Supply Chain and Logistics Transportation and Freight 3

Question 1

What is a TMS in logistics operations?

Accepted Answer

Transportation Management System

Answer

A Transportation Management System (TMS) is software that plans, executes, and optimizes the movement of goods.

Question 2

Which shipping term means the seller bears all costs and risks until goods are delivered to the buyer's named place?

Accepted Answer

DDP

Answer

DDP (Delivered Duty Paid) requires the seller to handle all transportation costs, duties, and taxes until delivery at the destination.

Question 3

What does 'drayage' refer to in intermodal shipping?

Accepted Answer

Short-distance truck transport of containers between port and rail ramp

Answer

Drayage is the short-haul truck movement of shipping containers, typically between a port, rail terminal, and nearby warehouse.

Question 4

What does 'carrier liability' mean in freight transportation?

Accepted Answer

The legal responsibility of a carrier for loss or damage to freight in its possession

Answer

Carrier liability defines the financial responsibility a transportation company bears for lost or damaged goods while in transit.

Question 5

What is a load factor in air cargo operations?

Accepted Answer

Ratio of cargo weight carried to maximum capacity

Answer

Load factor measures the percentage of available cargo capacity actually filled, indicating operational efficiency for airlines.

Supply Chain and Logistics Practice Test