CWLP Logistics Planning & Transportation Management 3 — Questions and Answers
Question 1: What is a 'freight rate' in transportation management?
- The speed at which freight is processed at a warehouse
- The price charged by a carrier per unit of weight or volume (Correct answer)
- The ratio of on-time deliveries to total shipments
- The penalty assessed for carrier delays
Correct answer: The price charged by a carrier per unit of weight or volume
A freight rate is the price a carrier charges to transport goods, typically expressed per hundredweight (CWT), per mile, or per unit.
Question 2: Which transportation planning concept groups deliveries into geographic zones to maximize truck route efficiency?
- Drop-ship sequencing
- Zone skipping
- Territory routing
- Milk-run optimization (Correct answer)
Correct answer: Milk-run optimization
Milk-run (or round-robin) routing clusters multiple pickups or deliveries along an efficient loop to minimize empty miles.
Question 3: Under a 'FOB Destination' shipping term, who bears the risk of loss during transit?
- The buyer
- The seller (Correct answer)
- The freight broker
- The insurance company
Correct answer: The seller
Under FOB Destination, the seller retains ownership and risk until the goods are delivered to the buyer's specified location.
Question 4: A logistics manager uses a Transportation Management System (TMS) primarily to:
- Track employee attendance and productivity
- Plan, execute, and optimize freight movements (Correct answer)
- Manage warehouse slotting and bin locations
- Process customer invoices and payments
Correct answer: Plan, execute, and optimize freight movements
A TMS automates carrier selection, route planning, shipment tracking, and freight audit to improve transportation efficiency.
Question 5: What does 'deadhead' mean in trucking?
- A driver who exceeds hours-of-service limits
- A trailer that is overweight
- Miles driven with an empty trailer (Correct answer)
- A shipment refused at delivery
Correct answer: Miles driven with an empty trailer
Deadhead miles are miles a truck travels without cargo, representing a direct cost with no revenue for the carrier.
Question 6: Which regulatory body in the US oversees Hours of Service (HOS) rules for commercial truck drivers?
- Department of Transportation / FMCSA (Correct answer)
- Environmental Protection Agency
- Occupational Safety and Health Administration
- US Customs and Border Protection
Correct answer: Department of Transportation / FMCSA
The Federal Motor Carrier Safety Administration (FMCSA), under the DOT, sets and enforces HOS regulations for commercial vehicle operators.
Question 7: A shipper negotiates a contract with a carrier that locks in rates for 12 months. This is known as a:
- Spot rate agreement
- Fuel surcharge waiver
- Contract rate or tender (Correct answer)
- Third-party logistics contract
Correct answer: Contract rate or tender
Contract rates (or tender agreements) provide price stability for a defined period in exchange for committed volume from the shipper.
CWLP Logistics Planning & Transportation Management 3
What is a 'freight rate' in transportation management?