NEU Ocean Module 1 Flashcards
What is the FMC?
Federal Maritime Commission
What two licenses does NEU have from FMC?
Ocean Freight Forwarder and Non-Vessel Operating Common Carrier NVOCC
____% of world trade is between countries without a common border
23%
NVOCCs issue their own ______.
House bill of lading
NVOCCs _________the vessels by which ocean transportation is provided.
do not operate
NEU ocean freight forwarder license holder
Nippon Express USA, Inc. (NEU)
NEU ocean freight forwarder license number
001087F
NEU NVOCC license holder
Nippon Express USA (Illinois), Inc. (NEI)
NEU NVOCC license number
016327N
NEU NVOCC SCAC code
NPNE
NVOCC stands for
Non-Vessel-Operating Common Carrier
VOCC stands for
Vessel-Operating Common Carrier
Laws of ocean transportation include
US Shipping Act of 1984, Ocean Shipping Reform Act of 1998 (OSRA)
US Shipping Act of ____
1984
Ocean Shipping Reform Act of ____
1998
OSRA
Ocean Shipping Reform Act
Ocean common carriers include
NVOCC and VOCC
US Shipping Act of 1984 regulates ________
shipments to/from the United States
OSRA NVOCCs and ocean freight forwarders are categorized as _________.
Ocean Transport Intermediary OTI
OTI
Ocean Transport Intermediary OTI
OSRA requires that ______ be licensed by the FMC
NVOCCs and ocean freight forwarders
Ocean carrier will issue B/L when _______.
cargo is in the custody of the carrier for transportation
Ocean carrier will issue ______ when cargo is in the custody of the carrier for transportation.
3 original B/Ls
Original B/L is a ____ document.
negotiable
Original B/L is ___ with endorsement.
transferable
The carrier releases the cargo to the party who _____.
surrenders the original B/L
The carrier _____ an original B/L.
will not reissue
A Bill of Lading is issued by a _____.
carrier
A Bill of Lading details _____.
a shipment of merchandise
A Bill of Lading gives _____.
title to the goods
A Bill of Lading requires the carrier to _____.
deliver the merchandise to the appropriate party
According to the shipper’s request, the carrier can issue a _____ when the cargo is in the custody of the carrier for transportation.
Waybill
There is _____ waybill
no original
Waybill is a _____ document
non-negotiable
The carrier releases the cargo to _____
the party indicated as the consignee
The principle of the US Shipping Act is that the ultimate payer should ______.
pay the same freight amount as registered in the tariff
Movement by Ocean Bills of Lading. You must _____ ocean freight charged by the carrier.
not add any amount to the
Movement by Ocean Bills of Lading. Total billed amount must match the amount showing on _____.
the bills of lading
Movement by NEI House Bills of Lading. The agent at origin & destination must _____.
not add any amount to the ocean freight charged
Movement by NEI House Bills of Lading. Total billed amount must match the amount showing on _____.
Nippon Express USA (Illinois), Inc. (NEI) bills of lading
There are _____ primary types of cargo insurance
two
The primary types of cargo insurance are
Bill of Lading Liability Insurance and Marine Insurance
The Bill of lading (B/L) issued by carrier has a clause of _____.
limited liability
Bill of Lading Liability Insurance covers _____ liability.
limited
Marine Insurance covers _____.
110% of CIF value
CIF = _____ + …
Cost + Insurance + Freight
VOCC: The cargo is moved by _____ bill of lading.
carrier’s
VOCC: _____ has a responsibility to move the cargo from origin to destination as printed on the B/L.
Carrier
NEI NVOCC: The cargo is moved by _____ bill of lading.
NEI
NEI NVOCC: _____ has a responsibility to move the cargo from origin to destination as printed on the B/L.
NEI
Four types of ocean shipment include
FCL, LCL, Break Bulk, Roll On Roll Off (RORO)
Break bulk shipment is used for _____.
oversize cargo that cannot be safely loaded into an ocean container
Break bulk shipment _____ term depends on the contract with the ocean carrier.
berth (or pier)
RORO
Roll On Roll Off
In a Roll On Roll Off Shipment the cargo will be loaded on to a _____.
Car Carrier vessel
CY/CY
Container Yard to Container Yard
CFS/CFS
Container Freight Station to Container Freight Station
Port/Port
Port to Port excluding loading / unloading
Door to CY
Shipper’s Door to CY
20’ Dry Container equipment type
PC20D
40’ Dry Container equipment type
PC40D
40’ High Cube Dry Container equipment type
PC40H
45’ Dry Container equipment type
PC45
20’ Open Top Container equipment type
PC20T
40’ Open Top Container equipment type
PC40T
20’ Flat Rack Container equipment type
PC20F
40’ Flat Rack Container equipment type
PC40F
20’ Refrigerated Container equipment type
PC20R
40’ Refrigerated Container equipment type
PC40R
40’ High Cube Refrigerated Container equipment type
PC40RH
Types of container chassis
standard, tri-axle, slider
Tires are an example of a commodity shipped in a(n) _____ container
open top
Example of commodity shipped in flat rack container
construction machinery
Los Angeles to Hong Kong is an example of a(n) _____ movement.
port to port
Hong Kong to Chicago via Long Beach is an example of a(n) _____ movement.
interior point intermodal IPI
Tokyo to Boston via Long Beach is an example of a(n) _____ movement.
mini land bridge MLB
Kobe to Nashville via Savannah is an example of a(n) _____ movement.
reverse IPI R-IPI
IPI
interior point intermodal
MLB
mini land bridge
R-IPI
reverse IPI
DST
double stack train
S/C
service contract
MQC
minimum quantity commitment (MVC)
Demurrage is container storage charge _____.
in CY
Detention is container storage charge _____.
outside CY
W/M
weight or measure, e.g. 1,000 kg or 1m3 = 1 w/m
ETD
estimated time of departure
SLAC
shipper’s load and count
Trade terms designate the _____
responsibility / obligation of transportation
EXW
Ex-Work
FOB
Free on Board
CFR
Cost and Freight
Ex-Work seller’s obligation to deliver ends when _____.
he has made goods available at his premesis
Free on Board seller’s obligation to deliver ends when _____.
the goods have passed over the ship’s rail
Cost and Freight seller’s obligation is to _____.
pay the cost and freight to bring the goods to the named port of destination
