Ocean Sea Freight Ocean and Sea Freight Basic 5

Question 1

What is 'general average' in maritime shipping?

Accepted Answer

A principle where all parties in a voyage proportionally share losses resulting from a voluntary sacrifice made to save the ship

Answer

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.

Question 2

What is 'cabotage' in ocean shipping?

Accepted Answer

The transportation of goods between two ports within the same country, often restricted to domestic carriers

Answer

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.

Question 3

What information is typically found on a commercial invoice for an ocean shipment?

Accepted Answer

Description of goods, quantity, unit price, total value, buyer and seller details, and terms of sale

Answer

A commercial invoice is the primary trade document detailing goods description, value, parties involved, and trade terms, used by customs to assess duties.

Question 4

What does 'port congestion surcharge' (PCS) mean for shippers?

Accepted Answer

An additional fee charged by carriers when a port is heavily congested, causing vessel delays

Answer

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.

Question 5

What is the role of a 'customs broker' in ocean freight imports?

Accepted Answer

To prepare and file import documentation and clear cargo through customs on behalf of the importer

Answer

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.

Ocean Sea Freight Practice Test

Ocean Sea Freight Practice Test

Ocean Sea Freight Ocean and Sea Freight Basic 5