APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 49

The task that best describes the value proposition offered by freight forwarders is that they:

Answer options

• A. act as agents for domestic firms in international markets, primarily obtaining orders for their clients' products.
• B. export goods and services and locates overseas buyers on their clients' behalf.
• C. consolidate shipments from various customers and offer lower transportation rates.
• D. operate under power of attorney from the shipper to pay all import duties and are ultimately liable for unpaid duties.

Correct answer: A

Explanation

The correct answer is A because freight forwarders primarily act as intermediaries for domestic businesses, helping them enter international markets by securing orders. Options B, C, and D describe other functions that may involve freight forwarders but do not specifically highlight their main role in obtaining orders for clients.