Transportation Risk Management (CH.7)

------------------------- is a contract between a ship-owner and the charterer (renter) in which the ship-owner agrees to give the charterer use of the whole or part of the ship for the carriage of goods on specified voyages.

• Transportation management system.

• A contract of affreightment.

• A) Intermodal transportation.

• B) International transportation.

In terms of COA, The charterer agrees to pay a specified price, called ---------------, for the carriage of the goods or the use of the ship.

• Demurrage

• Freight

• Laytime

• Charter hire

According to contract of Affreightment, the obligation of the owner to provide a seaworthy ship is absolute, this refer to:

• Nature of the obligation.

• The obligation not to ship dangerous goods.

• Obligation not to deviate from the agreed route.

• The obligation to nominate a safe port.

In a contract of affreightment, the charter may be given the right to nominate from a range of ports listed in the charter, this refers to:

• The obligation to nominate a safe port.

• Nature of the obligation.

• Obligation not to deviate from the agreed route.

• Obligation of reasonable dispatch.

According to contract of Affreightment, there is an implied obligation to complete the performance within a reasonable time, this refers to:

• The obligation to nominate a safe port.

• Nature of the obligation.

• Obligation not to deviate from the agreed route.

• Obligation of reasonable dispatch.

One of the following contracts used to divide transaction costs and responsibilities between buyer and seller.

• INCOTERMS

• Reinsurance

• Insurance

• Affreightment

----------------- set out to establish the responsibilities and obligations of both the buyer and the seller when they become involved in an international commercial transaction.

• INCOTERMS

• Reinsurance

• Insurance

• Affreightment

How do International Commercial Terms (Incoterms) assist in international trade?

• A) By providing financial support to traders.

• B) By helping to avoid language barriers and differing translations.

• C) By ensuring faster delivery of goods.

• D) By determining the value of goods for taxation.

According to COA, The person who hires a ship in this way occupies during the specified time the position of:

• ship-owner

• Captain of the ship

• Freight manager

• Crew member of the ship

According to Ex-Works (EXW) in INCOTERMS, ………………

• The seller is responsible for all charges

• The buyer is responsible for all charges

• The reinsurance is responsible for all charges

• The ship-owner is responsible for all charges