Incoterms In Logistics: Trivia Quiz!

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WorkzTraining

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Quizzes Created: 1 | Total Attempts: 8,057

Questions: 8 | Attempts: 8,074 | Updated: Mar 22, 2023

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Questions and Answers

1.

What do LTL and FTL stand for?
2.

Why are LCL lead times longer than FCL lead times?
- A.
  
  Shipments may move on different vessels
- B.
  
  Shipments may take different routes
- C.
  
  Consolidation and deconsolidation procedures at origin and destination ports take longer
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
LCL lead times are longer than FCL lead times because shipments may move on different vessels, take different routes, and consolidation and deconsolidation procedures at origin and destination ports take longer.

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3.

Why is it better to ship goods as pallets instead of loose cartons?
- A.
  
  To increase the weight of the package
- B.
  
  Airlines / shipping lines do not accept loose cartons
- C.
  
  Pallets are easier to handle and are more secure
Correct Answer
C. Pallets are easier to handle and are more secure

Explanation
Shipping goods as pallets instead of loose cartons is better because pallets are easier to handle and provide more security. When goods are stacked on a pallet, they are less likely to shift or get damaged during transportation. Pallets also make it easier to load and unload goods, as they can be moved with forklifts or pallet jacks. Additionally, pallets can be stacked, allowing for more efficient use of space in shipping containers or trucks.

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4.

Shipping lead time from China to Zambia is 65 days by the sea and 15 days by air. If a customer does not want the lead time to exceed more than 35 days and also does not want to pay very high freight costs, what do we tell him?
- A.
  
  We are unable to handle freight for him
- B.
  
  Offer a combination of sea and air freight to manage within the required transit time
- C.
  
  Advise that he needs to accept only air freight option as sea freight will take 65 days
Correct Answer
B. Offer a combination of sea and air freight to manage within the required transit time

Explanation
We should suggest offering a combination of sea and air freight to manage within the required transit time. This option allows the customer to balance between a shorter lead time and avoiding high freight costs. By using both sea and air freight, the customer can expedite the delivery process while keeping the costs relatively low.

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5.

When do we invoice if Incoterms 2010 are CIP (destination address)
- A.
  
  Once goods are handed over to the first carrier or forwarder
- B.
  
  Once goods arrive destination airport / seaport
- C.
  
  Once goods leave the factory at origin
Correct Answer
A. Once goods are handed over to the first carrier or forwarder

Explanation
In the CIP (Carriage and Insurance Paid to) term of Incoterms 2010, the seller is responsible for delivering the goods to the first carrier or forwarder. Therefore, the invoice is typically issued once the goods are handed over to the first carrier or forwarder, as this marks the point at which the seller has fulfilled their responsibility for delivery. The buyer is then responsible for the goods from this point onwards.

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6.

At what point does risk transfer from the seller to the buyer if the terms of shipment are DAP (destination address)?
- A.
  
  Once goods are handed over to the first carrier or forwarder
- B.
  
  Once goods are delivered at the destination address
- C.
  
  Once goods leave the factory at origin
Correct Answer
B. Once goods are delivered at the destination address

Explanation
The correct answer is "Once goods are delivered at the destination address." In the terms of shipment DAP (destination address), the risk transfers from the seller to the buyer once the goods are delivered at the destination address. This means that the seller bears the risk and responsibility for the goods until they are delivered to the specified destination address. Once the goods are delivered, the buyer assumes the risk and responsibility for any damage or loss that may occur.

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7.

When the Incoterm is Exworks, the buyer’s nominated freight forwarder must arrange for the loading of the goods into the truck at the factory. In practice, the seller assists in this task.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
When the Incoterm is Exworks, it means that the seller's responsibility ends once the goods are made available at their premises. The buyer's nominated freight forwarder is then responsible for arranging the loading of the goods onto the truck at the seller's factory. However, in practice, the seller often assists in this task to ensure a smooth process. Therefore, the statement is true.

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8.

Why does Workz prefer to avoid selling DDP terms to our customers?

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
May 04, 2011

Quiz Created by
WorkzTraining

Incoterms In Logistics: Trivia Quiz!

What do LTL and FTL stand for?

Why are LCL lead times longer than FCL lead times?

Why is it better to ship goods as pallets instead of loose cartons?

Shipping lead time from China to Zambia is 65 days by the sea and 15 days by air. If a customer does not want the lead time to exceed more than 35 days and also does not want to pay very high freight costs, what do we tell him?

When do we invoice if Incoterms 2010 are CIP (destination address)

At what point does risk transfer from the seller to the buyer if the terms of shipment are DAP (destination address)?

When the Incoterm is Exworks, the buyer’s nominated freight forwarder must arrange for the loading of the goods into the truck at the factory. In practice, the seller assists in this task.

Why does Workz prefer to avoid selling DDP terms to our customers?