Port Operations and Customs Clearance Flashcards
6 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 6 Port Operations and Customs Clearance flashcards as text
What is C-TPAT (Customs-Trade Partnership Against Terrorism) and what benefits does it offer?
Answer: A voluntary CBP partnership program where vetted supply chain participants receive expedited processing and fewer examinations
C-TPAT is a voluntary CBP program where importers, carriers, brokers, and others who meet security standards receive benefits including reduced examination rates, priority processing, and front-of-line status.
What is 'Port Congestion Surcharge' (PCS) and when is it applied?
Answer: An extra charge imposed by carriers or terminals when severe port congestion causes delays and increases their operating costs
A Port Congestion Surcharge (PCS) is applied by carriers when significant congestion at a port increases their costs through vessel delays, extra fuel consumption, and repositioning — shippers absorb this added cost.
What is a 'Chassis' in US port operations for ocean freight?
Answer: A wheeled trailer frame used to transport ocean containers from the terminal to the final inland destination via truck
A chassis is the wheeled frame (trailer) on which a container is mounted to be hauled by a truck from the ocean terminal to the importer's door — chassis availability is a critical bottleneck at congested US ports.
What is 'Per Diem' in container tracking at US ports?
Answer: A daily rental charge for using the carrier's chassis beyond the included free days
Per Diem is the daily fee charged by the carrier or chassis pool when their equipment (typically chassis) is held beyond the free time period — similar in concept to demurrage but applied to chassis rather than containers.
What does 'Last Free Day' (LFD) mean in ocean freight terminal operations?
Answer: The last day a container can remain at the terminal without incurring demurrage charges
The Last Free Day is the final day within the terminal's free time window — if the container has not been picked up by end of business on the LFD, demurrage charges begin accumulating from the following day.
What is 'Diversion' in ocean freight and why might a shipper request it?
Answer: Changing the port of discharge or consignee after the B/L is issued, typically requiring carrier approval and additional fees
Diversion is a change to a B/L after issuance — such as changing the port of discharge, consignee, or delivery address — it requires carrier approval and often incurs amendment and additional freight charges.