Deck 13: Physical Distribution and Documentation

Question 1

International logistics costs far exceed those for domestic shipment

Answer 1

True

Question 2

Transportation cost is directly related to speed of transportation

Answer 2

True

Question 3

It is traditionally believed that the appropriateness of air freight is a function of a value-to-weight equation

Answer 3

True

Question 4

As product density declines, the charge for sea freight rises rapidly

Question 5

A conference line company uses a dual rate system

Question 6

In contrast with independent lines and tramp vessels, conference lines do not have established arrival/departure schedules

Question 7

Singapore is the world's top port based on container traffic

Question 8

Long Beach (California) is the top US port based on container traffic

Question 9

Globally, most large shipping companies are moving away from the traditional cargo delivery system's use of only one mode of transportation toward a multi-modal cargo transport approach

Question 10

Inland carriers are less likely than ocean carriers to bear the responsibility for any damage to goods while in their possession

Question 11

Marine insurance can be obtained for both air and sea shipments

Question 12

A special policy is relatively more expensive than open coverage

Question 13

An exporter who exports frequently should use an open (blanket) insurance policy rather than a special policy

Question 14

Cargo insurance does not allow profit to be insured

Question 15

When in doubt, a company should over-pack its product because import duties are based on net weight

Question 16

Palletizing minimizes breakage by assembling packages on a base and securing the load to the base

Question 17

Because the cargo can easily be stolen or lost during shipment, a company should discourage theft by clearly writing the company's name and the content on the package for easy identification

Question 18

A container can minimize breakage and moisture problems but not weight and pilferage problems

Question 19

A freight forwarder can assist an exporter in virtually all aspects of physical distribution

Question 20

A freight forwarder generally works for exporters, whereas a customhouse broker works for importers

Question 21

A freight forwarder's major contribution to an exporter is his ability to provide traffic and documentation responsibilities for international freight movements

Question 22

The service of a freight forwarder is optional, and thus its service cost should not be figured into the contract price charged to buyers

Question 23

A customs broker assists an exporter in filling out export documents

Question 24

Compared to the delivery business, contract logistics has a lower margin

Question 25

A large number of million customs declarations a year in Russia is processed electronically

Question 26

The European Union has eliminated the Single Administrative Document

Question 27

To fill out export documents, a US exporter needs to use the Harmonized Tariff Schedule

Question 28

The United States requires a filing of detailed cargo information a full day before containers are loaded aboard US-bound vessels

Question 29

The US Customs requires shippers and freight forwarders to electronically submit a cargo manifest

Question 30

Less than percent of cargo containers are inspected at US ports

Question 31

An export license is required for exports being shipped from the United States to Canada

Question 32

US goods not related to strategic significance or short supply must still have a general export license

Question 33

The United States requires a validated export license for all exported products

Question 34

COCOM, an international organization responsible for the coordination of Western allies' export controls for security purposes, has been disbanded

Question 35

A dock receipt is a document issued by a carrier to evidence shipment transportation

Question 36

When a regular American invoice is certified by an importing country's consulate, it becomes a consular invoice

Question 37

An exporter who notes an error on a consular invoice can make corrections by oneself

Question 38

An inspection certificate is issued by an exporter's own quality control department to certify that the merchandise being shipped conforms to the order or specifications

Question 39

An air waybill is not a negotiable instrument

Question 40

A bill of lading can be straight or negotiable

Question 41

A clean on-board bill of lading is a bill which is properly filled out and notarized

Question 42

A clean on-board bill of lading certifies that the cargo is in a warehouse at the export dock