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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

  1. What is the purpose of a carrier scorecard in transportation management?

    Answer: To systematically measure and communicate carrier performance against defined KPIs over time

    Carrier scorecards objectively measure performance metrics like OTD, claims ratio, and tender acceptance, providing structured feedback to drive continuous improvement.

  2. Which document serves as the contract of carriage between a shipper and carrier for a truck shipment?

    Answer: Bill of Lading (BOL)

    The Bill of Lading is the legal contract between the shipper and carrier that describes the freight, terms of transport, and serves as the receipt of goods by the carrier.

  3. What is 'double brokering' and why is it prohibited in US freight?

    Answer: When a broker passes a load to another broker without the shipper's knowledge, creating liability and fraud risk

    Double brokering occurs when a licensed freight broker re-tenders a load to another broker without the shipper's consent, creating fraud risk, loss of cargo visibility, and legal liability issues.

  4. What does 'shipper of record' mean in US freight contracts?

    Answer: The legal entity responsible for tendering the shipment and ensuring regulatory compliance, named on the BOL

    The shipper of record is the legal party named on the Bill of Lading who takes responsibility for the shipment's contents, proper packaging, and regulatory compliance.

  5. What is the standard time limit under federal law (49 USC 14706) for a shipper to file a freight damage claim against a motor carrier?

    Answer: 9 months from delivery

    Under the Carmack Amendment (49 USC 14706), shippers have 9 months from delivery to file a written freight claim for loss or damage against a motor carrier.

  6. What is the purpose of a 'force majeure' clause in a transportation contract?

    Answer: To excuse a party from performance obligations when extraordinary events beyond their control prevent fulfillment

    A force majeure clause relieves carriers or shippers of contractual obligations when extraordinary events like natural disasters, government actions, or pandemics make performance impossible.