CTS Carrier Selection & Contract Management Flashcards
6 cards from real CTS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CTS Carrier Selection & Contract Management flashcards as text
What is a fuel surcharge (FSC) in carrier contracts?
Answer: A variable rate adjustment added to base freight rates to offset fluctuating diesel fuel costs
A fuel surcharge is a variable add-on to base freight rates that adjusts automatically based on the current diesel fuel price, usually indexed to the US DOE weekly average.
What does 'accessorial charges' refer to in freight billing?
Answer: Additional charges for services beyond standard pickup and delivery, such as liftgate, inside delivery, or detention
Accessorial charges are fees carriers add for extra services or circumstances beyond standard transit, including liftgate service, residential delivery, detention, and redelivery.
What is 'detention' in trucking contract terms?
Answer: A charge billed by carriers when a driver waits beyond the free time allowed at a shipper or consignee facility
Detention is a fee charged to shippers or receivers when a driver is held at a facility beyond the contractually agreed free time, typically 2 hours, during loading or unloading.
Which clause in a carrier contract defines the process for filing and resolving freight damage claims?
Answer: Cargo claims and liability clause
The cargo claims and liability clause specifies the carrier's liability limits, the timeframe for filing claims, the documentation required, and the resolution process for freight loss or damage.
Under the Carmack Amendment, what is a common carrier's standard liability for cargo damage in the US?
Answer: Full actual value of the damaged cargo (subject to declared value and released rates)
The Carmack Amendment establishes that common carriers are liable for the full actual loss of damaged or lost cargo, though liability can be limited by contract through released rates or declared value provisions.
What is a 'spot market' rate in trucking?
Answer: A one-time, market-based rate negotiated for a single shipment when contract capacity is unavailable
Spot market rates are negotiated individually for single shipments, reflecting current supply and demand conditions rather than pre-negotiated contract rates.