Ocean Sea Freight Ocean and Sea Freight MCQ 2 — Questions and Answers
Question 1: What does the term 'FCL' stand for in ocean freight shipping?
- Full Container Load (Correct answer)
- Freight Cargo Limit
- Foreign Customs License
- Federal Cargo Law
Correct answer: Full Container Load
FCL stands for Full Container Load, meaning the shipper books and fills an entire container exclusively for their cargo.
Question 2: Which document serves as the primary contract of carriage between the shipper and ocean carrier?
- Commercial Invoice
- Packing List
- Bill of Lading (Correct answer)
- Certificate of Origin
Correct answer: Bill of Lading
The Bill of Lading is the primary document of title and contract of carriage in ocean freight, serving as proof of receipt of goods by the carrier.
Question 3: What is 'demurrage' in ocean freight?
- A fee for early container return
- A charge for exceeding the free days allowed at the port (Correct answer)
- A discount for high-volume shippers
- A surcharge for hazardous materials
Correct answer: A charge for exceeding the free days allowed at the port
Demurrage is a fee charged by the carrier when a container is not picked up or returned within the agreed free days at the port.
Question 4: Which incoterm places maximum responsibility on the seller in ocean freight shipments?
- EXW
- FOB
- CIF
- DDP (Correct answer)
Correct answer: DDP
DDP (Delivered Duty Paid) places the greatest responsibility on the seller, who must deliver the goods to the buyer's location with all duties and taxes paid.
Question 5: A 20-foot standard dry container has an approximate maximum payload capacity of:
- 5 metric tons
- 10 metric tons
- 28 metric tons (Correct answer)
- 40 metric tons
Correct answer: 28 metric tons
A standard 20-foot dry container (TEU) typically has a maximum payload capacity of approximately 28 metric tons.
Question 6: What does 'LCL' mean in ocean shipping?
- Large Container Limit
- Less than Container Load (Correct answer)
- Licensed Customs Logistics
- Long Coastal Lane
Correct answer: Less than Container Load
LCL stands for Less than Container Load, where multiple shippers share space in one container and pay only for the volume or weight their cargo occupies.
Question 7: What is the primary purpose of a 'Notify Party' field on a Bill of Lading?
- To identify who pays the freight
- To specify the carrier's agent
- To indicate who should be informed when the shipment arrives (Correct answer)
- To list the freight forwarder's details
Correct answer: To indicate who should be informed when the shipment arrives
The Notify Party field designates the entity that the carrier must notify upon arrival of the cargo at the destination port.
Ocean Sea Freight Ocean and Sea Freight MCQ 2
What does the term 'FCL' stand for in ocean freight shipping?