CPIM Practice Exam

Which type of carrier charges based on full truckloads only?

1. Common carriers

2. Contract carriers

3. For-hire carriers

4. Truckload (TL) carriers

The correct answer is: Truckload (TL) carriers

Truckload (TL) carriers specifically focus on transporting freight that fills an entire truck. This method is tailored to companies with larger shipments, allowing them to utilize the entire capacity of a truck without sharing the space with other shipments, which is essential for both cost efficiency and logistical simplicity. In the truckload model, the pricing structure is based solely on the capacity of the truck being fully utilized. This means that a TL carrier will charge based on the entire truckload, making it an attractive option for businesses with high-volume shipping needs. Utilizing full truckloads also results in less handling and quicker transit times, as the freight does not need to be consolidated or de-consolidated with other shipments. While common carriers, contract carriers, and for-hire carriers may also offer truckload services, they can operate under different pricing models and may accommodate smaller shipments as well. However, truckload carriers are distinct in their focus exclusively on full truckload shipments, ensuring that businesses can make the most out of their transportation costs by maximizing the truck's capacity for each load.