Q&A Hero

Q: Which of the following is not a political restriction on international trade? a. embargoes b. import quotas c. barring certain types of shipments d. tariffs e. all of the above are political restrictions

Q: ____ are taxes that governments place on the importation of certain items. a. tariffs b. surcharges c. reciprocities d. embargoes

Q: ____ refers to the sum of the gross domestic product of all countries. a. net world product b. world net income c. gross world product d. gross world income

Q: What is the Logistics Performance Index? How can it be used?

Q: What are some of the challenges associated with inventory management in cross-border trade?

Q: Define what is meant by short-sea shipping (SSS), and discuss some advantages of SSS.

Q: Discuss the potential sources of delays in certain countries with respect to motor carrier shipments that move across state borders.

Q: How do open skies agreements differ from bilateral agreements?

Q: How do integrated air carriers impact the effectiveness and efficiency of international logistics?

Q: Discuss the role of ocean carrier alliances in international logistics.

Q: Explain the load center concept. How might load centers affect the dynamics of international transportation?

Q: Discuss the importance of water transportation for international trade.

Q: What are the two primary purposes of export packing?

Q: What is an NVOCC?

Q: Discuss four possible functions that might be performed by international freight forwarders.

Q: Name the four methods of payment for international shipments. Which method is riskiest for the buyer? For the seller?

Q: Discuss international terms of sale and Incoterms.

Q: What is a certificate of origin, a commercial invoice, and a shipper's export declaration?

Q: How can language considerations impact the packaging and labeling of international shipments?

Q: How might economic integration impact international logistics?

Q: Discuss how a nation's market size might impact international trade and, in turn, international logistics.

Q: How might a particular country's government be involved in international trade?

Q: Discuss some of the key political restrictions on cross-border trade.

Q: One of Chippy's own trucks, used for local deliveries, has two axles and an enclosed body measuring (inside) seven feet by eight feet by twenty feet and is limited by law to carrying a load of no more than 8,000 pounds. Because the truck is not supposed to be overloaded, what combinations, expressed in terms of cartons of each, of new- and old-style chips can it legally carry? (Hint: use a piece of graph paper.)

Q: You work for the motor carrier classification bureau and notice that the relationship between the weight of potato chips and the weight of packaging has changed. How, it at all, should this influence changes in the product's classification?

Q: The new tubular containers are much sturdier. If you worked for Chippy, howif at allwould you argue that this factor influences classification?

Q: Given the existing LTL classification of 200, how has value of service to the customer changed?

Q: Classifications are based on both cost and value of service. From the carriers' standpoint, how has cost of service changed?

Q: If you worked for Chippy, what new classification would you ask for? Give your reasons.

Q: Some transportation managers utilize performance scorecards that contain a list of relevant attributes and an evaluation of each carrier on every attribute.

Q: Expedited shipments by motor carriage can sometimes provide faster and more reliable service than expedited shipping involving air transportation.

Q: Expediting refers to determining a shipment's location during the course of its move.

Q: A routing guide can provide a variety of shipment-related information such as shipment preparation and a list of preferred carriers for shipment moving between two points.

Q: In demurrage-related averaging agreements, slow equipment returns can be offset by fast equipment returns.

Q: U.S. freight railroads currently allow 24 hours of free time for unloading rail cars and 48 hours of free time for loading rail cars.

Q: Demurrage is a penalty payment associated with railroads, while detention is a penalty payment associated with motor carriers.

Q: From a carrier perspective, there may be a reluctance to accept small shipments because they tend to require a high degree of manual labor.

Q: Small shipments refer to those that can be handled relatively expeditiously and inexpensively by a small package carrier.

Q: The volume of transportation freight claims has increased in recent years.

Q: Concealed loss and damage claims are some of the most difficult for shippers and carriers to handle.

Q: Suppose that a shipment of products destined for a particular retailer is lost or damaged. If these products were going into general inventory replacement stock, then the retailer is entitled to recover the wholesale price plus freight costs (if they were paid).

Q: A freight claim must be filed within six months of the shipment's delivery date.

Q: Freight bill audits are designed to detect errors that result in overcharges and to correct those errors in the future.

Q: The bill of lading is an invoice, submitted by the carrier, requesting to be paid.

Q: Order bills of lading can be used when faced with slow-paying customers.

Q: An order bill of lading specifies the consignee.

Q: The most important single transportation document is the bill of lading.

Q: Transportation documentation serves both a practical function (e.g., what, where, and how much is being transported) as well as potentially providing legal recourse if something goes awry.

Q: An amodal shipper refers to the use of a logistics intermediary to make the relevant transportation decisions.

Q: Transit time reliability is the most important factor that shippers tend to use when selecting carriers.

Q: The carrier selection procedure appears to be less straightforward than the procedure for modal selection.

Q: Because transportation costs tend to be lower per unit of weight for larger shipments, there is a natural motivation to consolidate smaller shipments into larger ones.

Q: A disadvantage of FOB destination pricing from a seller's perspective is that the seller's organization must have a thorough knowledge of transportation management.

Q: With FOB origin pricing, the seller retains title and control of the shipment until it is delivered.

Q: The price and service trade-offs available to today's transportation manager are limited only by her / his creativity and ingenuity.

Q: With respect to a commodity's freight classification, shippers tend to prefer a higher classification number while carriers tend to prefer a lower classification number.

Q: An item with a freight classification of Class 200 will be charged a higher rate than an item with a freight classification of Class 100.

Q: Stowability refers to how easy a commodity is to pack into a load.

Q: Volume refers to how heavy a product is in relation to its size.

Q: Liability to damage and theft is viewed as the primary factor in setting a product's freight classification.

Q: Ease of handling is one of the four factors used to determine a product's freight classification.

Q: The National Motor Freight Classification has 18 separate classes, or ratings, from Class 50 to Class 600.

Q: The class rate system simplifies with respect to three primary factorsdensity, product, and distance.

Q: A commodity rate is very good for dealing with demand-specific situations.

Q: A transportation charge (the cost of transportation) can be calculated by multiplying a product's weight times the applicable rate.

Q: A rate is the logistics term that signifies the price charged for freight transportation.

Q: Freight transportation accounts for approximately 10% of U.S. gross domestic product.

Q: Routing refers to the buying and controlling of transportation services by a shipper or consignee.

Q: Today's transportation manager can play an active role in blending the appropriate pricing and service packages for his / her organization.

Q: ____ refers to rapidly moving a shipment through a carrier's system. a. expediting b. recoupering c. fast logistics d. cross-docking

Q: ____ refers to determining a shipment's location during the course of its move. a. expediting b. recoupering c. reparation d. tracking

Q: A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points. a. freight book b. routing guide c. tariff d. bill of lading

Q: ____ can be defined as the process of determining how a shipment will be moved between origin and destination. a. tracking b. recoupering c. transportation d. routing

Q: U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars. a. 24, 24 b. 24, 48 c. 48, 24 d. 48, 48

Q: Which of the following statements is false? a. detention is similar to demurrage, except that detention applies to pipelines b. demurrage is a penalty payment made to a railroad for keeping equipment beyond the time it should be released c. averaging agreements can be used with demurrage d. carriers and shippers can negotiate demurrage / detention policies e. all of the above are true

Q: Demurrage charges are collected by railroads, ____, and ____. a. motor carriers, pipelines b. water carriers, pipelines c. motor carriers, water carriers d. airlines, pipelines

Q: Which of the following statements is false? a. carriers may be reluctant to accept small shipments because they require a high degree of manual labor b. some carriers believe they lose money on small shipments c. consolidating small shipments into larger ones could result in poorer service to the final customer d. consolidating small shipments into larger ones likely results in higher inventory carrying costs e. all of the above are true

Q: Small shipments are defined as those that ____. a. involve three or fewer cartons b. are moved primarily by parcel carriers c. weigh more than 150 pounds but less than 500 pounds d. weigh more than 10 pounds but less than 100 pounds

Q: If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ____. a. nothing but an apology from the carrier b. the wholesale price, plus 20% c. the retail price, minus 20% d. the wholesale price, plus freight if previously paid

Q: Which of the following is false? a. freight claims must be filed within nine months of the delivery date b. concealed loss and damage is a delicate area for shippers and carriers c. the volume of freight claims activity has dropped since transportation deregulation d. shippers or carriers are entitled to a product's full retail value when filing a freight claim e. all of the above are true