Ocean Sea Freight Ocean Freight Documentation 1 — Questions and Answers
Question 1: Which document serves as the primary contract of carriage between the shipper and ocean carrier?
- Bill of Lading (Correct answer)
- Commercial Invoice
- Packing List
- Certificate of Origin
Correct answer: Bill of Lading
The Bill of Lading (B/L) is the primary contract of carriage and also serves as a receipt for goods and a document of title.
Question 2: What is a 'Telex Release' in ocean freight?
- Electronic surrender of the original Bill of Lading (Correct answer)
- A type of container booking confirmation
- A port authority clearance document
- An electronic cargo tracking system
Correct answer: Electronic surrender of the original Bill of Lading
A Telex Release (also called Express Release) is an electronic surrender of the original B/L, allowing the consignee to pick up cargo without presenting a physical document.
Question 3: What does 'negotiable Bill of Lading' mean?
- It can be transferred to a third party by endorsement (Correct answer)
- The freight rate is open to negotiation
- It allows partial shipments
- The delivery date is flexible
Correct answer: It can be transferred to a third party by endorsement
A negotiable (or 'to order') B/L can be endorsed and transferred to another party, making it a document of title used in trade finance.
Question 4: Which document details the contents, weight, and dimensions of each package in a shipment?
- Packing List (Correct answer)
- Bill of Lading
- Shipper's Letter of Instruction
- Manifest
Correct answer: Packing List
The Packing List provides a detailed breakdown of each package's contents, gross/net weight, and dimensions, and is used by customs and the consignee for verification.
Question 5: What is a 'Shipper's Letter of Instruction' (SLI)?
- A document directing the freight forwarder on how to handle and ship the cargo (Correct answer)
- A customs declaration form
- A request for a freight rate quote
- An insurance claim form
Correct answer: A document directing the freight forwarder on how to handle and ship the cargo
The SLI is a document from the shipper that gives the freight forwarder specific instructions on booking, documentation, and handling requirements for a shipment.
Question 6: What is the purpose of an AES (Automated Export System) filing in US ocean freight?
- To report export shipment data to US Customs and Border Protection (Correct answer)
- To book container space with the carrier
- To request a certificate of origin
- To arrange cargo insurance
Correct answer: To report export shipment data to US Customs and Border Protection
AES filing is a mandatory US government requirement that collects export trade statistics and is used by CBP to enforce export laws for shipments valued over $2,500.
Ocean Sea Freight Ocean Freight Documentation 1
Which document serves as the primary contract of carriage between the shipper and ocean carrier?