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Transportation & Distribution Flashcards

7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Transportation & Distribution flashcards as text
  1. Which freight classification system is used in the US to determine LTL shipping rates?

    Answer: NMFC (National Motor Freight Classification)

    The NMFC assigns freight classes 50–500 based on density, stowability, handling, and liability to determine LTL rates.

  2. A shipper contracts with a carrier for a guaranteed delivery time but the shipment arrives late, causing a production line shutdown. This loss is best described as:

    Answer: Consequential damages

    Consequential damages are losses that result indirectly from a breach, such as production downtime caused by a late delivery.

  3. Which transportation mode offers the lowest cost per ton-mile for bulk commodities over long distances?

    Answer: Rail

    Rail provides the lowest cost per ton-mile for bulk shipments over long distances due to high capacity and fuel efficiency.

  4. The Carmack Amendment primarily governs carrier liability for:

    Answer: Domestic interstate rail and motor freight

    The Carmack Amendment establishes carrier liability rules for loss or damage to goods shipped via interstate rail and motor freight in the US.

  5. A distribution center uses cross-docking to move product. Which best describes this practice?

    Answer: Unloading inbound freight and transferring it directly to outbound vehicles with minimal storage

    Cross-docking transfers goods from inbound to outbound transport with little or no warehousing, reducing handling and storage costs.

  6. Which Incoterm places maximum responsibility on the seller, including delivery to the buyer's named destination with all duties paid?

    Answer: DDP (Delivered Duty Paid)

    Under DDP, the seller is responsible for all costs and risks including import duties and delivery to the buyer's premises.

  7. A company consolidates multiple small LTL shipments into one FTL shipment to a regional hub. This strategy is called:

    Answer: Zone skipping

    Zone skipping bypasses intermediate carrier sort facilities by consolidating freight and injecting it closer to the final destination zone, reducing time and cost.