Certified Supply Chain Professional (CSCP) Practice Exam

What do line haul costs typically include?

1. Only driver wages

2. Vehicle costs and vehicle operating costs

3. Legal fees related to transport

4. Insurance and risk management costs

The correct answer is: Vehicle costs and vehicle operating costs

Line haul costs refer to the expenses associated with the movement of goods over a specific distance, typically involving the transportation between major points without any intermediate handling. The key components of line haul costs include vehicle costs, which encompass the purchase price, depreciation, and maintenance of the transportation vehicles. Additionally, vehicle operating costs are significant, covering expenses such as fuel, oil, tires, and routine maintenance associated with running the vehicle during transportation. By emphasizing vehicle costs and operating costs, this choice captures the essence of what line haul costs are all about—they directly relate to the operational efficiency and economic considerations of transporting goods over long distances. Understanding these costs is essential for effective supply chain management, as they contribute significantly to the overall transportation expenses, aiding in more accurate budgeting and cost analysis.