APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 148

A carrier's casts are driven by equipment movement rather than shipment weight. Which of the following rates would be most appropriate for the carrier to utilize in charging its customers?

Answer options

• A. Incentive rates
• B. Any-quantity rates
• C. Freight all kind (FAK) rates
• D. Per-car and per-truckload rates

Correct answer: C

Explanation

Freight all kind (FAK) rates are suitable for carriers that charge based on equipment movement, as they allow for a simplified pricing structure for various types of goods. Incentive rates and any-quantity rates do not directly relate to equipment usage, and per-car and per-truckload rates are more specific to the volume rather than the nature of the goods being transported.