Transportation Operations LINCS Practice Exam

On what basis are tariffs generally quoted?

1. Per item sold

2. On a rolling average basis

3. On a 100-pound basis

4. By percentage of value

The correct answer is: On a 100-pound basis

Tariffs in the context of transportation and shipping are typically quoted on a basis that allows for standardized pricing calculations, making it easier for shippers to estimate costs for transporting goods. The correct answer indicates that tariffs are commonly quoted on a 100-pound basis, which is a standard measurement used in the freight industry. This method of quoting tariffs provides a consistent and clear framework for both shippers and carriers, allowing for straightforward comparisons of shipping costs. By referencing a weight increment like 100 pounds, it simplifies the calculation of total shipping costs, especially for freight that is measured in larger quantities or bulk. Using a weight-based system is particularly useful in the freight industry because it enables carriers to assess the volume of goods being transported relative to their weight, which is a critical factor in determining shipping costs and logistics planning. This approach effectively balances both the size and weight of shipments, ensuring that pricing reflects the actual demand on transportation resources.