CPIM Practice Exam

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What is a key factor in determining terminal-handling charges?

The weight of the freight being transported
The number of transfers the shipment undergoes
The type of carrier used
The route taken by the shipment

The correct answer is: The number of transfers the shipment undergoes

The number of transfers the shipment undergoes is a key factor in determining terminal-handling charges. Each transfer represents a point where the freight must be handled, which can involve loading and unloading, temporary storage, and additional labor costs. Frequent transfers increase the complexity and cost of managing the shipment, as each transition requires processing time and resources. While the weight of the freight can influence transportation costs, terminal-handling charges are more directly tied to how many times the freight needs to be handled. The type of carrier used and the route taken can also affect overall shipping costs, but these factors are not as closely related to terminal-handling specifics as the frequency of transfers. Ultimately, the focus on transfers highlights the operational and logistical aspects that directly contribute to terminal-handling fees in shipping processes.