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20 Cards in this Set

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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.