Understanding Transportation Logistics: Key Concepts and Quiz 5

MKTG 434/534 QUIZ 5 VIRAJ SACHIN JADHAV @04273852 1. Freight Forwarders: a. are the same as shippers’ associations b. consolidates the shipments of several carriers c. represents the consignees’ interests d. consolidates the shipments of several shippers ( It plays a vital role in optimizing transportation logistics by combining multiple shipments to achieve cost savings and operational efficiency) 2. 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 a. looks to match a shipper’s freight with a carrier to transport it (A Transportation Broker is an intermediary in the logistics and transportation industry whose primary function is to connect shippers with carriers to facilitate the transportation of goods.) 3. Which of the following is not one of the primary factors that transportation rates are based upon? a. product b. density c. weight d. distance b. density (Density is not one of the primary factors that transportation rates are typically based upon. The primary factors are usually product type, weight, distance) 4. In computing transportation, the ________ rate specifies 3 primary rate factors – product, weight, distance. a. class b. ad valorem c. commodity d. exception (the "class" rate refers to a method of determining shipping costs based on three primary factors: product, weight, and distance.)

5. _______ refers to how a commodity or load is to be packed into a container or carrier. a. Ease of handling b. Recouping c. Stowability d. Drayage (Stowability refers to how well a commodity or load can be packed into a container or carrier efficiently.) 6. In the transportation industry, a “Consignee” is the ________ of freight. a. shipper b. tender c. receiver d. dispatcher e. integrator (In the transportation industry, the term "consignee" refers to the person or entity that is the recipient of the freight being shipped.) 7. The most important single transportation document is generally the: a. bill of lading b. freight bill c. commercial invoice d. certificate of origin (The bill of lading is considered the most important transportation document because it serves as a contract between the owner of the goods and the carrier.) 8. An invoice submitted by the carrier requesting to be paid is called the ______. a. a bill of lading b. a freight bill c. a carnet d. dunnage (An invoice submitted by the carrier requesting to be paid is known as a freight bill. It is not to be confused with a bill of lading, which is a document issued by a carrier to acknowledge receipt of cargo for shipment.)

9. Demurrage charges are collected by which mode of transportation? a. truck b. air c. Rail d. pipeline (Demurrage is a charge that both compensates rail carriers for the expense incurred when railcars are detained beyond a specified period of time) 10. ____ occurs when a shipper notifies a carrier, prior to a shipment’s arrival in a destination city, of a change in destination. a. Diversion b. Dispatch c. Demurrage d. Detention ( In the context of shipping and logistics, diversion occurs when a shipper notifies a carrier of a change in the destination of a shipment before it arrives at the initially intended destination city) 11. ____ occurs when a shipment’s destination is changed after it has arrived in the planned destination along its logistical route. a. Diversion b. Demurrage c. Reconsignment d. Re-routing (Reconsignment refers to the process of changing the destination or consignee while the shipment is en route or after it has arrived at the originally planned destination but before it is actually delivered.) 12. ____ can be defined as the process of determining how a shipment will be moved between consignor and consignee or between place of acceptance by the carrier and place of delivery to the consignee. a. Tracing b. Recouping

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c. Transportation d. Routing (Routing in the context of transportation and logistics refers to the process of determining the path or route that a shipment will take from the point of origin (consignor) to the destination (consignee).) 13. ____ is the tax that governments place on the importation of certain items. a. Tariff b. Embargo c. Surcharge d. Quota (A tariff is a tax imposed by a government on goods and services imported from other countries. ) 14. Which of the following is not a political restriction on international trade? a. embargoes b. safety standards’ violations c. barring certain types of shipments d. nontariff barriers e. all are political restrictions 15. A ____ is similar in nature to a domestic bill of lading and summarizes the transaction. a. shipper’s letter of instruction b. shipper’s export declaration c. commercial invoice d. certificate of origin (Safety standards’ violations are typically regulatory or technical restrictions rather than political restrictions on international trade. ) 16. ____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while minimizing their disadvantages. a. Multimodal b. Intramodal c. Intermodal

d. Collaborative ( Intermodal transportation refers to the use of two or more different modes of transportation in a single journey of freight or passengers) 17. A Letter of Credit ____. a. is only used for domestic shipments b. allows a consignee with poor credit to pay by credit c. is provided when a transportation vehicle is loaded or unloaded prior to its allotted time d. is a popular payment alternative for international transactions A Letter of Credit (LC) is a document from a bank guaranteeing that a seller will receive payment up to the amount of the LC, provided that the seller adheres to the terms and conditions outlined in the LC.

18. International Freight Forwarders can provide a number of functions, except _____. a. booking space on carriers b. obtaining consular documents c. preparing an export declaration d. arranging for insurance e. all are possible functions ( International Freight Forwarders are firms that specialize in arranging storage and shipping of merchandise on behalf of its shippers.) 19. ____________ allow for cargo to be stopped en route between origin and destination to be unloaded, stored, or processed and then reloaded for delivery to original destination. a. carrier routings b. bills of material c. transit privileges d. consignments (Transit privileges are special allowances provided by carriers that permit shippers to stop the shipment of goods while they are en route to their final destination) 20. ____________ manage the efficient movement of an importer’s goods (and the accompanying paperwork) through customs and other inspection points. a. customs house brokers b. international freight forwarders c. import management companies d. shippers associations (Customs house brokers are licensed individuals or firms that act as agents for importers to manage the process of clearing goods through customs.) 21. ____ and international freight forwarders are closely related because together they can offer a complete overseas sales and distribution service to the domestic manufacturer that wants to export but does not know how. a. Export management companies b. Export trading companies c. Non-vessel operating common carriers d. Customs house brokers ( Export management companies (EMCs) and international freight forwarders are closely related entities in the context of international trade.)

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22. ____ are major ports where thousands of containers arrive and depart each week. a. Hubs b. Consolidation points c. Ship parks d. Load centers (Major ports where thousands of containers arrive and depart each week are typically referred to as "hubs" in the context of logistics and supply chain management.) 23. Shipping Conferences refer to ____. a. annual meetings of large international shippers b. the same thing as shippers’ associations c. cartels of ocean vessel operators operating between certain trade areas d. water ports that are located in the same geographic area (Shipping Conferences refer to cartels or agreements among ocean vessel operators that operate between certain trade areas. ) 24. Integrated Carriers: a. are those that own several modes of transportation b. utilise the services of scheduled airlines c. own all their vehicles as well as pick-up and delivery facilities d. perform transportation in tightly linked supply chains (Integrated carriers are those that own and control various elements of the transportation process, including vehicles) 25. A Letter of Credit does all of the following, except ____. a. show the seller that the buyer’s bank will pay the necessary money b. assure the buyer that the logistical operations run efficiently c. make the transaction believable d. signal promise of the buyer’s ability to fulfill payment of goods bought from seller (Integrated carriers are companies that have a high level of control and ownership over various components of the transportation and logistics process. ) 26. Incoterms refer to: a. terms of sale for international shipments b. a specific method of payment for international shipments c. standardization of international trade terminology d. standardized procedures for handling international shipments

(Incoterms, or International Commercial Terms, refer to a standardized set of terms used in international trade to define the responsibilities and obligations of buyers and sellers involved in the shipment of goods.) 27. A main difference between international freight forwarders and customs house brokers is: a. customs house brokers work b2b shipments while forwarders work b2c shipments b. forwarders take title to goods while customs house brokers do not c. forwarders tend to handle exports while customs house brokers tend to handle imports freight forwarders focus on the export side and the initial transportation of goods, whereas customs house brokers are more involved with the import side and the clearance of goods through customs. d. customs house brokers are government agents while forwarders are private companies 28. Being connected with or operating as part of shipping alliances allows for all of the following major logistical advantages, except: a. diversion b. shipping costs c. reconsignment d. transit privileges e. access to ports (Similar to diversion, re-consignment allows for the change of consignee or destination after the shipment has started its journey, which can be facilitated within an alliance.) 29. _________ represent manufacturers to help them find overseas firms that can be licensed to manufacture their products. a. export trading companies b. non-vessel operating common carriers c. export management companies d. global shippers’ cooperatives (Export management companies (EMCs) are firms that help manufacturers find overseas firms that can be licensed to manufacture their products.) 30. __________ equipment refers to logistical infrastructure that is carrier-owned but assigned to serve specific customers for those needed time periods. a. private

b. facilitator c. expediting d. dedicated (dedicated equipment" refers to assets such as trucks, containers, or other logistical infrastructure that are owned by a carrier (transportation or logistics company) but are allocated specifically to serve certain customers during particular time periods.) 31. A logistics company delivers goods via trucks to the buyer within the specified time- window. However, the buyer has not yet unloaded those goods; so the trucks are being held up at the buyer’s factory. This delay in the trucks being dispatched back is costing the logistics company, so it may need to levy _________ charges to the buyer. a. back-haul b. demurrage c. reparation d. detention (Demurrage refers to the charges that are levied by the transportation provider when freight is not moved or unloaded from the transport vehicle within the agreed-upon time. In this scenario, the trucks are being held up at the buyer's factory because the buyer has not yet unloaded the goods.) 32. Which of the following logistical factors seems “least” important when selecting your carrier? a. tracing abilities b. transit reliability c. financial stability d. delivery dependability e. carrier alliance (Carrier alliance (e), while it can be beneficial in terms of expanding the network and potentially reducing costs through shared services, is generally considered the least important of the options provided.) 33. Suppose that there is a “cwt” rate of $75 per hundredweight and you have a 600 pound shipment. What is the correct transportation charge for this shipment? a. $8 b. $450 c. $1,200 d. $45,000

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600 pounds / 100 pounds per hundredweight = 6 hundredweights 6 hundredweights x $75 per hundredweight = $450 the correct transportation charge for a 600-pound shipment at a rate of $75 per hundredweight is $450.

MKTG 434 QUIZ 5

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