INTL LOG Exam 2

One of the services offered by ABF Logistics include international ocean transportation, despite not owning nor leasing vessels. When ABF provides this service, ABF Logistics is acting as a(an):

*** NVOCC Express carrier Tramp carrier Ocean broker Private carrier

According to the Macao Wastebasket case, what is the CIF price?

*** The price that includes the costs of bringing the product to the port in the country of destination including international insurance The price of bringing the product to the port in the country of export The sum of all costs of bringing the product to the buyer s warehouse The cost of the product at the seller s warehouse The sum of costs of bringing the product to the port in the country of export including international insurance

A company that assists shippers in dispatching shipments with liners, as well as helping shippers prepare proper documentation is called:

***An ocean freight forwarder A tramp An express carrier A customs broker None of the above

What is the maximum number of 40-ft containers a 10,000-TEU containership can carry?

***a. 5,000 b. 10,000 c. 15,000 d. 20,000 e. 40,000

Which of the following best describes a private carrier?

***a. A vessel owned by a shipper and used to carry its own products. b. A vessel designed for liquid bulk cargo. c. A vessel operating in a constant manner. d. A vessel loaded and unloaded efficiently. e. A vessel that sails from an origin port to a destination port rather than between groups of ports.

Which are NOT premium rates?

***a. General Commodity Rates b. Time Definite Rates c. Priority Reserved Rates d. Express Rates

The price strategy of charging different prices for the same product or service to different customers is called:

***a. Price discrimination b. Couponing c. Tax break d. Bulk rates e. Backhaul pricing

Petroleum, grain, coal, and iron ore are common examples of ____ cargoes.

***a. bulk b. break-bulk c. neo-bulk d. project e. containerized

The tons of cargo, storage, and fuel a vessel can carry refer to its ____ tonnage.

***a. deadweight b. metric c. gross d. net e. TEU

What is yield in airfreight?

***a. rate per freight ton-mile b. revenue per passenger-mile c. operating cost per ton-mile d. cost per available seat-mile

Regarding the responsibilities of freight forwarders and NVOCCs, what is true?

Freight forwarders are responsible for the physical integrity of the shipment. ***NVOCCs act as carriers and are liable for the shipment. NVOCCs own and manage vessels. Freight forwarders are a type of liner

The statements below present a number of messages described in the second video from the Macao wastebasket problem. Please select the appropriate alternative below: The more expensive basket to manufacture was the one that exhibited the lowest transportation costs. There were trade-offs between production and transportation costs. The selection of the basket type to be shipped should not consider consumer preferences. Locating value added activities closer to consumer markets can be a useful strategy to reduce your total landed costs.

Only statements I, II, and IV are correct.

In the Macao Wastebasket problem, what costs components are included in the CIF price?

Price of product at Machado s plant Price of product at Machado s plant + truck transportation to port of Hong Kong Price of product at Machado s plant + truck transportation to port of Hong Kong + international ocean transportation to Vancouver ***Price of product at Machado s plant + truck transportation to port of Hong Kong + international ocean transportation to Vancouver + insurance Price of product at Machado s plant + truck transportation to Hong Kong + international ocean transportation to Vancouver + insurance + transportation in Canada to final destination

According to the Wastebasket case, why is the ocean carrier charging two types rates: one by the actual weight (in tons) and another considering every 40 cubic feet to be a ton?

The liner charges different rates for different commodities. *** The liner wants to charge higher rates for excessively bulky cargoes. The liner has different rates between the port of Hong Kong and Vancouver. The Hong Kong regulation dictates that every 40ft3 of cargo is equivalent to 1 ton. The liner makes more money by charging rates based on weight only.

Which of the items below is NOT true for NVOCCs?

They issue its own shipping documents to the shipper, such as bills of lading They ship the goods with a liner ***They operate privately owned or leased vessels They are carriers They are legally responsible for potential physical loss and damage during the transportation service.

A common carrier that provides ocean transportation, but does not operate the vessels that transport the cargo is called:

a liner a tramp ***an NVOCC an express carrier none of the above

Which is NOT a benefit of transporting products by air?

a. A more direct manner to reach the destination compared to using ocean carriers. ***b. It is more expensive compared to using ocean carriers. c. A simplified supply chain network with fewer nodes and links. d. A faster and more agile supply chain. e. Lower inventory levels than when transporting with ocean.

What options in terms of airfreight service are available to a shipper?

a. Airport-to-airport service in a cargo hold of a passenger aircraft. b. Airfreight service by a courier. c. Airport-to-airport service in an all-cargo aircraft (freighter). d. Integrators door-to-door service. ***e. All of the above.

Air freight carriers that carry time sensitive packages and provide door to door services are called:

a. Freighters b. Combo carriers ***c. Integrators d. Liners e. Tramps

The practice in which liners operate containerships at significantly less than their maximum speed is called:

a. Liner consortiums ***b. Slowsteaming c. Triple E d. Nearshoring e. Speed reduction

Which of the following is not true for liner consortiums?

a. Liner consortiums are composed by carriers that serve similar markets. b. Members of consortiums share market information ***c. Consortiums support destructive competition d. Members of consortiums jointly conduct market research e. Consortium members discuss ways that members can manage costs and improve efficiency, amongst other activities

In terms of containerization of cargo, which of the following is NOT true?

a. Loading and unloading processes are much faster than for break-bulk cargo b. Containerization has facilitated intermodal transportation c. Ports need to have the infrastructure of cranes, trucks and container storage areas to handle the flow of containers in and out of ports d. Handling empty containers is a great challenge brought by the containerization of cargo ***e. A big advantage is that moving containers does not require ports to have cargo handling specialized equipment

While negotiating a charter agreement, which of the following is not a variable to be defined?

a. Location of vessel (i.e. port) at the beginning and end of the contract b. Vessel capacity c. Description of cargo to be carried d. Who will pay for brokerage fees ***e. All of the above are elements to be considered

Which of the alternatives below is NOT an effect of slowsteaming?

a. Lower fuel costs for liners ***b. Lower inventory levels for shippers c. Longer lead times d. Lower carbon emissions e. Increased service reliability

Which of the following is NOT a general attribute of ocean transportation when compared to air transportation?

a. Ocean transportation lead times are longer than air transportation. ***b. Ocean transportation costs are higher than air transportation. c. International supply chains that use ocean transportation exhibit higher inventory holding costs than air transportation. d. Supply chain networks that use ocean transportation present greater number of transfers than those that use air transportation. e. All of the above are attributes of ocean transportation when compared to air transportation.

The liner rates to move goods from China to the US are much higher than moving goods between the US and China. This pricing strategy is called:

a. Price discrimination b. Couponing c. Tax break d. Bulk rates ***e. Backhaul pricing

Ocean carriers who are common carriers that follow a fixed itinerary and sail, whether filled or not, on the date fixed by a published schedule are called:

a. Private carriers ***b. Liners c. Tramps d. Fighting ships e. Express carriers

What is the customary means through which shippers locate vessels for chartering?

a. The shipper will contact the Baltic Exchange for information on vessel availability. ***b. The shipper will find vessels with the assistance of a ship broker. c. The shipper will check the desired port website for charter schedules. d. The shipper will contact the International Chartering Association. e. The shipper will gather information from a liner

Which is true of pallets or containers for airfreight?

a. They are made of heavier materials than ocean containers for extra sturdiness. b. Containers are standardized to be box shaped. c. Containers are the same as used on ocean vessels. ***d. They are used to carry the vast majority of airfreight. e. All of the above are true.

Which is NOT true of air freight forwarders?

a. They may provide door-to-door service. ***b. They use their own flight equipment. c. They act as consolidators to shippers. d. They arrange for airfreight deliveries on commercial aircraft. e. They coordinate the shipment with air cargo carriers.

Which of the following is NOT an attribute for liner shipping?

a. They offer service at regular intervals between ports or groups of ports ***b. They charter vessels to single shippers c. The follow a pre-determined itinerary d. They are common carriers e. The serve multiple shippers simultaneously

What is the main differentiating characteristic of liners when compared to tramps?

a. They use vessels designed to move a particular commodity, e.g., grains or chemicals. b. They operate for one customer for several voyages. ***c. They sail on a regular schedule and serve many customers. d. Their vessels do not operate on a fixed schedule and is entirely chartered to one customer. e. Their vessels are loaded and unloaded efficiently.

What is the key motivation for liners to use megaships?

a. To enter liner consortiums ***b. The more containers a vessel can carry, the smaller the cost per container c. To offer faster and more reliable service d. To more strongly compete with tramp carriers e. All of the above

Which of the following is NOT an impact of megaships operations?

a. Transportation cost per container is reduced for the liner ***b. Draft at ports are shallower due to megaships c. Dredging costs for the ports increase. d. Cranes used for loading and unloading need to have longer arms to reach the containers of a wider vessel e. Port infrastructure need to be revamped to accommodate the vessels

Which is a top express carrier?

a. United Airlines. ***b. FedEx. c. Qatar Airways. d. Singapore Airlines. e. American Airlines.

In international water transportation, when a shipper (charterer) is responsible for providing and paying for bunker fuel, port charges, as well as crew and maintenance, this is known as a:

a. Voyage charter b. Non-demise charter party ***c. Bareboat charter party d. Vessel-only charter party e. None of the above

Which products make little sense to be shipped by air?

a. living human organs b. components for just-in-time assembly operation c. cut flowers ***d. wheat grain e. pharmaceutical products

Related cargo needed for a single, certain purpose (e.g., building a major pipeline) is known as ____ cargo.

a. neo-bulk b. commodity c. break-bulk ***d. project e. bulk

Match types of cargoes to their examples.

logs: neo-bulk cargo oil in free form: bulk cargo gasoline in a 20-ft liquid bulk container: containerized cargo big hydroelectric turbine: project cargo concentrated grape juice in barrels: break-bulk cargo

The responsibilities of an ocean freight forwarder DO NOT include:

to dispatch shipments via common carriers for the shipper to book or arrange space with liners on behalf of shippers to assist the preparation of shipping documentation for the shippers *** to pay for insurance claims in the case of physical damage to the cargo to help arrange for ocean transportation with a liner