CLA Transportation and Shipping 1

Question 1

Which shipping term indicates that the seller pays freight charges and assumes risk until goods reach the buyer's destination?

Accepted Answer

FOB Destination

Answer

FOB Destination means the seller retains ownership and pays freight until the goods arrive at the buyer's location.

Question 2

What is a Bill of Lading (BOL)?

Accepted Answer

A legal document between shipper and carrier detailing freight shipment

Answer

A Bill of Lading is a legally binding document issued by a carrier that serves as a receipt, contract of carriage, and document of title for freight.

Question 3

Which mode of transportation is typically the fastest for long-distance domestic shipments?

Accepted Answer

Air freight

Answer

Air freight is the fastest mode of transportation for long-distance domestic shipments, though it is also the most expensive.

Question 4

What does LTL stand for in freight shipping?

Accepted Answer

Less Than Truckload

Answer

LTL stands for Less Than Truckload, meaning the shipment does not fill an entire truck and shares space with other shippers' freight.

Question 5

What is a freight class, and who determines it in the US?

Accepted Answer

A standardized classification system set by the National Motor Freight Traffic Association (NMFTA)

Answer

Freight class is a standardized commodity classification system established by the NMFTA, based on density, stowability, handling, and liability.

(CLA) Certified Logistics Associate Practice Test