Transportation Operations LINCS Practice Exam

Which type of companies can be classified as Ocean Transportation Intermediaries?

1. Those who own their own vessels only

2. Freight forwarders and public carriers without their own ships

3. Government agencies overseeing maritime counties

4. Companies focused solely on land transportation

The correct answer is: Freight forwarders and public carriers without their own ships

Ocean Transportation Intermediaries (OTIs) are entities that facilitate the movement of goods over water but do not necessarily own the vessels used for transit. Freight forwarders, which are included in this classification, act as agents who arrange the logistics of transporting cargo by coordinating with shipping lines and other service providers. They do not own ships; rather, they broker transport options for their clients. Public carriers, such as common carriers, also fit this category as they provide transportation services to the public for a fee, but they may not possess their own vessels either – they typically utilize agreements with vessel owners to provide shipping services. Because both freight forwarders and public carriers perform essential intermediary roles in ocean transportation, they are rightly classified as Ocean Transportation Intermediaries. The other options pertain to either company classifications that do not align with the function of OTIs or specific groups that do not operate in the capacity of intermediaries in ocean transportation.