Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2026 – Your All-in-One Resource to Complete Exam Success!

The principle that emphasizes the importance of distance in minimizing transportation costs is well referred to as the economy of distance. This principle suggests that transportation costs are not linear; as the distance increases, the cost per unit of distance may decrease. This can be attributed to factors like the consolidation of shipments and the optimization of delivery routes.

When considering transportation, the economy of distance highlights how different strategies can be implemented to reduce costs related to long-haul versus short-haul transportation. For instance, shipping larger volumes over longer distances can lead to cost efficiencies that would not be achievable if moving smaller loads over shorter distances.

Other concepts, such as economy of scale, focus more on achieving cost advantages through increased levels of production or operations, while cost of velocity pertains to the speed of delivery and its associated costs rather than the sheer distance traveled. Distribution efficiency addresses the overall effectiveness of the distribution process but does not specifically highlight the role of distance in cost minimization. Thus, the economy of distance stands out as the vital principle that directly connects the impact of distance to transportation costs.