Motor Carrier Industry: Questions and Answers, Exams of Biology

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Ch. 1 Motor Carriers with

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Industry emerged ____? - answer after WWI in 2012 the US spent ____% of its freight bill on highway transport. - answer 80% What % of of all transportation is by Motor carrier? - answer 68.5% Trucking serves__% of all communities in US - answer 80% 2 types of legal carrier classifications - answer For-Hire Private carry freight long distance 3+ axles - answer Line-Haul Vehicals Vehicle used within city for pickup and delivery - answer city straight trucks What is largest asset for trucking companies? - answer Equipment Dry Van - answer traditional trailer with all sides enclosed Open top - answer open on top so it can be loaded flat bed - answer no top or sides, hauls lumber or steel products

tank trailer - answer hauls petroleum refrigerated vehicle - answer temp controlled to haul cold stuff high cube - answer has drop frame lower/higher than normal to haul more liquefied gas - answer hauls natural gas or propane Automobile - answer open sides hauls cars legal size limit in most states is ____ - answer 5 axles and 80,000 lbs Motor carriers are ______ than water or rail - answer faster Why are motor carriers called the "universal connector" - answer because they pick up loads from other modes of transportation Compared to rail, motor carrier damage rates are _____ - answer lower 2 other names for pick up and delivery terminals - answer 1.) Satellite terminals 2.) End-of-line Terminals a ________ is a route driven daily out of PUD terminal for the purpose of collecting freight for Outbound moves or delivering freight from inbound moves - answer Pedal run Traditional LTL's use a _____ network. - answer Hub and Spoke

______ is the time that elapses from when the driver leaves the terminal until the driver makes the first pickup or delivery. Also the time that elapses from when the driver makes the last pickup or delivery until returning to the terminal. - answer Stem time _____ is the time during which the driver is actively involved in the pickup and delivery of freight. - answer Peddle time ________ should be minimized because it is non-revenue producing time. - answer Stem Time ____ Terminals are a necissary part of the LTL network - answer Break- Bulk Terminals _____ Perform both consolidation and dispersion services - answer break- bulk Terminals At Relay terminals freight is _______ - answer never touched _________ are necessitated by the maximum hours of service regulation that is imposed on drivers. - answer Relay Terminals Recently the trend has been to _______ the number of terminals - answer Reduce What 2 things help determine the locations of terminals? - answer 1.) hours-of-service regulations 2.) Consideration of backhauls between terminals What 3 things influence the number of terminals - answer 1. the desired degree of market penetration

2. The trade-off with length of peddle runs and service implications
3. Recently the trend has been to reduce the number of terminals

Overall Motor Carriers have _____ Variable Costs Reason: _____ Fixed Costs Reason: - answer High Variable Costs: (70-90%) trucks can be added in small increments Low Fixed Costs: because of public investment in Highways Average cost per mile? - answer $1. Top 3 Vehicle Operating Costs: - answer 1. Fuel

2. Driver Wages
3. Cost of Truck and Trailer Max ___ hours driving after ___ consecutive hours off duty - answer Max 14 hours driving after 10 consevutive hours off duty limited to __ total hours in 7 days or __ total hours in 8 days - answer limited to 60 total hours in 7 days or 70 total hours in 8 days Are there major EOS in trucking? Because: - answer No Because: you are only adding a few trailers at a time

larger scale trucking companies may have _____ labor cost - answer higher drivers labor, tires, and fuel are all examples of _____ - answer Operating expences _______ Include costs directly associated with moving freight - answer Operating Expenses _______ Include only revenues from transporting freight - answer Operating Revenues What indicates amount available for interest, future investment, and profit? - answer Benchmark on financial viability An operating ratio of 94 means that ___ % of expenses are operational - answer 94% On average TL makes about __ cents per dollar - answer 15 cents On average LTL makes about __ cents per dollar - answer 5 cents Who stops drivers on the road to make sure they meet safety regulations?

• answer Federal Motor Carrier Safety Commision Who sets the safety standards that motor carriers must follow? - answer National Highway Traffic Administration (NHTA) Who investigates circumstances regarding crashes? - answer National Transportation Safety Board What did the Compliance, Safety, and Accountability Act do? - answer Created a scoring system in order to reduce accidents

LTL carriers cannot be challenged for what? - answer Having rates too high Do LTL rates have to be written down to be binding? - answer no Before 1980 the Motor Carrier industry was ____ - answer Highly Regulated Some characteristics of the Motor Carrier Insustry before 1980: (3) - answer 1. Charged same rates

2. No competition
3. Suffering industry What act eased entry restrictions and permitted rate negotiations? - answer Motor Carrier Act What act eliminated most economic regulations? - answer ICC Termination Act Top Overall Motor Carrier - answer UPS Top Truck Load Motor Carrier - answer JB Hunt Top LTL Carrier - answer YRC Worldwide (Yellow and Roadway) Industry is mostly run by _____ carriers - answer smaller carriers (90% with 6 or less trucks) ________ PROVIDE SERVICES TO THE PUBLIC AND CHARGE A FEE - answer For Hire Carriers ________PROVIDES SERVICE TO THE COMPANY THAT OWNS THE VEHICAL - answer

______ is WHEN A PRIVATE CARRIER TRANSPORTS GOODS FOR HIRE - answer Exempt for hire _______ SERVE THE GENERAL PUBLIC - answer Common Operators _______ SERVE SHIPPERS THAT THEY HAVE A CONTRACT WITH - answer CONTRACT OPERATORS the ____ carrier industry is MONOPOLISTIC COMPETITION it is ______ TO ENTER MARKET - answer Truck Load Easy The ____ carrier industry is oligopolistic and ____ to enter - answer LTL Hard Every __ hours drivers must take a ___ min break - answer 8 hours 30 min Motor Carriers move only _____% of total ton miles - answer 28.5% What are the advantages of Motor Carriers being faster than rail or water?

• answer Lower inventory levels