SCMN 3720 Exam 2 Questions and Answers Already Passed Graded A+
When, why, and how did the motor carrier industry get started? - Answers • The motor carrier industry
began to develop around the time of WWI when converted automobiles were used for local pickup and
delivery. The success of the railroad industry encouraged entrepreneurs to pursue motor carriers,
causing the development of highways between 1950-1991.
• Started around World War I, when converted automobiles were used for pickup and delivery in local
areas. The interstate highway system steadily replaced railroads. Dominant mode today.
How much of the cost of the interstate highway system was intended to be funded through federal fuel
taxes? - Answers 90%
Private Carriers - Answers Private Carriers - A company that provides truck transportation of its own
cargo, usually a part of a business that produces, uses, sells and/or buys the cargo being hauled. Provide
a service to the industry or company, does not charge a fee but incur cost. Owns their own trucks.
• Provide a service to the industry or company that owns or leases the vehicles
• Do not charge a fee, but incur cost
• Transport commodities for hire as exempt for-hire carriers
For-Hire Carriers - Answers For-Hire Carriers - Provide services to the public, charge a fee for the service.
Includes contract carriers- don't own trucks to move products, use other people's truck to move their
customers' products. 3PL. A company that provides truck transportation of cargo belonging to others
and is paid for doing so. There are two types: common carriers and contract carriers
• Provide services to the public
• Charge a fee for the service
Common Carrier - Answers Common Carriers - A company that provides for-hire truck transportation to
the general public upon demand, at reasonable rates, and without discrimination. required to serve the
general public upon demand, at reasonable rates, and without discrimination
Contract Carrier - Answers Contract Carriers - A company that provides for-hire truck transportation to
specific, individual shippers based on private contracts between carriers and shippers. Serve specific
shippers with whom the carriers have a continuing contract. Dedicated carriage over "dedicated" regular
routes
TL Segment Characteristics - Answers • Provides service to shippers who tender sufficient volume to
meet the minimum weights required for a truckload shipment.
,• There are about 1/2 million companies in this segment. Requires $5,000-$10,000 to enter and the
variable costs are high.
• High variable cost, low fixed cost. No terminals, low barriers to entry. Large number of small carriers.
About 442,000 carriers, of which 90% are 6 or fewer vehicles.
• Monopolistic
LTL Segment Characteristics - Answers • Carriers who provide service to shippers who tender shipments
lower than the minimum truckload quantities.
• Oligopolistic.
• High capital requirement.
• Low variable cost, high fixed cost.
What types of products are typically hauled via truck? - Answers • Anything from raw materials, to
works in progress,
• High valued finished goods - typically from manufacturing plants to retail distribution centers
• Food, consumer goods, animals
What are the advantages the motor carrier industry has over other transportation modes? - Answers •
Motor carriers can provide service to virtually any location and are not contained by waterways, rail
tracks or airport locations
• Accessibility, speed (especially good if its under 800 miles), carrying capacity, modal connector,
relatively damage free, more customer oriented.
Different types of vehicles used to transport freight - Answers Line Haul: tractor trailer combo with three
axels
City Straight: Single unit trailer trucks
Special vehicles: dry van, open top, flatbed, tank trailer, refrigerated vehicles, high cube
, • Truck- motor vehicle used to transport freight
• Semi truck- combination of a tractor unit and one or more semi-truck
• Van- vehicle used to transport goods and people
• Trailers- generally and unpowered vehicle towed by a powered vehicle
• Box truck- truck with a cube-shaped cargo area
• Dry van- standard trailers
• Open top- coal, rocks
• Flat beds- steel
• Tankers- liquid, petroleum
• Refers- Refrigerator trucks
PUD/EOL Terminal - Answers Pickup & Delivery (PUD)/End of Line (EOL) - Most common terminal for LTL
system which serves a local area through consolidation and dispersion using pedal runs (routes driven
daily out of a PUD to collect freight for outbound moves or deliver freight from inbound moves). LTL
carrier, provide the pickup and/or delivery services for freight on peddle runs.
Break Bulk Terminal - Answers Break Bulk Terminal -Consolidation and dispersion (intermediate point
where freight with common destinations from PUD terminals can be combined into one trailer). Hub
and Spoke system. Provide an intermediate point where freight with common destinations from the
PUD terminals is separated/consolidated to facilitate higher utilization of vehicle capacity.
Relay Terminal - Answers Relay Terminal -Necessitated by maximum number of hours of service
regulation for drivers. Provides the opportunity for one driver to rest while another takes the shipment.
Cargo is never touched. Relay terminals are different from the PUD and break-bulk terminals in that
freight is never touched. Trailer is dropped and another tractor picks it up (required bc of driver duty
time)
What are the two main costs in the motor carrier industry? - Answers Labor and Fuel
What driving time regulations do drivers face? - Answers • No driving after 60 hours in a 7-day period
• Must rest for 10 consecutive hours after driving for 11 hours
• 11 hours of driving for 14 hours on duty. So 11 hours max in a driving day.
When, why, and how did the motor carrier industry get started? - Answers • The motor carrier industry
began to develop around the time of WWI when converted automobiles were used for local pickup and
delivery. The success of the railroad industry encouraged entrepreneurs to pursue motor carriers,
causing the development of highways between 1950-1991.
• Started around World War I, when converted automobiles were used for pickup and delivery in local
areas. The interstate highway system steadily replaced railroads. Dominant mode today.
How much of the cost of the interstate highway system was intended to be funded through federal fuel
taxes? - Answers 90%
Private Carriers - Answers Private Carriers - A company that provides truck transportation of its own
cargo, usually a part of a business that produces, uses, sells and/or buys the cargo being hauled. Provide
a service to the industry or company, does not charge a fee but incur cost. Owns their own trucks.
• Provide a service to the industry or company that owns or leases the vehicles
• Do not charge a fee, but incur cost
• Transport commodities for hire as exempt for-hire carriers
For-Hire Carriers - Answers For-Hire Carriers - Provide services to the public, charge a fee for the service.
Includes contract carriers- don't own trucks to move products, use other people's truck to move their
customers' products. 3PL. A company that provides truck transportation of cargo belonging to others
and is paid for doing so. There are two types: common carriers and contract carriers
• Provide services to the public
• Charge a fee for the service
Common Carrier - Answers Common Carriers - A company that provides for-hire truck transportation to
the general public upon demand, at reasonable rates, and without discrimination. required to serve the
general public upon demand, at reasonable rates, and without discrimination
Contract Carrier - Answers Contract Carriers - A company that provides for-hire truck transportation to
specific, individual shippers based on private contracts between carriers and shippers. Serve specific
shippers with whom the carriers have a continuing contract. Dedicated carriage over "dedicated" regular
routes
TL Segment Characteristics - Answers • Provides service to shippers who tender sufficient volume to
meet the minimum weights required for a truckload shipment.
,• There are about 1/2 million companies in this segment. Requires $5,000-$10,000 to enter and the
variable costs are high.
• High variable cost, low fixed cost. No terminals, low barriers to entry. Large number of small carriers.
About 442,000 carriers, of which 90% are 6 or fewer vehicles.
• Monopolistic
LTL Segment Characteristics - Answers • Carriers who provide service to shippers who tender shipments
lower than the minimum truckload quantities.
• Oligopolistic.
• High capital requirement.
• Low variable cost, high fixed cost.
What types of products are typically hauled via truck? - Answers • Anything from raw materials, to
works in progress,
• High valued finished goods - typically from manufacturing plants to retail distribution centers
• Food, consumer goods, animals
What are the advantages the motor carrier industry has over other transportation modes? - Answers •
Motor carriers can provide service to virtually any location and are not contained by waterways, rail
tracks or airport locations
• Accessibility, speed (especially good if its under 800 miles), carrying capacity, modal connector,
relatively damage free, more customer oriented.
Different types of vehicles used to transport freight - Answers Line Haul: tractor trailer combo with three
axels
City Straight: Single unit trailer trucks
Special vehicles: dry van, open top, flatbed, tank trailer, refrigerated vehicles, high cube
, • Truck- motor vehicle used to transport freight
• Semi truck- combination of a tractor unit and one or more semi-truck
• Van- vehicle used to transport goods and people
• Trailers- generally and unpowered vehicle towed by a powered vehicle
• Box truck- truck with a cube-shaped cargo area
• Dry van- standard trailers
• Open top- coal, rocks
• Flat beds- steel
• Tankers- liquid, petroleum
• Refers- Refrigerator trucks
PUD/EOL Terminal - Answers Pickup & Delivery (PUD)/End of Line (EOL) - Most common terminal for LTL
system which serves a local area through consolidation and dispersion using pedal runs (routes driven
daily out of a PUD to collect freight for outbound moves or deliver freight from inbound moves). LTL
carrier, provide the pickup and/or delivery services for freight on peddle runs.
Break Bulk Terminal - Answers Break Bulk Terminal -Consolidation and dispersion (intermediate point
where freight with common destinations from PUD terminals can be combined into one trailer). Hub
and Spoke system. Provide an intermediate point where freight with common destinations from the
PUD terminals is separated/consolidated to facilitate higher utilization of vehicle capacity.
Relay Terminal - Answers Relay Terminal -Necessitated by maximum number of hours of service
regulation for drivers. Provides the opportunity for one driver to rest while another takes the shipment.
Cargo is never touched. Relay terminals are different from the PUD and break-bulk terminals in that
freight is never touched. Trailer is dropped and another tractor picks it up (required bc of driver duty
time)
What are the two main costs in the motor carrier industry? - Answers Labor and Fuel
What driving time regulations do drivers face? - Answers • No driving after 60 hours in a 7-day period
• Must rest for 10 consecutive hours after driving for 11 hours
• 11 hours of driving for 14 hours on duty. So 11 hours max in a driving day.
