Hello everyone. It’s IINO. Here is the new program for you. It’s a Logistics quiz.
On this channel, we have a motto that “It’s fun to learn Logistics”.
Therefore, I created this new quiz program for you to test your knowledge of logistics and trading.
I hope you will enjoy it.
First of all, let me explain how to enjoy the quiz.The quiz for today is for Incoterms.
Each picture regarding to Incoterms will be shown on the screen.
From the image you need to guess which term such as EXW or FOB is applicable for the image.
The key for you to check is the responsibility point of “logistics cost” and “cargo risk” between an exporter and an importer.
If you haven’t got a clue at all, please refer to the related video links attached in the comment section.
So, try it out after you have watched these videos. Here we go!
1st Question. Which incoterm is applicable?
A. DDP B.EXW C.FOB D. CIF
The answer is B, EXW.
This image shows the buyer,importer is responsible for the cost of logistics and the risk of cargo from the exporter’s factory. Therefore, the correct term is EXW.
Next question. Which incoterm is applicable to this?
A.CIF B.DDP C.CFR D.FOB
The answer is B, DDP! It’s the opposite of EXW.
The seller, exporter is responsible for the cost of the logistics and the risk for cargo from the exporting factory to an importer’s delivery location. Therefore, the correct term is DDP.
And 3rd Question. Which incoterm is applicable to this?
A.FCA B.DAP C.DPU D.CFR
This one is a bit tricky. The answer is D, CFR.
The exporter is responsible to cover the logistics cost until the importing port.
However, the exporter is also responsible for the cargo risk until the exporting port. In the incoterms group C, responsibility of cost and risk location is not the same as other terms.
So you need to be careful to remember this term.
4th question. Which incoterm is applicable to this?
A.DAP B.CPT C.FOB D.DPU
The answer is C, FOB. With this term the exporter is responsible for the cost and the risk until the exporting port. Then, everything else is covered by the importer.
FOB is the term which is often used in trading.
This is the last question! Which image does it show? Responsibility of cost or risk?
It’s a multiple choice question.
A. Responsibility of cost B. Responsibility of risk C. Neither of them are correct
Now, it’s 50:50! Choice C will disappear.
The answer is A, responsibility of cost.
Let’s have a look at another image. We’ll go through it together. The key for this question is CFR and CIF.
The left side of the image in the previous question showed that the exporter is responsible up-to the importing port.This was the cost of logistics.
The right side of the image showed that the exporter is responsible for up-to the exporting port. This was risks of cargo.
The key to get the correct answer is whether you understand these tricky terms or not.
Did you like the logistics quiz? It might be easy for you if you are used to these terms.However, the incoterms which the fundamental of trading and logistics knowledge need to be understood correctly.
If an exporter and importer do not understand the terms of the business correctly,it could cause problems.
I will create more logistics quizzes for you to enjoy learning logistics.
Please look forward to the next one! See you soon!
Contact to IINO san