Certified Supply Chain Professional (CSCP) Practice Exam

In cargo transport, what is the consequence of a high density load?

1. Lower transportation costs

2. Higher volume of goods

3. Increased handling requirements

4. Extended transit time

The correct answer is: Lower transportation costs

A high density load typically results in lower transportation costs primarily due to how carriers charge for freight services. Many transportation providers calculate costs based on weight and volume, often using a dimensional weight pricing model. In this model, a high density load means that goods take up less space relative to their weight, resulting in a more efficient use of cargo capacity. When a shipment has a higher density, the carrier can transport more weight within the same volume, maximizing the payload and reducing the per-unit cost associated with transportation. This effective use of space can lead to savings on freight costs, making it an economically favorable scenario for logistics and supply chain operations. In contrast, lower density loads would take up more room for less weight, increasing overall transportation costs since carriers may have to charge based on the volume rather than the weight. Higher volume loads could also lead to increased handling requirements and potentially extended transit times due to the complexities associated with managing large amounts of cargo.