CTB Freight Brokerage Operations & Documentation 3

Question 1

What does NMFC stand for in freight classification?

Accepted Answer

National Motor Freight Classification

Answer

NMFC stands for National Motor Freight Classification, the system used to assign freight classes 50–500 based on density, stowability, handling, and liability.

Question 2

A shipper declares freight as Class 70, but the carrier's inspection reveals it should be Class 100. Who bears the cost of the reclassification?

Accepted Answer

The shipper

Answer

The shipper bears the cost of reclassification because they are responsible for accurately declaring the freight class on the bill of lading.

Question 3

In brokerage, a 'spot rate' refers to:

Accepted Answer

A one-time negotiated rate for a specific shipment

Answer

A spot rate is a market-negotiated rate for a single shipment, typically reflecting current supply-and-demand conditions rather than a contracted agreement.

Question 4

Which insurance type is specifically required for freight brokers by FMCSA regulations?

Accepted Answer

Surety bond or trust fund ($75,000)

Answer

FMCSA requires freight brokers to maintain a $75,000 surety bond (BMC-84) or trust fund agreement (BMC-85) as a condition of licensing.

Question 5

A 'shipper's export declaration' (or Electronic Export Information) is required when:

Accepted Answer

Exports exceed $2,500 in value or require an export license

Answer

Electronic Export Information (EEI) must be filed through AES when the value of goods in a Schedule B category exceeds $2,500 or an export license is required.

(CTB) Certified Transportation Broker Practice Test

(CTB) Certified Transportation Broker Practice Test

CTB Freight Brokerage Operations & Documentation 3