1.7. One of the factors used in determining the freight forwarding costs is:
a) House manifest
b) Packing list
c) Logistics support services provided
d) None of the above
1.8. Benefits of intermodal shipping includes:
a) Time and cost effective
b) Economies of scale
c) A and B
d) None of the above
1.9. The typical activities that are involved in the cargo transportation management process include:
a) Jettison
b) The voyage
c) Carrier selection
d) None of the above
1.10. _________ is the international standard for the classification of every type of
goods, which is developed by the World Customs Organization.
a) Harmonized System (HS) code
b) International Commercial Terms
c) Declarations standards
d) Custom clearance
QUESTION 2: TRUE/ FALSE
State whether the following statements are true or false.
20 MARKS
2 X 10 = 20 MARKS
a) Ports vertical integration refers to integrating port holding.
b) While horizontal integrations refer to integrating in land and maritime services.
c) The 3rd and 4th logistics service provider aims to fulfil the gap, what freight forwarder
cannot provide.
d) It is crucial that the freight forwarder, importer and exporter correctly classify the goods
to ensure that the right amount of duty and value-added tax are paid.
e) Freight insurance is mandatory for all shipments, regardless of lncoterms.
f) A Letter of Credit guarantees the buyer's payment will be made once the seller provides
the agreed shipping documents.
g) Marine insurance covers the cargo and the vessel during transit over water.
h) A 'General Average' claim in marine insurance means the shipowner bears all the costs
for any damage or loss during shipping.
i) Sinking is the most common cause of loss in ocean shipping, and it is always covered by
marine insurance.
j) The components of the transport network are node, link, hub and fodder.
SUB-TOTAL: 40 MARKS
3