Freight forwarders can often charge shippers lower rates than basic carriers because they
A. will only deliver to selected locations
B. only handle large shipments
C. combine the small shipments of many shippers into more economical shipping quantities
D. do not deal with international shipments
E. ship only small quantities
Answer: (C) Freight forwarders consolidate small shipments from different shippers and then ship in bulk quantities to take advantage of lower shipping rates. In other words, they specialize in performing the "accumulation" regrouping activity. Therefore, (C) is the right answer.