Answers to Test your shipping knowledge – week 49

1) What is meant by the term DDP..??

(Refer to http://shippingandfreightresource.com/2008/11/15/article-7-inco-terms/)

2) What is the significance of the term Ex-Works..??

(Refer to http://shippingandfreightresource.com/2008/11/15/article-7-inco-terms/)

3) Which is the 1st page of a bill of lading

(Each bill of lading has two sides (pages) – the 1st page is the page which displays the terms and conditions of the carrier)

4) What is a Stale B/L..??

(A late B/L in banking, a B/L which has passed the time deadline of the L/C and is void.)

5) What is a letter of credit..??

(For any cargo to be shipped from a port to a foreign port , it takes a long time.. The buyers have to find a way of guaranteeing payment to exporters before the goods are received.. The answer is a letter of credit – an instruction by the importer’s bank to an overseas bank to pay the exporting company in advance.. The banks naturally charge interest for this service.. For more on letter of credit and how it works – refer to http://theworldofshipping.wordpress.com/2008/12/13/letter-of-credit-how-it-works/)

Click here for Week 50’s questions..

What did you think of the above article..?? Comment below..

(Estimated reading time: 1 minute)