Deck 5: Motor Carriers

Question 1

There are several types of truck terminals. Which one is not used by LTL carriers?

A) fuel terminals
B) PUD terminals
C) Break bulk terminals
D) Relay terminals

Answer 1

fuel terminals

Question 2

"There are _____ economies of scale in the trucking industry."

A) Significant
B) no major
C) management driven opportunities for
D) some government suggested

Answer 2

no major

Question 3

There is a relatively small amount of capital required to enter:

A) the private carriage business
B) the truckload industry
C) The pickup and delivery sector
D) The line haul sector

Answer 3

the truckload industry

Question 4

What do motor carriers haul primarily?

A) paper and allied products
B) Grain
C) coal and ore
D) various manufactured commodity categories

Question 5

The decision as to terminal location:

A) is relatively more difficult for trucking than other modes
B) is concerned with whether it is to be a line haul or PUD facility
C) is based on whether it is to serve a truckload or LTL carrier
D) is comparatively simple when contrasted with other management decisions

Question 6

What is one of the service characteristics of the trucking industry?

A) Trucks are built to fit on existing highways
B) Trucks have a speed advantage for shipments less than 500 miles
C) Truck rates are cheaper than rail or air
D) Trucks are easier to load than rail cars

Question 7

What does most of the trucking industry consist of?

A) carriers operating 6 or fewer trucks
B) private trucking
C) LTL carriers
D) specialized carriers

Question 8

What of the following is not one of the current issues facing the trucking industry in the future?

A) Safety
B) Highway construction with its resultant delays
C) Technology
D) Financial Stability

Question 9

The requirements for a truck driver's license are defined by:

A) Federal Motor Carrier Safety Administration
B) National Highway Traffic Safety Board
C) Federal Highway Administration
D) The driver's home state

Question 10

What is one of the primary reasons for the growth of trucking after World War II?

A) Trucks became larger and faster
B) Shippers liked the door to door service which trucks could provide
C) The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances.
D) The railroads gave up on truck type freight and stopped seeking it.

Question 11

What is the status of competition within the motor carrier industry?

A) Only carriers of the same type compete against each other such LTL versus LTL or TL versus TL carriers.
B) For hire carriers only compete against private carriers
C) The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx
D) Truckload carriers only compete with contract carriers

Question 12

What is a Private Carrier?

A) a trucking firm whose stock is not listed on any of the stock exchanges
B) a trucking firm whose name does not appear on the equipment
C) a trucking operation that only hauls freight for the firm which owns it
D) a trucking firm that is not registered with the FMCSA

Question 13

What do the users of truck service benefit from?

A) lower inventory levels due to smaller shipments that other modes
B) trailers come in a variety of configurations which fit to most types of freight
C) the fact that drivers will load and unload shipments
D) They are the largest of the five modes

Question 14

LTL carriers must make the same type of equipment decisions as TL along with deciding:

A) what commodities to haul
B) where to deploy this equipment
C) line haul versus PUD
D) what color to paint the trucks

Question 15

All carriers receive a safety fitness rating. Who makes the inspection and determines the rating?

A) Surface Transportation Board
B) National Highway Traffic Safety Board
C) Federal Highway Administration
D) Federal Motor Carrier Safety Administration

Question 16

Which agency within the Department of Transportation governs specifications of trucks such as number of lights, tires and other operating parts?

A) Surface Transportation Board
B) National Highway Traffic Safety Board
C) Federal Highway Administration
D) Federal Motor Carrier Safety Administration

Question 17

The trucking industry is characterized as having:

A) small investment requirements
B) easy sources of financing
C) high variable and low fixed costs
D) costly government requirements

Question 18

What is the largest single expense item for trucking firms?

A) Fuel and taxes
B) Equipment purchases and maintenance
C) Labor
D) Insurance and management salaries

Question 19

Where does funding for highways come from?

A) income taxes
B) highway user taxes
C) state income taxes
D) block grants from the federal government

Question 20

What is the primary division between motor carriers?

A) Local and long haul
B) LTL and Truckload
C) Intrastate and interstate
D) For hire and private

Question 21

How much has been spent in the United States on highway transportation?

Question 22

What is the operating ratio, how is computed and what does it measure?

Question 23

What is the current status of the rules covering drivers' hours of service?

Question 24

What type of trailer can be coupled in twos and threes?

A) 53 foot
B) 48 foot
C) 28 foot
D) no trailer can be hooked in a series of three

Question 25

What mode or segment of a mode generates the most severe competition for the for hire carriers?

Question 26

Explain the difference between for- hire and a private carriers.

Question 27

There are three types of terminals which are used by a trucking firm. Define and discuss each type and indicate if they are unique to any one type of trucking firm.

Question 28

There are at least three types of terminals. Name two.

Question 29

What is the reason that the Truck Load market can be considered as monopolistic competition?

Question 30

A reason for driver turnover is:

A) Poor roads
B) Driver shortage
C) The Interstate Commerce Commission
D) LTL versus TL

Question 31

Discuss the current method of funding for highways and include your opinion as the fairness as it relates to the trucking industry.

Question 32

The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system?

A) 25%
B) 100%
C) 90%
D) None

Question 33

Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M, what is your operating ratio?

A) 140.00
B) 68.12
C) 71.41
D) Not enough information to tell

Question 34

Why are there so many motor carriers, particularly in the Truck Load sector?

Question 35

There are several service advantages to motor carrier. Name any three.

Question 36

Define whether a motor carrier's costs are more fixed or variable. Explain your answer.

Question 37

Do motor carriers experience economies of scale?

Question 38

There are several general service characteristics which favor the trucking industry. Name and discuss at least three.

Question 39

Private carriers tend to have greater:

A) Control and flexibility
B) Fixed costs
C) Labor rates
D) Assets

Question 40

Several significant issues currently face the motor carriers. Pick two, define and discuss.

Question 41

Discuss the impact drug and alcohol abuse on the trucking industry. To deal with this safety concern what steps have companies taken?