Ocean and Sea Freight Basic Flashcards

A receipt listing the commodities that have been deposited at a warehouse. It is not negotiable if it limits delivery to a certain person or company, but it is if it is made out to the order of one of those parties or to a bearer.

Answer: Warehouse Receipt

This definition precisely describes a Warehouse Receipt. It is a document issued by a warehouse keeper acknowledging the receipt of goods, detailing the commodities, and specifying the terms of delivery. The negotiability depends on whether delivery is limited to a specific party or made out to the order of a party or to a bearer.

A word used in insurance that denotes coverage for partial loss or damage to goods. Many clauses stipulate a minimum amount of damage before payment before specifying that the damage must typically be caused by sea water. It can be increased to cover theft-related losses, or pilferage.

Answer: With Particular Average (WPA)

'With Particular Average (WPA)' is an insurance term specifically covering partial loss or damage to goods, often with conditions like a minimum damage threshold or specific causes like seawater. This type of coverage is less comprehensive than 'All-Risk' but more specific than 'Free of Particular Average,' focusing on particular, identifiable losses. It can be extended to include risks like theft or pilferage.

The name of a common clause found in maritime treaties that exempts the parties from fulfilling their duties due to uncontrollable events like earthquakes, floods, or war.

Answer: Force Majeure

'Force Majeure' is a standard clause in contracts, including maritime treaties, that excuses parties from liability or obligation when an unforeseeable and uncontrollable event prevents them from fulfilling their duties. These events typically include natural disasters like earthquakes and floods, or human-caused events like war, which are beyond the parties' control.

A route for transporting import and export commodities between ports and inland locations

Answer: Inland Carrier

An 'Inland Carrier' refers to a transportation company or service that moves goods over land, connecting ports to interior destinations or vice versa. This is crucial for the domestic leg of international shipping, facilitating the movement of import and export commodities beyond the immediate port area to their final destinations.

A catchall phrase for any table of costs or rates. The tariffs of international transportation firms that operate on land, sea, and in the air, as well as the tariffs of international cable-radio-television providers, are those that are encountered most commonly in international trade.

Answer: Tariff

A 'Tariff' is a comprehensive list or schedule of charges, rates, or duties, particularly those applied to goods or services. In international trade, it commonly refers to the taxes or duties imposed on imported or exported goods, but it also broadly encompasses the rates charged by transportation firms and communication service providers. It serves as a table of costs for various services.

The largest type of coverage offered, protecting against any risk of physical loss or damage resulting from outside sources. Does not protect against delay-related loss or damage, inherent vice, insufficient packaging, or market loss.

Answer: All-Risk lnsurance

'All-Risk Insurance' provides the broadest form of coverage in marine cargo insurance, protecting against virtually all external causes of physical loss or damage. However, it typically excludes certain specific risks such as inherent vice (defects within the goods), inadequate packaging, delays, and market fluctuations. It offers extensive protection against unforeseen external events.

An approach to shipping whereby a representative (such as a freight forwarder or consolidator) aggregates several shippers' consignments into a single shipment that is sent to a destination agent in order to receive favourable prices. (Also known as "groupage" The drawbacks

Answer: Consolidated Shipment

A 'Consolidated Shipment,' also known as groupage, involves combining multiple smaller shipments from different shippers into one larger shipment. This strategy allows freight forwarders to achieve better volume-based rates from carriers, benefiting individual shippers with lower costs per unit. It's an efficient way to reduce shipping expenses for smaller consignments.