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46 Cards in this Set
- Front
- Back
why is global transportation such an important issue? |
1.Global economy in a volatile period
2.Much downward pressure on transport rates
3.In an economy focused on cost control, both carriers and their customers must plan effectively |
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what are the different Global Trade Agreements? |
1.Agreements between nations.
2.Bi-lateral agreements.
3.Regional trade agreements.it involves 3+ nations |
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what are the trades that U.S. currently involved in ? |
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describe NAFTA principles? |
includes U.S., Mexico, and Canada.
3. enable transport carriers to move more easily between countries.
4. carriers have same rights.
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what are Logistics Channel Issues? |
1.Transaction channel activities
2.A 2nd key transaction channel activity.
3.Communication channel
4.Distribution channel |
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identify Transaction channel activities, and what are they responsibile for? |
A key activity is specifying when and where legal title to goods transfers.
Defines responsibility for:
1.Mode and carrier selection and shipment routing.
2.Obtaining insurance coverage.
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describe A 2nd key transaction channel activity? |
it is arranging payment for the goods.
1.Obtaining payment is riskier in global trade compared to domestic trade
2.Advance payment would be ideal for exporter
3.Importer would be concerned about paying in advance of seeing/inspecting the goods
4.There are many terms of payment options used to balance these risks |
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describe Communication channel? |
1.Documentation requirements are much higher for global than for domestic transactions.
3.Many documents not in electronic form |
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describe Distribution channel? |
1.Greater distance and complexity of global shipments means higher risk.
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what areGlobal Transportation Challenges macro level ? |
2.Changes in governmental regulations and interventions
3.Consumer demand trends |
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what areGlobal Transportation Challenges Monitoring specific issues ? |
2.Carrier consolidation activity
3.Security risks
4.Shifts in regional sourcing |
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what are Key export preparation activities ? |
2.Securing freight insurance
3.Agreeing upon terms of payment
4.Completing required freight documentation |
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what does Completion Key export preparation of activities helps ? |
2.Protect each party’s financial interest
3.Improve freight control and visibility
4.Facilitate problem-free transport |
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what are Terms of Trade of Export Preparation Activities? |
1. responsibilities transfer from exporter to importer
2.Govern decision making authority for movement of the product
3.Establish when and where ownership and title of goods pass from exporter to importer
4.Clarifies which organization incurs delivery-related costs
5.each country could have its own set of trade terms
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what would happend if country have its own set of trade terms? |
1. uncertainties in the meaning of terms and raise transaction costs
2. a worldwide standardized set of terms and definitions was established
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describe Incoterms? |
13 different Incoterms, divided into 4 primary groups, are available
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what are 4 primary groups of Incoterms? |
E term
F terms
C terms
D terms |
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define E term? |
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define F term? |
F terms: Exporter has responsibility for getting shipment from origin to port of embarkation |
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define C term? |
C terms: Exporter obtains and pays for main transport leg and/or cargo insurance. 4 C terms: Cost and Freight (CFR): water shipments only |
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define D term? |
D terms: Exporter responsible for delivery of shipment to foreign destination. 5 D terms:
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what are Managing risks of Export Preparation Activities Cargo Insurance? |
1.Decision between retaining or transferring risks.
2.Retaining risk is essentially self insurance. Makes most sense when:
a.Goods shipped are low value or not susceptible to damage
b.Carriers used rarely deliver damaged or lost freight
c.A damaged shipment would have relatively minor financial impact on the freight owner
3.Risk transfer via insurance is appropriate when above conditions are not met
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what are financial risks for International shipments ? |
2.If there is damage or delay, burden of proof falls on cargo owner to prove that carrier was at fault |
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what are transport perils for International shipments ? |
2.Perils by other modes are relatively minor |
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what are Payment for Export Preparation Activities? |
1.Letter of credit (LC).
2.Draft or bills of exchange.
3.Sight draft
4.Time draft
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describe Letter of credit (LC)? |
Letter of credit (LC) |
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describe Draft or bills of exchange? |
Draft or bills of exchange |
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descibe Sight draft? |
Sight draft |
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describe Time draft? |
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explain Export Preparation Activities Freight Documentation? |
Freight documents control movement of cargo |
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what are the Four types of documents ? |
2. transportation documents
3.Export documents
4. import documents
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describe Invoices documents? |
Invoice or bill for the goods
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describe Export documents? |
Export documents Used by many countries to: |
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what are documents required for export documents? |
2.Export license
3.Certificate of end use
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describe Import documents? |
Other import documents
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define certificate of origin? |
Certificate of manufacture |
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describe Export Preparation Activities Transportation Documents? |
1.Carrier manifest
2.Bill of lading – primary transport document
3.Transport documents are largely paper-based |
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define Bill of lading? |
Bill of lading – primary transport document
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what are types of bills of lading? |
2.Intermodal bill of lading
3.Negotiable vs. non-negotiable bill of lading
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Transport documents are largely paper-based what is the effect of shifting to electronic work ? |
Other U.S. electronic document initiatives |
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what is types of bills of lading Transportation Planning? |
Decision must achieve best fit and balance between:
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what affect the decision on Carrier Selection? |
Decision based on best fit and balance between:
1.Geographic coverage
2.Average transit time and reliability
3.Reliability of on-time pickup and delivery
4.Technical capabilities, ability to share information
5.Equipment availability and capacity
6.Product protection/carrier’s freight damage experience
7.Carrier’s financial stability and freight rates |
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what are the Carrier selection strategies? |
1.Leverage transportation dollars by using a limited number of carriers
2.Build relationships with service providers
3.Monitor carrier performance, rates, and financial stability
4.Have contingency plan with back-up carriers
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what Differs from mode selection decision? |
1.Many more options to choose from
2.Decision made more frequently but not for each move |
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define Route Planning? |
Carriers primarily responsible for routing |
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who should Routing decisions be ? |
2.Aligned with global sourcing, inventory, demand fulfillment strategies |