Deck 12: Transportation Correct Answers Are Bolded

Question 1

Truckload carriers focus on shipments of greater than ____ pounds.
a. 10,000
b. 15,000
c. 17,500
d. 20,000
e. none of the above

Answer 1

10,000

Question 2

In the United States, ____ account for the largest share of ton-miles and ____ account for the majority of freight revenues.
a. railroads; railroads
b. trucks; trucks
c. trucks; railroads
d. railroads; truck

Answer 2

railroads; truck

Question 3

Dimensional weight ____.
a. considers a shipment's density
b. only applies to air transportation
c. is associated with commodity rates
d. does not impact transportation rates

Answer 3

considers a shipment's density

Question 4

A 3,047 meter (10,000 foot) runway is significant because it ____.
a. is generally viewed as adequate for accommodating the largest existing wide-body aircraft
b. is the longest that can be used worldwide due to safety regulations
c. represents the longest runway in the world
d. is only found in economically developed countries
e. none of the above

Question 5

Consignees are ____.
a. extremely large less-than-truckload carriers
b. shippers of freight
c. receivers of freight
d. preferred suppliers

Question 6

____ is the most reliable form of transportation.
a. rail
b. motor carrier
c. pipeline
d. air
e. water

Question 7

Which of the following is not likely to move by air transportation?
a. wearing apparel
b. fruits and vegetables
c. cut flowers
d. auto parts
e. all are likely to move by air

Question 8

____ is the actual, physical movement of goods and people between two points.
a. logistics
b. transportation
c. materials handling
d. materials management

Question 9

____ have a level of market concentration and dominance that is not found in the other modes.
a. railroads
b. pipelines
c. airlines
d. motor carriers

Question 10

Rail gauge refers to ____.
a. the allowable speed on a particular segment of track
b. the thickness of rail track
c. the length of rail track
d. the distance between the inner sides of two parallel rail tracks

Question 11

The primary advantage for motor carriers is ____.
a. reliability
b. speed
c. capability
d. flexibility

Question 12

Inland waterways in the United States are dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
a. fifteen
b. twelve
c. nine
d. six

Question 13

Less-than-truckload motor carriers ____.
a. serve only regional markets
b. operate through a series of terminals
c. are exempt from hours-of-service regulations
d. carry the shipment directly from shipper to consignee

Question 14

Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
a. railroads
b. water carriers
c. pipelines
d. motor carriers

Question 15

____ is generally the fastest form of transportation for shipments exceeding 600 miles.
a. less-than-truckload motor carriers
b. air
c. parcel carriers
d. truckload motor carriers

Question 16

____ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
a. product
b. trunk
c. arterial
d. collection

Question 17

Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
a. cost efficiency
b. customer requirements
c. operational efficiency
d. safety concerns

Question 18

Each of the following is true, except ____.
a. Schneider National is an example of a truckload carrier
b. in truckload shipments, the shipper loads and the consignee unloads the trailer
c. a truckload shipment involves only one customer
d. truckload carriers focus on shipments of greater than 10,000 pounds
e. all of the above are true

Question 19

A ____ raises or lowers barges so that they can meet the river's level as they move upstream or downstream.
a. barge crane
b. lock
c. levee
d. towboat
e. none of the above

Question 20

There are ____ modes of transportation.
a. three
b. four
c. five
d. six

Question 21

Freight forwarders ____.
a. are the same as shippers' associations
b. consolidate the shipments of several carriers
c. represent the consignees' interests
d. consolidate the shipments of several shippers

Question 22

A 10,000 foot (3,047 meter) runway is viewed as adequate for accommodating the largest existing wide-body aircraft.

Question 23

What is the largest transportation company (by revenues) in the United States?
a. FedEx
b. Union Pacific Railroad
c. United Parcel Service
d. United Airlines

Question 24

What container size is often used to rank water ports and measure containership capacity?
a. 48 foot container
b. 40 foot container
c. 20 foot container
e. 10 foot container

Question 25

In the United States, commercial airline pilots must retire at age ____.
a. 70
b. 65
c. 62
d. 60
e. none of the above

Question 26

Private transportation is most prevalent in the ____ industry.
a. pipeline
b. trucking
c. railroad
d. airline

Question 27

____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
a. intermodal
b. bifurcated
c. intramodal
d. collaborative

Question 28

Transportation refers to the actual, physical movement of goods and people between two points.

Question 29

The primary advantage to land bridge service is ____.
a. less loss and damage
b. reduced transit times
c. lower transportation cost
d. improved reliability

Question 30

Common carriers of transportation have ____ obligations.
a. six
b. five
c. four
d. three
e. none of the above

Question 31

With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
a. Surface Transportation Board
b. Interstate Commerce Commission
c. Federal Trade Commission
d. Department of Commerce

Question 32

The predominant commodity moved by barge transportation is ____.
a. grain
b. coal
c. iron ore
d. petroleum

Question 33

Firms that specialize in carrying packages that weigh up to 150 pounds are called ____.
a. couriers
b. accessorial carriers
c. parcel carriers
d. expedited carriers

Question 34

In the U.S., motor carriers have the largest share of ton-miles.

Question 35

The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
a. Interstate Commerce Commission
b. Department of Commerce
c. Department of Homeland Security
d. Department of Transportation

Question 36

A transportation broker _____.
a. looks to match a shipper's freight with a carrier to transport it
b. deals only with agricultural products
c. is the same as a freight forwarder
d. tends to be spun off from carriers or management consulting firms

Question 37

Which of the following is not a legal classification of carriers?
a. exempt
b. contract
c. common
d. private
e. all of the above are legal classifications

Question 38

Rail gauge refers to the thickness of rail track.

Question 39

Shippers' associations ____.
a. are the same as a freight forwarder
b. function in a manner similar to freight forwarders
c. specialize in truckload shipments
d. are used only for agricultural products

Question 40

There are four different modes of transportation.

Question 41

Pipelines are a unique mode of transportation because it is the only one without vehicles.

Question 42

Truckload freight moves through a carrier's terminal(s).

Question 43

Railroads are considered the most reliable form of transportation.

Question 44

The primary advantage for motor carriers is flexibility (the ability to deliver the product to the customer).

Question 45

The U.S. railroad industry is dominated by four freight carriers.

Question 46

A commonly used metric for measuring container volumes is the TEU (twenty-foot equivalent unit).

Question 47

The main benefit of shippers' association is one-stop shopping.

Question 48

Land bridge services involve the use of surface transportation-generally rail transportation-between an origin and destination port.

Question 49

Air is generally the fastest mode of transportation for shipments exceeding 600 miles.

Question 50

Products that move by airfreight tend to be high in value and tend to require urgent delivery.

Question 51

Less-than-truckload shipments range from about 150 to 10,000 pounds.

Question 52

Twelve feet of water is the minimum depth required for most barges.

Question 53

Barge transportation tends to be slow.

Question 54

Freight forwarders sell freight at a higher rate per pound than they pay carriers to haul it.

Question 55

With intermodal transportation, two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.

Question 56

Hours-of-service rules and speed limits have generally been justified on the basis of operational efficiency.

Question 57

A barge crane raises or lowers barges so they can meet the river's level as they move upstream or downstream.

Question 58

Of the modes with vehicles, railroads offer the greatest capacity, or volume, that can be carried at one time.

Question 59

Airfreight containers are commonly referred to as "skids."

Question 60

Freight forwarders are the same thing as freight brokers.

Question 61

The U.S. Department of Commerce has primary responsibility for resolving railroad rate and service disputes as well as reviewing potential rail mergers.

Question 62

Economic regulation in transportation refers to control over business practices and activities such as entry and exit; pricing; service; accounting and financial issues; mergers and acquisitions.

Question 63

Common carrier transportation companies have four specific obligations.

Question 64

U.S. commercial airline pilots face mandatory retirement at age 70.

Question 65

Private transportation is most prevalent in the pipeline industry.

Question 66

Which of the two routing alternatives would you recommend? Why?

Question 67

One disadvantage to private transportation is that managerial costs are often ignored or underestimated.

Question 68

The level and degree of transportation regulation varies from country to country.

Question 69

Assume you are Vanderpool. Draft the comparison Pon just requested.
Many students will calculate transportation costs. For the movement via Chicago, they will choose to use rail. Here's the comparison:

Question 70

The U.S. Department of Homeland Security is the federal government body with primary responsibility for transportation safety regulation.

Question 71

Assume that the buyer in Saudi Arabia has made other large purchases in the United States and is considering consolidating all of its purchases and loading them onto one large ship, which the buyer will charter. The buyer contacts HDT and, although acknowledging its commitment to buy FAS Doha, asks how much HDT would subtract from the $172,000 per truck price if the selling terms were changed to FOB HDT's Crown Point plant. How much of a cost reduction do you think HDT should offer the buyer? Under what terms and conditions?

Question 72

Private carriers do not have to comply with environmental and safety regulations.

Question 73

Environmental regulation of transportation is concerned with water, noise, and air pollution.

Question 74

A contract carrier is under no obligation to render services to the general public.

Question 75

U.S. pipelines are so safe that there is no federal safety agency assigned to regulate them.

Question 76

Assume that it is the year 2005 and the cost to HDT of borrowing money is 12% per year. Because the buyer will pay for trucks as they are delivered, would it be advantageous for HDT to pay overtime to speed up production, ship the trucks as they were finished via the Port of Baltimore, and collect their payment earlier? Why or why not?

Question 77

Since economic deregulation, transportation carriers are no longer constrained with respect to the variety of service they can offer.

Question 78

A transportation broker looks to match a shipper's freight with a carrier to transport it.

Question 79

Parcels refer to packages weighing up to 100 pounds.