CWLP Shipping and Receiving 3 — Questions and Answers
Question 1: A shipment is labeled 'FOB Destination.' Who bears the risk of loss during transit?
- The buyer bears risk from point of origin
- The seller bears risk until goods reach the destination (Correct answer)
- The carrier bears all risk of loss
- Risk is shared equally between buyer and seller
Correct 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.
Question 2: What information is typically NOT found on a shipping label?
- Destination address and ZIP code
- Tracking or barcode number
- Contents value for insurance purposes (Correct answer)
- Carrier service level (e.g., ground, express)
Correct 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.
Question 3: In LTL shipping, what does 'freight class' primarily determine?
- The priority of delivery scheduling
- The shipping rate based on density, stowability, and liability (Correct answer)
- The type of equipment required for transport
- The carrier's liability limit per pound
Correct 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.
Question 4: What is the standard practice when receiving a 'short shipment'?
- Accept the delivery and order replacement units
- Note the shortage on the delivery receipt and file a claim (Correct answer)
- Refuse the entire delivery until the full quantity arrives
- Immediately contact the buyer to inform them of the shortage
Correct 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.
Question 5: Which shipping document is required for international shipments to declare the value of goods for customs?
- Bill of lading
- Packing list
- Commercial invoice (Correct answer)
- Waybill
Correct answer: Commercial invoice
A commercial invoice is required for international shipments and declares the goods' description, quantity, and value for customs duties assessment.
Question 6: What is 'detention' in freight shipping?
- A carrier's right to inspect cargo contents
- Charges assessed when a trailer is held beyond the free time allowance (Correct answer)
- The delay caused by customs inspection
- A penalty for incorrect shipping documentation
Correct 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.
Question 7: Which label color is universally used to identify hazardous materials packages in the US?
- Blue with white text
- Orange with black text
- Diamond-shaped with specific color codes per hazard class (Correct answer)
- Red with white skull and crossbones
Correct 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).
CWLP Shipping and Receiving 3
A shipment is labeled 'FOB Destination.' Who bears the risk of loss during transit?