0% found this document useful (0 votes)
5 views7 pages

Transport Services and Risk Management Quiz

The document consists of a series of multiple-choice questions related to transport services, logistics, and risk management in shipping. It covers topics such as definitions of international transportation, roles of consignors and consignees, types of shipments, risk categories, and cost factors in logistics. The questions also address the responsibilities of various actors in the shipping process and decision-making factors in mode selection.

Uploaded by

q8g89wvkzm
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
5 views7 pages

Transport Services and Risk Management Quiz

The document consists of a series of multiple-choice questions related to transport services, logistics, and risk management in shipping. It covers topics such as definitions of international transportation, roles of consignors and consignees, types of shipments, risk categories, and cost factors in logistics. The questions also address the responsibilities of various actors in the shipping process and decision-making factors in mode selection.

Uploaded by

q8g89wvkzm
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1. Which statement about transport services is true?

A. They can be stored for later use


B. They consume significant raw materials
C. They cannot be stored
D. They always create new value
2. According to DHL’s definition, transportation becomes “international” when…
A. Goods travel more than 500 km
B. Goods cross a national border
C. Goods switch transport modes
D. Goods are insured
3. Which role belongs to a consignor?
A. Receiving goods at destination
B. Delivering goods to the carrier at origin
C. Paying import duties
D. Checking transport documents
4. Which shipment type is suitable for small volumes?
A. FCL
B. LCL
C. Bulk cargo
D. Breakbulk
5. A country without direct access to the sea tends to have…
A. Lower transport costs
B. Higher transport costs
C. No change in transport costs
D. The same cost as coastal countries
6. Which cost includes packaging, loading, and containerization?
A. Transaction cost
B. Shipment cost
C. Friction-of-distance cost
D. Insurance cost
7. Which Incoterm requires the buyer to handle all transport from the seller’s factory?
A. FOB
B. CIF
C. EXW
D. CIP
8. Under FOB, when does risk transfer to the buyer?
A. When goods leave the seller’s warehouse
B. When goods arrive at destination port
C. When goods are loaded on board the vessel
D. When documents are issued
9. Why do firms need cargo insurance?
A. Carriers cover full cargo value
B. Carriers are not responsible for delays
C. Carrier liability is limited by law
D. Insurance is legally required for all trade

10. In global distribution decisions, mode selection must consider…


A. Only cost
B. Only transit time
C. Strengths and limitations of each mode
D. The number of customs agents
11. Theft and piracy belong to which risk category?
A. Product Contamination
B. Product Loss
C. Product Damage
D. Regulatory Risk
12. Improper loading is a cause of which type of risk?
A. Product Loss
B. Product Contamination
C. Product Damage
D. Documentation Risk
13. Avoiding dangerous ports or refusing high-value shipments is an example of…
A. Risk Reduction
B. Risk Transfer
C. Risk Avoidance
D. Risk Acceptance
14. Using protective packaging, multiple carriers, or shipment tracking is an example
of…
A. Risk Transfer
B. Risk Reduction
C. Risk Avoidance
D. Risk Acceptance
15. Purchasing cargo insurance is a typical example of…
A. Risk Avoidance
B. Risk Reduction
C. Risk Transfer
D. Risk Acceptance
16. When a company keeps minor delays without mitigation because it is not cost-
effective to reduce them, it is applying…
A. Risk Avoidance
B. Risk Reduction
C. Risk Transfer
D. Risk Acceptance
17. "Shipment jettison" belongs to which risk type?
A. Product contamination
B. Product loss
C. Product damage
D. Product misclassification

18. A container of fruit arrives at destination with mold due to a temperature-control


failure during transit. Which risk does this represent?
A. Product loss
B. Product contamination
C. Product damage
D. Financial risk
19. During loading, a forklift accidentally punctures several cartons. Which category of
risk applies?
A. Product damage
B. Product contamination
C. Product loss
D. Documentation error
20. After reviewing last year’s incidents, the logistics team finds repeated cases of cargo
damage during unloading. This activity belongs to which risk management step?
A. Step 1 – Identification
B. Step 2 – Assessment
C. Step 3 – Strategy development
D. Step 4 – Monitoring

21. A shipper adds shock-absorbent packaging and installs GPS tracking for high-value
cargo. Which strategy is being applied?
A. Avoidance
B. Reduction
C. Acceptance
D. Transfer
22. A cargo of wheat is found infested with insects upon arrival. Which risk type does this
match?
A. Product loss
B. Product damage
C. Product contamination
D. Route risk

23. A carrier operates in a country with complex customs procedures, requiring extra
paperwork and clearance fees. Which cost category increases?

A. Shipment costs
B. Friction of distance
C. Transaction costs
D. Insurance costs
24. A transport route stretches from Hanoi to Paris. Fuel use, labor hours, and energy
consumption rise as distance increases.
What type of cost does this represent?**
A. Shipment cost
B. Transaction cost
C. Friction of distance
D. Insurance cost

25. Oil prices suddenly increase by 30%. The shipping line raises freight rates
immediately. Which factor is driving the cost increase?
A. Competition
B. Energy as a major operating cost
C. Economies of scale
D. Administrative barriers

26. A freight forwarder consolidates shipments from multiple small exporters into one
container to reduce per-unit transport cost. Which principle does this illustrate?

A. Regulation effect
B. Friction of distance
C. Economies of scale
D. Subsidy impact

27. A carrier reduces freight rates because many competitors serve the same Asia–
Europe trade route. Which market factor explains the low cost?

A. High regulation
B. Strong competition
C. High energy consumption
D. Administrative barriers
28. A country invests in modern ports and highways, reducing transit time and handling
errors. What is the expected impact on transportation cost?

A. Higher costs due to more distance


B. Higher costs due to lack of competition
C. Lower costs due to efficient infrastructure
D. No impact
29. To prepare cargo for international transport, a company palletizes, wraps, and
consolidates goods into containers. These activities belong to which cost group?
A. Friction of distance
B. Transaction cost
C. Shipment cost
D. Energy cost

30. A company in Vietnam sells goods to a buyer in France. Who is responsible for
preparing export documents?
A. Buyer / Importer
B. Consignee
C. Seller / Exporter
D. Carrier

31. A truck arrives at the origin warehouse to pick up goods. Who hands the cargo to
the carrier?
A. Buyer
B. Consignor
C. Freight forwarder
D. Customs agent
32. A shipment reaches the destination port, and someone must clear customs and pick
up the goods. Which actor is responsible?
A. Seller
B. Carrier
C. Consignee
D. Freight forwarder

33. A company wants to book shipping space, consolidate small shipments, and receive a
House Bill of Lading. Which actor provides these services?
A. Carrier
B. Freight forwarder
C. Insurance agent
D. Bank

34. A company needs help filing customs declarations and paying duties at the border.
Which actor is involved?
A. Bank
B. Consignee
C. Customs agent
D. Government official

35. A shipment is damaged due to rough handling, and the cargo owner wants to file an
insurance claim. Which actor handles the claim?
A. Freight forwarder
B. Consignor
C. Insurance agent
D. Government official
36. A container carrying agricultural goods must pass quarantine inspection before
entering the destination market. Who performs this task?
A. Customs agent
B. Government officials
C. Buyer
D. Freight forwarder
37. A buyer is not the same person as the consignee. Which situation below explains this
correctly?
A. The buyer hires a freight forwarder to ship goods.
B. The buyer instructs the exporter to deliver goods to a third-party warehouse.
C. The buyer pays for the goods in cash.
D. The buyer clears customs personally.
38. A company ships goods using both road and sea transport under one single contract
with one operator responsible throughout the journey.
Which type of transport arrangement is this?**
A. Intermodal
B. Multimodal
C. Unimodal
D. Transshipment-only
39. During peak shopping seasons, carriers increase freight rates because demand for
capacity rises sharply. Which factor from the slide explains this?
A. Cost-based pricing
B. Market-based pricing
C. Technology-based pricing
D. Regulation-based pricing

40. A pharmaceutical shipment requires stable temperature, low vibration, and high
reliability. The company selects air freight. Which characteristic is driving this choice?
A. Price sensitivity
B. Speed & environmental control requirements
C. Multimodal reduction
D. Fuel efficiency

You might also like