Ocean Sea Freight Ocean and Sea Freight Basic 3 — Questions and Answers
Question 1: What is a 'surrender bill of lading'?
- A bill of lading that has been lost at sea
- An original bill of lading surrendered at origin so the consignee can receive cargo without presenting the original at destination (Correct answer)
- A government document requiring cargo inspection
- A bill of lading used exclusively for LCL shipments
Correct answer: An original bill of lading surrendered at origin so the consignee can receive cargo without presenting the original at destination
A surrendered bill of lading allows the carrier to release cargo to the consignee at destination without requiring the original document, speeding up delivery.
Question 2: What does 'LCL' stand for and what does it mean?
- Less Container Logistics — cargo moved overland
- Less than Container Load — cargo consolidated with other shippers' goods in one container (Correct answer)
- Large Cargo Liner — an oversized vessel class
- Loaded Container Limit — the maximum weight per container
Correct answer: Less than Container Load — cargo consolidated with other shippers' goods in one container
LCL (Less than Container Load) means a shipper's cargo is too small to fill an entire container, so it is consolidated with other shipments.
Question 3: Which party is responsible for preparing the cargo for export and inland transport under EXW (Ex Works)?
- The ocean carrier
- The freight forwarder
- The buyer/importer (Correct answer)
- The port authority
Correct answer: The buyer/importer
Under EXW, the seller's obligation ends at their premises; the buyer assumes all costs and risks from that point, including export clearance and ocean freight.
Question 4: What is a 'vessel schedule' used for in ocean freight planning?
- Tracking individual container temperatures
- Planning shipments based on published departure and arrival dates of ocean carriers (Correct answer)
- Calculating import duties
- Verifying cargo insurance coverage
Correct answer: Planning shipments based on published departure and arrival dates of ocean carriers
Vessel schedules list planned departure (ETD) and arrival (ETA) dates, helping shippers coordinate cargo readiness and delivery timelines.
Question 5: What is 'cargo insurance' in ocean freight and why is it important?
- A government-mandated tax on imported goods
- A policy that compensates the cargo owner if goods are lost or damaged during transit (Correct answer)
- A carrier fee for priority loading
- Documentation proving cargo ownership
Correct answer: A policy that compensates the cargo owner if goods are lost or damaged during transit
Cargo insurance protects the shipper or consignee financially against loss or damage during ocean transit, as carrier liability is typically limited.
Question 6: What does 'THC' stand for in ocean freight charges?
- Total Handling Costs
- Terminal Handling Charges (Correct answer)
- Transit Hub Consolidation
- Transshipment Hub Clearance
Correct answer: Terminal Handling Charges
Terminal Handling Charges (THC) are fees levied by the port/terminal for the handling of containers at the port, typically charged at both origin and destination.
Question 7: What is the standard length of the most commonly used ISO shipping container?
- 20 feet
- 40 feet (Correct answer)
- 45 feet
- 53 feet
Correct answer: 40 feet
The 40-foot container is the most widely used standard ISO container globally, though 20-foot containers (TEUs) are the unit of measurement.
Ocean Sea Freight Ocean and Sea Freight Basic 3
What is a 'surrender bill of lading'?