Transportation Operations LINCS Practice Exam

What is covered by the terminal handling charge?

1. The cost of loading goods onto a ship

2. The charges for the movement of freight on the pier

3. The insurance cost for cargo during transit

4. The storage fees at the terminal

The correct answer is: The charges for the movement of freight on the pier

The terminal handling charge primarily encompasses the costs associated with the movement of freight within the terminal area, typically on the pier where cargo is loaded and unloaded. This charge is essential for covering the operational expenses incurred during the handling of goods as they transition between different transport modes, such as from a truck to a ship or vice versa. While the loading of goods onto a ship is a part of the overall cargo handling process, it is just one aspect of the terminal handling operations. The costs associated with insurance for cargo during transit or storage fees at the terminal fall into different categories and are not encompassed by the terminal handling charge itself. Hence, option B accurately reflects what the terminal handling charge covers, as it includes the necessary expenses linked with managing freight specifically in the terminal environment.