O-Trans Test 3

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?

1. 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. 2. COGSA extends the shipowner's obligations and potential liabilities to include land transportation on either end of the shipment. 3. 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. 5. 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. 6. COGSA applies to all ships in foreign trade of the United States

Which of the following characteristics apply to a Common Carrier?

1. A common carrier must accept the legitimate business of all shippers within the limits of the facilities and capabilities of its vessel. 2. Common carriers normally operate over a definite route in repetitious service between stated termini. 3. a common carrier uses a standard contract applicable to all clients

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?

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

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

1. Cranes aboard ship are idle while the ship is at sea. 2. Increased port charges to support shoreside cranes are less than the expense of putting cranes aboard every ship. 4. Cranes aboard ships were heavy and reduced the amount of cargo that could be carried 5. Dockside cranes could be made larger and faster

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

1. Stowing goods in containers reduced cargo loss and cut down on claims for lost and damaged goods. 2. Containers were handled like breakbulk cargo in terms of loading and stowing them aboard ship 4. Containers rarely left the marine terminal

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?

1. The shipowner is obligated to carefully handle and stow the cargo, and to care for and properly deliver it. 2. 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. 3. The shipowner is NOT responsible for damage caused to the cargo by errors in navigation or management of the vessel. 4. 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.

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

1. Who should be presented with claims for loss or damage during transit 2. Total cost of transportation between origin and destination 4. Rapidity with which the container is moved from origin to destination

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?

2. Establish space-chartering arrangements with each other's ships 5. Establish alliances with other shipping companies, combining their ships in a pool and sharing each other's cargo.

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

2. The B/L is a receipt for cargo, noting the apparent order and condition of the goods when received. 3. The B/L sets forth the terms of the transportion contract between carrier and shipper for movement of goods. 4. 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.

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

2. Tracking containers 3. Managing empty containers

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

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

3. A Straight B/L is non-negotiable, meaning it is NOT a document of title to the goods. 4. A Straight B/L is a receipt for the goods, and sets forth the terms of the contract of carriage.

What is a Neutral Pool?

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

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?

4. 42 dock workers required for containers versus 126 for breakbulk operations 5. 14 hours of ship time required with containers versus 84 hours for breakbulk operations

Choose 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

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.

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

What kind of ship was the Ideal X?

Converted T2 tanker

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.

Reverse landbridge

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

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.

Micro landbridge

Terminates at an inland location not served directly by water

Mini landbridge

Terminates on the opposite coast of the land mass involved

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

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.