Shipping by Ship

Question 1

What is the main advantage of shipping by sea?

Answer 1

Cost-effectiveness for transporting large and heavy goods over long distances.

Question 2

What are the two main types of sea freight?

Answer 2

Full Container Load (FCL) and Less than Container Load (LCL).

Question 3

What are common goods shipped by sea?

Answer 3

Bulk goods, raw materials, machinery, and vehicles.

Question 4

What is the main limitation of sea shipping?

Answer 4

Long transit times.

Question 5

What document is critical for sea freight?

Answer 5

The Bill of Lading (B/L).

Question 6

What is The Bill of Lading (B/L)?

Answer 6

The Bill of Lading is a legal document issued by a carrier to a shipper that serves as:
1. A contract of carriage: Outlining the terms and conditions between the shipper and carrier.
2. A receipt of goods: Confirming that the goods have been received for shipment.
3. A document of title: Allowing the holder to claim ownership of the goods upon delivery.

Question 7

What key details are included in a Bill of Lading?

Answer 7

1. Description of goods (quantity, weight, and type).
2. Origin and destination points.
3. Names of shipper, carrier, and consignee.
4. Terms of shipment.

Question 8

What are the types of Bills of Lading?

Answer 8

1. Straight B/L: Non-negotiable and goods are delivered to a specific consignee.
2. Order B/L: Negotiable and can be transferred to another party.
3. Bearer B/L: Goods are delivered to the person holding the document.

Question 9

Why is the Bill of Lading important in shipping?

Answer 9

It ensures proper documentation for international trade, customs clearance, and claims in case of disputes or losses.