Logistics & Shipping Procedures Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Logistics & Shipping Procedures flashcards as text
Under Incoterms 2020, which term places the maximum obligation on the seller, including import duties at destination?
Answer: DDP (Delivered Duty Paid)
DDP represents maximum seller obligation, requiring the seller to deliver goods cleared for import, with all duties paid, at the named destination.
What is 'demurrage' in international shipping?
Answer: A penalty charge for detaining a container beyond the agreed free time at a port or terminal
Demurrage is a charge imposed by the carrier when a container is not returned to the terminal within the allotted free time after arrival.
A 'surrender' of an original bill of lading at origin means:
Answer: The original B/L is cancelled at origin so the consignee can receive goods without presenting the original at destination
A surrendered B/L is marked cancelled at origin, allowing the named consignee to take delivery at destination without presenting an original document.
Which international convention governs the liability of air carriers for international carriage of goods?
Answer: The Montreal Convention
The Montreal Convention of 1999 is the primary international treaty governing air carrier liability for cargo damage, loss, or delay in international transport.
What is the function of a 'notify party' on a bill of lading?
Answer: A party designated to be informed when the shipment arrives, typically a customs broker or agent
The notify party on a B/L receives arrival notices from the carrier but has no automatic right to take delivery unless also named as consignee.
In the context of export packing, what does ISPM 15 regulate?
Answer: Wood packaging material used in international trade to prevent spread of invasive insects and diseases
ISPM 15 (International Standards for Phytosanitary Measures No. 15) requires wood packaging material in international trade to be treated and marked to prevent pest transmission.
What is the primary difference between a 'house' bill of lading and a 'master' bill of lading?
Answer: A house B/L is issued by the freight forwarder to the shipper; the master B/L is issued by the ocean carrier to the forwarder as the shipper
The freight forwarder issues a house B/L to the exporter while receiving a master B/L from the steamship line, consolidating multiple shippers' cargo under one master document.