FINAL EXAM PAPER

Course name: International Shipping and Insurance

Allowed Time: 45 mins
Student name: Student ID number:
I. Multiple choice question (8 points)
1. Bill of Lading stated 50 cartoons. Shipper used his own container. (SOC). If all cartoons
are damaged, the maximum number of packages that carrier must compensate is:
A. 1
B. 49
C. 50
D. 51
2. Vietnam has ratified:
A. Hague Rules 1924
B. Hague Visby Rules 1968
C. Hamburg Rules 1978
D. None of above is correct
3. Sales contract stated CIF Cat Lai Port, Incoterms 2010, the charter should state in the
Loading and Discharging Clause at the Voyage Charter Party as:
A. Liner terms
B. FO
C. FI
D. FILO
4. Who is in charge of commercial function of the ship under a time charter party?
A. The charter
B. The shipper
C. The shipper
D. None of above
5. A bill of Lading has more than one function but is not
A. A document of title
B. A receipt for cargo shipped
C. A certificate of insurance
D. A prove of contract of carriage
6. Under the Hague/Hague Visby Rules the carrier is liable for loss and damage caused by
fire for which:
A. A crew member is at fault
B. A properly supervised master alone is at fault
C. The carrier is personally at fault
D. ALL of above
7. Under the Hague/Hague Visby Rules the carrier is obliged to include in the bill of lading
A. All information supplied by the shipper
B. Information which he has reasonable means of checking
C. All information supplied by a neutral 3rd party
8. Which of the following exceptions can the carrier not rely on under the Hague/Visby
Rules
A. Error in navigation and management of the ship
B. Perils of the sea
C. Negligent stowage and fire
D. Insufficient packing and act of public enemies

9. Which of the following set of rules is in force in Vietnam?

 A. The Hamburg Rules
B. The Hague Rules
C. The Hague Visby Rules
D. None of above
10. The holder of a signed bill of lading is entitled to
A. Claim delivery of the goods in question on arrival at the port of discharge
B. Be on board the ship that carries the goods in question
C. Claim payment for the shipping of the goods in question
11. Liner terms tariff is USD 25/MT. C/P states freight term: FI. Stowage fee= Loading fee=
Discharging fee= USD 1,5/MT. What is the freight rate that charter will pay to shipowner?
A. USD 23,5/MT
B. USD 26,5/MT
C. USD 22/MT
D. USD28/MT
12. Under the …………….charter party, the charter only rents the shipowner the boat
A. Demise
B. Time
C. Voyage
D. Booking
13. The Hague Visby Rules apply to the period
A. During which the cargo is in the carrier ‘s custody
B. During loading and discharging
C. From the beginning of loading and until the end of discharging
14. Under a berth charter party the ship becomes an arrived ship when
A. The charter has nominated the berth and notified the ship
B. She reaches the port
C. She reaches the specified berth
15. Hire is the price paid to the shipowner
A. Under a bill of lading
B. Under a time charter party
C. Under a voyage charter party
16. The exception “fault in management of the ship” under the Hague Visby Rules covers
A. Not taking reasonable care of the cargo
B. Negligent stowage
C. Not taking reasonable care of the ship affecting the cargo
17. Based on Incoterms 2000, which terms are suitable for transportation of goods by sea
A. FOB, FAS, CFR, CIF, DES, DEQ
B. FAS, FCA, CIF, DDU, DDP
C. FOB, FAS, FCA, CIF, CFR, CIP, CPT
D. None of the above
18. Multimodal transport is a kind of transport that has
A. 2 means of transport in the process
B. 1 document of transport
C. 1 person liable for the cargoes
D. All of the above
19. AWB (Airway bill) does not have any of those functions:
A. A document of title of goods nominated
B. Certificate of insurance
C. Guide for airlines staff
D. None of the above
20. AWB (Airway bill) has many types but does not have this kind
A. Neutral AWB
B. Master AWB
 C. House AWB
D. To order AWB
21. The DRAFT (LOAD LINE) is..
………………………………………………………………………………………………
……………………………………………………………………………………….
22. Multimodal transport
is……………………………………………………………………………………………
……………………………………………………………………………………………..
23. LOA of the ship
is……………………………………………………………………………………………
…..........................................................................................................................................
24. Logistics
is……………………………………………………………………………………………
……………………………………………………………………………………………
II. Discuss the case (2 points)
M/S Trym transported sugar from Shanghai to Ho Chi Minh in August 2006. The sugar was to be used
for chocolate production and was thus fine and of a high quality. The sugar was packed by the shipper
in Big Bags, a type of bag that was commonly used for this type of transport. The shipment consisted
of a total of 500 bags. Each bag weighted 750 kilos. It was raining slightly at the port of loading, bit
the Master decided to carry on as the ship was already late according to schedule. He assumed the big
bags were solid enough to keep the rain out. A clean on board B/L was issued when loading was
completed. Upon arrival in Ho Chi Minh, it was noted that several bags appeared wet. The bags were
transported to the consignee`s terminal and opened. It was noted that the sugar was lumpy and thus not
fit for chocolate production. 31 bags were affected. Further 3 bags contained brown sugar instead of
the white sugar as indicated in the B/L.
The consignees notified the carrier and a joint survey was arranged. The survey showed that 32 bags
had sustained water damage and the loss was estimated at 110.000,- NOK. The consignee claimed
compensation from the carrier. The carrier denied liability and stated that the cause of the loss was
insufficient packing of the cargo. He claimed the big bags should have had a plastic lining, preventing
water from entering. He also claimed that the shipper had not informed him that the bags could not be
exposed to water. He also alleged that any claim should be subject to American Law, as it was a Clause
Paramount in the B/Lstating that American Law should apply. The consignee claimed that the
Norwegian Maritime Code should apply. He also claimed that he was entitled to limit his liability.
Discuss and solve the claim according to applicable laws.