Supply Chain Management Transportation 5

Question 1

A shipper receives a freight invoice with a 'fuel surcharge' line item. What index do most US trucking carriers use to calculate this surcharge?

Accepted Answer

US Department of Energy (DOE) weekly retail diesel price

Answer

Most US carriers use the DOE's weekly national average on-highway diesel fuel price as the benchmark for calculating fuel surcharges.

Question 2

Which risk management strategy involves a shipper maintaining contracts with both primary and backup carriers for the same lane?

Accepted Answer

Routing guide depth

Answer

Routing guide depth refers to having primary, secondary, and tertiary carriers on a lane so capacity is available when the primary carrier declines.

Question 3

Under US Customs regulations, an 'Importer Security Filing' (ISF, or '10+2') must be submitted at least how many hours before vessel departure from a foreign port?

Accepted Answer

48 hours

Answer

US Customs requires ISF (10+2) data to be filed at least 24 hours before cargo is loaded onto a vessel bound for the US.

Question 4

A company shifts from truckload to intermodal rail for long-haul lanes over 1,000 miles. What is the primary trade-off?

Accepted Answer

Lower cost but longer and less predictable transit times

Answer

Intermodal rail is typically 10-20% cheaper than truckload for long hauls but adds 1-2 days of transit time with more variability.

Question 5

What does the term 'deadhead miles' refer to in trucking?

Accepted Answer

Miles a truck travels empty without a paying load

Answer

Deadhead miles are miles driven with an empty trailer, representing lost revenue and pure cost for the carrier.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Transportation 5