Introduction To Freight Forwarding! Trivia Quiz

The correct answer is "Cost and Freight". CFR is an international trade term used to define the responsibilities and costs associated with the delivery of goods from the seller to the buyer. It indicates that the seller is responsible for the costs of transportation and delivery of the goods to a named destination port, while the buyer is responsible for the costs and risks after the goods have been delivered onto the vessel.

Incoterm is the correct answer because it is the commonly used abbreviation for International Commercial Terms. These terms are a set of rules and guidelines that define the responsibilities and obligations of buyers and sellers in international trade transactions. They specify who is responsible for the costs, risks, and logistics of transporting goods from one country to another. Incoterms are widely recognized and used in international trade to ensure clarity and consistency in business transactions.

FOB stands for "Free On Board." It is a term used in international trade to indicate that the seller is responsible for the cost and risk of delivering goods to a specific destination. Once the goods are loaded onto the ship or other mode of transportation, the responsibility transfers to the buyer. Therefore, the correct answer is "Free and Board."

The importer pays for the ocean freight charges. When goods are shipped from one country to another, the importer is responsible for arranging and paying for the transportation of the goods. This includes the costs associated with ocean freight charges, which cover the transportation of the goods by sea. The importer is also responsible for any additional charges such as customs duties and taxes that may be incurred during the importation process.

The original function of forwarders was to arrange for carriage by contracting with various carriers. This means that forwarders were responsible for coordinating and organizing the transportation of goods by entering into agreements with different carriers. They would negotiate the terms and conditions of transportation, including the mode of transport, routes, and pricing, on behalf of their clients. This allowed businesses to efficiently ship their products by utilizing the expertise and network of the forwarders to find the most suitable carriers for their needs.

Ocean freight charges are paid at the port of discharge. This is because the port of discharge is where the goods are unloaded from the ship and cleared through customs. Once the goods have reached their destination port, the consignee or importer is responsible for paying the freight charges to the shipping line or freight forwarder. The payment is made before the goods are released to the consignee for further transportation or distribution.

Thomas Meedows and Company is known as the first freight forwarder because they were the first company to specialize in organizing and coordinating the transportation of goods on behalf of shippers. They played a crucial role in the development of modern logistics by providing services such as documentation, customs clearance, and arranging transportation for their clients. This pioneering approach revolutionized the shipping industry and laid the foundation for the freight forwarding industry as we know it today.

In Australia, a freight forwarder is referred to as a customs clearance agent. This term specifically highlights the role of the freight forwarder in assisting with customs clearance procedures for imported or exported goods. The customs clearance agent is responsible for ensuring that all necessary documentation and compliance requirements are met, facilitating the smooth movement of goods through customs.

Freight forwarding started in Nigeria in 1914. This indicates that the transportation and logistics industry in Nigeria has a long history, dating back over a century. The establishment of freight forwarding services in 1914 suggests that there was a need for organized and efficient transportation of goods in the country at that time. This answer implies that Nigeria has been involved in international trade and commerce for a significant period, highlighting the country's economic development and engagement with the global market.

In 1836, the first freight forwarding company was established. This indicates that prior to this year, there were no companies specifically dedicated to organizing and managing the transportation of goods. The establishment of the first freight forwarding company in 1836 marked the beginning of a new era in logistics and paved the way for the development of the modern freight forwarding industry.