Lec. 10 Transport

Question 1

What are the 5 general modes of transportation?

Answer 1

Air, Road, Water, Rail, Pipeline

Question 2

What is intermodal transport?

Answer 2

Transporting freight across different modes of transportation. Often in an ITU, intermodal Transport Unit, such as a container.

Question 3

Name for a provider of logistics services?

Answer 3

Logistics Serice Providers (LSPs)

Question 4

What is the normal relationship between distance and rate?

Answer 4

Increasing at a decreasing rate.

Question 5

What is the normal relationship between consignment weight and rate per kilo?

Answer 5

Decreasing at decreasing rate.

Question 6

How will bulky consignments usually be charged?

Answer 6

Through volumetric charging, basing rate on volume rather than on weight.

Question 7

What is a DC?

Answer 7

A Distribution Center. A type of warehouse, where a large number of products are delivered, preferably in full truck loads.

Question 8

What is a CC?

Answer 8

concolidation center, is one chain link more upstream than a DC, serves to consolidate shipments into FTLs.

Question 9

What is FGP?

Answer 9

Factory gate pricing. A price charged for goods at the “gates of the factory”. Pricing this way makes the retailer purchase goods EX WORKS (just after production), providing the freedom to optimize and minimze transportation costs. Requires strong ICT.

Question 10

What is FCL?

Answer 10

Full container load

Question 11

What is LCL?

Answer 11

Less than full contained load

Question 12

What is FTL?

Answer 12

Full truck load

Question 13

What is LTL?

Answer 13

Less than full truck load.

Question 14

What is the Transportation Model?

Answer 14

A cost-minimizing model, using data on goods required at destination, goods available at supplier, unit transport cost.

Question 15

What is own-account transportation?

Answer 15

When a company provides its own transport services.

Question 16

What is a recent trend in logistics services?

Answer 16

Companies move away from own-account transportation and use LSPs instead.

Question 17

What is the name of the part sending the consignment?

Answer 17

Consignor.

Question 18

What is the name of the part receiving the consignment?

Answer 18

Consignee.

Question 19

What does “brokerage” refer to?

Answer 19

Brokerage is generally used term for arranging customs clearance

Question 20

What are the main types of LPS companies?

Answer 20

• Haulier or trucking companies
• Freight Forwarder (arranges transportation like a travel agents, performs brokerage)
• NVOCC, Non-vessel-owning common carrier, companies consolidating smaller shipments
• Courriers - persons delivering messages, packages, or mail.
• Integrators - offers seamless end-to-end services, UBS, DHL, etc

Question 21

What is a 3PL?

Answer 21

3rd party logistics provider, companies offering multiple, integrated services

Question 22

What is a 4PL?

Answer 22

Takes care of 3PLs. In unionist terminology, 3PL is logistics, while 4PL is SCM.

Question 23

What does a Bill of Lading cover?

Answer 23

• Where the freight comes from
• What it comprises
• Where it is going
• How it is going to get there

Question 24

When should the concept of generalized costs be applied?

Answer 24

When deciding between different logistics solutions.

Question 25

What are the main components of generalized costs?

Answer 25

• Time
• Money
• Other Cost of travel