Module7

Question 1

What is included in transportation costs?

Answer 1

• Material Cost
• Manufacturing Cost
• Inventory Cost
• Transportation Cost

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Question 2

Where does the money go for canned peaches?

Answer 2

• Peaches: 12.4%
• Cans: 11.6%
• Sugar: 4.2%
• Canning (Depreciation, margin): 7.3%
• Canning (Labour): 7.4%
• Shipping: 24.2%
• Importer: 6.3%
• Supermarket margin: 26.7%

Question 3

Example: Big Mac price breakdown (Austria)

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Answer 3

• McDonald’s franchisee: €2,683
• Suppliers: €2,297
• Logistics Provider: €1,402
• Personnel costs: €0,37
• McDonald’s franchisor: €0,497
• Ingredients (bun, beef, cheese, etc.): from €0,00016 to €0,093 each

Question 4

Types of ocean transportation services

Answer 4

• Liner Service: Regular schedule, fixed routes
• Tramp Service: No fixed schedule, can be chartered for any route

Question 5

What are Panamax vessels?

Answer 5

Ships of the maximum size that can pass through the Panama Canal:
- Canal locks are 110 ft wide, 1000 ft long

Question 6

What are Post-Panamax vessels?

Answer 6

Ships too large to fit into the Panama Canal locks.

Question 7

Define Handy Size ships

Answer 7

Ships in the 10,000 to 50,000 dead-weight tons (dwt) range.

Question 8

Define Suez-Max ships

Answer 8

Ships around 150,000 dwt, the maximum size to fit through the Suez Canal.

Question 9

What are Cape-Size vessels?

Answer 9

Large dry-bulk carriers (>80,000 dwt)
- Originally had to sail around the Cape of Good Hope (couldn’t pass Suez Canal).

Question 10

What are Aframax vessels?

Answer 10

Large oil carriers with capacity between 80,000 and 120,000 dwt.
- Named after the Average Freight Rate Assessment (AFRA) system.

Question 11

Types of ocean cargo

Answer 11

• Wet bulk: Liquid cargo in ship hold
• Dry bulk: Dry cargo (e.g., grain) that assumes shape of hold
• Breakbulk: Packaged cargo (bales, boxes, vehicles, etc.) not in containers
• Containers: Cargo in 20 ft or 40 ft metallic boxes

Question 12

What is a flag of convenience?

Answer 12

Flags chosen by ship owners for low costs and minimal regulations:
- Common examples: Panama, Liberia, etc.

Question 13

Define cabotage in the EU (Directive (EC) 1072/2009)

Answer 13

Temporary national transport by foreign hauliers:

• 3 transports within 1 week
• Intended to improve efficiency and reduce empty runs

Question 14

Impacts of limiting cabotage

Answer 14

• Could reduce economic efficiency
• May increase environmental impact if more empty runs occur
• Minister: No intent to limit due to negative impact on industry

Question 15

Horizontal collaboration in transportation

Answer 15

Collaboration among shippers or competitors to:

• Reduce costs
• Decrease empty miles
• Improve sustainability

Question 16

Scenario analysis: Cabotage effect on cost and CO₂

Answer 16

• Short term: Cost −13%, CO₂ +4%
• Long term: Cost −25%, CO₂ +29%

Question 17

Key takeaway: Collaboration success

Answer 17

Only some projects progress despite potential:

• Must balance cost savings with operational feasibility