CLA Transportation and Shipping 1 — Questions and Answers
Question 1: Which shipping term indicates that the seller pays freight charges and assumes risk until goods reach the buyer's destination?
- FOB Destination (Correct answer)
- FOB Origin
- CIF
- EXW
Correct answer: FOB Destination
FOB Destination means the seller retains ownership and pays freight until the goods arrive at the buyer's location.
Question 2: What is a Bill of Lading (BOL)?
- A legal document between shipper and carrier detailing freight shipment (Correct answer)
- An invoice sent to the customer after delivery
- A warehouse receiving document
- A customs declaration form for domestic shipments
Correct answer: A legal document between shipper and carrier detailing freight shipment
A Bill of Lading is a legally binding document issued by a carrier that serves as a receipt, contract of carriage, and document of title for freight.
Question 3: Which mode of transportation is typically the fastest for long-distance domestic shipments?
- Air freight (Correct answer)
- Rail
- Truckload (TL)
- Ocean freight
Correct answer: Air freight
Air freight is the fastest mode of transportation for long-distance domestic shipments, though it is also the most expensive.
Question 4: What does LTL stand for in freight shipping?
- Less Than Truckload (Correct answer)
- Long Term Logistics
- Load Transfer Location
- Lightweight Transport Line
Correct answer: Less Than Truckload
LTL stands for Less Than Truckload, meaning the shipment does not fill an entire truck and shares space with other shippers' freight.
Question 5: What is a freight class, and who determines it in the US?
- A standardized classification system set by the National Motor Freight Traffic Association (NMFTA) (Correct answer)
- A carrier-specific rating applied at time of pickup
- A government-assigned code based on hazardous material content
- A weight-based tier defined by the shipper
Correct answer: A standardized classification system set by the National Motor Freight Traffic Association (NMFTA)
Freight class is a standardized commodity classification system established by the NMFTA, based on density, stowability, handling, and liability.
Question 6: Which document is required when shipping hazardous materials by road in the US?
- Hazardous Materials Shipping Paper (49 CFR) (Correct answer)
- Standard Bill of Lading only
- Commercial Invoice
- Packing Slip
Correct answer: Hazardous Materials Shipping Paper (49 CFR)
US DOT regulations under 49 CFR require a hazardous materials shipping paper that identifies the material, hazard class, UN number, and emergency contact.
CLA Transportation and Shipping 1
Which shipping term indicates that the seller pays freight charges and assumes risk until goods reach the buyer's destination?