CPIM Practice Exam

What primarily influences total line-haul costs?

1. The type of freight being transported

2. The distance shipped and cost per mile

3. The time of year

4. The size of the shipment

The correct answer is: The distance shipped and cost per mile

Total line-haul costs are primarily influenced by the distance shipped and the cost per mile. The distance is crucial because it directly correlates with how much fuel is used and the overall wear and tear on the vehicle. As the distance increases, the costs related to driving the vehicle, including labor, maintenance, and fuel consumption, also rise. The cost per mile reflects various economic factors, including fuel pricing, market demand for transportation services, vehicle maintenance, and operating costs. These elements combine to create a direct relationship between the distance shipped and the associated costs, making this option the most significant influence on total line-haul costs. While the type of freight, time of year, and size of the shipment do affect costs, they typically play a secondary role compared to the fundamental impact of distance and pricing per mile on the overall line-haul expenses.