LOg321_Chapter 8

Which is a major advantage offered by the pipelines?

• capability

• low rates

• long transit times with "storage in transit"

• accessibility

What the reason(s) behind the limitation in number of the pipeline company ?

• high capital cost

• The procedural requirements for entry

• Significant economies of scale in investment and operation

• All of the above

The water carrier's principal competitor for the movement of grain, coal, and ores is which mode of transportation?

• pipelines

• Canadian and foreign owned water carriers

• railroads

• motor carriers

Which of the following correctly describes the nature of competition in the water transportation industry?

• Intramodal competition is intense, while intermodal competition is moderate.

• Intramodal competition is moderate, while intermodal competition is intense.

• Intramodal competition is intense, and intermodal competition is also intense

• Intramodal competition is moderate, and intermodal competition is also moderate.

Which is the first major classification of water carriers?

• company-owned and exempt carriers

• for hire and private carriers

• exempt and private carriers

• exempt carriers

Water transportation is attractive to shippers for the movement of which commodities?

• automobiles and construction machinery

• large, bulky and oversized shipments

• basic raw materials

• inventory items

Why are storage facilities necessary at the port?

• To accommodate larger loads carried by rail or motor carrier vehicles

• To handle the transfer of freight from one mode to another

• To promote the efficiency of intermodal transportation

• To temporarily store cargo until it can be effectively handled by barge or ship

What are the major variable expenses in the operating costs of water carriers?

• Depreciation and amortization

• Administrative salaries and wages

• Fuel costs, line-operating costs, and maintenance

• Legal and professional fees

Which of the following best describes the oil pipelines in the United States?

• Primarily operated as private carriers on a not-for-hire basis

  
  

• Primarily operated as private carriers on a for-hire basis

  
  

• Primarily operated as common carriers on a for-hire basis

  
  

• Primarily operated as common carriers on a not for-hire basis

The Supreme Court decided that the pipelines are required to operate as common carriers if a shipper of oil demands their services. This decision is known as the:

• Standard Oil Case

  
  

• Alaska North Slope Case

  
  

• Champlin Oil Case

  
  

• Hepburn Case