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What is the primary function of a Bill of Lading?
What is the significance of the carrier signing the Bill of Lading?
What is the key difference between a Bill of Lading and a Sea Waybill?
Who can obtain the goods from the carrier at destination if the cargo is shipped on a Bill of Lading?
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What happens when a new owner obtains an endorsed original Bill of Lading?
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What is the restriction on the release of goods shipped on a Sea Waybill?
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What is the maximum number of days a retail store could be without inventory due to a stock out of clothing?
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What is the primary benefit of a carrier's reliability in terms of transit time?
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What is the primary disadvantage of a carrier's unreliable transit time?
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What is the primary advantage of a motor carrier in terms of accessibility?
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What is the primary purpose of evaluating a carrier's capability?
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What is the typical first step in evaluating a potential mode of transportation for a movement?
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What is a key reason why shippers might require refrigerated vehicles for transportation?
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What is a potential consequence of a damaged shipment for the buyer?
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Why might increasing inventory levels be a consequence of damaged shipments?
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What is a key concern of the SECURITY component of logistics?
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What is a potential cost associated with damaged shipments?
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What document confirms that the container was received in good order and condition?
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Which document provides details of cargo types and shipper/consignee details to Customs authorities?
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What document includes a description of the goods, container and seal number, and sender/receiver details?
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Which document is a formal demand for payment that includes cargo details and charges breakdown?
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What legal document establishes evidence and terms of a contract in maritime logistics?
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In which document is it necessary for the carrier to make a notation if the container is not received in good order and condition?
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What is the purpose of the Booking Confirmation document in maritime logistics?
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What is the role of the Dock Receipt in the maritime logistics process?
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Which document confirms that the container has been received at the port terminal during maritime logistics?
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In the maritime logistics process, when does the shipper advise details of cargo loaded in the container?
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What occurs in the maritime logistics process after the Vessel Departure?
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What documentation is prepared and submitted to Customs about containers planned for loading in maritime logistics?
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Liner ships only travel between two ports.
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Tramp Service is a type of liner service.
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A charter service is a type of liner service where a maritime company rents a ship to move cargos between a specific port of origin and destination.
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Liner service is a type of service where a ship operates on a fixed schedule, but with a flexible route.
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A tramp ship can only carry bulk cargo.
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A liner service is typically used for transporting bulk cargo such as petroleum or iron ore.
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The shipper advises the shipping line of cargo loaded in the container before the Empty Dispatch process.
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The Vessel Manifest is prepared after the Vessel Departure process.
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The Dock Receipt is a message sent by the carrier to the customer, advising that the booking has been accepted.
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The shipping line confirms that the container has been received at the port terminal during the Receipt process.
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The Invoice preparation process occurs after the Vessel Departure process.
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The Booking Confirmation document includes details of cargo loaded in the container.
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FCL/LCL Container Load involves goods from a single supplier and is consigned to one importer.
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The goods in an LCL/LCL Container Load are from one supplier and are consigned to one importer.
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A container with FCL/FCL Container Load will be delivered to a depot/warehouse for unpacking.
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Separate Bills of Lading are issued for each individual consignment in an FCL/FCL Container Load.
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In an LCL/FCL Container Load, the goods are from more than one supplier and are consigned to different importers.
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The container in an FCL/LCL Container Load will be delivered directly to the consignee once cleared by customs.
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A stock out of clothing at a retail store could mean a maximum of 30 days without inventory with sales and the related profits lost during this period.
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Meeting pickup and delivery schedules enables shippers and receivers to decrease service levels and maximize stock out costs.
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Accessibility refers to the ability of a carrier to move freight between a specific origin and a specific destination at any time.
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A motor carrier usually has the disadvantage in providing direct point-to-point service.
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Capability refers to the ability of a carrier to provide ineffective service for specific products and/or to meet the special service characteristics of the freight and market needs.
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Unreliable transit time requires the freight receiver to decrease inventory levels to guard against stock out conditions.
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Products that require controlled humidity levels may need the use of a refrigerated vehicle.
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Shippers might demand state-of-the-art communication systems to monitor shipment arrival times if the products are not time-sensitive.
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Damaged shipments can lead to increased inventory carrying costs due to the need to protect against stock outs.
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Loss and damage during transit can result in increased costs in the areas of shipment insurance.
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A buyer is likely to accept a damaged shipment due to the potential savings in the production process.
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Study Notes
Maritime Logistics Process
- The Bill of Lading (B/L) serves as a document of title, a contract of carriage, and a receipt for goods.
- Three original B/L documents are issued, and when signed, the carrier acknowledges receiving the cargo in good condition and quantity.
- The B/L also evidences a contract of carriage between the shipper and the carrier.
- It acts as the "key to the cargo," and the carrier will release the container to the party who submits an original B/L document.
Sea Waybill (SWB)
- The carrier may issue a Sea Waybill (SWB) instead of a B/L if the shipper requests it.
- The SWB works similarly to the B/L but is not a document of title.
- Goods shipped on a SWB can only be released to the consignee listed on the document.
Service Components of Logistics
RELIABILITY
- Refers to the consistency of the expected transit time of carriers.
- Meeting pickup and delivery schedules enables shippers and receivers to optimize service levels and minimize stock out costs.
ACCESSIBILTY
- Refers to the ability of a carrier to move freight between a specific origin and destination.
- If the carrier cannot provide direct service, it will affect inventory cost with longer transit times and higher total transportation costs.
CAPABILITY
- Refers to the ability of the carrier to provide effective service for specific products and/or to meet the special service characteristics of the freight and market needs.
- This is typically the first step in evaluating the potential for using a particular mode of transportation for a movement.
SECURITY
- Concerned with the safety of the freight while it is in-transit or what is commonly referred to as loss and damage.
- Shipments that are damaged or lost in transit can cause increased cost in the areas of inventory and/or stock outs.
Documents in Maritime Logistics
Dock Receipt
- A document, stamp, or message issued by the carrier or terminal operator to confirm that the container has arrived at the terminal or container yard.
- States the time of arrival to the terminal and confirms that the container was received in good order and condition.
Shipping Instructions
- Information provided by the customer to the carrier about the shipment, including a description of the goods, container, and seal number, as well as the final sender/receiver name and address.
Vessel Manifest
- An official document submitted by the carrier to Customs authorities before vessel departure, advising what will be or has been loaded onboard the vessel.
- Provides details of cargo types, shipper/consignee details, and is prepared by the agent in the port of loading.
Commercial Invoice
- A formal demand for payment, including payment terms, description of cargo, and breakdown of charges.
- Prepared by the carrier at origin, covering the relevant prepaid charges.
Types of Services
Liner Service
- A service provided by a ship that operates on a regular schedule, traveling from a group of ports to another group of ports.
- Liner ships travel on a regular voyage, following a pre-established schedule, and with determined ports of call.
Tramp Service
- An oceangoing vessel that does not operate along a definite route or on a fixed schedule, but rather calls at any port where cargo is available.
Charter Services
- A maritime company rents a ship to move cargos between a specific port of origin and destination.
- Typically used for bulk cargo, such as petroleum, iron ore, grain, or coal.
Container Services
- FCL/FCL Container Load: goods stuffed in one container from one supplier, consigned to one importer.
- FCL/LCL Container Load: goods stuffed in one container from one supplier, consigned to different importers.
- LCL/FCL Container Load: goods stuffed in one container from more than one supplier, consigned to one importer.
- LCL/LCL Container Load: goods stuffed in one container from more than one supplier, consigned to more than one importer.
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Description
Test your knowledge on the stages involved in the maritime logistics process, from booking confirmation to shipping instructions. Learn about the steps taken by the shipping line and shippers in container shipping.
