Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
Custom House Broker
|
Handles the import transaction and prepares all entry documents
Regulated by Customs and Border Protection Liability for E/O, $50 per entry No B/L |
|
|
Local Cartman/Local Trucker (Intrastate)
|
Moves cargo by truck within one state
Regulated by the State Department of Motor Vehicles Liability for .50/lb or $50/shipment or per B/L (issue) |
|
|
Motor Carrier (Interstate)
|
Transportation or goods for compensation within multiple states
Regulated by Federal Motor Carrier Safety Administration Liability by Carmack for full value of shipment Issue B/L |
|
|
Freight Terminal
|
Facility that provides temporary storage of intransit cargo that is awaiting further movement
No typically regulated but subject to state law Liability for B/L, Warehouse or Freight Receipt or T&C of Service No B/L |
|
|
Storage Warehouse
|
Facility that provides for the storage of mechandise for compensation and the duration of sotrage is longer than a freight terminal
Not typically regulated but subject to state law Liability for bill of landing, Warehouse or Freight Receipt or T&C of Service No B/L |
|
|
Vessel Operating Common Carrier
|
Moves cargo by vessel, including containterized cargo, breakbulk, RO/RO ect.
Regulated by the Federal Maritime Commission Liability by carraige of goods by Sea Acto for $500 per customary freight unit B/L needed |
|
|
Non-Vessel Operation Common Carrier
|
Consolidated ocean shipments and books transportation with ocean carriers at volume discount rates
Regulated by Federal maritime Commission Liability for carraige of goods by Sea Act for $500 per customary freight unit B/L needed |
|
|
Third Party Logistic (3PL)
|
Company that sells, negotiates or arranges for interstate transportation by motor carrier for compensation (travel agent for freight)
Regulated by the Federal Motor Carrier Safety Administration Liability for E/O, T&C of Service, NITL or Special Contract No B/L |
|
|
Ocean Freight Forwarder (Agent)
|
An agent for a shipper who arranges the international movement of cargo via ocean; prepares all export documents and transportation
Regulated by the Federal Maritime Commission Liability for E/O, NCBFAA T&C or Service limit to $50 per shipment No B/L |
|
|
International Airlines
|
Moves cargo by aircraft from one country to another
Regulated by the Federal Aviation Administration and Transportation Security Administration Liability by Warsaw Convention for $9.07 per pounds/$20 per kilo B/L needed |
|
|
International Air Freight Forwarder (Agent)
|
An agent for a shipper who arranges the international movement of cargo via air
Subject to IATA and TSA requirements Liability for E/O, NCBFAA T&C of Service limit to $50 per shipment No B/L |
|
|
Indirect Air Carrier (Principal)
|
Consolidates air shipments and books transportation with airlines at volume discount rates
Subject to Federal Aviation Administration and Transportation Security Administration requirements Montreal Protocal to 17 special drawing rights (SDR)'s or appox. $23/kilo B/L needed |
|
|
Domestic Airline
|
Moves cargo by aircraft within one country
Regulated by the Federal Aviation Administration and Transportation Security Administration Liability dictated by the Airway bill, typically liminited to $.50/lb B/L needed |
|
|
Domestic Freight Forwarder
|
Arranges the domestic movement of cargo via air, truck or rail
Regulated by the Federal Motor Carrier Safety Administration Liability subject to full value liability under Carmack but typcially limit liabilty to $.50/lb B/L needed |
|
|
What is the difference between an freight forwarder acting as a principal or as an agent?
|
Acting as a prinicpal means the freight forwarder agrees to move the cargo and is liable for the cargo.
As an agent the freight forwarder moves cargo on behave of the customer and is not liable for the cargo. |
|
|
What are 3 E/O exposures from indirect air carriers?
|
1. More risk from misrouting
2. More risk as carrier because assume liability for loss or damage to cargo under Warsaw Convention. (But less risk because Warsaw Convention limits liability for delay). 3. More entities handling the freight; more chance of error. |
|
|
What are indirect air carriers often called and why?
|
CAB Forwarders because they have to register their operation with the Civil Aeroneautics Board
|
|
|
What are four principal methods of chartering a vessel?
|
1. Voyage Charters (one-way voyage for a specified charge)
2. Time Charter (round trip) 3. Bareboat Charter 4. A contract or 'lump sum' charter |
|
|
What are 4 E/O exposures for a ship broker?
|
1. All normal problems are magnified because of volume
2. Insurance placement is more difficult and specialized 3. Possible exposures to U.S. Longshore and Harbor Wrokers' Compensation Act and Jones Act 4. More chance of consequential loss (delay, loss of market) |
|
|
What are 3 characteristics of a domestic freight forwarder?
|
1. Must be licensed with the Interstate Commerce Commission
2. Cnsolidates LCL in its own warehouse facility 3. Is billed the lesser FCL rate by the actual air, motor or rail carrier. Then, in turn, customarily provides free pick-up and delivery. |
