Dianara Loredon
LOG-125-0901
E. Bateh
Ch.5 Motor Carriers
December 2, 2019
Chapter 5 Exercise Questions
1. The motor carrier industry is probably the most visible segment of the transportation system in the United States. The motor carrier is also the most significant element of the U.S. freight transport industry. What factors account for the motor carrier’s visibility and significance?
2. The railroad industry played a significant role in the development and growth of many cities and geographic regions during the 19th century. What role, if any, have motor carriers played during the 21st century in terms of economic development?
3. Private carriage is more important in the motor carrier segment of our transportation industry than any of the other four major modal segments. What factors have contributed to private carriage becoming so prevalent in the motor carrier area?
4. The so-called local carrier is also almost unique to the motor carrier industry. Why?
5. Compare and contrast the TL segment of the motor carrier industry with the LTL segment in terms of infrastructure, cost structure, market structure, and operating characteristics.
6. What is the nature of intramodal and intermodal competition in the motor carrier industry? How have the motor carriers fared in terms of intermodal competition since 1980?
7. Describe the general service characteristics of motor carriers and explain how these service characteristics have contributed to the growth of the motor carrier industry.
8. The cost structure of the motor carrier industry is affected by its infrastructure (such as highways and terminals). Discuss the cost structure of motor carriers and how it is affected by the infrastructure. Should there be changes made in public policy with respect to the motor carriers’ use of public highways?
9. Describe how fuel and labor have impacted motor carrier cost structures and how they have altered motor carrier operations.
10. What are the major issues facing motor carriers in the 21st century? How should these issues be addressed?
Dianara Loredon
LOG-125-0901
E. Bateh
Ch. 6 Railroads
December 2, 2019
Chapter 6 Exercise Questions
1. Railroads no longer dominate the freight transportation market, but they still lead the market in terms of freight ton-miles. What factors contribute to their leadership in this area? Why is their share of the total expenditures for freight movement so small if they lead in freight ton-miles?
2. Since the passage of the Staggers Rail Act of 1980, there has been an increase in the number of small railroads (Class III). Why has this number increased while the number of Class I railroads has decreased?
3. Explain the difference between intramodal and intermodal competition in the railroad industry. Which form of competition is most beneficial to shippers? Why?
4. One of the significant factors in rail development has been the number of mergers that have occurred, but there have been different types of mergers that have occurred over time. Discuss the major types of mergers and explain why they occurred. Will mergers continue to occur in the rail industry? Why or why not?
5. What factors have contributed to the decline in the volume of higher-value freight by the railroads? What changes, if any, could the railroads make to attract more higher-value freight from motor carriers?
6. Railroads have abandoned a significant number of miles of track (over 260,000 miles) since 1916. Why has this trend developed? Will it continue into future? Why or why not?
7. The railroad industry has developed a number of new types of equipment to replace the standard boxcar. What is the rationale supporting the diversification of equipment?
8. The railroad industry’s cost structure is different than that of the motor carrier industry. What factors contribute to this difference? What impact do these differences have for the railroads in terms of pricing, competitiveness, and investment?
9. Discuss the major current issues facing the railroad industry. Select one of these major issues and present appropriate recommendations for resolving the issue.
10. What factors have contributed to the success of intermodal rail service? What barriers exist to future expansion?
LOG-125-0901
E. Bateh
Ch.7 Airlines
December 2, 2019
Chapter 7 Exercise Questions
1. Discuss the ways in which air carriers compete with each other. How have regulatory changes affected this competition?
2. What is the major advantage of air carriers? How does this advantage impact the inventory levels of those firms using air transportation? Explain how this advantage relates to the choice of modes when choosing between air carriage and other modes of freight and passengers transport.
3. Discuss the length of haul and carrying capacity of the air carriers. Explain how they both favor and hinder air carriers from a competitive standpoint/
4. What is the role of government in air transportation? Include both economic and safety regulations in your answer.
5. How does fuel cost and efficiency affect both air carrier costs and pricing?
6. What is the current situation of labor within the air industry? Are unions a major factor? How does skill level vary within the industry? Do you think this situation is similar to other modes? If so, which one(s)? Explain why.
7. Do air carriers have economies of scale at any level? Economies of density? Discuss and support your answer with examples.
8. How do air carriers price their services? Is the weight or density of the shipment a factor? Explain this factor as part of your answer. How does air carrier pricing relate to the value of the goods being transported?
9. What are the current issues facing the air industry? Discuss how each impacts the industry, its customers and employees.
10. What is the cost structure of the air industry? How does it compare with other modes? How does this affect pricing, particularly for passengers? Be sure your answer includes examples from either advertising or the internet.
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