CTP Customer Service & Carrier Relations Flashcards

A Routing Guide in transportation management serves what purpose?

Answer: It specifies which carriers and modes shippers require vendors and suppliers to use

A routing guide directs suppliers on which carriers and transportation modes to use for outbound shipments to the shipper's facilities.

Freight broker vs. asset-based carrier: which is TRUE?

Answer: Brokers arrange transportation without owning assets; asset carriers own the equipment

Freight brokers are intermediaries who arrange transportation without owning equipment, while asset-based carriers own and operate the trucks.

In shipper-carrier negotiations, what is a 'fuel surcharge index'?

Answer: A variable rate adjustment tied to diesel fuel price indexes to compensate carriers for fuel cost fluctuations

Fuel surcharge indexes link carrier fuel surcharges to published diesel price benchmarks (often DOE weekly averages), ensuring fair cost sharing as fuel prices change.

A 'core carrier' strategy benefits a transportation manager PRIMARILY because:

Answer: It concentrates volume with fewer carriers to gain better rates, service, and capacity commitments

Concentrating freight with a core group of carriers improves negotiating leverage, strengthens relationships, and provides more reliable capacity access.

What is a 'Transit Time Standard' in a carrier service agreement?

Answer: A contractually agreed number of days for freight to move from origin to destination

Transit time standards define the contractually agreed number of business days allowed for freight to travel between specified lane origins and destinations.

Shipper of choice status (also called 'shipper of preference') helps a company by:

Answer: Making carriers prioritize that shipper's freight during tight capacity markets

Shippers of choice earn carrier priority during capacity crunches by being easy to work with, paying promptly, and providing good freight characteristics.