Transportation Operations LINCS Practice Exam

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What is a characteristic of less-than-truckload (LTL) pricing?

Flat-rate based
Varies by shipment size
Consistently lower than truckload rates
Requires a minimum weight

The correct answer is: Varies by shipment size

The characteristic of less-than-truckload (LTL) pricing that is correctly highlighted is that it varies by shipment size. In LTL transportation, shipments from multiple customers are consolidated into one truckload. Therefore, the pricing structure takes into account factors such as weight, dimensions, and the specific freight class of the items being shipped. As the size of the shipment changes, so does the cost, reflecting the need for flexibility in pricing based on these variables. LTL pricing is not typically flat-rate; rather, it is influenced by the details of each shipment, making it dynamic rather than static. It is also important to note that LTL rates can vary significantly and are generally not consistently lower than truckload rates, which are more cost-effective for larger shipments. Additionally, while there may be minimum weight requirements for certain LTL carriers to qualify for their services, this is not a defining characteristic of LTL pricing overall.