Final Exam

Question 1

Which country is the largest trading partner of the USA based on combined imports and exports?

Answer 1

Canada

Question 2

What is the term for a manufacturing facility in Mexico where products can be made and returned to the US without duty being paid?

Answer 2

Maquiladora

Question 3

Which term of payment has the least risk to the seller/exporter?

Answer 3

Cash in Advance

Question 4

Which term of payment has the least risk to the buyer/importer?

Answer 4

Open account

Question 5

Which international organization has begun the freight initiative aimed at replacing paper documents?

Answer 5

International Air Transportation Association

Question 6

What are the most common lengths for container ships?

Answer 6

20 and 40 feet

Question 7

How many incoterms are there in the USA?

Answer 7

11

Question 8

Which incoterm gives the seller/exporter total responsibility for the shipment?

Answer 8

DDP (Delivered Duty Paid)

Question 9

Which incoterm gives the buyer/importer total responsibility for the shipment?

Answer 9

EXW (Ex Works)

Question 10

Which transportation document acts as a contract of carriage?

Answer 10

Bill of Lading

Question 11

What type of ocean transportation service travels a fixed route of a published schedule?

Answer 11

Liner Ship

Question 12

The highest volume seaport in the world is in which country/ What is the top country in the world in vessel calls?

Answer 12

China

Question 13

What is the highest volume cargo airport in the US?

Answer 13

Memphis

Question 14

What two variables define the primary advantage or disadvantage when comparing asset based 3PL’s vs non asset based 3PL’s?

Answer 14

Asset Based: Control, Fixed costs

Non Asset Based: Flexibility, Variable costs

Question 15

What are the steps of the customs clearing process in the correct sequence?

Answer 15

Entry filing, Arrival, Examination, Classification, Taxation, Release

Question 16

What organization is responsible for establishing incoterms?

Answer 16

ICC

Question 17

What type of service involves local transportation of containerized cargo?

Answer 17

Drayage

Question 18

What group of 3PL’s does not own equipment and instead arrange transportation services?

Answer 18

Forwarder Bases 3PL’s

Question 19

As of 2013, the 3PL industry worldwide produced revenues at what level?

Answer 19

$704 Billion

Question 20

What is meant by the term carbon footprint?

Answer 20

CO2 Emissions

Question 21

What is the average driver cost per mile?

Answer 21

.60 per mile

Question 22

What is the difference between a finance lease and a fuel service lease when leasing a fleet of trucks?

Answer 22

FL is only for capital costs

FSL is adds services such as maintenance

Question 23

What is the #1 activity outsourced to 3PL’s?

Answer 23

Domestic Transportation

Question 24

What is at the top of the list of reasons against using 3PL services?

Answer 24

Logistics being a core competency of the company

Question 25

As operating miles increase, fixed costs per mile go in which direction?

Answer 25

Decrease

Question 26

According to the US census bureau, how many private trucks are on the road?

Answer 26

4 Million

Question 27

3PL spending as of 2013 was highest in what region of the world?

Answer 27

Asia Pacific

Question 28

Which countries are the top 3 trading partners with the US?

Answer 28

Canada, China, Mexico

Question 29

Explain the concept of transfer of ownership and why it is important.

Answer 29

It shows who is responsible for managing goods in transit

Question 30

International commercial terms that facilitate the flow of goods from importer to exporter between different countries

Answer 30

Incoterms

Question 31

Establishes free trade between US, Canada, and Mexico

Answer 31

NAFTA

Question 32

Payment after shipment is made; goods available to buyer after payment; gives the seller assurance of payments; assures shipment is made but relies on exporter to ship goods as described in documents

Answer 32

Letter of Credit

Question 33

What are the 3 primary benefits of intermodalism?

Answer 33

Facilitates global trade, greater accessibility, overall cost efficiency

Question 34

Includes goods that must be handled individually and transferred between transportation equipment multiple times; consists of bulk oriented raw materials

Answer 34

Transload Freight

Question 35

Sites within the US where foreign and domestic goods are held without time limit until they are ready to be released into international commerce

Answer 35

Foreign Trade Zone

Question 36

What is a TEU?

Answer 36

Twenty ft Equivalent Unit

Question 37

Top container liner in the world?

Answer 37

Maersk

Question 38

What is the top air carrier in the world? What are the top two that are based in the USA?

Answer 38

Amherst | FedEx and UPS

Question 39

What is the top seaport in the world?

Answer 39

Shanghai

Question 40

What mode of transportation is the most intensive user of fuel?

Answer 40

Airines

Question 41

Which mode of transportation has a fuel surcharge in contracts?

Answer 41

Trucking

Question 42

What is the top port in the USA vessel calls?

Answer 42

Houston

Question 43

Advantages and disadvantages of private trucking?

Answer 43

Advantages: improved service and lower cost Disadvantages: higher cost if not done right

Question 44

What is a backhaul and how is this significant in private vs non private transportation?

Answer 44

Hauling cargo back from point B to original point Private: not set up well to cary backhaul Non-Private: going to try their best to find something to haul on the return trip