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
Which SOLAS regulation requires shippers to provide a Verified Gross Mass (VGM) before a container can be loaded onto a vessel?
Answer: SOLAS Chapter VI, Regulation 2 (VGM requirement)
SOLAS Chapter VI, Regulation 2 mandates that shippers provide a VGM for packed containers before vessel loading to ensure vessel stability and safety.
What is 'port of lading' versus 'port of discharge' on a bill of lading?
Answer: Port of lading is the origin ocean port where goods are loaded onto the vessel; port of discharge is the destination port where they are unloaded
Port of lading (loading) is where cargo is placed on the ocean vessel, and port of discharge is the destination ocean terminal where cargo is unloaded from the vessel.
A freight forwarder acting as an NVOCC (Non-Vessel Operating Common Carrier) has the authority to:
Answer: Issue its own bills of lading and assume carrier liability for goods it does not physically transport on owned vessels
An NVOCC issues its own bills of lading and acts as a carrier to shippers while contracting with actual vessel operators for transportation, assuming carrier-like liability.
When goods are shipped under an 'open account' payment term, the exporter bears the greatest risk because:
Answer: The seller ships goods and invoices the buyer, with payment due later and no bank guarantee of payment
Under open account terms, the exporter extends credit by shipping goods before receiving payment, with no bank or third-party guarantee, exposing them to non-payment risk.
What does 'transshipment' mean in international ocean shipping?
Answer: The transfer of cargo from one vessel to another at an intermediate port before reaching final destination
Transshipment involves offloading cargo at an intermediate hub port and reloading it onto another vessel for the onward journey to the final destination port.
Under the Carmack Amendment, which mode of transport's carrier liability for cargo loss or damage within the U.S. is primarily governed?
Answer: Rail and motor carriers (trucking) in interstate commerce
The Carmack Amendment establishes federal liability standards for rail and motor carriers engaged in interstate transportation of goods within the United States.
What is the purpose of an 'Importer Security Filing' (ISF), also known as '10+2'?
Answer: To provide CBP with advance shipment data at least 24 hours before vessel loading to identify security risks
ISF requires importers to submit 10 data elements to CBP at least 24 hours before cargo is loaded at foreign ports, enabling advance risk assessment for maritime security.