Freight Forwarding Process! Trivia Facts Quiz

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.