CTP CTP Customer Service & Carrier Relations 2 — Questions and Answers
Question 1: A Routing Guide in transportation management serves what purpose?
- It provides drivers with GPS turn-by-turn directions
- It specifies which carriers and modes shippers require vendors and suppliers to use (Correct answer)
- It lists approved rest stops for long-haul drivers
- It documents warehouse receiving procedures only
Correct 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.
Question 2: Freight broker vs. asset-based carrier: which is TRUE?
- Brokers own the trucks that move freight
- Brokers arrange transportation without owning assets; asset carriers own the equipment (Correct answer)
- Asset carriers never take on spot market loads
- Brokers have the same liability as asset carriers under Carmack
Correct 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.
Question 3: In shipper-carrier negotiations, what is a 'fuel surcharge index'?
- A fee charged when freight is too heavy
- A variable rate adjustment tied to diesel fuel price indexes to compensate carriers for fuel cost fluctuations (Correct answer)
- A penalty for late freight pickup
- A discount program for fuel-efficient carriers
Correct 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.
Question 4: A 'core carrier' strategy benefits a transportation manager PRIMARILY because:
- It eliminates the need for freight contracts
- It concentrates volume with fewer carriers to gain better rates, service, and capacity commitments (Correct answer)
- It requires all shipments to move via the same mode
- It allows carriers to set their own delivery windows
Correct 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.
Question 5: What is a 'Transit Time Standard' in a carrier service agreement?
- The maximum speed a carrier's trucks can travel
- A contractually agreed number of days for freight to move from origin to destination (Correct answer)
- A standard for how long drivers may work per week
- The minimum lead time required to book a shipment
Correct 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.
Question 6: Shipper of choice status (also called 'shipper of preference') helps a company by:
- Allowing the shipper to bypass FMCSA regulations
- Making carriers prioritize that shipper's freight during tight capacity markets (Correct answer)
- Eliminating the need to post freight on load boards
- Qualifying the shipper for government freight contracts
Correct 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.
CTP CTP Customer Service & Carrier Relations 2
A Routing Guide in transportation management serves what purpose?