CLTD practice question 6 of 25

A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):

Full set: 150 questions
Answer options
A: freight bureau.
B: freight broker association.
C: shippers association. Correct answer
D: integrated service provider.
Correct Answer:
C. shippers association.
Explanation

A shippers' association is a non-profit, membership-based cooperative that consolidates or distributes freight on behalf of its members. The primary purpose is to pool the members' shipping volumes to secure volume discounts, better service, and more favorable transportation rates from carriers than members could obtain individually. These associations operate across various modes of transportation for both domestic and international shipments, fitting the description in the question perfectly. They act as the shipper in contracts with carriers, but the benefits flow back to the member companies.

Why Incorrect

A. A freight bureau is an agency that primarily audits freight bills, files claims, and provides traffic management consulting services, not a shipping cooperative.
B. A freight broker association is a trade group for freight brokers, who are for-profit intermediaries, not a cooperative that ships member cargo.
D. An integrated service provider (e.g., 3PL) is a for-profit company offering a broad suite of logistics services, not a non-profit membership cooperative.

References

1. APICS CLTD Learning System, Module 4, Section A, Chapter 1: Transportation Fundamentals. (Defines shippers' associations as non-profit organizations that pool members' freight to leverage volume).

2. Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply Chain Management: A Logistics Perspective (10th ed.). Cengage Learning. Chapter 10: Transportation Management. (Describes shippers' associations as a key transportation intermediary used by small and medium-sized businesses).

3. U.S. Department of Transportation, Federal Highway Administration. (2005). Freight Transportation: The European Experience. (Discusses the role of shippers' councils and associations in consolidating freight). Publication No. FHWA-PL-05-017.

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