Ocean Sea Freight Ocean and Sea Freight Forwarding 3 — Questions and Answers
Question 1: What is a 'Telex Release' (also called Surrender B/L) in ocean freight?
- A method of electronically releasing cargo without a paper original Bill of Lading (Correct answer)
- A tariff rate for telecommunications equipment
- A customs document for electronic goods
- A vessel tracking notification system
Correct answer: A method of electronically releasing cargo without a paper original Bill of Lading
A Telex Release allows cargo to be released at destination without presenting the original Bill of Lading, by surrendering it at origin and notifying the destination agent.
Question 2: What does 'CFS' stand for in the context of ocean freight LCL shipments?
- Cargo Flow System
- Container Freight Station (Correct answer)
- Customs Facilitation Service
- Certified Freight Specialist
Correct answer: Container Freight Station
A Container Freight Station (CFS) is a facility where LCL cargo is consolidated into containers or de-consolidated upon arrival.
Question 3: Which surcharge compensates ocean carriers for fluctuating fuel costs?
- BAF (Bunker Adjustment Factor) (Correct answer)
- CAF (Currency Adjustment Factor)
- PSS (Peak Season Surcharge)
- THC (Terminal Handling Charge)
Correct answer: BAF (Bunker Adjustment Factor)
The Bunker Adjustment Factor (BAF), also called Fuel Surcharge, is added to freight rates to offset volatile bunker fuel prices.
Question 4: An ocean shipment arrives with visible damage to the container. What should the consignee do first?
- Sign the delivery receipt without noting any exceptions
- Note the damage as an exception on the delivery receipt before signing (Correct answer)
- Immediately file a lawsuit against the carrier
- Refuse the entire shipment and send it back
Correct answer: Note the damage as an exception on the delivery receipt before signing
Noting exceptions on the delivery receipt before signing is essential to preserve the right to file a cargo claim against the carrier.
Question 5: What is the standard container size most commonly used in global ocean freight?
- 20-foot standard
- 40-foot standard (Correct answer)
- 45-foot high cube
- 53-foot domestic
Correct answer: 40-foot standard
The 40-foot standard dry container is the most widely used container size in international ocean freight globally.
Question 6: What does 'transhipment' mean in ocean freight routing?
- Direct shipment from origin to destination port
- Transfer of cargo from one vessel to another at an intermediate port (Correct answer)
- The process of loading cargo at origin
- Customs examination of cargo in transit
Correct answer: Transfer of cargo from one vessel to another at an intermediate port
Transhipment occurs when cargo is offloaded from one vessel and loaded onto another at an intermediate hub port before reaching its final destination.
Question 7: Under which Incoterm does the seller pay freight and insurance to the destination port, with risk transferring at the origin port of loading?
- FOB
- CFR
- CIF (Correct answer)
- DAP
Correct answer: CIF
Under CIF (Cost, Insurance, and Freight), the seller pays freight and cargo insurance to the destination port, but risk transfers to the buyer when goods pass the ship's rail at origin.
Ocean Sea Freight Ocean and Sea Freight Forwarding 3
What is a 'Telex Release' (also called Surrender B/L) in ocean freight?