CTS CTS Carrier Selection & Contract Management 2

Question 1

What is a fuel surcharge (FSC) in carrier contracts?

Accepted Answer

A variable rate adjustment added to base freight rates to offset fluctuating diesel fuel costs

Answer

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.

Question 2

What does 'accessorial charges' refer to in freight billing?

Accepted Answer

Additional charges for services beyond standard pickup and delivery, such as liftgate, inside delivery, or detention

Answer

Accessorial charges are fees carriers add for extra services or circumstances beyond standard transit, including liftgate service, residential delivery, detention, and redelivery.

Question 3

What is 'detention' in trucking contract terms?

Accepted Answer

A charge billed by carriers when a driver waits beyond the free time allowed at a shipper or consignee facility

Answer

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.

Question 4

Which clause in a carrier contract defines the process for filing and resolving freight damage claims?

Accepted Answer

Cargo claims and liability clause

Answer

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.

Question 5

Under the Carmack Amendment, what is a common carrier's standard liability for cargo damage in the US?

Accepted Answer

Full actual value of the damaged cargo (subject to declared value and released rates)

Answer

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.

CTS - Certified Transportation Specialist Practice Test

CTS - Certified Transportation Specialist Practice Test

CTS CTS Carrier Selection & Contract Management 2