Apr-2025 Flashcards
Refresher (20 cards)
What does FOB stand for?
Free On Board – Seller is responsible for delivering goods to the port; buyer takes responsibility from there.
What is the difference between CIF and CIP?
CIF (Cost, Insurance, Freight) covers marine insurance for sea shipments, while CIP (Carriage and Insurance Paid) applies to all transport modes with broader insurance coverage.
What does EXW mean in shipping?
Ex Works – The buyer takes full responsibility from the seller’s premises.
What is demurrage?
A charge applied when cargo stays at the port beyond the allowed free time.
What is a bill of lading (B/L)?
A legal document issued by the carrier, confirming receipt of goods and terms of transport.
What is the difference between FCL and LCL?
FCL (Full Container Load) is when one shipment occupies the entire container, whereas LCL (Less than Container Load) is when multiple shipments share the same container.
What is HS Code?
A standardized international code used for classifying traded products for customs clearance.
What is a Letter of Credit (LC)?
A financial guarantee from a bank ensuring the seller receives payment once conditions are met.
What is cross-docking?
A logistics practice where goods are unloaded from an inbound shipment and loaded directly onto an outbound shipment without storage.
What is safety stock?
Extra inventory kept to prevent stockouts due to demand fluctuations or supply chain delays.
What is Just-In-Time (JIT) inventory?
A strategy where materials arrive exactly when needed, reducing storage costs but requiring precise demand planning.
What is the bullwhip effect in supply chain management?
A phenomenon where small demand changes cause larger fluctuations up the supply chain, leading to inefficiencies.
What is a freight forwarder?
A company that arranges transportation of goods on behalf of shippers, handling documentation, booking, and customs clearance.
What is detention in logistics?
A charge applied when a container is kept beyond the allowed free time outside the port.
What is last-mile delivery?
The final step of a shipment’s journey, delivering goods to the end customer.
What is a bonded warehouse?
A storage facility where imported goods can be stored without paying customs duties until they are cleared for sale.
What is lead time in supply chain?
The time taken from order placement to delivery.
What is reverse logistics?
The process of returning goods from customers back to suppliers or manufacturers.
What is an inland haulage charge (IHC)?
A fee for transporting cargo from the port to an inland destination or vice versa.
What is transshipment?
The process of transferring goods from one vessel to another during transit to reach the final destination.
