Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

Question: 1 / 605

Which pricing technique is preferred by parcel carriers and express service providers?

Flat Rate

Dimensional Weight

The preference for dimensional weight pricing among parcel carriers and express service providers can be attributed to the nature of the shipping industry and how costs are determined based on the characteristics of the packages being shipped.

Dimensional weight pricing takes into account both the weight and the volume of a package, allowing carriers to charge based on the space that the package occupies in relation to its actual weight. This method is particularly effective in optimizing cargo space in transport vehicles, as it ensures that companies are compensated fairly for light but large packages that take up significant space.

Using dimensional weight enables carriers to effectively manage their logistics and distribution systems by encouraging customers to ship items that are more space-efficient. This is especially important in an industry where capacity is limited, and maximizing available space can lead to improved profitability.

Understanding this pricing technique is crucial as it reflects a broader trend in logistics where efficiency and cost management are prioritized. Knowing how different pricing structures affect shipping decisions can help logistics professionals make better-informed choices in their pricing strategies and operations.

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Cost-Plus Pricing

Time-Based Pricing

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