Welcome to the website where you can pass online the Seafarer Evaluation Training System (SETS) test on «Business». Practice like this will help you as a marine specialist improve your knowledge with the help of online studying and appraisal practice. SETS based on practical information and marine specialists experience.
SETS tests developed for evaluating seaman basic knowledge by company “Naval Education Services” is an evaluating online-tool, used for revealing any professional preparation needed in specific fields of knowledge, defined by STCW Section A-V/1-2.
SETS tests have proven themselves as good tools for the selection and recruitment process, as well as advancing the level of knowledge of the current officers and crew.
Current test contains SETS questions in area «Business». Those questions can be used for competence verification specialist capable of preventing accidental situations related with transporting safety, or also for self-examination.
«Business» subject includes theoretical and practical information about advanced training for work on any type of vessel. The test provides essential knowledge of maritime economics and the commercial aspects of vessel operation. Participants will learn about shipping markets, chartering and the financial management required for profitable vessel operations. This module covers international trade regulations and the legal frameworks governing maritime business activities. The training focuses on developing skills in negotiation, contract drafting and effective communication within a business context at sea. Understanding risk management and insurance in the maritime industry is a key component of the test. The subject equips future maritime professionals with the business acumen necessary for leadership and decision-making roles on any type of vessel. By mastering it graduates will be prepared to contribute to the efficient and economically successful operation of maritime transport businesses.
On this site SETS on the subject «Business» contains 68 questions you need to answer with no possibility to go back to previous question. Therefore, we recommend carefully reading each question and making decision with no hurry. In case you have some difficulty answering, you have also possibility to request a hint.
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Amount of questions: 68.
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What is a «BAREBOAT CHARTER»?
When a ship is delivered to the charterer without stores, provisions, and bunkers.
It is a charter for an agreed period.
It is the charter of a ship that has no cargo handling equipment.
It is the charter of a ship whose cargo holds are empty.
When can an owner place a «LIEN» on a cargo?
When he changes his mind about what he considers as unfair conditions, in the charter party.
When the master considers that the charterer’s agent is excessively demanding and unreasonable.
When the owner believes that the charterer is paying him less freight, than similar ships of age and class are receiving.
When freight is owing or unpaid on any part of the cargo at the destination, then a common law lien is allowed on the unpaid freight.
What is «FREIGHT»?
The remuneration payable by the charterers to owners, for the carriage of the goods.
The amount of cargo the named ship in the charter party is required to load.
The deadweight displacement of the ship and the basis for calculating port dues.
The remuneration payable in advance by charterers to owner, before loading is allowed to commence.
What does the term «RE-DELIVERY» mean with reference to charters?
It simply refers to the return of the vessel to the owners, upon completion of the charter hire.
It means returning cargo found to be damaged or in poor condition, to the shippers, at the charterer’s expense.
It is the term used for the redelivery of any excess bunkers remaining upon completion of the charter, to the latter or his agent.
In general, it is the term used requiring charterers to redeliver the ship in the «same good order» as delivered, fair wear and tear excepted.
What should the correct working relationship between the Master and the Charterer be?
The master, as the servant of the owner has no direct dealings with the charterer.
The master is always subject to charterer’s orders, regarding the ship’s employment and agency matters.
The master can decide on his own, as to whether or not he should follow orders coming from the charterer, or the charterer’s agent.
Neither the master or his Officers need concern themselves over complaints made against them by charterers to owners.
When does «Laytime» start on a voyage charter?
Immediately after the charter party has been agreed.
Immediately after the vessel arrives at the loading port.
When Notice of Readiness has been sent meaning that the ship is ready to load.
Once the vessel is secured alongside, with the gangway down, at the loading port.
How should the master treat cargo claim surveyors who are «LOOKING FOR EVIDENCE?»
He should give them a free hand by letting them they go wherever they please and let them interview anyone onboard.
He should be stiff and reticent in the belief that such surveyors are trying to pin responsibility for any damage on the owner.
He should invite them into his cabin, ply them with drinks and during the conversation do his utmost to convince them to see things his way.
He should receive them courteously, but ensure they are accompanied by an Officer wherever they go.
When can a vessel be declared as «OFF-HIRE»?
Once the vessel becomes unavailable to the charterer, due to machinery, crew strikes, hull damage or drydocking.
When a vessel is between charters and is in the market looking for employment, then it is off-hire.
At anytime it is not possible to work cargo such as weekends, holidays, bad weather, and delay in delivery of cargo etc.
Anytime the owners and charterers have a disagreement then the ship goes off-hire until they resolve their differences.
What is a «NOTICE OF READINESS»?
Notice given by the owner to the charterer, that his vessel has arrived and is ready to commence loading or discharging.
Notice given by the master to the harbour master, that his ship is ready in all respects to commence loading or discharging.
Notice from the master to the charterer’s agent, that the vessel is ready in all respects to commence loading or discharging.
Notice given by the master to the owner’s agent that his vessel is ready to commence loading or discharging.
When is the «CHARTER HIRE» of a time chartered vessel paid?
It is paid in advance for the entire period of the agreed charter.
It is paid at the end of each voyage.
It is usually paid every 15 or 30 days, in advance, after deduction of the broker’s commission.
It is only paid upon completion of the entire charter period, after deduction of specified expenses such as broker’s commission.
In the voyage charter party what «deviations» are usually considered as justifiable?
None. A ship that deviates for whatever cause automatically goes off-hire.
When the remaining bunkers are not sufficient to make it to the designated voyage port.
When the crew’s provisions are not sufficient to make it to the designated voyage port.
When made to save life or avoid an imminent danger.
What is the principle of General Average?
Any expense incurred in saving the ship (and cargo) from a perilous position is wholly for the account of the buyer of the cargo.
As General Average is a partial loss because of a deliberate act by the master, then it follows that the owners must bear the cost of the loss.
The principle of GA is that which has been sacrificed for the benefit of all, shall be made good by the contribution of all.
The charterers are liable to all other parties for any losses sustained, as a result of General Average.
What are the York-Antwerp rules?
Rules incorporated into national law, that are voluntarily and naturally accepted by shippers, shipowners, and insurers.
Rules set up to determine who is responsible for losses, as a result of General Average.
Rules drawn up by a number of maritime countries to enable the assessment of General Average.
Rules which are not usually incorporated into the contract of carriage.
What is a «LETTER OF PROTEST»?
It is a written communication to convey dissatisfaction by one party concerning an operational matter controlled by the recipient.
A written communication from the charterer to the owner, about the unprofessional behaviour of the master and his crew.
A written complaint from the master to the owner, criticising what he considers to be unreasonable demands from the charterer.
A written protest from a crew member to the master clearly stating he does not agree with the disciplinary action taken against him.
What does «STCW» mean?
Standards of Training, Certification and Watchkeeping.
Standard training and conditions of work.
Standard training in conventional workplaces.
Safe training certificates for the workplace.
When is a ship deemed to be «SEAWORTHY» for charter purposes?
At anytime it is able to proceed to sea, regardless of any defects.
As long as the master believes his vessel to be seaworthy then it is seaworthy, and nobody can dispute this.
Once all its certificates are in order, and all its crew are considered competent, then a vessel is deemed to be seaworthy.
A ship is deemed to be «Seaworthy» when she is reasonably fit in all respects, to encounter the ordinary perils of the sea, of the adventure insured.
What is a «DIRTY BILL OF LADING»?
It is a bill of lading presented by a suspicious shipper, known to deal in contraband goods.
It is simply a bill of lading that has become soiled by dropping it or some such, thereby making it difficult to read.
It is a claused or foul bill of lading that has doubting remarks written on it by the master about the cargo loaded.
It is a bill of lading used for dirty or foul smelling cargo, such as animal hides.
What does «FAS» mean in the context of cargo?
Free alongside ship.
For all ships.
From any source.
For all systems.
What does «FOB» mean in the context of cargo?
For Overseas Bulk.
For Owner’s Bank.
Free On Board.
First On Board.
What does «C & F» mean in the context of cargo?
Call for resources.
Cost and freight.
Container freight.
Carrier for research.
What does «CIF» mean in the context of cargo?
Carriage in full.
Cost information facility.
Cost, insurance and freight.
Covered in full.
What does «CIP» mean in the context of cargoes?
Carriage and insurance paid.
Cargo in part.
Cargo insurance payment.
Claim insurance policy.
What is a «BILL OF LADING?»
It is a form of receipt, signed by the master confirming that goods described have been delivered to his custody & loaded onto his ship.
It is a notice to the master that the goods described will be delivered & loaded.
It is a simple form notifying the master on what time, date and place the goods described will be delivered for loading.
It is a document signed & issued by the shipper, clearly stating that the goods have been delivered & loaded.
What does the term «DISPATCH» mean with reference to cargoes?
The time and date a vessel departs or is dispatched, to commence a voyage.
The term used to describe a voyage that has taken less time than estimated.
When loading or discharge is completed in less time than laytime allows, owners are required to pay a «Reward» or dispatch, to the charterer.
The time a chartered ship completes loading or discharge on time, and departs or is dispatched to its next port.
What is a «LETTER OF INDEMNITY» presented with a Bill of Lading?
It is a letter clearing the shipper of any responsibility for damage to cargo enroute to destination.
It is a letter offered to the master to sign «clean bills of lading» even though he knows the goods are defective. The master should not accept it.
It is a letter absolving the ship from any blame for damaged goods at the discharge port.
It is a letter clearly stating that receiver will accept full responsibility for damage to cargo at time of discharge.
What is «DEMURRAGE»?
Damages payable by the charterer to the owner, when the laytime has expired and the vessel is still not completely loaded or discharged.
Damages payable by the owner to the harbour authorities, for occupying a berth for a period longer than the stipulated laytime.
The number of days that must elapse, after the laytime has expired, before the owner can claim damages from the charterer.
The term used when a chartered ship completes loading or discharge in less time than the laytime.
What are the «HAMBURG RULES»?
Rules that are essentially the same as the Hague-Visby rules, but more preferred by shipowners because of their precise conditions.
Rules that only apply to vessels of German Registry or ownership.
Rules that clearly state that the carrier is liable from time of acceptance and that he is not exonerated from negligence in navigation etc.
Rules created at the request of carriers, who protested that existing rules provided too much protection to the shippers.
What is a «CHARTER»?
A term used to describe any voyage, from loading port to discharge.
A contract for the hire of a ship for a voyage or series of voyages, or for the carriage of a specific quantity of cargo on a number of voyages.
A specific period in the life of a ship, that describes its employment history.
The lease of a ship by a third party, whereby the charterer assumes the rights of ownership.
What are «Laydays?»?
Days when a vessel is not employed.
Days allowed by a charter party for loading and/or discharging a vessel.
Days the charterer allows the vessel to prepare for loading, after arrival at the loading port.
Days allowed for the voyage, from the loading port to the discharge port.
What is «Laytime?»?
Days allowed by the charterer to the owner for loading/discharging, without incurring demurrage charges.
Designated rest days during the loading or discharging, such as weekends/holidays.
The time the vessel waits at anchor, pending the acceptance of the tendered «Notice of Readiness».
Days a vessel is declared off-hire regardless of reason.
What is the «CANCELLATION DATE» with reference to charters?
The date stipulated in the charter party, by which either party may give notice to cancel the charter.
The date beyond which, if the vessel is not presented for loading, the charterers may reject the vessel.
The date the charter party expires.
The date by which the owner may serve notice of cancellation, if a better employment opportunity presents itself.
What are an insurer’s «LIABILITIES AND EXCLUSIONS» in the context of marine insurance?
An insurer is liable for anything that may happen, and excluded from nothing.
An insurer is liable only for losses caused by peril, but excluded for losses attributable to the master and the crew.
An insurer is liable for items such wear and tear, machinery breakdown and infestation, but is not liable for grounding or weather delays.
An insurer is liable for any loss or peril insured against, but not liable for any loss caused by perils not insured against.
What is the prime function of a Bill of Lading?
To form a part of the master’s records, of cargo loaded onto his ship.
It is a receipt for goods received for shipment, and loaded onboard. Possession of the original is proof the holder is the owner of the cargo.
It is a receipt, issued by the shipper, stating the goods delivered are correct in quantity and are in good order.
It serves as a clearance from Customs, to allow the goods described to be loaded or discharged.
In relation to the ISM code, what is the function of the «DESIGNATED PERSON»?
This is just a alternative title for the master.
The person with a direct link between management & the ship. He assumes responsibility in the event of an incident.
The person appointed by the company to visit all fleet ships regularly, and check SMS systems are in place.
The person ordered by owner to visit the ship unannounced, and to report back his findings.
What is a «SECOND REGISTER»?
A system of dual registration, as applied to some bareboat charter agreements.
The system used to change the Registry of a vessel, on a long-term time charter.
A system that allows owners to change Register, when trading their vessels in politically sensitive areas.
An alternate register of a sovereign state that allows an owner the right to use crew of a different nationality.
What are seen as the benefits of «FOC» registration?
There are no real benefits. It simply allows an owner the right to register outside his country.
More flexibility, allowing the owner to trade wherever he wants, without restriction.
Lower taxes and registration fees; also allowing the engagement of crews of different nationality.
It allows an owner to operate his ships, without any form of insurance cover.
What does «ISM» mean?
International Safety Management.
International Safety Method.
International Shipping Magazines.
International Ship Manoeuvres.
What are the objectives of the «ISM» code?
To force all ship owners to apply minimum standards to both their ships and their crews.
To ensure safety, avoid damage to environment, apply international safety standards for operating ships.
To eliminate FOC & 2nd registers.
To give authorisation to bodies such as port state control, to detain substandard ships with substandard crew.
What is «MARPOL»?
A marine police authority.
A marine policy.
A marine pollution convention.
A mariner’s policy for cleaner seas.
When should the master send «A LETTER OF PROTEST»?
Whenever he is in doubt about the credibility and attention of the agent.
Whenever he considers the demands of the crew are excessive and unreasonable.
Whenever there is a discrepancy between the ship’s & shore cargo figures/when he considers the berthing arrangements unsafe & inadequate etc.
Whenever he is not happy with the performance of the ship and its crew. Also, when he is unhappy with its voyage routes and cargo to load.
What is considered as «Negligence» on the part of the master, in the context of marine insurance?
When he fails to take over on the Bridge, when making a landfall, or on departure until clear of land.
When the master fails to enter his instructions, for safe navigation, in the night order book, each evening before retiring.
When the master fails to develop a «first name» relationship with his Officers, thereby failing to establish a responsible attitude from them.
Negligence occurs when a master fails to do something he is expected to do, or when he does something a prudent master would not do.
What do the letters «IMO» stand for?
International Merchandise Organisation.
Implementing Maritime Order.
Investigating Marine Organisation.
International Maritime Organization.
What is an «OUTWARD CLEARANCE», and how is it obtained?
It is a routine document that an agent is authorised to issue once cargo operations are completed and ship is ready to sail.
It must be obtained from customs by the agent on behalf of the master. It requires submitting various pertinent ship’s documents.
Outward clearance is issued by Customs when the ship is being entered in. It requires the payment of a small fee but nothing else.
The shippers issue it or stevedores once all cargo is loaded or discharged, and all dues for services rendered have been paid.
What penalties can be imposed for breaching the «COLLISION REGULATIONS?»
There are no specific penalties, because it has not been possible to get all states to agree to the «COLREG CONVENTION OF 1972».
After a brief marine inquiry, it is customary to impose a small fine.
Collisions at sea are regarded as human errors that are not intentional and so there are no penalties.
It depends on the courts; they have powers to impose heavy fines and imprisonment.
What does «OPA 90» mean?
Offshore Petroleum Act of 1990.
Oil Pollution Act of 1990.
Offshore Pollution Amendment of 1990.
Onboard Protective Authorisation of 1990.
What constitutes an «ACT OF SALVAGE»?
When you find something valuable in the sea & retrieve it, it now belongs to you.
The process of saving part of the ship, when it is in imminent danger of being completely lost.
Any act or activity undertaken to assist a ship or other property, that is in danger of being lost.
Salvage is the act of saving a ship in imminent danger of sinking, whether requested to assist or not. If saved, ship now belongs to salvor.
What is a Lloyds Open Form 95 (LOF 95)?
An agreement between master and salvor that must be formally executed, before salvage operation can commence.
It is an open agreement, clearly stating a salvor is only entitled to be compensated or retain that which he saves undamaged.
An agreement to which the master gives his written consent before salvage operations can begin.
An agreement between the master and salvor. It is a no cure, no pay agreement, which is fair to all parties involved.
What constitutes a «Port of Refuge?»?
Any port made for when the master considers it unsafe for the vessel to continue her voyage.
The closest port available that the master heads for with the imminent approach of bad weather.
A port that allows the master to off-load refugees or boat people without any restrictions.
A port the master heads for when he believes he cannot make it to his scheduled destination.
What is a «SAFETY MANAGEMENT SYSTEM» designed to accomplish?
To require a company to ensure its systems and procedures are documented and all operations are carried out according to these procedures.
To force companies to hire only experienced officers & crew.
To require a company to give assurances to P & I Clubs and Classification Societies that they have a safety management system installed.
SMS is just another creation of bureaucrats who think they know more than experienced owners. The latter can decide for themselves to use it or not.
In the event of a «Hull and Machinery» claim, who is appointed to investigate, and report?
The master, being on the spot, is the most likely to be appointed.
The underwriters will appoint a surveyor of their choice, to ascertain the nature, cause and extent of the damage.
An average adjuster will be appointed, to investigate and report to the underwriters.
The harbour master, being an impartial person, is most likely to be asked by underwriters to investigate.
When is a vessel considered to be a «TOTAL LOSS?»
When it is no longer able to trade without incurring major machinery breakdowns or repeated cargo equipment failure.
When it is missing or when cost of repair exceeds value.
When there has been no communication with the vessel for more than a week.
When it is seriously damaged as a result of a collision and can only be repaired in a drydock.
What is a «DEDUCTIBLE» in the context of marine insurance?
A negotiated amount that the owner undertakes to self-insure against.
Amounts that the insurers impose as a penalty for not filing a claim within three months.
An item which insurers are not prepared to arrange coverage for.
A reduction insurers grant to owners with consistent good performance.
What perils are normally excluded from hull and machinery cover?
There are no exclusions.
Negligence of master, officers, crew and pilots.
Unlawful acts willfully committed by the master, officers or crew, to the prejudice of the owners.
War zone, strikes and malicious acts.
What does «P & I» mean in the context of maritime business?
Protection and Identification.
Particular and Individual.
Protection and Indemnity.
Partnership and Industry.
What are the functions of the «P & I» clubs?
To insure owners against third party liabilities.
To insure cargo against theft and damage.
To protect ship’s personnel against sickness, injury, death or disability.
To protect owners against a total loss.
Which insurance coverage protects an owner against «COLLISION LIABILITY»?
The P & I club.
The owner’s hull and machinery policy.
The owners have the choice of which insurer to claim from.
There is no coverage from own damage losses, as a result of a collision.
What does «FOC» mean?
For Our Convenience.
Flag of Convenience.
Foreign Officers’ Club.
Final Official Convention.
What is the function of an «AVERAGE ADJUSTER??»
To determine who is responsible for the loss on which the claim being made.
To protect the interests of the charterer to the best of their ability.
To assess the proportion of compensation paid to various interested parties in the event of a total loss.
To adjust General Average.
What is «INTERNATIONAL MARITIME LAW?»
Law recognised by P & I clubs and other insurers when settling claims.
Law that is only applicable to collisions and other violations of the rules of the road.
There is no such thing, as it has never been possible to get multiple sovereign states to agree to a common ground.
Law regulating relations between sovereign states, detailing their rights and duties to each other.
What documents and information will be required from a ship when filing an insurance claim?
As much as possible including deck & engine logs, master & c/e reports, letters of protest, surveyors report, repair receipts etc.
Underwriters only need log books & the master’s or chief engineer’s report, together with photographs of the damage.
Underwriters will require nothing from ship, but will decide claim solely on their surveyor’s report.
Nothing required directly from ship. Such claims usually settled at meeting in owner’s office on the principle of «Utmost good faith».
What is the extent of a «P & I» club’s cover?
Complete coverage for any & all claims, within the limitation amounts specified in the policy.
Most clubs are prepared to provide a range of cover to suit an owner’s particular needs.
P & I club cover is generally limited to personal injury and death claims only. Very limited cover may be incl. for cargo damage & pollution.
P & I club cover is very selective and only available to those owners considered prudent. Owners with poor records are not accepted.
What sort of personal injury cover do «P & I» clubs provide?
They only cover sickness & injury to the ship’s crew. Repatriation & replacement costs are not included.
The clubs generally cover all legal liabilities connected to all personnel for injury & death from non-work related illnesses.
Coverage is provided for medical treatment, repatriation & replacement plus whatever was stipulated in employment contract.
Claims for personal injury must be work related & confined to crew. Civilians injured whilst conducting business on board are not covered.
What does «SOLAS» stand for?
Safe official lifeboat appliance signals.
Save our lives and ship.
Safety of life at sea.
Safe orderly lifesaving appliance system.
What does «ILO» stand for?
International Labour Organisation.
Intermediate Lifeboat Operation.
International Labour Operation.
Inoperative Lighter Overload.
What sort of agreement exists between the master and the crew?
A formal agreement required by the rules of the ship’s flag state that the entire crew must sign.
An agreement the master requires the crew to sign as the owner’s representative. A letter of appointment covers the master himself.
It is just a kind of logbook in which the master records the signing on and off of crew.
A crew agreement no longer involves the ship owner, as his agent shall attend to such matters.
How do «P & I» clubs provide advice to owners at far distant ports?
By telex, fax or telephone instructions.
By flying a representative out from the home office.
Through their nearest correspondent from their book of correspondents.
Through a local marine lawyer or surveyor.
What does «CPT» mean in the context of cargo?
Cost paid at terminal.
Carriage paid toll.
Container port terminal.
Carriage paid to.
What does «DDP» mean in the context of cargo?
Departure Date Pre-agreed.
Delivery Day Pre-agreed.
Delivered Duty Paid.
Duty Due Paid.
