Transportation Operations LINCS Practice Exam

What do lower class ratings in the Class Rate System indicate?

1. Higher shipping prices

2. Lower shipping prices

3. Increased distance for delivery

4. Higher priority for shipping

The correct answer is: Lower shipping prices

Lower class ratings in the Class Rate System signify lower shipping prices. This system categorizes goods based on several factors, including the item's density, stowability, handling, and liability. Items that are rated in a lower classification generally represent commodities that are less expensive to transport. This reduced rate is attributable to characteristics such as being more durable, easier to handle, or requiring less specialized transportation equipment. When goods fall into a lower class rating, transporters pass these cost savings on to shippers, resulting in lower shipping prices. This pricing structure encourages the movement of lower-class rated goods by making it more economical for businesses to ship them, thereby impacting overall supply chain costs and efficiency.