Supply Chain Management Transportation 3 — Questions and Answers
Question 1: A company ships goods under Incoterms 2020 'DAP' (Delivered at Place). Who bears the cost and risk of import customs clearance?
- The seller
- The freight forwarder
- The buyer (Correct answer)
- The customs broker hired by the seller
Correct answer: The buyer
Under DAP, the seller delivers goods ready for unloading at the named place, but the buyer is responsible for import duties and clearance.
Question 2: Which transportation mode is most appropriate for high-value, time-sensitive electronics components that need to cross the Pacific Ocean in 24 hours?
- Ocean freight (FCL)
- Ocean freight (LCL)
- Air freight (Correct answer)
- Rail intermodal
Correct answer: Air freight
Air freight is the only mode capable of trans-Pacific transit in approximately 24 hours, justified by high value and time sensitivity.
Question 3: The 'cube utilization' metric in trucking refers to:
- The ratio of actual cargo weight to truck's legal weight limit
- The percentage of available trailer cubic volume filled by cargo (Correct answer)
- The number of pallet positions used versus available
- The dimensional weight divided by actual weight
Correct answer: The percentage of available trailer cubic volume filled by cargo
Cube utilization measures how efficiently the available cubic space inside a trailer is filled with freight.
Question 4: Under the Hours of Service (HOS) regulations, a property-carrying commercial driver may drive a maximum of how many hours before requiring a 10-hour off-duty break?
- 8 hours
- 10 hours
- 11 hours (Correct answer)
- 14 hours
Correct answer: 11 hours
FMCSA HOS rules allow property-carrying drivers to drive up to 11 hours after 10 consecutive hours off duty.
Question 5: Which pricing model do LTL carriers use to determine freight charges?
- Flat rate per pallet
- Weight breaks based on density class (NMFC) (Correct answer)
- Distance-only tariff
- Per-cubic-foot rate
Correct answer: Weight breaks based on density class (NMFC)
LTL carriers use NMFC freight classifications based on density, stowability, handling, and liability to set rates.
Question 6: A 'backhaul' in trucking refers to:
- Moving freight in the return direction of a truck's route to avoid empty miles (Correct answer)
- Surcharge added for fuel on return trips
- The cost of repositioning empty containers
- Freight moved by a sub-contracted carrier
Correct answer: Moving freight in the return direction of a truck's route to avoid empty miles
A backhaul is cargo that fills a truck on its return journey, reducing the cost of deadhead (empty) miles.
Question 7: What is the purpose of an Electronic Logging Device (ELD) mandate in US trucking?
- To track real-time GPS location of all commercial vehicles
- To automatically record driver hours of service and replace paper logs (Correct answer)
- To monitor engine diagnostics and prevent mechanical failures
- To enforce speed limits via satellite feedback
Correct answer: To automatically record driver hours of service and replace paper logs
ELDs automatically capture driving time and HOS data, replacing paper logbooks and improving regulatory compliance.
Supply Chain Management Transportation 3
A company ships goods under Incoterms 2020 'DAP' (Delivered at Place).
Who bears the cost and risk of import customs clearance?