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Which metric is calculated by multiplying the weight of goods shipped and the distance traveled?

  1. Load Factor

  2. Ton-Mile

  3. Freight Rate

  4. Vehicle Utilization

The correct answer is: Ton-Mile

The metric that is calculated by multiplying the weight of goods shipped by the distance traveled is known as a ton-mile. This measurement quantifies the transportation of freight and is crucial for understanding the efficiency and effectiveness of freight movement. Specifically, a ton-mile reflects the amount of freight transported over a specific distance, providing insight into both the volume of cargo moved and the distance it has traveled. For example, if a shipper delivers 10 tons of goods over a distance of 100 miles, the total ton-miles would be 1,000 (10 tons multiplied by 100 miles). This metric is particularly useful in logistics and transportation planning, allowing companies to assess costs, optimize routes, and improve resource allocation. The other metrics mentioned serve different purposes. Load Factor refers to the ratio of actual cargo to the maximum capacity of a vehicle, helping measure efficiency in terms of space utilization. Freight Rate represents the cost of transporting goods, often determined by a variety of factors including weight and distance but not calculated as a direct product. Vehicle Utilization assesses how effectively a vehicle’s capacity is being used, which is not directly tied to the weight-distance product like ton-miles. Thus, ton-mile accurately describes the relationship between weight and distance in freight transport.