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Freight Rate

Total questions: 16

Worksheet time: 9mins

Name
Class
Date
1.

Shipper choose sea freight over other shipping method due to these reasons except

a)

Fewer restriction

b)

Bigger capacity

c)

Speed

d)

Low emission

2.

Dead freight is charged for

a)

the value of the cargo

b)

bringing back the refused consignment

c)

breaching of contract

d)

delivery of goods

3.

Ad valorem freight is defined as freight

a)

before delivery of goods

b)

for bringing back the refused consignment

c)

due to unavoidable situations of delivery

d)

based on value of the cargo

4.

Factors affecting the fixation of conference liner rates include:

a)

Port condition

b)

Market condition of cargo

c)

Volume of cargo

d)

Special features of cargo

5.

Characteristic of Full Container Load (FCL) include the following except

a)

shipment used the entire container

b)

shipments share container space with other goods

c)

shipper pay a flat fee for the entire container

d)

for cargo loads large enough to fill 20' or 40' shipping container

6.

The benefits of shipping Full Load Container (FCL) are

a)

save on inventory cost

b)

Faster

c)

Less potential for damage

d)

save money on smaller shipments

7.

This type of delivery usually applied when warehouse is particularly busy or lacks the necessary equipment to do a fast unload

a)

Live delivery

b)

Drop delivery

8.

Characteristics of Less than Container Load (LCL) include the following except:

a)

Container is loaded and sealed at the factory and unloaded when it reaches the destination warehouse

b)

Sometimes called Groupage Shipments

c)

Calculated primarily by volume

d)

Shipment for cargo loads not large enough to fill a full 20ft or 40ft shipping container

9.

The drawbacks of shipping Less than Container Load (LCL) include:

a)

Damage potential

b)

Longer transit time

c)

higher inventory cost

d)

expensive for small shipment

10.

Charges at Container Freight Station (CFS) on LCL shipping can be very significant because of

a)

cost of picking up shipment

b)

cost of the sea journey

c)

require significant machine and manpower

11.

Sea freight costs and rates include;

a)

Terminal handling charge

b)

Custom security charge

c)

Insurance

d)

Routing charges

e)

Port charges

12.

Liner conference operate based fixed sailing schedules fixed freight rate

a)

True

b)

False

13.

1 of the basic rate structure in Liner Shipping is the straight mileage structure where rate is directly proportional to distance

a)

True

b)

False

14.

A pricing principles that treating all commodities the same way - group of shipments are put together to be transported as a single shipment and freight is charged using a unique rate

a)

Commodity Box Rates (CBR)

b)

Freight All Kinds (FAK)

15.

Costs and fees add up to the freight rate for container shipments include;

a)

Labelind and palletization

b)

Port congestion surcharge

c)

Demurrage and detention

d)

Custom Bonds

16.

If you are a shipper and wanted to ship a load with volume around 15 CBM, do you consider to ship using FCL or LCL?

a)

Less than Container Load (LCL)

b)

Full Container Load (FCL)