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Question 1 INCO terms are a valuable tool because they define several things. (L

ID: 375695 • Letter: Q

Question

Question 1

INCO terms are a valuable tool because they define several things. (List the 2 best answers.)

Where the freight will be loaded and unloaded

Who owns the freight at each point in the journey

Who is responsible for the freight at each point in the journey

Which currency exchange rates are to be used in the transaction

What the payment terms are between the buyer and seller

Who pays the cost for each part of the journey

compared to Ocean transportation, Air transportation is best described by these terms:

Reliable delivery time

Low freight cost

Volume is most important factor

Pollution is very high

Containers are standardized

Question 2

A ship that can fit 16 CONTAINERS ACROSS IS CALLED ……………..

A ship that can fit 20 CONTAINERS ACROSS IS CALLED ……………..

A ship that can fit 13 CONTAINERS ACROSS IS CALLED ……………..

A ship that can fit 18CONTAINERS ACROSS IS CALLED ……………..

Question 3

1-0 Identify the two biggest steamship companies in terms of annual TEU’s carried:

NYK lines

APL

COSCO

Mediterranean Shg Co

Hanjin

CMA CGM

Maersk

MOL

2-0 In hopes of attracting bigger container ships coming through the wider canal, ports are doing which of the following activities:

Improve rail service

Install rails for cranes

Install bigger Cranes

Expand Oil Storage Tanks

Strengthen wharfs

Dredge berths

Complete LNG transfer facilities

Raise bridges

Expand container storage space

Lengthen piers

3-0 Under which INCO terms do the sellers (shippers) have the LEAST responsibilities?

CIF

DDP

DAF

EXW correct

CFR

FAS

DES

FOB

4-0 Under which INCO terms do the sellers (shippers) have the MOST responsibilities?

CIF

DDPcorrect

DAF

EXW

CFR

FAS

DES

FOB

5-0 When would you be more likely to use Ocean transportation instead of Air transportation?

Interest rates are getting higher and higher

Fuel costs are getting higher and higher

The product is getting heavier and heavier

The products is getting very expensive

6-0 Ocean freight rates are different in different directions for what reason? (choose the BEST answer)

Ocean currents make it harder to go one direction than the reverse

Bunker Fuel costs are different in different countries

Prevailing trade winds help travel in one direction and hinder it in the other

Currency exchange rates magnify slight differences in cost

Busy lanes are charged more, light lanes are charged less to get the empty containers back to where they are needed

Export taxes and duty rates differ by each country thus changing the freight rates

7-0 the Bull-Whip effect in the Steamship industry causes which of the following effects?

Alternating years of big profits and big losses by steamship companies

Service to be very poor when rates are at their highest

Service to be very good when rates are at their highest

Carriers to continue to reduce capacity even while customer demand is rising

Carriers to continue to add capacity while customer demand is falling

8-0 CIF is a popular INCO term used in international trade. What do the C, I, and F stand for?

Cartage, Interest, and Finance

Cost, Inspection, and Fees

Cartage, Investment, and Freight

Cartage, Interest, and Fees

Consignee Importation Fee

Consignment Insurance Fee

Cost, Insurance, and Freight

Explanation / Answer

Q1.

a)

The two best answers are

Who owns the freight at each point in the journey

Who is responsible for the freight at each point in the journey

b).

Reliable delivery time

Volume is most important factor.

Air transportation is a faster mode and is highly reliable in terms of on-time delivery as compared to ocean transportation. Also owing to high cost per volumetric weight, volume is a very important factor.

Q2.

A ship that can fit 16 CONTAINERS ACROSS IS CALLED … Feedermax…………..

A ship that can fit 20 CONTAINERS ACROSS IS CALLED … Ultra Large Container Vessel (ULCV)

A ship that can fit 13 CONTAINERS ACROSS IS CALLED … Panamax

A ship that can fit 18 CONTAINERS ACROSS IS CALLED … Very Large Container Vessel (VLCC)

Q3.

The two biggest steamship companies are

i. Maersk Line of Denmark

ii. MSC (Mediterranean Shipping Company) of Switzerland

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