Quiz: How Much Do You Know About Freight Forwarding?

CFR stands for Cost and Freight. It is a trade term used in international shipping contracts, indicating that the seller is responsible for the cost of goods and transportation to the named port of destination. The buyer is responsible for the insurance and any additional costs once the goods have been delivered to the port. This term is commonly used in maritime trade to define the point at which the seller's obligations end and the buyer's obligations begin.

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 vessel for shipment. Once the goods are on board, the responsibility transfers to the buyer. This term is commonly used in contracts and shipping documents to determine who bears the risk and cost of transportation.

The correct answer is "Incoterm." Incoterm is the abbreviation for International Commercial term, which refers to a set of standardized trade terms used in international transactions. These terms define the rights and obligations of the buyer and seller regarding the delivery of goods, transportation costs, and the transfer of risk. Incoterms are widely recognized and used by businesses around the world to ensure clarity and consistency in international trade agreements.

Freight forwarders initially arranged for carriage by contracting with various carriers. This means that they were responsible for coordinating and organizing the transportation of goods by entering into agreements with different carriers such as shipping lines, airlines, trucking companies, or rail operators. They would negotiate the terms and conditions of transportation, including the rates, routes, and schedules, to ensure that the goods were transported efficiently and effectively to their destination.

Thomas Meadow and Company, established in 1835 in London, England, earns the distinction of being recognized as the world's first freight forwarding company. This pioneering entity set the stage for the global movement of goods, establishing a legacy in the realm of logistics.

People normally pay for the ocean freight charges at the port of discharge. This is because the port of discharge is the final destination where the goods are unloaded from the ship and customs clearance is completed. At this point, the shipping company or the freight forwarder will present the invoice for the freight charges to the consignee or the importer, who is responsible for paying the charges before the goods can be released. Paying at the port of discharge ensures that all necessary fees and charges are settled before taking possession of the goods.

The first forwarding company made its debut in 1836. This marks a significant milestone in the evolution of logistics and transportation, laying the groundwork for the freight forwarding industry as we know it today.

England is known to have started with the freight forwarding business. This can be attributed to England's historical role as a major maritime power and its early development of trade routes and infrastructure. The country's ports and shipping industry played a crucial role in facilitating the movement of goods and establishing the foundations of modern freight forwarding practices. Additionally, England's colonial expansion further contributed to the growth of its freight forwarding industry, as it required efficient logistics and transportation systems to support trade with its colonies.

The importer normally pays for the ocean freight charges. When goods are being transported via ocean freight, it is the responsibility of the importer to cover the costs associated with shipping the goods from the exporter's location to the importer's location. This includes paying for the ocean freight charges, which are the fees incurred for transporting the goods by sea. The importer is responsible for arranging the shipment and paying for all related costs, including the ocean freight charges.

The transferring document fee is also called ocean freight charges. This refers to the cost associated with transporting goods by sea. It includes various expenses such as loading and unloading fees, customs documentation, and insurance. This term specifically relates to the transportation of goods through maritime routes and is different from flight charges or transferring charges, which may pertain to other modes of transportation.