Ocean Sea Freight Ocean and Sea Freight Basic 2 — Questions and Answers
Question 1: What does the term 'FCL' stand for in ocean freight?
- Full Container Load (Correct answer)
- Freight Carrier License
- Federal Cargo Listing
- Full Cargo Logistics
Correct answer: Full Container Load
FCL stands for Full Container Load, meaning the shipper books an entire container exclusively for their cargo.
Question 2: Which document serves as the contract of carriage between a shipper and an ocean carrier?
- Commercial invoice
- Packing list
- Bill of lading (Correct answer)
- Certificate of origin
Correct answer: Bill of lading
The bill of lading is the legal contract of carriage and also serves as a receipt for goods and a document of title.
Question 3: What is 'transshipment' in ocean freight?
- Direct delivery to the final destination
- Transfer of cargo from one vessel to another at an intermediate port (Correct answer)
- Loading cargo at multiple origin ports
- Insuring cargo during ocean transit
Correct answer: Transfer of cargo from one vessel to another at an intermediate port
Transshipment occurs when cargo is offloaded at an intermediate hub port and reloaded onto another vessel to reach its final destination.
Question 4: Which type of container is used for goods that require temperature control?
- Open-top container
- Flat-rack container
- Reefer container (Correct answer)
- Dry van container
Correct answer: Reefer container
A reefer (refrigerated) container maintains a controlled temperature, making it suitable for perishables like food and pharmaceuticals.
Question 5: What does 'port of discharge' refer to?
- The port where cargo is loaded onto the vessel
- The port where cargo is unloaded from the vessel (Correct answer)
- The shipper's warehouse location
- The inland freight terminal
Correct answer: The port where cargo is unloaded from the vessel
The port of discharge is the port where cargo is unloaded from the ocean vessel, as opposed to the port of loading.
Question 6: What is 'deadfreight' in ocean shipping?
- Cargo lost at sea
- Charges paid for unused space the shipper booked but did not use (Correct answer)
- The weight of an empty container
- A penalty for late vessel departure
Correct answer: Charges paid for unused space the shipper booked but did not use
Deadfreight is the charge a shipper pays to the carrier when they fail to ship the full quantity of cargo they originally booked.
Question 7: Which incoterm requires the seller to pay for freight and insurance to the destination port?
- EXW (Ex Works)
- FOB (Free on Board)
- CIF (Cost, Insurance and Freight) (Correct answer)
- FCA (Free Carrier)
Correct answer: CIF (Cost, Insurance and Freight)
Under CIF, the seller covers the cost of goods, ocean freight, and minimum insurance to the named destination port.
Ocean Sea Freight Ocean and Sea Freight Basic 2
What does the term 'FCL' stand for in ocean freight?