Ocean and Sea Freight Basic Flashcards

What is a 'freight forwarder' and what is their primary role?

Answer: An intermediary that arranges the transportation of goods on behalf of shippers

A freight forwarder acts as an agent for shippers, coordinating ocean bookings, documentation, customs brokerage, and inland transport.

What does 'ETD' mean in ocean shipping?

Answer: Estimated Time of Departure

ETD stands for Estimated Time of Departure, indicating the expected date and time a vessel will leave the port of loading.

A shipper sends a container from Los Angeles to Shanghai. Which type of service does this represent?

Answer: Transpacific service

A route between the US West Coast and Asia crosses the Pacific Ocean, making it a transpacific service.

What is 'demurrage' in ocean freight?

Answer: A fee charged when a container is not returned to the carrier within the allotted free time at the destination

Demurrage is a penalty fee charged by the carrier when the importer exceeds the free time allowed for container use at the destination port.

Which document proves that a shipment has been cleared for export by customs?

Answer: Export declaration / Electronic Export Information (EEI)

An export declaration (filed as EEI via the Automated Export System in the US) is required by customs and confirms the shipment is authorized to leave the country.

What is a 'dry bulk carrier' used for?

Answer: Transporting unpackaged dry commodities like grain, coal, or ore in bulk holds

Dry bulk carriers are designed to transport loose, unpacked dry commodities such as iron ore, coal, grain, and cement in large open holds.

What does 'FOB port of loading' mean for the seller's responsibility?

Answer: The seller's responsibility ends once goods are loaded on board the vessel at the named port

Under FOB, risk transfers from seller to buyer at the moment goods are on board the vessel at the named port of loading.