BMM Notes Questions and Answers
Interstate Commerce Act of 1887 - answerthis legislation established the Interstate
Commerce Commission (ICC)
Interstate Commerce Commission (ICC) - answera five-man board *designed to hear
complaints* and determine regulations that would allow for and *encourage fair
competition*.
this act required the railroads to maintain "just and reasonable" rates and prohibited the
practice of special rates or rebates based on volume.
ICC – answer Interstate Commerce Commission
Motor Carrier Act of 1935 – answer designed to *prevent new competition for existing
carriers* and required carriers to file rates with the ICC *thirty days before they became
effective*.
What year was the Motor Carrier Act? - answer1935
4 main types of carriers - answer1) common
2) contract
3) private
4) exempt
4 main types of carriers:
common carriers – answer were required to obtain a certificate to operate and file their
tariffs, or rates, with the ICC
4 main types of carriers:
contract – answer were also required by the ICC to have a certificate to operate but
their rates were agreed upon in a *specific contract with each customer*
4 main types of carriers:
private - answerthese carriers, *like Walmart's fleet trucks*, were *only allowed to haul
for their parent company* which forced them to return home empty.
4 main types of carriers:
exempt - answerthe only outlined carrier that is *no longer in existence*, were exempt
from the ICC and their regulations because they hauled commodities such as *grain,
fruit, or vegetables*.
True or False?
contract carriers are what we use today - answerTrue
,True or False?
In 1995, the ICC was eliminated and replaces by the surface transportation board, a
division of the department of transportation (DOT) who currently serves as our industry's
governing body. - answerTrue
BMM Advantages (there's 3 thing) - answer1) one phone call
2) volume of freight
3) practical necessity
BMM Disadvantages (there's 3 things) - answer1) outsourcing will lead to problems
2) loss of control
3) threat to their job
why people chose to use BMM (there's 3 things) - answer1) you (being personable)
2) one point of contact > we have no voicemails
3) we pay carriers electronically each day through our QuickPay program
Logistics - answerLogistics is the *coordination of the pick-up and delivery of goods*
*within the supply chain*.
Freight Broker - answeris a non-asset-based company that arranges transportation.
FMCSA - answerFederal Motor Carrier Safety Administration
Third Party Logistics Company (3PL) - answerThird party logistics companies provide
their customers with a variety of services or solutions other than simply arranging for the
transportation of freight from point A to point B.
3PLs offer services such as *rate auditing*, *transportation management*,
*warehousing*, and *inventory control*.
3PL - answerThird Party Logistics Company
Freight Forwarder ("forwarder" or "forwarding agent") - answerthey take on more
responsibilities and more liability than a freight broker
Freight forwarders often coordinate shipments that are much larger than a truckload and
which may include the *coordination of air, ocean and/or land transportation* as well as
*warehousing*, *freight consolidation*
,and more.
Truckload (TL) - answera single shipment moving in one trailer that typically *maximizes
a trailer's capacity by weight and/or space*
TL - answerTruckload
Less Than Truckload (LTL) - answershipments that range from *1-6 pallet positions*, up
to *12ft of trailer space*, and *weigh less than 10,000 lbs*
LTL - answerLess Than Truckload
Intermodal - answerAs the name would suggest, intermodal shipments utilize more than
one mode of transportation
Intermodal:
doublestack - answerone trailer on top of another
Intermodal:
piggyback - answertwo trailers connected to one another instead of just having one
trailer
Deadhead - answerthe distance a truck must travel from its last delivery to its next pick-
up
The deadhead miles are important because they are *"empty miles" where the truck is
not hauling anything and therefore not making money*
a.k.a the truck is traveling with nothing inside its trailer
Headhaul - answera load that picks up near a carrier's home base and heads outbound
Backhaul - answerthe shipment that takes a carrier back to, or close to, either their
home or the shipper
for their next load
Shipper - answerwhere a shipment originates.
Technically, any location where a shipment is loaded onto a truck can be considered a
shipper but the majority of shippers are either manufacturing plants or
warehouses/distribution centers.
Consignee ("cons") - answerThe location where a shipment is delivered
Bill-To - answerthe party responsible for paying a bill.
, When we arrange for a carrier to haul a load, BMM is the bill-to for the trucking
company and our customer is our bill-to.
Customer - answerthe company who asks us to arrange for the transportation of their
load
Bill of Lading (BOL) - answeracts as a contract - first between the shipper and carrier
when they sign it at the
beginning of a shipment - with the consignee included once the load is delivered and
they sign it.
BOL is evidence of what type of product was accepted by the driver, the amount they
accepted and the condition of the product when they first accepted it.
BOL - answerBill of Lading
Proof of Delivery (POD) / Delivery Receipt (DR) - answerAfter the consignee unloads
the trailer, he or she will sign the bill of lading.
When that happens, it becomes a proof of delivery or a delivery receipt.
The POD is used to show the type of product
delivered by the driver, the amount delivered and the product's condition upon delivery
POD - answerProof of Delivery
DR - answerDelivery Receipt
Prepaid - answerA prepaid shipment is one in which *the shipper is responsible for the
freight charges*.
Collect - answerA collect shipment is one in which *the consignee is responsible for the
freight charges*
3rd Party Bill-To - answera company that is paying the freight charges for a shipment
where they are neither
the shipper nor the consignee.
In some cases, BMM Logistics is listed as the 3rd party bill-to.
Blind Load - answera load in which either or both the shipper and the consignee are not
aware that the
other is involved in the shipment
Weight Tickets - answerWeight tickets are not required for every load but they may be
necessary for specific customers, especially those who buy or sell product by weight.
Interstate Commerce Act of 1887 - answerthis legislation established the Interstate
Commerce Commission (ICC)
Interstate Commerce Commission (ICC) - answera five-man board *designed to hear
complaints* and determine regulations that would allow for and *encourage fair
competition*.
this act required the railroads to maintain "just and reasonable" rates and prohibited the
practice of special rates or rebates based on volume.
ICC – answer Interstate Commerce Commission
Motor Carrier Act of 1935 – answer designed to *prevent new competition for existing
carriers* and required carriers to file rates with the ICC *thirty days before they became
effective*.
What year was the Motor Carrier Act? - answer1935
4 main types of carriers - answer1) common
2) contract
3) private
4) exempt
4 main types of carriers:
common carriers – answer were required to obtain a certificate to operate and file their
tariffs, or rates, with the ICC
4 main types of carriers:
contract – answer were also required by the ICC to have a certificate to operate but
their rates were agreed upon in a *specific contract with each customer*
4 main types of carriers:
private - answerthese carriers, *like Walmart's fleet trucks*, were *only allowed to haul
for their parent company* which forced them to return home empty.
4 main types of carriers:
exempt - answerthe only outlined carrier that is *no longer in existence*, were exempt
from the ICC and their regulations because they hauled commodities such as *grain,
fruit, or vegetables*.
True or False?
contract carriers are what we use today - answerTrue
,True or False?
In 1995, the ICC was eliminated and replaces by the surface transportation board, a
division of the department of transportation (DOT) who currently serves as our industry's
governing body. - answerTrue
BMM Advantages (there's 3 thing) - answer1) one phone call
2) volume of freight
3) practical necessity
BMM Disadvantages (there's 3 things) - answer1) outsourcing will lead to problems
2) loss of control
3) threat to their job
why people chose to use BMM (there's 3 things) - answer1) you (being personable)
2) one point of contact > we have no voicemails
3) we pay carriers electronically each day through our QuickPay program
Logistics - answerLogistics is the *coordination of the pick-up and delivery of goods*
*within the supply chain*.
Freight Broker - answeris a non-asset-based company that arranges transportation.
FMCSA - answerFederal Motor Carrier Safety Administration
Third Party Logistics Company (3PL) - answerThird party logistics companies provide
their customers with a variety of services or solutions other than simply arranging for the
transportation of freight from point A to point B.
3PLs offer services such as *rate auditing*, *transportation management*,
*warehousing*, and *inventory control*.
3PL - answerThird Party Logistics Company
Freight Forwarder ("forwarder" or "forwarding agent") - answerthey take on more
responsibilities and more liability than a freight broker
Freight forwarders often coordinate shipments that are much larger than a truckload and
which may include the *coordination of air, ocean and/or land transportation* as well as
*warehousing*, *freight consolidation*
,and more.
Truckload (TL) - answera single shipment moving in one trailer that typically *maximizes
a trailer's capacity by weight and/or space*
TL - answerTruckload
Less Than Truckload (LTL) - answershipments that range from *1-6 pallet positions*, up
to *12ft of trailer space*, and *weigh less than 10,000 lbs*
LTL - answerLess Than Truckload
Intermodal - answerAs the name would suggest, intermodal shipments utilize more than
one mode of transportation
Intermodal:
doublestack - answerone trailer on top of another
Intermodal:
piggyback - answertwo trailers connected to one another instead of just having one
trailer
Deadhead - answerthe distance a truck must travel from its last delivery to its next pick-
up
The deadhead miles are important because they are *"empty miles" where the truck is
not hauling anything and therefore not making money*
a.k.a the truck is traveling with nothing inside its trailer
Headhaul - answera load that picks up near a carrier's home base and heads outbound
Backhaul - answerthe shipment that takes a carrier back to, or close to, either their
home or the shipper
for their next load
Shipper - answerwhere a shipment originates.
Technically, any location where a shipment is loaded onto a truck can be considered a
shipper but the majority of shippers are either manufacturing plants or
warehouses/distribution centers.
Consignee ("cons") - answerThe location where a shipment is delivered
Bill-To - answerthe party responsible for paying a bill.
, When we arrange for a carrier to haul a load, BMM is the bill-to for the trucking
company and our customer is our bill-to.
Customer - answerthe company who asks us to arrange for the transportation of their
load
Bill of Lading (BOL) - answeracts as a contract - first between the shipper and carrier
when they sign it at the
beginning of a shipment - with the consignee included once the load is delivered and
they sign it.
BOL is evidence of what type of product was accepted by the driver, the amount they
accepted and the condition of the product when they first accepted it.
BOL - answerBill of Lading
Proof of Delivery (POD) / Delivery Receipt (DR) - answerAfter the consignee unloads
the trailer, he or she will sign the bill of lading.
When that happens, it becomes a proof of delivery or a delivery receipt.
The POD is used to show the type of product
delivered by the driver, the amount delivered and the product's condition upon delivery
POD - answerProof of Delivery
DR - answerDelivery Receipt
Prepaid - answerA prepaid shipment is one in which *the shipper is responsible for the
freight charges*.
Collect - answerA collect shipment is one in which *the consignee is responsible for the
freight charges*
3rd Party Bill-To - answera company that is paying the freight charges for a shipment
where they are neither
the shipper nor the consignee.
In some cases, BMM Logistics is listed as the 3rd party bill-to.
Blind Load - answera load in which either or both the shipper and the consignee are not
aware that the
other is involved in the shipment
Weight Tickets - answerWeight tickets are not required for every load but they may be
necessary for specific customers, especially those who buy or sell product by weight.
