Ocean Sea Freight Ocean and Sea Freight Basic 4 — Questions and Answers
Question 1: What is a 'freight forwarder' and what is their primary role?
- The owner of the cargo vessel
- An intermediary that arranges the transportation of goods on behalf of shippers (Correct answer)
- A customs officer who clears shipments
- The operator of the container terminal
Correct 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.
Question 2: What does 'ETD' mean in ocean shipping?
- Estimated Time of Discharge
- Estimated Time of Departure (Correct answer)
- Export Trade Documentation
- Electronic Transfer of Data
Correct 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.
Question 3: A shipper sends a container from Los Angeles to Shanghai. Which type of service does this represent?
- Cabotage
- Transatlantic service
- Transpacific service (Correct answer)
- Short-sea shipping
Correct answer: Transpacific service
A route between the US West Coast and Asia crosses the Pacific Ocean, making it a transpacific service.
Question 4: What is 'demurrage' in ocean freight?
- A discount for large volume shipments
- A fee charged when a container is not returned to the carrier within the allotted free time at the destination (Correct answer)
- An insurance surcharge for hazardous cargo
- The cost to repair damaged containers
Correct 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.
Question 5: Which document proves that a shipment has been cleared for export by customs?
- Commercial invoice
- Export declaration / Electronic Export Information (EEI) (Correct answer)
- Packing list
- Freight invoice
Correct 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.
Question 6: What is a 'dry bulk carrier' used for?
- Transporting liquids in large tanks
- Transporting unpackaged dry commodities like grain, coal, or ore in bulk holds (Correct answer)
- Carrying refrigerated perishable cargo
- Moving heavy-lift project cargo
Correct 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.
Question 7: What does 'FOB port of loading' mean for the seller's responsibility?
- The seller is responsible until goods are delivered to the buyer's warehouse
- The seller's responsibility ends once goods are loaded on board the vessel at the named port (Correct answer)
- The seller pays all freight costs to the destination
- The seller is only responsible until goods leave the factory
Correct 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.
Ocean Sea Freight Ocean and Sea Freight Basic 4
What is a 'freight forwarder' and what is their primary role?