CTB Freight Brokerage Operations & Documentation 4 — Questions and Answers
Question 1: A freight broker discovers a carrier on their load has an unsatisfactory safety rating from FMCSA. The broker should:
- Proceed with the load since the contract is already signed
- Immediately remove the carrier and find a compliant alternative (Correct answer)
- Notify the shipper but allow the carrier to continue
- Report the carrier to DOT after delivery
Correct answer: Immediately remove the carrier and find a compliant alternative
Brokers have a duty of care to avoid using carriers with unsatisfactory safety ratings, and should remove such carriers immediately to protect shipper interests and avoid liability.
Question 2: What is 'double brokering' in freight transportation?
- When two brokers share commission on a single load
- When a carrier re-tenders the load to another carrier without authorization (Correct answer)
- When a shipper uses two brokers simultaneously for the same lane
- When a broker charges both shipper and carrier a fee
Correct answer: When a carrier re-tenders the load to another carrier without authorization
Double brokering occurs when a carrier accepts a load then illegally re-tenders it to another carrier without the original broker's or shipper's knowledge or consent.
Question 3: Which of the following best describes a 'lumper' in freight operations?
- A carrier that consolidates multiple LTL shipments
- A third-party labor service used to unload freight at a facility (Correct answer)
- A freight class designation for oddly shaped cargo
- A shipper who uses multiple carriers simultaneously
Correct answer: A third-party labor service used to unload freight at a facility
A lumper is a third-party worker or service hired to unload trailers at a receiver's dock, and the cost is often negotiated as part of the freight arrangement.
Question 4: A 'tarp charge' in flatbed freight brokerage is associated with:
- Extra fuel costs for heavy loads
- The cost of covering cargo with tarps for weather protection (Correct answer)
- A fee for oversized load permits
- Charges for refrigerated trailer temperature monitoring
Correct answer: The cost of covering cargo with tarps for weather protection
Tarp charges compensate flatbed carriers for supplying and applying tarps to protect freight from weather during transit.
Question 5: When a carrier's cargo insurance certificate lists the broker as an 'additional insured,' this means:
- The broker's own insurance is now the primary coverage
- The broker has some coverage under the carrier's policy for that load (Correct answer)
- The carrier is waiving its right to subrogation
- The shipper must also be listed on the certificate
Correct answer: The broker has some coverage under the carrier's policy for that load
Being listed as additional insured provides the broker limited coverage protections under the carrier's cargo insurance policy for the specific shipment.
Question 6: In intermodal shipping, a 'drayage' move refers to:
- Long-haul trucking across multiple states
- The short-distance truck movement connecting rail or port terminals to a warehouse (Correct answer)
- The rail portion of an intermodal shipment
- Ocean freight from port to port
Correct answer: The short-distance truck movement connecting rail or port terminals to a warehouse
Drayage is the short-haul trucking segment that moves containers between ocean ports, rail ramps, and nearby distribution or warehouse facilities.
Question 7: A shipper requests a 'blind shipment.' This means the broker must:
- Use a carrier without a visible DOT number
- Prevent the consignee from knowing the identity of the shipper (or vice versa) (Correct answer)
- Ship the freight without a bill of lading
- Keep the freight rate hidden from the carrier
Correct answer: Prevent the consignee from knowing the identity of the shipper (or vice versa)
In a blind shipment, the broker masks the identity of the shipper or consignee (or both) on shipping documents to protect the shipper's customer relationships.
CTB Freight Brokerage Operations & Documentation 4
A freight broker discovers a carrier on their load has an unsatisfactory safety rating from FMCSA.
The broker should: