

A

In Germany, there are three main time resp. rush-hour peaks:

  • In the morning between 7:00 - 9:00 am (business and commuting traffic)
  • During lunch break 12:00 - 2:00 pm (commuting traffic for lunch and shortstop at home)
  • At the end of working day between 3:00-7:00 pm (commuting traffic for the trip home; start of long-haul transports of freight traffic)
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4
Q

What and who is EPAL?
Describe its functions and business model!

A

EPAL (European Pallet Association) is a non-profit-organization for designing and controlling the production process and quality of wooden pallets as loading-units.

The main functions of EPAL are:

  • EPAL emits licenses for producing and repairing EPAL pallets according to EPAL standards. The pallet itself is produced or repaired by license owners (production and repair facilities) all over the world.
  • EPAL organizes the controlling of the pallet quality before, during and after the production and/or repair of EPAL pallets.
  • EPAL pallets build the base for the largest, so-called “white pallet pool” for exchanging pallets between shippers, consignees and logistics service providers.
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5
Q

What kinds of exchange procedures are existing in the management of pallet pools? Which one would you prefer as a forwarder? Why?

A

There are four main exchange procedures in the white pallet pool:

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

As a forwarder “double exchange” is the most preferable one. Because there are two loops (between LSP and shipper + between LSP and consignee) it is more flexible and timely independent in the organization of the empty pallet backloads.

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6
Q

Please name the four main partners in the order flow of freight forwarding and explain their functions and contractual relationships!

A

The four main partners are:

  • the seller as the consignor also called the “shipper”
  • the buyer as consignee
  • the forwarder as the organizer of the transport also called the “sender”
  • the carrier as the operator of the transport

The contractual relations are:

  • between the shipper and sender a forwarding contract
  • between the forwarder and carrier a contract of carriage
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7
Q

What does it mean if a forwarder is “contracting in its own name”?

A

The forwarder is - by legal definition - only the organizer of the transport. The carrier is responsible for the physical transport itself.

If a forwarder uses its own assets (trucks) for the transport, the forwarder is “contracting in its own name”, because the forwarder is acting as a carrier at the same time.

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8
Q

What is the difference between the forwarding contract and the contract of carriage?

A
  • A forwarding contract is a service contract. By means of a service contract, a person who promises service is obliged to perform the services promised, and the other party is obliged to grant the agreed remuneration. So the forwarder owns as the service the organization of the goods transport. This is realized by transfer the goods to a carrier.
  • The contract of carriage is a contract to produce a work. According to this kind of contract the carrier owns as work the physical transport. The forwarder does not liable for the rightness of transport, but for the organization of the transport, only.
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9
Q

What is important information a carrier needs BEFORE he can accept a transport order?

A

A carrier has to check the order feasibility by getting information about:

  • Availability of transport/truck capacity (Mixed loading prohibition; customs procedures; degrees of utilization -> problem of backloads!)
  • Availability of personal capacities (special know-how for hazardous goods? Driving and rest times, knowledge of foreign languages)
  • Availability of all necessary documents (licenses for trucks and drivers etc.)
  • Other influencing factors: payment behavior, credit-worthiness, margin etc.) Plausibility check of freight-related information (volume, weight, number of packages)
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10
Q

What are important components of the overall efficiency in transports?

A

There are four main components in the optimization process of the transport efficiency:

  • The “Time Efficiency” (How do we enlarge the time of actual resource utilization?)
  • The “Distance Efficiency” (What is the shortest / fastest route?)
  • The “Speed Efficiency” (What is the optimal vehicle speed?)
  • The “Capacity Efficiency” (How do we maximize the use of available loading capacity?)
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11
Q

Which direction has the A3 and A1 (federal motorways in Germany)?
East-West or North-South?
Explain your answer!

A

The directions of the A3 and A1 are “North-South”.

The reason:

The federal motorways built up the basis of the network with the numbers 1-9 The rule of the numbering: uneven numbers for north-south directions; even numbers for east-west directions!

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12
Q

How many standard EUROPALLETS do you need for a full-truckload in a truck-trailer combination?

A

For a standard trailer, the maximum number of EUROPALLETS (one layer) for using its full capacity 17. Therefore, for a truck-trailer combination in a FTL-transport the maximum number of EUROPALLETS is 34.

Because of the loss of space (in average -10% of the volume), the number used by practitioners is 33.

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13
Q

What are the measurements of the standard EUROPALLET?

A

The size of the standard EUROPALLET is:
1,20m x 0,80m x 0,15m

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14
Q

How large is the space consumed by one standard EUROPALLET in a standard trailer (in sqm and LDM)?

A

The space consumed by one standard EUROPALLET is:

  • 1,20m x 0,80 m = 0,96 sqm
  • 1,20m / 3 slots = 0,40 LDM per slot
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15
Q

We discussed three kinds of pallet pools resp. pooling systems:

The “white”, the “blue” and the “red” pool.

Please explain in brief the characteristics of each pooling system!

A
  1. The “White Pool”:
    - is the pool of EPAL (European Pallet Association)
    - pallets are made out of wood
    - color is neutral
    - the pooling-system is an exchange system between shipper, consignee, and forwarder
  2. The “Blue Pool”:
    - is the pool of CHEP (Commonwealth Handling Equipment Pool)
    - pallets are made mostly out of plastic
    - color is blue
    - the pooling-system is a rental system between CHEP and the shipper
  3. The “Red Pool”:
    - is the pool of LPR (Logistics Packaging Return)
    - the pallets are made out of wood
    - color is red
    - the pooling-system is a rental system between LPR and the shipper
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16
Q

Which kinds of loading securing do you know?

A

Load securing in the truck interior:

  • Form-fitted load securing [formschlüssige Ladungssicherung] : against the walls of loading space and/or
  • Non-positive securing of the load [kraftschlüssige Ladungssicherung] with lashing straps [Spannketten], tensioning chains [Spanngurten] etc.
17
Q

What are advantages of the existing pallet pooling-system of EPAL?

A

Advantages are:

  • High degree of (technical) standardization:
    → Economies of scale in production makes the end product cheaper
    → Technical standards of the pallet enable the standardization of technical equipment used for pallet handling and transport (e.g. forklifts, warehousing systems etc.)
  • High degree of quality and reliability of EPAL pallets:
    → durability because of the usage of quality proofed materials (wood, nails etc.)
    → continuous, independent controlling of pallet quality by external Institutions
    → standardized repair cycles with quality controlling of the end product
  • High degree of market availability and usage:
    → easy to buy and sell EPAL pallets
    → high degree of exchangeability between the market partners
18
Q

What are disadvantages of the existing pallet pooling-system of EPAL?

A

Disadvantages of the EPAL pallet pooling systems are:

  • Monopoly position of EPAL against other market competitors:
  • exclusive production and repair by EPAL licenses
  • controlling of new market entrants and the price building process
  • Slower innovation and implementing times for changes in the pallet system because of market dominance
  • High dependency of industry, retail, and logistics service providers on the rules and regulations of EPAL
19
Q

What are consequences of the traffic time patterns in Germany regarding an efficient transport management?

A

The consequences of time patterns in traffic are for carriers and/or forwarders:

  • the need of a continuous, real-time adaptation of their tour planning according to the actual traffic situation;
  • the need for building up buffers of transport resources (additional vehicles, drivers, sub-contractors etc.) and the appropriate alternative process procedures if a delay is happening
  • the need for investments in communication and information technology, which helps to identify critical traffic situations in advance (navigation systems, communication systems)
20
Q

What is the difference between a forwarder and a carrier?

A

While the forwarder is responsible for the organization of the transport, the carrier is responsible for the physical transport and the loading securing.

Therefore, the forwarder has to provide all necessary documents and information to the carrier in a way, that the carrier is able to realize the performance of the transport.