Freight Forwarding Process! Trivia Facts Quiz
One can tell that freight forwarding must involve a lot of procedures in order for shipments to be handled properly and to minimize the risks that come with this type of business. It looks like it might be complex, but if you have some kind of knowledge about it , you might be able to complete our quiz successfully. Take our small quiz and see if you can recognize some of the processes covered here.
- 1.
What is the main role of a freight forwarder?
- A.
To act as an expert in logistics network
- B.
To act as an export in handling merchandise
- C.
To act as an agent between before ports of entry
- D.
To act as a fee negotiator for people doing import/export
Correct Answer
A. To act as an expert in logistics networkExplanation
A freight forwarder's main role is to act as an expert in logistics network. This means that they have comprehensive knowledge and understanding of the transportation and logistics industry. They are responsible for coordinating and managing the movement of goods and ensuring that they are delivered efficiently and on time. They handle tasks such as arranging transportation, managing documentation, and providing guidance and advice to clients regarding the best shipping methods and routes. Their expertise in logistics network allows them to optimize the supply chain and ensure smooth and cost-effective transportation of goods.Rate this question:
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- 2.
What are the shipping modes used by a carrier?
- A.
Ships, airplanes, railroads, and trucks
- B.
Ships only
- C.
Plane only
- D.
Plane and trucks
Correct Answer
A. Ships, airplanes, railroads, and trucksExplanation
The shipping modes used by a carrier include ships, airplanes, railroads, and trucks. This means that the carrier utilizes a variety of transportation methods to deliver goods and products to their destination. Ships are commonly used for transporting goods across oceans and seas, airplanes are used for faster international shipping, railroads are used for land transportation over long distances, and trucks are used for local and regional deliveries. By using multiple shipping modes, the carrier can provide efficient and flexible shipping options to meet the needs of their customers.Rate this question:
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- 3.
What type of information is reviewed by the freight forwarder?
- A.
Bill of lading
- B.
Commercial invoicing
- C.
Shippers declaration
- D.
Commercial invoice, shippers export declaration, bill of lading.
Correct Answer
D. Commercial invoice, shippers export declaration, bill of lading.Explanation
A freight forwarder reviews the commercial invoice, shipper's export declaration, and bill of lading. These documents provide important information for the freight forwarder to handle the shipment effectively. The commercial invoice contains details about the goods being shipped, including their value and description. The shipper's export declaration provides information about the exporter, consignee, and details of the shipment. The bill of lading is a document issued by the carrier that serves as a receipt of goods and a contract of carriage. Reviewing these documents allows the freight forwarder to ensure compliance with customs regulations and accurately manage the logistics of the shipment.Rate this question:
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- 4.
Who pays for the ocean freight charges?
- A.
The receiver
- B.
The forwarder
- C.
The Importer
- D.
The exporter
Correct Answer
C. The ImporterExplanation
The importer pays for the ocean freight charges because they are responsible for bringing the goods into the country. The importer is the party who purchases the goods from the exporter and arranges for their transportation and delivery. As part of this process, the importer is also responsible for paying any associated freight charges, including the cost of shipping the goods by ocean.Rate this question:
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- 5.
Where are the ocean freight charges paid?
- A.
At the border of entry
- B.
At the processing plant
- C.
At the port of discharge
- D.
At the port of export
Correct Answer
C. At the port of dischargeExplanation
Ocean freight charges are paid at the port of discharge. This is because the port of discharge is the final destination where the goods are unloaded from the ship. It is at this point that the shipping company or the importer is responsible for paying the charges associated with the transportation of the goods by sea. The charges typically include the cost of shipping, handling, and any applicable customs fees.Rate this question:
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- 6.
What's the meaning of FOB?
- A.
Free of Board
- B.
Free of Bond
- C.
Free of Bill
- D.
Free of Boarding
Correct Answer
A. Free of BoardExplanation
FOB stands for "Free on Board" and is a term used in international trade to indicate that the seller is responsible for the goods until they are loaded onto the ship. Once the goods are on board, the responsibility and risk transfer to the buyer. This term is commonly used in shipping and logistics to determine who is responsible for the transportation costs, insurance, and any potential damages or losses during the shipping process.Rate this question:
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- 7.
What is the meaning of CFR?
- A.
Cost for Ring
- B.
Cost for Hire
- C.
Cost and Freight
- D.
Cost for Rent
Correct Answer
C. Cost and FreightExplanation
CFR stands for Cost and Freight. It is a trade term used in international shipping contracts to indicate that the seller is responsible for the cost of the goods and the freight charges to bring the goods to a named destination. This means that the seller covers the cost of transportation and insurance until the goods are delivered to the specified port of destination. The buyer is responsible for any additional costs, such as customs duties and taxes, once the goods arrive at the destination port.Rate this question:
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- 8.
What is the other term for international commercial term?
- A.
Coterm
- B.
Ecoterm
- C.
Icoterm
- D.
Incoterm
Correct Answer
D. IncotermExplanation
The correct answer is "Incoterm". Incoterm is the abbreviation for International Commercial Terms. It is a set of standardized rules that define the responsibilities of buyers and sellers in international trade transactions. Incoterms specify the delivery point, transportation costs, and risk transfer from the seller to the buyer. These terms are widely used in international contracts to avoid misunderstandings and disputes.Rate this question:
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- 9.
What is an ocean freight forwarder?
- A.
It's an individual in the US that dispatches shipments
- B.
It's a company in the UK that dispatches shipments
- C.
It's an individual/company in the US that dispatches shipments
- D.
It's an individual/company in the China that dispatches shipments
Correct Answer
C. It's an individual/company in the US that dispatches shipmentsExplanation
An ocean freight forwarder is an individual or company in the US that dispatches shipments. This means that they are responsible for arranging the transportation of goods by sea, including handling all the necessary documentation and logistics involved in the process. They act as intermediaries between the shipper and the carrier, ensuring that the goods are transported efficiently and safely.Rate this question:
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- 10.
How are freight forwarders called in Australia?
- A.
Agents
- B.
Clearance agents
- C.
Customs Clearance Agents
- D.
Customs Agents
Correct Answer
C. Customs Clearance AgentsExplanation
Freight forwarders in Australia are commonly referred to as customs clearance agents. These agents specialize in handling the customs clearance process for imported and exported goods. They ensure that all necessary documentation is completed accurately and that the goods comply with customs regulations. Their role is crucial in facilitating the smooth movement of goods across international borders, handling tasks such as customs declarations, duty calculations, and coordinating with customs authorities.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 20, 2023Quiz Edited by
ProProfs Editorial Team -
Aug 14, 2019Quiz Created by
Anouchka
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