The US rail system began by providing a timely yearround mod

The US rail system began by providing a timely, year-round mode of transportation but lost significance as auto and truck capabilities increased.

True

False

Select the primary transportation cost components.

pooling

terminals

ways

vehicles

tracing

bills of lading

These railroads comprise approximately 99% of the number of US freight railroads (click all that comprise the 99%)

class 1

motor carriers

regional and local line haul

switching and terminal carriers

LTL carriers have the lowest overhead because they divide the cost of a truck across multiple delivery points.

True

False

Air carriers have relatively low fixed costs and high variable costs.

True

False

Solution

The US rail system began by providing a timely, year-round mode of transportation but lost significance as auto and truck capabilities increased. TRUE

The primary transportation cost components are TERMINALS and VEHICLES

Thefollowing railroads comprise approximately 99% of the number of US freight railroads

class 1, motor carriers, regional and local line haul , switching and terminal carriers

LTL carriers have the lowest overhead because they divide the cost of a truck across multiple delivery points TRUE

Air carriers have relatively low fixed costs and high variable costs. FALSE ( This was true earlier when fuel costs were high; With reduced fuel prices, the statement is no linger true)