Ocean and Sea Freight MCQ Test — Questions and Answers
Question 1: When comparing the NOS rate to the general cargo rate,
- Same
- Higher (Correct answer)
- Varies as per quantity
- Lower
Correct answer: Higher
The NOS (Not Otherwise Specified) rate is typically higher than the general cargo rate. This is because NOS cargo refers to goods that do not fit into specific, pre-defined classification categories, making them potentially more challenging or costly to handle, store, or transport. The higher rate compensates for the increased uncertainty or specialized requirements associated with such unclassified cargo.
Question 2: The per ton size for cargo tariff to be weight basis, is
- 30 ft
- 40ft (Correct answer)
- 100 ft
- 20 ft
Correct answer: 40ft
In ocean freight, cargo tariffs are often calculated based on either weight or measurement, whichever yields a higher freight charge. The standard conversion factor for a 'measurement ton' is typically 40 cubic feet. This means that if a cargo occupies more than 40 cubic feet per ton of weight, it will be charged based on its volume rather than its weight.
Question 3: Which form of charter gives complete command over the ship?
- Time
- Voyage
- Bareboat (Correct answer)
- Demise
Correct answer: Bareboat
A bareboat charter, also known as a demise charter, gives the charterer complete operational and commercial command over the ship. Under this arrangement, the charterer is responsible for manning, maintaining, insuring, and supplying the vessel, essentially acting as the owner for the duration of the charter period. The owner only provides the vessel itself.
Question 4: If a country demands CIF from exporters, then this measure
- Increasing exports
- Protect it's shipping (Correct answer)
- Lowering taxes to increase it's shipping
- Decreasing imports
Correct answer: Protect it's shipping
When a country demands CIF (Cost, Insurance, and Freight) from exporters, it means the exporter is responsible for arranging and paying for the insurance and freight to the destination port. This measure is often implemented to protect and promote the country's domestic shipping and insurance industries. By requiring these services to be handled locally, the country aims to boost its own maritime sector and retain economic benefits.
Question 5: Which country forbids closed conferences?
- Ukraine
- Cambodia
- Cyprus
- USA (Correct answer)
Correct answer: USA
The USA has historically forbidden closed conferences in ocean shipping, viewing them as anti-competitive practices. Closed conferences are agreements among shipping lines that restrict membership and fix rates, which the U.S. believes can stifle competition and harm shippers. U.S. maritime law generally promotes open competition to ensure fair market practices.
Question 6: Which class of character gives the ship's captain complete control?
- Demise (Correct answer)
- Bareboat
- Voyage
- Time
Correct answer: Demise
A demise charter, also known as a bareboat charter, grants the charterer full operational control of the vessel, including the appointment of the ship's captain and crew. Under this type of charter, the charterer essentially becomes the 'owner' for the charter period, taking responsibility for all aspects of the ship's management and operation, including its commercial and technical management.
Question 7: Per measurement ton freight rate tariff's character is
- T
- W
- M (Correct answer)
- A
Correct answer: M
In ocean freight rate tariffs, the character 'M' typically denotes that the freight rate is calculated 'per measurement ton.' This means the charge is based on the volume of the cargo, usually expressed in cubic feet or cubic meters, rather than its weight. This method is commonly applied to light, bulky cargo where volume is the primary determinant of space utilization.
Ocean and Sea Freight MCQ Test
When comparing the NOS rate to the general cargo rate,