O Trans Final

What is the 'Baltic Dry Index?'

A market indicator

What is a Ship Chandler?

A merchant who supplies ships with necessary items

After the technical and regulatory obstacles of moving highway containers on ships were overcome, one further development was necessary to produce a truly integrated transportation system. What was it?

A single bill of lading that applied to the entire movement of goods from origin to destination regardless of number or type of participating carriers

Contract of Affreightment

A specific quantity of cargo is transported at established rates in Owners' choice of vessels

Warranty of Seaworthiness

A vessel is fit to carry the cargo which she has undertaken to transport.

Bareboat Charter

A vessel is transferred in all but title to Charterer

What is a ship owner required to do if his ship is enrolled in the VISA program?

Allow the government to use the ship in the event of a national emergency

Disponent Owner

Another name for Charterer under bareboat or time charter, since he/she effectively controls the vessel

Demise charter

Another term for bareboat charter

Which of the following is a commonly used indicator of freight rates in world shipping?

Baltic Dry Index

Of all the quality standards mentioned in Chapter 10 of the text, which one is mandatory for all vessels under SOLAS?

ISM Code

Which if the following, a 1994 Amendment to the SOLAS Convention intended to ensure safety at sea, prevention of human injury or loss of life, and avoidance of damage to the environment, is now the primary safety standard for almost all commercial shipping?

ISM Code

Which IMO initiative, created after the terrorist attacks of September 2001, is the basis for maritime security legislation around the world, including the Maritime Transportation Security Act in the US?

ISPS Code

Which of the following is an objective of the Container Safety Incentive (CSI), a US program for screening containers against security threats?

Identify potential threats at the port of loading, outside of the US

Which of the following has the greatest influence of determining the nationality of a ship's crew?

Insurance underwriter

Consecutive Voyage Charter

Vessel is chartered for series of back-to-back trips between two locations

Trip Time Charter

Vessel is hired by the day for a single voyage

Gross Tonnage

Volume of enclosed spaces in ship

Net Tonnage

Volume of enclosed spaces less that used for machinery and accommodation

Light Displacement

Weight of empty ship

What is the legal test that defines a private carrier, as distinct from a common carrier?

With a private carrier, the entire cargo-carrying capability of the vessel is used by only one shipper

GMDSS

radio communication for distress and safety

ISM

safety management systems for ships

What are the 3 primary missions of the International Maritime Organization (IMO)?

safety, security, pollution

What are the "5 major dry bulk cargoes?"

Grain, coal, iron, aluminum, phosphate

The Baltic Exchange, located in London, is a marketplace where charter parties are negotiated. Originally it provided a physical trading floor for shipowners and cargo interests. Today the Baltic remains at the heart of the global maritime marketplace. While today most negotiation is carried on by electronic communication, the Baltic provides independent daily shipping market information, handle trading and settlement of physical and derivative freight contracts, maintains professional shipbroking standards and resolves disputes. What is the motto of the Baltic Exchange?

"our word is our bond"

Which of the following statements are correct regarding the IMO?

- The IMO is a specialized self governing agency of the United Nations -The IMO is an international forum where Member States discuss and establish minimum standards to which all members must adhere. -The IMO has no authority to enforce its regulations. It relies upon Member States to make and enforce domestic laws that harmonize with IMO regulations - The IMO headquarters is in London

Port State Control involves the inspection of foreign ships in national ports to verify the ship's compliance with international conventions and laws.

- The United States is not a member of any Port State Control MOU -The original PSC agreement was the Paris MOU (Memorandum of Understanding) 1978. There are now many others. -The enforcement agency for Port State Control in the United States is the U.S. Coast Guard.

It was obvious from the start that containerization offered great advantages in terms of ship turnaround and dock labor. Which of the following comparisons are correct in comparing container with breakbulk operations in runs between New York and Houston, according to the text?

-14 hours of ship time required with containers versus 84 hours for breakbulk operations -42 dock workers required for containers versus 126 for breakbulk operations

which statements are correct with regard to Clean versus Foul Bills of Lading.

-A Clean B/L notes that the goods were received in apparent good order and condition, without any further notation or amendment. -A Dirty or Foul B/L contains a description of apparent damage or defect regarding goods accepted for shipment.

A so-called "Straight Bill of Lading", also called a "Sea Waybill," is different from a "Negotiable Bill of Lading." Choose which of the following statements apply to a Straight B/L

-A Straight B/L is a receipt for the goods, and sets forth the terms of the contract of carriage. -A Straight B/L is non-negotiable, meaning it is NOT a document of title to the goods.

Which of the following characteristics apply to a Common Carrier?

-A common carrier must accept the legitimate business of all shippers within the limits of the facilities and capabilities of its vessel. -Common carriers normally operate over a definite route in repetitious service between stated termini. -A common carrier uses a standard contract applicable to all clients

The Carriage of Goods by Sea Act (COGSA,1936) brought U.S. law into harmony with the Hague Rules, an international convention that established uniform rules for all Bills of Lading. It remains in effect today. Which of the following statements are TRUE regarding COGSA?

-COGSA applies to all ships in foreign trade of the United States -COGSA establishes a limitation of carrier's liability to a maximum of $500 per package, unless a higher value has been claimed in the Bill of Lading and a higher freight rate paid. -COGSA exempts the carrier from liability for loss or damage due to 17 specific causes, including fire, perils of the sea, acts of God, and acts of war. -COGSA exempts the carrier from liability for loss or damage due to act, neglect or fault of the master, pilot, or servants of the carrier in navigation or management of the ship.

Using containers in the movement of goods dates back as far as 1911. These early attempts had certain characteristics in common. What were they?

-Containers rarely left the marine terminal. -Stowing goods in containers reduced cargo loss and cut down on claims for lost and damaged goods. -Containers were handled like breakbulk cargo in terms of loading and stowing them aboard ship

Initially, container gantry cranes were installed aboard ships. Today, container cranes are located ashore at marine terminals where possible. What factors caused this switch?

-Cranes aboard ship are idle while the ship is at sea -Increased port charges to support shoreside cranes are less than the expense of putting cranes aboard every ship. -Cranes aboard ships were heavy and reduced the amount of cargo that could be carried -Dockside cranes could be made larger and faster

Choose which of the following statements are TRUE with regard to providing ships crews, according to the textbook?

-Crewing a ship amounts to 40% of operating costs (minus bunkers and port charges) -Crews must be properly trained in accordance with the STCW Code

A single large, fast container ship can move the same quantity of cargo in a year as five or six older break-bulk vessels. In doing so, however, it sails less frequently. Shippers still demand frequent departure schedules, such as weekly sailings, previously provided by older ships. What strategies have shipping companies adopted to meet the shippers' demands while not losing economies of scale of operating larger ships?

-Establish space-chartering arrangements with each other's ships -Establish alliances with other shipping companies, combining their ships in a pool and sharing each other's cargo.

According to Chapter 11 of the textbook, a ship bunkering schedule must comply with three governing precepts. What are they?

-Fuel reserve requirements must be met -International load lines must be observed -The earning power of the ship should be maximized.

Which of the following statements are true regarding "cabotage?"

-In the United States, cabotage applies to both inland waterways and coastwise shipments. -"Cabotage" means that domestic water transportation within a country is reserved for national flag vessels. -In the United States, cabotage is supported by the Jones Act, part of the the Merchant Marine Act of 1920

Which of the following programs currently support the US flag commercial fleet in foreign trade?

-Maritime Security Act (MSA) and Voluntary Intermodal Sealift Agreement (VISA) -Cargo preference laws and regulations

The Federal Maritime Commission (FMC) regulates economic activity of maritime commerce in the United States, but there have been significant changes in those regulations since the FMC was established. Which of the following statements are true with regard to the U.S. regulatory environment today?

-Non-Vessel Operating Common Carriers and freight forwarders are recognized as "ocean transportation intermediaries." -The Ocean Shipping Reform Act (OSRA) amended the Shipping Act of 1984 to further deregulate shipping. -Ocean carriers can negotiate rates and service with domestic modes such as railroads, trucks and barges to facilitate intermodal transportation

According to Chapter 12 of the textbook, which of the following duties are likely to be required of a ship's agent representing the vessel's owner in a port?

-Notify governmental authorities such as Port Authority and Customs of ships arrival -Disburse funds to pay bills and advance cash to the ship's Master -Arrange stevedoring, bunkering and repairs to the vessel -Arrange pilot, tugs and mooring assistance -Notify the terminal and cargo consignee

A Bill of Lading (B/L) has several important functions in international commerce. What are they?

-The B/L can be a document of title to the goods, in which case it is called a "Negotiable" or "Order" Bill of Lading. -The B/L is a receipt for cargo, noting the apparent order and condition of the goods when received. -The B/L sets forth the terms of the transportion contract between carrier and shipper for movement of goods

The Harter Act (1893) established obligations and limitations of liability for American shipowners carrying goods under a Bill of Lading. Under the Harter Act, which of the following statements are true?

-The shipowner is NOT responsible for damage to cargo caused by perils of the sea, acts of God or public enemies, inherent defect of the cargo, or fault of the shipper. -The shipowner is obligated to carefully handle and stow the cargo, and to care for and properly deliver it. -The shipowner is obligated to exercise due diligence to properly equip, man, provision and outfit the ship and make it seaworthy and capable of performing the intended voyage. -The shipowner is NOT responsible for damage caused to the cargo by errors in navigation or management of the vessel.

As containerization developed, unforeseen problems appeared. Which of the following issues can produce major headaches for container operators?

-Tracking containers -Managing empty containers

Shippers are interested in only three details regarding movement of its goods. What are they?

-Who should be presented with claims for loss or damage during transit -Total cost of transportation between origin and destination -Rapidity with which the container is moved from origin to destination

Cargo Measurement ton (metric)

1 cubic meter

Container dimensions are now standard to make them interchangeable between shipping companies and other transportation modes. A standard TEU is 20' x 8' x 8' but other sizes exist. Which of the following container lengths are commonly found aboard ships today?

20 feet 40 feet

Short Ton

2000 lbs

Metric Ton

2204.6 lbs

Long Ton

2240 lbs

Cargo Measurement ton (English)

40 cubic feet

What is a Neutral Pool?

A central collecting point from which individual containers can be drawn to meet shippers' needs

What is the American Bureau of Shipping?

A classification Society

According the the textbook, what is a Load Center as it relates to intermodal shipments?

A hub port in a hub-and-spoke transportation system where cargo is assembled.

Answer the following questions by typing O for owner, C for charterer, or N for negotiable, in the spaces provided. Under a BAREBOAT CHARTER, which party 1. employs master and crew [x1] 2. directs master where to sail [x2] 3. maintains seaworthiness of vessel [x3] 4. pays for cargo loading/unloading [x4] 5. pays for fuel [x5] 6. pays for protection and indemnity insurance [x6] 7. pays for hull and machinery insurance [x7]

C,C,C,C,C,C,N

Which of the following is NOT an IMO document? a. MARPOL b. STCW c. OPA 90 d. COLREGS

C. OPA 90

Which one of the following aspects of bunker fuel directly determines how much fuel is burned to achieve a given vessel speed?

Calorific Value

Deadweight Cargo Capacity (DWCC)

Cargo Capacity of ship by weight

Malcom McLean is regarded as the inventor of containerized shipping, yet he built upon earlier ideas and experiments. What was McClean's revolutionary idea that truly initiated the container revolution?

Carriage by truck and ship could be purposefully combined to form an integrated transportation system.

Tun

Cask used for transporting wine

Cancelling date

Charterer can end the deal if the vessel is not ready

Voyage Charter

Charterer hires Shipowner to carry cargo between two or more specific ports for one or more trips.

Time Charter

Charterer obtains the use of a ship for a month, year, or other specified period.

Dead freight

Charterer pays for empty space in a vessel committed but not used

FIOT

Charterer pays for loading, trimming and unloading the cargo in/out of vessel

Which of the following cargo types has the largest share of world shipping business in terms of DOLLAR VALUE?

Containerized Cargo

What kind of ship was the Ideal X?

Converted T2 tanker

Which of the following cargoes is NOT considered a "major dry bulk?" a. Iron Ore b. Coal c. Grain D. Bagged Rice

D. Bagged Rice

Lay days

Dates between which Owner will make ship available to load and/or discharge cargo

Among its many roles, the U.S.Coast Guard has numerous missions involving vessels and maritime activity, both foreign and domestic. The USCG is part of which agency of the United States government?

Department of Homeland Security

What two types of fuel are commonly used by modern ships?

Distillates & Residuals or heavy fuels

Which of the following cargo types has the largest share of world shipping business in terms of TONS LOADED?

Dry bulk cargo

What is the one most important purpose of a single Bill of Lading governing all phases of an intermodal shipment?

Establishes which party has full responsibility for any loss or damage sustained during the entire transit.

In the United States, which two agencies were established by the The Merchant Marine Act of 1936 for economic regulation and promotion of the U.S. merchant fleet?

Federal Maritime Commission (FMC) Maritime Administration (MARAD)

For vessels involved in international shipping, which body is ultimately responsible for verifying the competency of the crew, condition of the ship, and compliance with labor standards in keeping with international standards and regulations?

Flag state

Lump Sum

Form of payment consisting of total freight amount due for the voyage

Lump Sum

Form of payment under a Voyage Charter consisting of total dollars, rather than dollars per ton.

What 4 markets are involved in the shipping business from the point of view of a ship owner?

Freight market sale and purchase market newbuilding market demolition market

Worldscale

Freight rate system used in tanker trades

What is the term used for a ship fully loaded in terms of both volume and weight?

Full and Down

Reverse Landbridge

Goes through a water port on opposite side of the land mass en route to inland destination

As a result of the Exxon Valdez oil spill off Alaska in 1989 and several other subsequent incidents (Erika, Prestige), single hulled tankers have been phased out globally. What pieces of legislation caused this to occur?

MARPOL Annex I & OPA 90

Under the Maritime Society Program (MSP), what is the major incentive for a ship owner to register a ship in the US?

MSP ships receive an annual operating subsidy of about $3 million

Landbridge

Major land mass connects two water routes

The Ocean Bill of Lading has developed over many centuries. By 1600, it had come into common usage. What was he primary function of a Bill of Lading at that time?

Master's receipt for number and quality of goods taken aboard ship

Tonne

Metric Ton

NOR

Notice given by vessel to signify beginning of laytime

Stowage Factor

Number of cubic feet to one long ton (English system)

Answer the following questions by typing O for owner, C for charterer, or N for negotiable, in the spaces provided. Under a TIME CHARTER, which party 1. employs master and crew [x1] 2. directs master where to sail [x2] 3. maintains seaworthiness of vessel [x3] 4. pays for cargo loading/unloading [x4] 5. pays for fuel [x5] 6. pays for protection and indemnity insurance [x6] 7. pays for hull and machinery insurance [x7]

O,C,O,C,C,O,O

For each of the following major expenses involved in running a ship, identify which category to which it belongs. Type O for Operating cost Type V for Voyage cost Type C for Capital cost 1. Crew [x1] 2. Depreciation [x2] 3. Fuel [x3] 4. Maintenance and repair [x4] 5. Insurance [x5] 6. Principle and interest [x6]

O,C,V,O,O,C

Answer the following questions by typing O for owner, C for charterer, or N for negotiable, in the spaces provided. Under a VOYAGE CHARTER, which party 1. employs master and crew [x1] 2. directs master where to sail [x2] 3. maintains seaworthiness of vessel [x3] 4. pays for cargo loading/unloading [x4] 5. pays for fuel [x5] 6. pays for protection and indemnity insurance [x6] 7. pays for hull and machinery insurance [x7]

O,O,O,N,O,O,O

Charter Hire

Payment from Charterer to Shipowner under a Time Charter or Bareboat Charter

Freight Rate

Payment from Charterer to Shipowner under a Voyage Charter

Demurrage

Penalty paid by Charterer to Owner if cargo loading/unloading exceeds time allowed

ISPS

Port and ship security

What is Ship Husbandry?

Procurement of vessel stores, supplies and services

Which of the following are considered hotel services aboard a ship?

Procuring meat and fresh vegetables

How does a bunkering plan directly affect the earning power of the ship?

Quantity of fuel aboard determines how much cargo can be carried

Dispatch (or despatch)

Rebate paid by Owner to Charterer for fast loading/discharge, not using all time allowed

Which of the following IMO conventions traces its history back to the sinking of the titanic?

Safety of Life at Sea

SOLAS

Safety of life at sea

Liner terms

Shipowner pays for loading and unloading cargo in/out of vessel

Match the international codes or regulations with the accidents or incidents that preceded or influenced them.

Solas - Titanic MARPOL - Torrey Canyon OPA 90 - Exxon Valdez ISPS - 9/11 Terrorist attacks Paris MOU - Amoco Cadiz

Vessel owners hire third-party management companies for different functions. According to Chapter 10 of the text, which TWO basic types of service are considered the mainstay of the ship management business?

Technical Management & Vessel Crewing

Micro landbridge

Terminates at an inland location not served directly by water

Mini landbridge

Terminates on the opposite coast of the land mass involved

fob

Terms of trade by which cargo is placed on board ship at exporters cost, and insurance and freight are paid by importer

cif

Terms of trade in which cost of goods, insurance and freight are paid by exporter

In the United States, which federal agency enforces international rules on foreign ships under the concept of Port Control?

The US Coast Guard

Why would an ocean carrier be willing to issue a single bill of lading across combined modes of transportation, including rail and truck, that it does not completely control?

The ocean carrier has contracts in place with the inland carriers involved, and responsibilities of each are clearly defined.

Under maritime law, the Implicit Warranty of Seaworthiness requires the shipowner to exercise due diligence to ensure the vessel is in all respects seaworthy for the service intended. Under each of the three major types of charter, when must the owner provide a seaworthy vessel? Time Charter Voyage Charter Bareboat Charter

Time Charter- At the commencement of each voyage during the contract Voyage Charter - When the first ton of cargo is taken aboard and when the anchor breaks ground or the last line is let go Bareboat Charter - At the time the vessel is presented; maintaining seaworthiness then becomes the charterer's responsibility

Lay time

Time allowed for Charterer to load and/or discharge cargo without incurring extra charges

Deadweight (DWT)

Total carrying capacity of ship by weight

Which of the following best describes "deadweight?"

Total carrying capacity of the ship

Displacement Tonnage

Total weight of ship and all it contains, including cargo, crew, fuel, and supplies.

Which of the following types of ships is NOT a tanker? a. RORO b. Suezmax c. LR2 d. Aframax

a. RORO

Which of the following ship types would most likely be found in crude oil service? a. VLCC b. Dry Bulk Carrier c. RORO d. LNG Carrier

a. VLCC

A RORO vessel would most likely be found in which of the following trades? a. Automobiles b. Petroleum products c. crude oil d. iron ore

a. automobiles

The Asia-Europe route is a major trade lane for container ships. Which of the following geographic locations is NOT on the Asia-Europe container route? a. cape of good hope b. suez canal c. straits of malacca d. strait of gibraltar

a. cape of good hope

Which of the following dry bulk ships is the largest? a. Panamax b. Capesize c. Handymax d. Drymax

b. Capesize

Which of the following is a measurement ton? a. 2240 lbs b. one long ton c. 40 cubic feet d. twenty foot equivalent unit

c. 40 cubic feet

Which of the following is NOT a Jones Act Trade? a. Seattle-Guam b. Houston- Puerto Rico c. Norfolk - Rotterdam d. Alaska - Long Beach

c. Norfolk - Rotterdam

Which of the following best describes the orientation of three major container trade routes? a. North-South b. Through the Panama Canal c. East-West d. Around the world

c.East-West

An ocean carrier is either a private carrier or a common carrrier, depending on the type of transportation provided. Fill in the correct answer in the blanks: A carrier who offers transportation for any and all goods offered between specified ports is a [x1] carrier. A ship loaded with the goods of a single shipper is a [x2] carrier. A ship loaded with the goods of two or more shippers is a [x3] carrier. A vessel transporting goods under the terms and conditions of a Charter Party is a [x4] carrier

common private common private

Piracy has been a big problem in recent years off the coast of Africa. Which of the following places is NOT in the region? a. Somalia b. Gulf of Aden c. Bab-el-mandab Strait d. Straits of Malacca

d. straits of Malacca

Complete this sentence from Business of Shipping Chapter 16 regarding the traditional method of stowing breakbulk cargo before containerization. Be as exact as possible. "The whole operation was infinitely laborious and consumed much time for which the ship was not paid, [x1]."

for a ship earns money only when at sea moving cargo from one point to another

Economies of Scale

larger ships can carry cargo at a lower cost per unit of freight than smaller ships

Paris MOU

port state control

COLREGS

prevention of collisions at sea

MARPOL

prevention of pollution from ships

UNCLOS

territorial limits, use of the world's ocean

STCW

training and certification of seafarers

In describing a ship, Gross Tonnage and Net Tonnage (GT and NT) are based upon which of the following?

volume of enclosed spaces.