Ocean and Sea Freight Basic Flashcards

What does the term 'FCL' stand for in ocean freight?

Answer: Full Container Load

FCL stands for Full Container Load, meaning the shipper books an entire container exclusively for their cargo.

Which document serves as the contract of carriage between a shipper and an ocean carrier?

Answer: Bill of lading

The bill of lading is the legal contract of carriage and also serves as a receipt for goods and a document of title.

What is 'transshipment' in ocean freight?

Answer: Transfer of cargo from one vessel to another at an intermediate port

Transshipment occurs when cargo is offloaded at an intermediate hub port and reloaded onto another vessel to reach its final destination.

Which type of container is used for goods that require temperature control?

Answer: Reefer container

A reefer (refrigerated) container maintains a controlled temperature, making it suitable for perishables like food and pharmaceuticals.

What does 'port of discharge' refer to?

Answer: The port where cargo is unloaded from the vessel

The port of discharge is the port where cargo is unloaded from the ocean vessel, as opposed to the port of loading.

What is 'deadfreight' in ocean shipping?

Answer: Charges paid for unused space the shipper booked but did not use

Deadfreight is the charge a shipper pays to the carrier when they fail to ship the full quantity of cargo they originally booked.

Which incoterm requires the seller to pay for freight and insurance to the destination port?

Answer: CIF (Cost, Insurance and Freight)

Under CIF, the seller covers the cost of goods, ocean freight, and minimum insurance to the named destination port.