SCMN 3720 Exam 2 – Russell Questions and Answers 100% Solved

SCMN 3720 Exam 2 – Russell Questions and Answers 100% Solved What % of the total freight tonnage does motor carrier industry represent? 70% What is the difference between for-hire and private carriers? For-hire provide services to the public and charge a fee Private provide a service to the industry or company that owns or leases the vehicles and don't charge a fee but do incur a cost What is the difference between common carriers and contract carriers? Common carriers are required to serve the general public upon demand, at reasonable rates, and without discrimination Contract carriers serve specific shippers with whom the carriers have a continuing contract Who are the top 3 private carrier fleets in the US? Pepsi, Sysco, and Walmart Who are the top 2 for hire carriers in the US? UPS and FedEx Describe the characteristics of the TL segment. One shipper's product fills the entire truck Describe the characteristics of the LTL segment. Multiple shippers' products into the truck until it is filled up Who are the top 3 LTL and TL carriers in the US? LTL - FedEx, YRC, and XPO TL - Knight Swift, Schneider, and Landstar What are the advantages (service characteristics) the motor carrier industry has over other transportation modes? Accessibility, Speed, Universal Modal Connector, Carrying Capacity, Loss and Damage Discuss the different types of vehicles used to transport freight. Describe the different types of terminals—Pick up & Delivery (PUD)/End of Line (EOL), break bulk, relay. PUD - pickup and delivery for local points EOL - Break Bulk - middle point to combine products with common destinations Relay - (think relay race) one driver takes the shipment to the relay point and the driver is replaced who takes the truck to final destination What are the two main costs in the motor carrier industry? Fuel and Drivers' wages What is Operating Ratio and what are normal levels for LTL and TL? Measure of operating efficiency and a benchmark of financial viability TL: high 80s to low 90s LTL: 93-96 How is the cost of the interstate highway system funded through federal use taxes? Paid through the Federal Highway Trust Fund What are Freight Brokers and what are some advantages and disadvantages of using a broker? Brokers acting as a middle man to haul shippers' loads or shipments Pros: help ensure capacity, may keep costs down Cons: quality and performance may vary What are the primary reasons for a firm having a private truck fleet? Ensure capacity or improve service Lower costs What are some advantages and disadvantages