CPIM Practice Exam

What do terminal-handling charges depend on?

1. The distance between pickup and delivery points

2. The number of times a shipment is loaded, handled, and unloaded

3. The type of cargo being transported

4. The payment method used for billing

The correct answer is: The number of times a shipment is loaded, handled, and unloaded

Terminal-handling charges primarily depend on the number of times a shipment is loaded, handled, and unloaded. This is because every handling event incurs costs related to labor, equipment, and facility usage. The more times a shipment passes through various handling points (such as loading docks or transfer terminals), the higher the associated charges will be, as each step incurs additional expenses. While the other factors listed can influence overall shipping costs or logistical considerations, they do not specifically dictate terminal-handling charges. For instance, while the distance between pickup and delivery points can affect transportation costs, it is not a direct factor in terminal-handling fees. Similarly, the type of cargo may affect special handling requirements but does not directly correlate with the handling charges incurred. The payment method used for billing typically pertains to how costs are settled rather than the calculation of terminal-handling fees themselves. Thus, the number of handling events is the critical determining factor for these charges.