Supply Chain and Logistics Transportation and Freight 1 — Questions and Answers
Question 1: What does LTL stand for in freight shipping?
- Long Transit Logistics
- Less-Than-Truckload (Correct answer)
- Landed Total Load
- Local Transport License
Correct answer: Less-Than-Truckload
LTL (Less-Than-Truckload) shipping combines freight from multiple shippers into a single truck, lowering costs for smaller loads.
Question 2: Which transportation mode typically offers the lowest cost per ton-mile for bulk goods over long distances?
- Air freight
- Trucking
- Rail freight (Correct answer)
- Courier service
Correct answer: Rail freight
Rail freight has the lowest cost per ton-mile for bulk commodities over long distances due to fuel efficiency and large load capacity.
Question 3: What is a bill of lading (BOL)?
- A customs clearance form
- A legal document between a shipper and carrier detailing shipment terms (Correct answer)
- A freight invoice
- A delivery confirmation receipt
Correct answer: A legal document between a shipper and carrier detailing shipment terms
A bill of lading is the primary shipping document that serves as a receipt, contract of carriage, and document of title.
Question 4: What is intermodal transportation?
- Shipping only via air and sea
- Moving freight using two or more transportation modes without handling the cargo itself (Correct answer)
- International customs brokerage
- Direct-to-consumer delivery
Correct answer: Moving freight using two or more transportation modes without handling the cargo itself
Intermodal transportation transfers cargo in a single container between truck, rail, and ship without repacking the goods.
Question 5: What does the term 'freight class' determine in LTL shipping?
- Priority of delivery
- Shipping rate based on density, stowability, handling, and liability (Correct answer)
- Container size required
- Carrier insurance requirements
Correct answer: Shipping rate based on density, stowability, handling, and liability
The National Motor Freight Classification (NMFC) assigns freight classes 50–500 based on density, handling ease, stowability, and liability.
Question 6: What is the primary advantage of air freight over ocean freight?
- Lower cost per unit
- Fastest transit time for international shipments (Correct answer)
- Largest cargo capacity
- Best suited for hazardous materials
Correct answer: Fastest transit time for international shipments
Air freight offers the fastest transit times globally, making it ideal for time-sensitive, high-value, or perishable goods.
Supply Chain and Logistics Transportation and Freight 1
What does LTL stand for in freight shipping?