CES Logistics & Shipping Procedures 5

Question 1

Which SOLAS regulation requires shippers to provide a Verified Gross Mass (VGM) before a container can be loaded onto a vessel?

Accepted Answer

SOLAS Chapter VI, Regulation 2 (VGM requirement)

Answer

SOLAS Chapter VI, Regulation 2 mandates that shippers provide a VGM for packed containers before vessel loading to ensure vessel stability and safety.

Question 2

What is 'port of lading' versus 'port of discharge' on a bill of lading?

Accepted 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

Answer

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.

Question 3

A freight forwarder acting as an NVOCC (Non-Vessel Operating Common Carrier) has the authority to:

Accepted Answer

Issue its own bills of lading and assume carrier liability for goods it does not physically transport on owned vessels

Answer

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.

Question 4

When goods are shipped under an 'open account' payment term, the exporter bears the greatest risk because:

Accepted Answer

The seller ships goods and invoices the buyer, with payment due later and no bank guarantee of payment

Answer

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.

Question 5

What does 'transshipment' mean in international ocean shipping?

Accepted Answer

The transfer of cargo from one vessel to another at an intermediate port before reaching final destination

Answer

Transshipment involves offloading cargo at an intermediate hub port and reloading it onto another vessel for the onward journey to the final destination port.

(CES) Certified Export Specialist Practice Test

(CES) Certified Export Specialist Practice Test

CES Logistics & Shipping Procedures 5