Basic Terms & Definitions in Transport Quiz Pt. 1

Which system is characterized by its use in urban transportation?

• Light Rail Transit (LRT)

• High-speed rail

• Freight trains

• Cargo ships

What is last-mile delivery crucial for in the logistics sector?

• Reducing warehouse costs

• Improving customer satisfaction

• Enhancing packaging design

• Streamlining production processes

What is one of the purposes of Incoterms?

• To provide clarity in global logistics transactions

• To increase tariffs on imports

• To establish new trade routes

• To create international trade laws

Who developed Incoterms?

• World Trade Organization

• International Chamber of Commerce

• United Nations

• European Union

What is the role of Incoterms in cost allocation and risk transfer?

• They determine product quality

• They identify the point where costs and risks shift

• They set the price of goods

• They manage employee salaries

In a DDP agreement, who assumes nearly all risks and costs until delivery?

• The buyer

• The seller

• The shipping company

• The insurance company

What does DDP stand for in Incoterms?

• Delivered Duty Paid

• Delivery Duty Paid

• Delivered Duty Pending

• Delivery Duty Pending

What is the primary responsibility of the buyer in CIF terms?

• Customs clearance and inland transport

• Paying for insurance

• Delivering goods to the port

• Bearing all costs and risks

What does FCA stand for in Incoterms?

• Free Carrier

• Freight Carrier

• Free Cargo

• Freight Cargo

In which Incoterm does the seller deliver goods to a carrier at the seller’s premises?

• FCA

• DDP

• CIF

• FOB