Lecture 3

Question 1

What organization monitors piracy?

Answer 1

The International Maritime Bureau (IMB)

Question 2

What are the possibilities to lose the cargo?

Answer 2

1. Piracy & armed robbery
2. Sheep transport - not taking proper care of transported animals (they die)
3. Hot weather shipments

Question 3

What are the risks of physical loss?

Answer 3

• Expensive products are often stolen and sold
• Fragile items can be broken
• Grains can get wet or infested with vermin
• Metals= rust and oxidization
• Frozen?
• Seasonal? What happens if there are delays? * Scuttling?
• Perils: theft, scratching denting, thawing, breakage, freezing, massing, caking, oxidation, infestation, contamination, and water damage
• Man Made Hazards: war, civil commotion, strikes, negligence, piracy, collision, sinking, fire and other human and natural perils to merchandise in transit

Question 4

What do the terms of sale deal with?

Answer 4

Terms of sale deal with the
– cost of the product
– the risk of physical loss
– with the costs of moving the product from one place to another
– movement facilitation

Question 5

What role does a freight forwarder play in an intermediary between shipper and carrier?

Answer 5

A freight forwarder acts as an intermediary in the market between shipper and carrier.