Air Cargo Exam 2 Practice

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• In 2017, air freight accounted for what percentage of the global logistics market?
• One of the two major components of the Modern Air Cargo Development Paradox is that margins on the ROI for the airport are very low.
• Which trio comprised the three largest air cargo carriers by scheduled FTK in 2018?
• What percentage of cargo was carried in the belly cargo space of all passenger and combination airlines in 2016?
• Which is a stated disadvantage of belly cargo in Passenger airlines?
• What is the effect of delay on the project's cost-revenue gap?
• Dedicated freighter aircraft typically require facilities with
• The consistently positive or negative displacement of the average forecast error is called what?
• Which forecast model type relies on the imputed relationships between a set of variables to predict a different variable?
• Rate Base Elements refer to which type of charges?
• The key to addressing the capacity-demand mismatch for the future is to build _____ facilities.
• After establishing the capacity and efficiency of the current air cargo facilities at the airport, the next step is generally to
• If the Airport Sponsor/Authority holds the highest priorities on generating discretionary cash flow, lowest cost to tenants, and reducing airline rates and charges, which Business Model is most appropriate?
• Which model involves development and management by a private firm under contract to the airport sponsor, with sponsor oversight?
• In the ACMI service model, which description best applies?
• What accounts for the increase in air freight rates by nearly 30% during the COVID-19 period?
• What is the potential annual saving in shipment costs for Amazon by taking direct control and operations of transportation of shipments?
• Which is one of the three overarching strategies for financing facility development?
• All-Cargo (Dedicated) carriers are similar to Integrated carriers in that they both what?
• The 2009 Georgia plant expansion led to an annual economic impact of over how many dollars?
• Which of the following DO NOT include the roles of a freight forwarder?
• What strategy do All-Cargo (Dedicated) carriers use to offset directional imbalance and reach break-even load factors?
• Which facility requirement is typical for dedicated freighter operations?
• Which financing approach is identified as one of the overarching strategies for facility development?
• Which of the following is a disadvantage of belly cargo carriage by passenger airlines?
• Which of the following is one of the three main categories of staffing factors to consider in the development financing and management plan?
• Two broad data categories are _____ and _____ format data.
• Which of the following are advantages of Private Sector Financing?
• Dedicated freighter operations require which of the following?
• The milestone of 'ribbon cutting' most closely refers to which event?
• The historical mis-matches between cargo infrastructure capacity required and available have occurred along the dimensions of
• Which statement is true about Residual Cost Financing and required agreements?
• In 2009, which automotive group built a new plant in western Georgia near Atlanta?
• Why is compatibility of the new facility to existing tenant operations important for the project?
• The key to addressing the capacity-demand mismatch for the future is to employ infrastructure strategies that are
• What is identified as the dominant physical infrastructure shortfall preventing facility flexibility?
• Forwarders (belly freight) typically need facilities with access to which system?
• Which global freight forwarding companies are not typically in the top five performers, by tonnage handled?
• What supply chain approach was a major consideration for the Georgia plant location?
• What is the key distinguishing factor between Passenger airlines and Combination airlines?
• Which statement best describes a financial advantage of Private Sector Financing?
• Which statement best describes the relationship between capacity planning and facility development?
• In setting objectives for an air cargo development plan, the assessment of the regional air cargo market area typically begins with which analysis?
• The Planning Activity Level (PAL) concept is based on the core principle that infrastructure development must be based on actual realized demand triggers.
• Which Combination airline relied on passenger belly capacity the most in 2016?
• Which phrase lists the advantages of Private Sector Financing?
• Forwarders (belly freight) typically require facilities with which feature to operate efficiently?
• Market demand for cargo capacity is typically modeled as _____ demand.
• The economic impact of air cargo operations at an airport has changed from local to regional in the last two decades.
• In forecasting, one of the main forecast model types explains relationships between variables.
• Which element provides visibility across the entire shipment journey in integrated carrier models?
• Which statement is NOT an advantage of Combination airlines?
• The main difference between the Joint Venture and Third Party approaches to attracting investment capital is that the
• What is the IATA code for the Cincinnati/Northern Kentucky hub (CVG)?
• What is the first phase in the 3-phase process for developing best-fit air cargo facilities at the airport?
• The two primary targets to attract to the airport under the Cargo Marketing Plan are _____ and _____.
• The process described as 'the development of planned capacity improvements based on forecasts, but actual infrastructure investment triggered by realized demand' is the _____ concept.
• Which Business Development Model is described as having primary responsibility for development and management residing in the airport sponsor/authority?
• In order to forecast levels of 'unserved demand' (opportunity) for an airport or region, an analyst must take into account both _____ and _____.
• Which data source is used for domestic cargo flow information?
• Two key Data Sources for domestic cargo flow include the Transearch FAF and CFS. Which term best describes these sources?
• Which shipment characteristic is most closely associated with air freight?
• The Residual Cost Financing approach requires which form of approval before capital is raised?
• Before raising capital under Residual Cost Financing, sponsors must secure which agreement?
• Which of the following is NOT a potential advantage of Amazon taking more direct control of transporting its shipments rather than relying on third party delivery?
• Scheduled All-Cargo carriers provide service through which arrangement?
• Under Residual Cost Financing, which scenario most accurately describes the required pre-capital approval?
• In 2017, what was the approximate size of the global logistics market?
• _____ is the logistics/supply chain routing factor described as the physical 'air eligibility' characteristics of the shipment.
• Under what business model does Atlas Air provide All-Cargo service to Amazon?
• The concept of 'Majority In Interest' approval primarily involves approval by which group?
• Modern logistics management practices emphasize greater efficiencies, reduced costs, more specialized customer services, _____, and _____.
• Which model involves providing a fixed package including aircraft, crew, maintenance, and insurance for a fee?
• Which statement is true about freight forecasts?
• Integrators typically require facilities with warehousing type?
• Which of the following is NOT an advantage of Combination airlines?
• Which two elements complete the list of benefits in modern logistics management: higher processing speeds and time definite delivery.
• What was the size of the global logistics market in 2017, and what percentage did air freight comprise?
• Charter All-Cargo carriers provide service through which arrangement?
• Within the two main forecasting approaches there are three forecast model types. One of the forecast model types is the category of _____ forecasting models.
• Time Series is a forecast model type under which broader group?
• A delay from funding to ribbon cutting is likely to do which of the following to project finances?
• Which type of logistics provider did manufacturers turn to when outsourcing their transportation, storage, and handling requirements?
• What best describes the hub-and-spoke system's effect on efficiency?
• The primary target of the services offered by the Cargo Marketing Plan are _____.
• Flow-through (cross-dock) warehousing is best described as which practice?
• An analysis of both demand and supply patterns is necessary for the forecast to predict the level of _____ for future service.
• First step in developing proper air cargo facilities is generally to
• Accurate freight forecasts are needed for which purposes?
• Integrators typically require facilities with what feature?
• Disadvantages of belly cargo carriage by Passenger airlines include limited overall size and space that drive carriage to smaller express shipments and:
• DHL was founded in 1969 as a document shipment company, and in 2009 it was acquired by which company?
• UPS expanded into which service category after starting as a private messenger service?
• Which document details every item contained in a shipment?
• In the context of staffing, which factor concerns how many personnel are needed for operations and administration?
• In what year was DHL acquired by Deutsche Post?
• Which Combination airline relied on freighter capacity the most in 2016?
• UPS was founded in 1907 as a service before expanding into 'time-definite-package' service and the supply chain freight business. What was it originally?
• Which factor is explicitly cited as a key consideration in determining the hub location for a cargo airline?
• If the Airport Sponsor/Authority holds the highest priorities primarily on preserving debt capacity, providing opportunities for privatization, and creating and retaining jobs, which Business Model would be most appropriate?
• Which carrier category had the larger share in the Top 25 cargo carriers by FTK for 2019?
• The risk assessment/risk management approach to resolving the high loan rate/low ROI paradox includes the use of which other ratemaking methodology?
• Which of the following is a forecast model type?
• One 'targeted' marketing channel that can be used to position your cargo services in the minds of shippers would be
• Which of the following is NOT an advantage of Passenger airlines utilizing belly cargo space?
• Which option is not typically a responsibility of a ground handling agent?
• _____ is the logistics/supply chain routing factor described as the physical 'air eligibility' characteristics of the shipment.
• After establishing a plan for selling the air cargo market at the airport, what is generally the next step?
• The _____ category of initial marketing forms can be described as "business meeting held in the office."
• What percentage of global scheduled FTKs was provided by Combination carriers (passenger and freighter aircraft) in 2016?
• If funding-to-ribbon cutting is delayed, what impact does it have on the cost payment-revenue generation gap?
• A forecasting model that relies on the historical data of a single variable to predict itself is the _____ forecast model type.
• _____ is the logistics/supply chain routing factor described as the 'gateway' concept and the unitization of mixed denser/lighter shipments.
• Which type of aircraft is used by All-Cargo (Dedicated) Carriers to move cargo?
• Which is a key element of the Integrated Carrier business model besides door-to-door service and fast and reliable transport?
• Which term best describes the cooperative form of initial marketing programs?
• In a regional market analysis, which framework is used to identify strengths, weaknesses, opportunities, and threats?
• One of the two main financial and management dimensions of the inherent "Risks of Development" is what?
• Which option describes how to ensure alignment with future demand?
• Which phase of the 3-phase process is the Project Planning phase?
• The data format best represented by measurements and counts is _____.
• Which outcome best describes the effect of funding-to-ribbon-cutting delays on project economics?
• DHL no longer provides service within the US due to U.S. legal requirements on percentage of ownership. This describes the service as which type?
• Which statement about freight forwarders' duties is true?
• In the common use concept, what is the primary revenue strategy?
• For private investment, which ratio is cited as one of the most critical measures?
• Which global freight forwarding companies are not typically in the top five performers, by tonnage handled?
• Which forecast model type relies on the intuition and experience of subject matter experts?
• How many primary targets are identified to attract to the airport under the Cargo Marketing Plan?
• Which carrier was the leading user of freighter capacity in 2016?
• Which phrase best captures the goal of adaptable infrastructure planning?
• The phrase 'ribbon cutting' is associated with which milestone outcome?
• Within the two 'main forecasting approaches' there are three 'forecast model types.' One of the three 'forecast model types' is the category of _____ forecasting models.
• The width of the forecast error is described as which term?
• Which of the following is NOT typically considered a hub location factor?
• Which term describes the gateway concept in logistics routing?
• What is a key advantage of using a hub-and-spoke network in air transportation?
• Which document attests to the correctness of the description, quantity, and value of goods shipped into a country?
• Which statement accurately describes All-Cargo (Dedicated) carrier service offerings?
• If sponsor priorities include preserving debt capacity, privatization opportunities, and creating jobs, which business model is most appropriate?
• DHL's acquisition in 2009 was by which parent company?
• The primary audience for the Cargo Marketing Plan's services is
• Two promising 'Air Cargo Development Strategies' include the _____ and _____ approaches.
• In the context provided, which statement is true about Residual Cost Financing compared to Compensatory Cost?
• All-Cargo (Dedicated) carriers and Integrated carriers share which operational characteristic?
• Which statement best describes the role of belly capacity in passenger airlines?
• What is the percentage of Combination carriers and Passenger carriers (respectively) in the Top 25 cargo carriers by FTK for 2019?
• The roles of a Ground Handling Agent include receiving and preparing shipments, unloading and loading aircraft, AND
• What cargo-carrying options do Combination airlines typically have?
• Integrators typically require facilities with
• The risk assessment/risk management approach to resolving the high loan rate/low ROI paradox includes the use of which ratemaking methodology?
• Amazon began a 10-year agreement to provide CMI service with Amazon Air in what year?
• What term describes bringing in a wide variety of non-air freight tenants to harvest revenues from unused freight infrastructure due to overbuilding?
• Which term contrasts Residual Cost Financing with a non-residual alternative by requiring airline tenant approval?
• A forecasting model that uses history of a single variable to forecast that same variable is called a Time Series.
• Which statement describes the impact of Amazon taking direct control of its transportation operations?
• The majority of All-Cargo traffic is carried on which type of routes?
• Which data source provides data on domestic cargo flow specifically focused on commodity shipments?
• The three types of All-Cargo (Dedicated) carrier business model service include which combination?
• Which of the following is a statement that accurately describes 2016 trends?
• What limits the size of cargo carried in passenger belly space?
• The data format (variables) that is best represented by complex textual description is _____.
• The second phase of the 3-phase process for developing the best-fit air cargo facilities at the airport is the
• Which element accompanies door-to-door service and fast and reliable transport in the Integrated Carrier model?
• The amount of fees and charges the sponsor/airport authority can levy on tenants (Rate Base Elements) is restricted by which policy?
• The demand for cargo infrastructure capacity is typically modeled as _____ demand.
• What explains the air cargo industry's lack of a universal standard for electronic documents?
• Which Business Development Model describes primary responsibility for development and management residing in a firm under contract to the airport sponsor?
• FedEx perfected a distribution system that uses central hubs for sorting before final delivery. What is this system called?
• Which data source provides detailed information on domestic commodity shipments across the economy?
• Which factor is cited as a critical measure for private investment?
• ACMI stands for in air cargo service models?
• All-Cargo (Dedicated) carriers are similar to Combination carriers in that they both use freighter aircraft to move cargo.
• Which statement reflects one of the three overarching strategies for financing air cargo facility development?