Question 1

Only premium and emergency goods are shipped via the air because air is clearly the ___________ shipping mode.

Accepted Answer

Shipping via air is the most expensive mode of transportation compared to shipping via land, sea, or rail. Therefore, only goods that require urgent delivery or are of high value are shipped via air.

Question 2

The truck mode is used to transport a variety of perishable consumer goods, such as fresh meats, frozen meats, dairy products, baked goods, and beverages. The primary advantages of this mode are _______________.

Accepted Answer

Truck transport offers flexibility in terms of routes and schedules, and versatility in handling different types of goods, making it a preferred choice for perishable items.

Question 3

Water carriers are an excellent transportation shipping mode for low-valued bulk commodities in large quantities. Speed is not a critical criterion for those raw materials.

Accepted Answer

Water carriers, such as barges and ships, are commonly used for transporting low-valued bulk commodities such as grain, coal, and oil. The speed of transportation is often not as important as the ability to transport large quantities of the commodity at a low cost.

Question 4

There is also strong rate competition between owner-operators engaged in exempt commodity movements and railroads. Most of the owner-operators compete on a ______ basis.

Accepted Answer

The sentence suggests that the competition between owner-operators and railroads is based on rates, and that most of the owner-operators compete on a cost basis. Therefore, the best choice is E) cost.

Question 5

The competition in the trucking industry is fierce, so in order to be successful, a carrier must provide the shipper with ___________________.

Accepted Answer

The question is asking for what a carrier must provide in order to be successful in the trucking industry. The best choice is D because it combines both high service and low costs, which are both essential factors that shippers look for when choosing a carrier. While the other choices also include important qualities, D specifically addresses the question in a comprehensive way.

Question 6

ompanies with a significant presence in the (air mode) market are Federal Express and all of the following with one exception. Which is the exception?

Accepted Answer

Federal Express, UPS, Airborne, DHL, and U.S. Postal Service are all major players in the air mode market. However, KKLM is not a significant presence in this market.

Question 7

In contrast, in long-haul volume movements of bulk commodities, ___________ are typically unable to quote ____________ rates.

Accepted Answer

In long-haul volume movements of bulk commodities, motor carriers (or truckers) are typically unable to quote rail-competitive rates. This is because rail carriers have a significant advantage over motor carriers when it comes to transporting bulk commodities over long distances. Rail carriers can move large volumes of freight at a relatively low cost per ton-mile, while motor carriers generally have higher costs per ton-mile for long-haul movements due to factors such as fuel, equipment, and driver wages.

Question 8

These average prices are misleading when selecting one mode over another. However, it is safe to suggest that, in general, _______ rates are lower than _____ rates on small shipments and on high-valued commodities.

Accepted Answer

The statement suggests that truck rates are lower than rail rates on small shipments and on high-valued commodities. Therefore, the best choice would be C - truck/rail.

Question 9

With the movement toward high customer service, ________ (has/have) become an integral strategic weapon for firms that compete on a fast-delivery, low-inventory strategy.

Accepted Answer

Air cargo has become an integral strategic weapon for firms focusing on fast-delivery and low-inventory strategies because it offers the quickest transportation method for shipping goods over long distances, enabling companies to reduce inventory levels and respond rapidly to customer demands.

Quiz 15: Purchasing Transportation Services