CPIM Practice Exam

Which best describes a private carrier?

1. A carrier that serves multiple businesses

2. A group that provides transportation exclusively within an organization

3. A carrier that is owned by the public

4. A carrier that handles transportation for hire

The correct answer is: A group that provides transportation exclusively within an organization

A private carrier is best described as a group that provides transportation exclusively within an organization. This definition highlights that private carriers are typically used to transport goods solely for the organization that owns the transportation assets, rather than offering services to the general public or multiple businesses. This structure allows the organization to have greater control over its logistics, enables tailored services to meet specific needs, and often leads to cost efficiencies for regular shipments. Private carriers are often utilized by large companies that require dedicated transportation for delivering their own products or services, making this form of transportation advantageous compared to using common carriers, which serve multiple businesses and operate on a for-hire basis. Thus, the focus on internal transportation aligns with the nature of private carriers, distinguishing them from other types of carriers that cater to a wider customer base or community.