Question

Transportation rates:
(A) are established primarily by government regulation.
(B) are established primarily through negotiation.
(C) are lower for LTL than TL shipments.
(D) typically decrease as delivery speed increases.
(E) typically do not change when smaller shipments are consolidated.

Answer 1

Answer:

(B) are established primarily through negotiation.

Explanation:

Transportation rates can be referred to as the cost paid by users for transportation services. They are the negotiated economic cost of moving a traveler or a unit of freight between a specific origin and location. Rates are often visible to the consumers since transport service providers must provide this information to secure transactions.

In transportation, the scale of operations change by:

1. Adding more vehicles to the fleet
2. Adding more cars to a train
3. Increasing the size of vehicles
4. Operating in a larger network