CE International Shipping & Logistics Management 2

Question 1

Which Incoterm requires the seller to deliver goods on board the vessel at the named port of shipment, with the buyer bearing all costs and risks from that point?

Accepted Answer

FOB (Free On Board)

Answer

Under FOB, the seller's responsibility ends once goods are loaded on board the vessel at the named port, and the buyer assumes all costs and risks thereafter.

Question 2

What document serves as both a receipt for cargo and a contract of carriage between a shipper and an ocean carrier?

Accepted Answer

Bill of lading

Answer

A bill of lading serves as a receipt for goods, a contract of carriage, and a document of title in ocean freight shipments.

Question 3

A US exporter ships goods via air freight. Which organization's regulations govern the air waybill used for this shipment?

Accepted Answer

International Air Transport Association (IATA)

Answer

IATA establishes the standards for air waybills and governs the conditions of carriage for international air freight shipments.

Question 4

What is the primary purpose of a freight forwarder in an export transaction?

Accepted Answer

To arrange transportation and handle logistics on behalf of the exporter

Answer

A freight forwarder acts as an agent for the exporter, coordinating transportation, preparing shipping documents, and managing logistics.

Question 5

Under a CIF Incoterm, which party is responsible for arranging and paying for marine cargo insurance?

Accepted Answer

The seller

Answer

Under CIF (Cost, Insurance and Freight), the seller must procure and pay for minimum cargo insurance coverage to the named destination port.

(CE) Certified Exporter Practice Test

(CE) Certified Exporter Practice Test

CE International Shipping & Logistics Management 2