Certified Supply Chain Professional (CSCP) Practice Exam

What distinguishes a private carrier?

1. Transportation is available to the public

2. Operates under contracts specified by customers

3. Owns a fleet of vehicles to transport its own product

4. Offers lower rates available to all customers

The correct answer is: Owns a fleet of vehicles to transport its own product

A private carrier is characterized by its ownership of a fleet of vehicles and its operation primarily for the transportation of its own products. This means that the fleet is not available for hire to the general public, which contrasts with common carriers that provide services to any customer seeking transportation. The key distinction lies in the fact that private carriers focus on fulfilling the logistics needs of their own organization, allowing them to control costs, scheduling, and the handling of their goods. The other options outlined highlight characteristics of different types of carriers. For instance, the availability of transportation to the public pertains to common carriers, which openly offer their services to anyone who needs transport. The reference to operating under contracts specified by customers is more aligned with contract carriers, who arrange transportation as per service agreements. Lastly, offering lower rates available to all customers describes competitive pricing strategies typical of common carriers, which are not relevant to the operation of a private carrier. Thus, the specificity of ownership and internal operation is what accurately defines a private carrier.