It’s your turn
Trade & Transport Challenge
It’s your turn

Trade & Transport Challenge

In keeping with the MAG theme, we present the ‘Trade & Transport Challenge’. Do you know the most important wordings and definitions? The quiz probably won’t be much of a challenge for our trade professionals, but it’s still nice to get full marks, isn’t it? 😉  

Among all those who participate, we’ll give away a tailormade NKG phone case, especially designed for you and your phone! Just let us know on the registration form what kind of phone you have, and we’ll create the design for the winner!

Have fun taking the quiz and good luck in the contest!

New Quiz:
Trade & Transport Challenge

How it works

Drag the green boxes at the top of each slide onto the correct explanation below.

Once all items are assigned, click Check to review your answers, then continue with Next.

Question 1: For an easy start

Exporter
Transport
Importer
Often standalone entities that collect, warehouse and finance coffee at origin. They pre-pay farmers, aggregate shippable quantities and give producers access to markets.
Correct answer: Exporter
Is arranged by importers and exporters through international shipping lines.
Correct answer: Transport
Make relationships between roasters and producers or exporters, broker purchases and contracts between the two, and facilitate logistical delivery of that coffee from origin to roaster— often storing and financing coffee along the way.
Correct answer: Importer

Question 2: Important definitions

Net Cash Against Documents (NCAD)
C Market
INCOTERMS
Free On Board (FOB)
As soon as the required documentation is delivered electronically to the buyer (the importer), payment is issued to the seller.
Correct answer: NCAD
The global commodity exchange in which Arabica coffee is traded in bulk. It acts as the benchmark price for coffee worldwide.
Correct answer: C Market
A critical framework for mitigating risk. These are a set of rules that define buyer/seller responsibility, costs and risks for the delivery of goods for domestic and international trade.
Correct answer: INCOTERMS
The seller covers all the costs and liability up to the point that the coffee is loaded onto the ship in the country of origin. After that, the importer takes on full responsibility - paying for and managing overseas shipping, insurance, customs and inland transport in the destination country.
Correct answer: FOB

Question 3: Purchase Contract

Shipping Instructions
Customs Declaration
Shipping Advice
Booking Confirmation
Are created by the importer and sent to the exporter usually 1 to 3 months in advance of the contract’s stated shipment period. They include important details such as acceptable packaging, required bag markings, text that needs to be included on the Bill of Lading and FDA requirements. Additionally, they detail vital information about how the coffee is to be shipped.
Correct answer: Shipping Instructions
A document for goods being imported or exported that communicates information to customs authorities so they can ensure proper compliance with regulations as well as any duties or taxes.
Correct answer: Customs Declaration
In response to the importer’s Shipping Instructions, the supplier issues this document. This is sent to shipping lines so they can assign the booking.
Correct answer: Shipping Advice
Is issued by the steam shipping line, confirming that the requested service has been accepted and scheduled.
Correct answer: Booking Confirmation

Question 4: Transport

FCL (Full Container Load)
LCL (Less than Container Load)
Refers to when a single contract covers an entire container. (That's 275 to 320 bags of green coffee in a 20-foot container.) This option is ideal for large-volume purchases, offering more control over timing, quality and cost per unit.
Correct answer: FCL (Full Container Load)
Combines shipments from multiple contracts into one container, making it a cost-effective option for smaller volumes. However, the additional labor and handling this consolidation requires can result in longer transit times and a higher risk of damage or delay. Choosing between FCL and LCL depends on shipment size, budget and delivery priorities.
Correct answer: LCL (Less than Container Load)

Question 5: Documents, documents…

Weight Certificate
Certificate of Origin, Phytosanitary Certificate, etc.
Bill of Lading
Bag Marks
  • Sent by the seller to the buyer prior to shipment.
  • Represents the actual weight of the coffee at POL (port of loading).
  • Sent by the warehouse to the buyer upon delivery.
Correct answer: Weight Certificate
  • Sent by the seller to the buyer at time of shipment.
  • Each origin country has different required documents based on export and import requirements.
  • Certificates ensure the origin, quality and safe/proper handling of coffee at origin.
Correct answer: Certificate of Origin, Phytosanitary Certificate, etc.
  • Issued by a carrier to acknowledge the receipt of goods for shipment. It functions as a legal document, confirming the coffee has been loaded for transport.
  • Functions as a contract of carriage between the shipper and the carrier.
  • Acts as a document of title, allowing ownership of the coffee to be transferred or claimed by the holder.
  • Includes key shipment details: exporter and consignee names, port of origin and destination, vessel name, container number, weight and quantity.
Correct answer: Bill of Lading
  • Each producing country has its own designated three-digit ICO (International Coffee Organization) country code.
  • The second set of numbers is a four-digit code representing the exporter or grower.
  • The final four or five digits identify the specific lot.
Correct answer: Bag Marks

Question 6: Physical movement

Open
Afloat
In Store
A contract has been written; the coffee is in the country of origin.
Correct answer: Open
Documents are being generated and collected; the coffee is in transit.
Correct answer: Afloat
The shipment has arrived at the port/warehouse and is being prepared for release.
Correct answer: In Store

The FRILUFTS Hamnoy Multitool has found a new owner! Luis Felipe Costa of NKG Fazendas Brasileiras Ltda is the winner of our “Search the seedling!” game from our last MAG edition. Enjoy the 11 different functions, Luis Felipe!

By the way, the seedling was hidden in the following four articles:

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