Ocean and Sea Freight Basic Flashcards
7 cards from real Ocean Sea Freight practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ocean and Sea Freight Basic flashcards as text
What is 'general average' in maritime shipping?
Answer: A principle where all parties in a voyage proportionally share losses resulting from a voluntary sacrifice made to save the ship
General average is a maritime law principle requiring all cargo owners on a voyage to share the cost of losses incurred when cargo is sacrificed to save the ship and remaining cargo.
What is 'cabotage' in ocean shipping?
Answer: The transportation of goods between two ports within the same country, often restricted to domestic carriers
Cabotage refers to the trade of goods between domestic ports; in the US, the Jones Act requires this to be performed by US-flagged, US-crewed vessels.
What information is typically found on a commercial invoice for an ocean shipment?
Answer: Description of goods, quantity, unit price, total value, buyer and seller details, and terms of sale
A commercial invoice is the primary trade document detailing goods description, value, parties involved, and trade terms, used by customs to assess duties.
What does 'port congestion surcharge' (PCS) mean for shippers?
Answer: An additional fee charged by carriers when a port is heavily congested, causing vessel delays
A port congestion surcharge is an additional fee carriers add to their rates when severe port congestion causes delays and extra costs for the vessel.
What is the role of a 'customs broker' in ocean freight imports?
Answer: To prepare and file import documentation and clear cargo through customs on behalf of the importer
A licensed customs broker is authorized to prepare and submit import entries, calculate duties, and facilitate the release of cargo from customs on behalf of the importer.
What is a 'Verified Gross Mass' (VGM) requirement?
Answer: The mandatory confirmed weight of a packed container that shippers must provide to the carrier before loading
Under SOLAS regulations, shippers must provide the verified gross mass of packed containers to the carrier and terminal before the container can be loaded onto a vessel.
Which ocean alliance or carrier type typically offers the most frequent sailing schedules on major trade lanes?
Answer: Global liner carriers operating fixed weekly services as part of alliances
Major liner carriers such as those in the three main alliances (2M, Ocean Alliance, THE Alliance) operate fixed weekly or near-weekly scheduled services on high-volume trade lanes.