1. What are the various factors used in classifying goods for tariff purposes? The National Motor Freight Classification (NMFC), as determined by the Surface Transportation Board (STB), is the tariff system that provides for the classification and description of freight based on four primary characteristics. These are the density of the goods, the liability, the handling and the shelf life of the goods. Transport companies negotiate the rate and conditions of transportation of goods based on these four characteristics. It is important to remember that product density is the dominant factor determining carrier vehicle usage and cost per hundredweight. Higher product density translates into a lower cost per hundredweight but a greater ability to carry the weight of the product. Lower freight density results in a high cost per hundredweight and lower carrying capacity per weight.2. What is the nature of intramodal and intermodal competition in the motor transportation sector? How have motor carriers fared in terms of intermodal competition since 1980? The nature of intermodal and intramodal competition in the motor carrier industry has transformed over the past fifty years. The motor transportation industry is composed of truckload (TL) and less-than-truckload (LTL) carriers. There has been an increase in concentration among LTL carriers (ton miles as a measure of concentration) but a decrease in the number of companies. This means that intramodal competition in the LTL motor carrier segment has increased. The Motor Carrier Act of 1980 increased competition in the LTL industry. Deregulation of the motor transportation industry has increased fare competition among intramodal motor carriers. Intramodal competition in the TL and LTL industry segments has… half the paper… There was no intermodal competition and no alternatives available for transporting goods and materials. Over the course of the 20th century, the relative position of water carriers has declined due to the emergence of the air cargo and trucking industry which can effectively transport more efficiently than water carriers. The importance of water carriers is still vital in developed and developing economies. Large-scale bulk shipping and long-range shipping require the services of bulk carriers such as very large crude oil bulk carriers (VLCC) and ultra large crude oil bulk carriers (ULCC). Dry bulk carriers are used to transport large volumes of grain and other cargo. The importance of water carriers in the transportation sector will remain primary, as the importance of crude oil and raw materials is primary for the development of economies.