Shipping and Receiving Flashcards

A shipment is labeled 'FOB Destination.' Who bears the risk of loss during transit?

Answer: The seller bears risk until goods reach the destination

Under FOB Destination terms, the seller retains title and risk of loss until the goods are delivered to the buyer's specified destination.

What information is typically NOT found on a shipping label?

Answer: Contents value for insurance purposes

Declared value for insurance is typically found on the shipping documentation rather than the external label, which focuses on routing and identification.

In LTL shipping, what does 'freight class' primarily determine?

Answer: The shipping rate based on density, stowability, and liability

NMFC freight class (1–500) is used by LTL carriers to standardize pricing based on a commodity's density, handling ease, stowability, and liability.

What is the standard practice when receiving a 'short shipment'?

Answer: Note the shortage on the delivery receipt and file a claim

A shortage should be clearly noted on the delivery receipt at the time of delivery to establish a record for filing a freight claim with the carrier.

Which shipping document is required for international shipments to declare the value of goods for customs?

Answer: Commercial invoice

A commercial invoice is required for international shipments and declares the goods' description, quantity, and value for customs duties assessment.

What is 'detention' in freight shipping?

Answer: Charges assessed when a trailer is held beyond the free time allowance

Detention charges are fees a carrier bills when loading or unloading takes longer than the free time allowed, compensating for the truck or driver being tied up.

Which label color is universally used to identify hazardous materials packages in the US?

Answer: Diamond-shaped with specific color codes per hazard class

DOT requires diamond-shaped placards and labels with specific colors for each of the nine hazard classes (e.g., red for flammable, yellow for oxidizer).