Examination Questions And Correct
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Rationales 2026 Q&A | Instant
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Question 1
Which Incoterm places the maximum obligation on the seller for delivery of goods
to the named place of destination?
A. FCA
B. CPT
C. DDP
D. CIF
Answer: C. DDP (Delivered Duty Paid) requires the seller to bear all risks and
costs associated with delivering the goods to the named place of destination,
including import customs clearance and payment of duties and taxes in the
country of import. This represents the maximum obligation for the seller under
any Incoterm.
Question 2
A bill of lading that contains a clause stating "said to contain" or "shipper's load
and count" is classified as what type of bill?
A. Clean bill of lading
B. Claused bill of lading
,C. Through bill of lading
D. Straight bill of lading
Answer: B. A claused bill of lading contains notations that qualify the carrier's
responsibility regarding the condition or quantity of the goods. "Said to contain"
and "shipper's load and count" are standard clauses that protect the carrier
when they have not verified the contents of containers loaded by the shipper.
Question 3
Under the Carmack Amendment, what is the statute of limitations for filing a
claim against a motor carrier for loss or damage to interstate shipments?
A. 6 months
B. 9 months
C. 1 year
D. 2 years
Answer: B. The Carmack Amendment establishes a 9-month statute of
limitations for filing claims against motor carriers for loss, damage, or delay to
interstate shipments. This period begins from the date of delivery or the date
when delivery should have occurred.
Question 4
What is the primary purpose of a freight forwarder's house bill of lading?
A. To serve as a contract of carriage between the shipper and the ocean carrier
B. To evidence the contract of carriage between the freight forwarder and the
shipper
C. To provide customs documentation for clearance
D. To replace the carrier's master bill of lading
Answer: B. The house bill of lading is issued by the freight forwarder to the
shipper and serves as the contract of carriage between these two parties. It
,establishes the terms and conditions under which the forwarder will arrange for
the transportation of the goods.
Question 5
Which type of container is specifically designed for the transportation of liquids
and has a frame with a tank inside?
A. Open-top container
B. Flat rack container
C. ISO tank container
D. Refrigerated container
Answer: C. ISO tank containers are specifically designed for the transport of
liquids, gases, and powders. They consist of a cylindrical tank mounted within a
rectangular frame that meets ISO specifications for intermodal transport.
Question 6
When calculating chargeable weight for air freight, which formula correctly
converts cubic inches to kilograms for volumetric weight?
A. Length x Width x Height ÷ 166
B. Length x Width x Height ÷ 305
C. Length x Width x Height x 166
D. Length x Width x Height x 305
Answer: A. The standard formula for calculating volumetric weight in air freight
is length x width x height (in inches) divided by 166 to obtain kilograms. This
factor is based on the IATA standard of 6,000 cubic centimeters per kilogram or
166 cubic inches per pound.
Question 7
, Which of the following is NOT a characteristic of a negotiable bill of lading?
A. It can be transferred by endorsement and delivery
B. It represents title to the goods
C. It is consigned to a named consignee only
D. It can be used as collateral for financing
Answer: C. A negotiable bill of lading is made out "to order" or "to order of" a
named party, not to a specific consignee only. The "to order" provision allows
the bill to be transferred by endorsement and delivery. A bill consigned to a
named consignee only is a non-negotiable or straight bill of lading.
Question 8
What is the maximum liability per package under the Carriage of Goods by Sea Act
(COGSA) for ocean carriers?
A. $500 per package
B. $500 per kilogram
C. $2.50 per pound
D. $1,000 per package
Answer: A. Under COGSA, the ocean carrier's liability is limited to $500 per
package or per customary freight unit, unless a higher value is declared on the
bill of lading and additional freight charges are paid.
Question 9
The term "demurrage" in ocean freight refers to:
A. Charges for storage of cargo at the port
B. Charges for detention of the vessel beyond the allotted free time
C. Charges for late payment of freight
D. Charges for repositioning empty containers