Practice_Midterm_3

Practicemidterm page2 6

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 2. Depending
on
a
shipper's
type
and
geographic
location,
the
best
available
 substitutes
for
shipment
by
cargo
ship
are
to
ship
by
rail
or
by
air
freight.
For
 example,
a
customer
shipping
large
bulk
freight
items
from
Los
Angeles
to
New
 Orleans
could
either
ship
over
land
by
rail
or
over
sea
(via
the
Panama
Canal)
by
 cargo
ship.
 3. The
world's
fleet
of
cargo
ships
have
approximately
the
same
cost
structures.
 Throughout
most
of
the
early
1990s,
the
variable
and
fixed
costs
of
cargo
ships
 were
virtually
identical.
 4. Cargo
ships
are
very
specialized
assets
and
have
extremely
limited
redeployment
 value
(e.g.,
they
cannot
easily
be
converted
to,
say,
oil
tankers).
Cargo
ships
have
a
 useful
life
of
about
1...
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This document was uploaded on 03/09/2014 for the course BUS 01 at NYU.

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