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International Supply chain > Quiz 3 > Flashcards

Quiz 3 Flashcards

1
Q

Why Maritime Trade

A

Review of Maritime Transport 2021 (UNCTAD) https://unctad.org/system/files/official-document/rmt2021_en_0.pdf
Seaborne trade reaches 10.6 billion tons in 2020
World fleet grew to reach 2.13 billion dead-weight tons (DWT) by 2019

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2
Q

Ocean cargo moves under what two types of services?

A

Linear service
Tramp Service

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3
Q

Linear Service

A

service provided by a ship that operates on a regular schedule, traveling from a group of ports to another group of ports

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4
Q

Tramp Service

A

service provided by a ship that does not operate on a regular schedule and is available to be chartered for any voyage, from any port to any port.

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5
Q

Liners

A

Fixed schedule
Conferences
Bill of Lading (evidencing contract of carriage)
Master of the vessel issues B/L
Break-bulk cargo (containerized ships)
Carrier / shipper
Mandatory liability based on conventions
Freight forwarders / Customs house agents

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6
Q

Charters/ Tramp

A

Supply and demand
No fixed schedule
Bulk cargo (tanker and dry cargo)
Ship-owner / charterer
Contract for transportation (chartering) / contract of affreightment
Charterer issues B/L
Baltic Exchange

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7
Q

Deadweight Tonnage

A

The total carrying capacity of ship, measured in long tons or metric tonnes, and is determined as the difference in water displacement when the ship is empty and when it is fully loaded.

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8
Q

Cargo deadweight tonnage

A

Obtained by subtracting the weight of the bunker, crew-related items and stores for a specific voyage; the measure of greatest interest to shippers, as it is the theoretical carrying capacity of a ship.

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9
Q

3 Vessel Measurements (volume)

A

Gross Tonnage
Gross Registered Tonnage
Net Tonnage

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10
Q

Gross Tonnage

A

total volume of a ship’s carrying capacity, measured as the space available below deck, and expressed in tons, which are in this case hundreds of cubic feet.

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11
Q

Gross Registered Tonnage

A

Gross Tonnage calculated a specific way, generally for the purpose of determining the fee that a ship will pay to use a canal (Panama GRT, or Suez GRT).

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12
Q

Net Tonnage

A

Obtained by subtracting the volume occupied by the engine room and the space necessary for the operation of the ship (crew quarters, bridge, …etc.) from the gross tonnage.

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13
Q

3 sizes of Vessels (categories)

A

Panamax
Post Panamax
Handy Size
etc

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14
Q

Panamax

A

A ship of the maximum size that can enter the locks of the Panama Canal. The locks are 110 feet wide, 1000 feet long.

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15
Q

Post Panamax

A

A ship that is too large to enter the locks of the Panama Canal

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16
Q

Handy Size

A

A ship in the 10,000 to 50,000 dead-weight ton range.

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17
Q

Suez Canal

A

A ship roughly 150,000 dead-weight tons, the maximum size that can fit through the Suez Canal.

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18
Q

Cape size

A

large dry-bulk carriers of a capacity greater than 80,000 dead-weight tons. relates to the ships that originally could not fit through the Suez canal

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19
Q

Aframax

A

A large oil carrier of a capacity between 80 and 120,000 dead-weight tons. Named after the Average Freight Rate Assessment system.

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20
Q

Very large crude carrier (VLCC)

A

An oil tanker of up to 300,000 dead-weight tonnage.

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21
Q

Ultra large crude carrier (ULCC)

A

An oil tanker of more than 300,000 dead-weight tonnage.

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22
Q

Very Large Ore Carrier (VLOC)

A

A very large ore carrier, of more than 200,000 dead-weight tonnage.

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23
Q

Ultra Large Ore Carrier(ULOC)

A

A very large ore carrier, of more than 300,000 dead-weight tonnage.

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24
Q

Types of Ocean Cargo

A

Wet Bulk
Dry Bulk
Break Bulk
Containers

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25
Wet Bulk
liquid cargo that is loaded directly into the hold of a ship
26
dry bulk
dry cargo that is loaded directly into the hold of a ship; although dry, it takes the shape of the hold. Grain, for example.
27
Breakbulk
cargo that is packaged (bales, boxes, drums, crates, pallets) but not containerized. Vehicles are also considered break-bulk cargo.
28
Containers
Cargo that is placed in containers before it is loaded onto a ship. Cargo containers are metallic boxes that are 8.5 x 8 x 20 or 8.5 x 8 x 40 feet.
29
Types of Ships
Container Ships Roll-On/Roll-Off Ships Break-Bulk Ships Combination Ships Crude Carriers Product and Chemical Carriers Dry-Bulk Carriers Gas Carriers
30
According to international convention, every ship must be registered in
a specific country and fly that country’s flag.
31
The country in which a ship is registered determines:
The laws that are applicable onboard the ship The taxes that the ship owners will pay The regulations that are followed onboard the ship, and their corresponding costs.
32
Flags of convenience
Ship owners tend to choose flags that have low costs and few regulations.
33
The countries that are considered to have “flags of convenience”
Panama Liberia as well as a handful of other small countries.
34
Liability Conventions
Hague Rules Hague Visby Rules Hamburg Rules Rotterdam Rules
35
Hague Rules
A 1924 convention that limits carriers’ liability to $500 per package. This is the convention followed by the United States and U.S. carriers.
36
Hague Visby Rules
A 1968 liability convention that limits carriers’ liability to SDR 667 per package or SDR 2 per kilogram, whichever is higher. This is the convention followed by most countries.
37
Hamburg Rules
A 1978 convention that limits carriers’ liability to SDR 835 per package or SDR 2.50 per kilogram, been ratified by few countries, none of which are large trading countries.
38
Rotterdam Rules
new liability convention (2009) that limits carriers’ liability to SDR 875 per package or SDR 4 per kilogram, eliminates most of the “defenses,” and that is likely to become the most commonly adopted convention by 2020.
39
Non-Vessel-Operating Common Carriers (NVOCC)
are shipping companies that do not own or operate their own ships.
40
NVOCCs operate by purchasing ______ on a ship on a given voyage and then selling this _____ to companies that need to ship cargo.
space
41
Cabotage
The transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country.
42
Cabotage is ______, or, the exclusive right of a country to operate the air traffic within its territory"
"trade or navigation in coastal waters
43
Security concerns in ocean cargo shipments are dominated by two types of requirements
Preshipment notifications Preshipment inspections
44
Preshipment Notifications
Also called the Importer Security Filing (10+2 rule ) in the states. All cargo manifests must be sent to CBP at least 24 hours before the cargo is to arrive in the U.S.
45
Preshipment inspections
Also called the Container Security Initiative (CSI) in the states. CBP inspectors, located in foreign ports, inspect cargo before it is loaded on ships bound for the U.S.
46
How many countries ratified the Rotterdam rules?
Hamburg rules replaced in defenses with only 3: 1. damage due to fire 2. carrier took all steps to avoid damage 3. damage due to carrier attempting to to save lives cargo
47
Deadweight tonnage (DWT)
how much weight a ship can carry; (high value to weight ratio)
48
Damp Lease
ACMI without crew
49
Automated Commercial Environment (ACE)
commercial trade processing system designed to automate border processing, enhance border security, and foster U.S. economic security through lawful international trade and travel
50
freight corridors
a high-speed and high-capacity railway corridor dedicated exclusively to freight movement.
50
freight corridors
a high-speed and high-capacity railway corridor dedicated exclusively to freight movement.
51
Naviland cargo
French and Belgian Ports
52
What are the weight limits of a 9.5 ft. tall high cube container?
24 metric tons ( 52,910 lbs); 20 foot 30.5 metric tons ( 67,200 lbs); 40 foot
53
trot on/ trot off
Entering/ departing ?
54
OBO
Bare about or demise?
55
Carriage of Goods by Sea Act (COGSA)
defines the basic relationship—duties, liabilities, rights, and immunities—between ocean carrier and cargo owner.
56
Cargo can travel by air under what five different types of services?
1. Airmail 2. express air 3. Scheduled air freight 4. chartered air freight 5. Leased air freight
57
airmail
The origin of air freight, air mail services still account for a small percentage of all shipments.
58
expressed air
guarantee a pre-determined delivery date; the service is called “time-definite delivery,” generally the next day or overnight. ex: FedEx, UPS, DHL.
59
scheduled air freight
Air freight is transported by airlines that operate on a regular schedule between two cities. Regulations restrict the type of cargo that is allowed to be shipped on passenger aircraft.
60
charter air freight
Charter services do not operate on a regular schedule and depend on demand.
61
Leased airfreight
Freight can also travel in leased aircraft. Leases are contracts between the owner of the aircraft and the user and can take multiple forms.
62
Wet Lease
which the owner of the aircraft provides the airplane, insurance, maintenance, fuel and a flight crew. The lessee has to cover all other costs, such as airport fees.
63
Dry Lease
the owner of the aircraft provides only the airplane to the lessee, who is responsible for all other costs.
64
ACMI Lease
owner of the aircraft provides the airplane, crew, maintenance, and insurance to the lessee. lessee has to cover all other costs, such as fuel and airport fees.
65
Types of Aircrafts
Passenger Aircrafts Freighters Combi Aircrafts Quick-Change Aircrafts
66
Passenger Aircraft
designed to carry passengers on the main decks; carries freight in its belly, on the lower deck
67
Cargo aircraft
carries cargo on the main deck; can be loaded through its nose
68
A ___________ is loaded through a side door.
passenger to freighter aircraft conversion
69
Combi Aircraft
carries both cargo and passengers on the main deck.
70
Quick change aircraft
uses seat pallets on the main deck.
71
Some charter aircrafts are hired to transport goods that
cannot be shipped through traditional airfreighters
72
Which aircraft handles project cargo?
antonov 124 ruslan antonov 225 Mriya
73
The airbus Beluga and Boeling Dreamlifter carries
aircraft cargo
74
International Air Transport Association (IATA)
works with governments and airlines to ensure that goods move around the world as easily as if they were traveling domestically.
75
International Civil Aviation Organization (ICAO)
designs and implements standards for international civil aviation practices regarding safety, security, and other operational issues.
76
International Aviation operates under what principle ?
every country has complete and exclusive sovereignty over its airspace.
77
No scheduled international air service may operate over or into the territory of a country without ______
Specific authorization
78
Under _________ air carriers from one country are allowed to serve any of the other country’s airports.
open skies agreements
79
How is the tariff structure on international air cargo is much simpler than that used by the ocean cargo industry?
It is based on the weight and volume of the cargo.
80
Volume weight of the shipments
, also called “dimensional weight,” that is calculated based upon the dimensions of a shipment.
81
The airline will then charge the _______of the weight price and volume weight price
higher
82
Because of their heavy reliance on fossil fuels,
airlines and aircraft manufacturers have been active in reducing the carbon footprint of the industry.
83
Advanced Manifest Rule
All cargo manifests must be sent to CBP at least four hours before the cargo is to arrive in the U.S.
84
Certified cargo screening program
: All cargo shipped on passenger aircraft must be 100-percent inspected prior to being loaded. Inspections must be conducted by Certified Cargo Screening Facilities.

International Supply chain (4 decks)

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