ManifestA list of the various shipments being carried on a ship or aircraft. Incoterms - a.k.a. Non-conference shipping lines are sometimes referred to as independent or outsiders. Notify PartyThe person or company to be advised by the carrier upon arrival of the goods at the destination port. FAS Free Alongside Ship (named port of shipment) - IncotermsThe seller fulfills his obligation to deliver when the goods are placed alongside the vessel at the named port of shipment. DemurrageExtra charges paid to a carrier when loading and/or unloading has not been completed within the specified time. Demurrage and Detention Fees – What’s the Difference and How Can You Avoid Them? This is generally used by the Customs authorities in the importing country to assess customs duties payable. Unclaimed freight. Self-Driving Trucks -- Where are They Headed? Insurance CertificateA certificate issued by the insurance underwriter giving details of a particular transaction which is held insured under an insurance policy. Liner termsFreight rates which include loading/unloading charges, generally with regular shipping lines. ... Sea Freight - Ratio is 1CBM = 1 tonne. Goods shipped loose in the vessel hold and not in a container. Commercial Freight Only, FCL: Containers with Household Goods (no cars), Shipping Household Goods – General Information, Importing Goods to the USA / U.S. Customs Broker. BAF: Bunker Adjustment Factor – This fee is comparable to a Fuel Surcharge in trucking except it’s for the steamship line to cover fluctuating fuel costs. This term describes a type of intermodal freight involving ocean and truck or rail to move a shipment from one port to another. Bill of Lading (B/L)The document which covers transport by sea. CPT Carriage Paid To (named place of destination) - IncotermsThe seller must pay the costs and freight necessary to bring the goods to the named destination but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. Multimodal (or “any mode”) InsuranceA process whereby someone with a risk of something happening to their financial detriment (the assured) pays someone else (an underwriter) a fee (premium) to bear that risk on their behalf. This means goods are to be delivered to the port of embarkational, but without loading fees. The penalties for miss-declaring or failing to declare hazardous or dangerous cargo are extremely high. A small misunderstanding with the shipping terms could lead to disputes over who was meant to pay for the overseas freight, insurance or other costs involved in the shipment of goods. FIS Free into Store - IncotermsAn unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. This is a flat rate per container when it is charged. Driver Cameras – Protecting the Company and the Driver, PO’s – Their Importance In The Shipping Process, Inbound Logistics – What It Is, Why You Should Control It and How. Pro Forma InvoiceA sample invoice issued by the exporter before shipment, which the importer may require to arrange import approvals or apply for a letter of credit. ERR: Emergency Rate Restoration – A surcharge added to the cost of freight to cover increases in shipping costs. AWS: All Water Service – This is one of the most cost-effective and eco-friendly ways to ship your cargo. When time is of the essence, LC Freight can provide reliable, cost effective options to deliver your freight on time. Letter of Credit - IrrevokableA credit which cannot be revoked, canceled or amended unless the beneficiary agrees. THCTerminal handling charge, levied by CY and CFS operators for goods passing through their operations. IPI: Inland Point Intermodal – These shipments move inland from a port via truck or rail to a non-port destination. The space not filled with liquid in a drum or tank. Weather-How does it impact your shipments? What is the Difference Between LTL & FTL? CarnetA document, normally issued by a Chamber of Commerce which is a member of the International Chamber of Commerce (ICC) to enable the holder to temporarily take merchandise into certain countries, as samples or for display purposes, without the need to pay import duty or pay a bond for the duty. The coordinated transport of long-haul movements using any combination of modes, freight forwarders or motor carriers. Below are some of the most common ocean freight routing terms. Overcoming the Complexities of International Freight. Air Waybill (AWB)The document which covers transport by air. The temperature of return air often controls the operation of the refrigeration unit. STCSaid to contain, often placed before the description of goods on a bill of lading because the carrier does not know the nature or quantity of goods actually placed in the packages or the containers. ISPS: International Security Port Surcharge – These are for security of both your container and the vessel while they are at the port. These are available from most major Chambers of Commerce, or from us at AUD 20.00 including postage, handling, and GST, to Australian addresses only. CAF: Currency Adjustment Factor – A charge that is expressed as a percentage and applied to the base rate to account for currency fluctuations. Panama Canal Expansion – How is it impacting shipping? You’ll clearly understand all the ocean freight abbreviations and be able to make educated shipping decisions. BSRABasic Service Rate Additional - the charge levied by shipping companies to importers for LCL cargo, including the port charges, transport to an unpacking depot (see CFS) subsequent sorting and storage of the goods and finally loading onto a vehicle collecting the goods for delivery to the buyer. DDU Delivered Duty Unpaid (named place of destination) - IncotermsThe seller fulfills his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation. Conventional shipThe ship designed with holds which can load almost any type of loose cargo, such as drums, sacks, crates, pallets etc. UCP500Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce publication 500, which lays out guidelines for banks to follow when dealing with L/Cs. International ocean freight forwarding services are provided by Flexport International LLC, a licensed Ocean Transportation Intermediary FMC# 025219NF. Afloat: The condition of a vessel which is floating freely (not aground or sunk). Electronic Logging Devices - The New ELD Requirement. TareThe weight of packaging or a container without the goods. The seller is responsible to clear the goods for export. Will there be overtime for the trucking industry? This term may be used for all modes of transport. It will be combined with other LCL cargo from other shippers going to the same destination port, into a FAK FCL. How to Gain Control of Expedited Freight Costs, 5 Considerations When Selecting an Expedited Freight Method, Navigating the Driver Shortage ~ Simplified (Part 2), Navigating the Driver Shortage ~ Simplified (Part 1). Sight DraftA bill of exchange drawn "at sight" meaning that as soon as the drawee accepts the bill it falls due for payment. MLB: Mini Land Bridge – IPI and MLB are used interchangeably on occasion. USGC: United States Gulf Coast – This term applies to all the freight ports along the Gulf Coast of the United States. TenorThe period of time before a bill of exchange falls due for payment. DTHC: Destination Terminal Handling Charge – Fee charged by the port of arrival or port of discharge to lift the container onto or off the vessel. BAFBunker Adjustment Factor - an adjustment to shipping companies' freight rates to take into account fluctuations in the cost of fuel oil (bunkers) for their ships. In the international ocean freight terminology, the word “Free” means “Not included”. CSA—Concerns expressed… So what’s happening now? CYRC: Container Yard Receiving Charge – Also known as CYC (Container Yard Charge) or a Terminal handling charge. The following summary provides an overview and description of freight modes of transportation found in Michigan, including definitions and terminology that are commonly used in the freight industry. Shipping Information. Contact us for assistance with your next shipment by phone at 866-553-6608 or by email at Info@ShipAG.com. DDC: Destination Delivery Charge – This charge is based on container size. They include Seattle, San Francisco, Oakland, Long Beach/Los Angeles, and more. Finddivers.com; Shipyards.gr; Shipsafety.gr; Marinesoft.gr; Our Services; Technical Library; RSS; Login Cash Against Documents (CAD)An arrangement whereby the buyer pays for goods as soon as the buyer receives the seller's documents. It is applied in many tariffs to cargo as an accessorial charge on base ocean freight. Its correct use now is only where the ship's rail is relevant to the transaction, such as when using a chartered ship, or when goods are not containerized. LCLLess than Container Load, a small amount of cargo insufficient to on its own be economically shipped as FCL. It can also be used as an offer to sell goods. DES Delivered Ex Ship (named port of destination) - IncotermsThe seller makes the goods available to the buyer on board the ship at the destination port and is responsible for all costs and risks until that point, as well as arrival within the given period. They have been used for a long time in maritime and air transport. Unit load Broker . Common term for an ocean-going freight container. Aft An agreement made by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer. Commercial InvoiceA document issued by the seller, addressed to the buyer, giving details of the individual transaction, including a complete description of the goods, prices, currency, delivery and payment terms and so on. All Risk: A type of Marine Insurance, which is the widest coverage. The seller has to bear the risks and all costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. Renegotiating NAFTA - How Will It Impact You? Term DraftA bill of exchange drawn for a period other than at sight or on demand. We’re here to make Shipping.Simplified®. Considering transport costs, sea freight is a cost-effective choice as a means of transporting goods. They include Houston, the largest container port in the U.S. USWC: United States West Coast -- This term applies to all ocean ports along the West Coast of the United States. Agents are not normally involved in delivery or servicing of product. Generally stated as 6000cm3 = 1 kg, meaning that the total volume in cubic centimeters is divided by 6000 to give an equivalent weight in kgs. For more information on NVOCC services, access the UPS NVOCC Terms and Conditions. Is There Blockchain in Your Future Supply Chain? FCL: per-container LCL: per-wm Import/Export All countries ADE: ADEN GULF SURCHARGE FAF: Fuel Adjustment Factor – Same as BAF. FCL: per-container LCL: per-w/m Import/Export All countries SUE: SUEZ CANAL SURCHARGE: It is a surcharge applied to cargo transiting through the Suez Canal. These two terms are often used interchangeably in ocean freight and refer to the operator of the vessel itself. This particular charge represents the fluctuating costs to the shipping, as an example varying global oil prices. An example of these would be: CIF (cost insurance and freight) and CFR (cost and freight) both require the buyer to get the goods to the destination port, while absorbing all the costs and responsibilities. Contact American Group. A voyage charter party is a contract covering the transport of goods from one or more ports to one or more ports and will detail the costs and responsibilities involved. Ullage. They tell the parties what to do with respect to carriage of the goods from buyer to seller, and export & import clearance. Knowing these terms can also have an impact on important shipping related decisions. This is a term more generally used to describe vessels in service e.g. BL Fee: Bill of Lading Fee – The shipping line charges this fee for processing the bill of lading on behalf of their client. An example of this is sea freight – there are shipping terms that are exclusively used for sea freight. This term may be used for all modes of transport. The spare volume of a container or the cargo hold of a vessel where no cargoes are stowed. F. FAS (Free Alongside Ship Incoterm) FCA (Free Carrier Incoterm) FCL (Full Container Load) FOB (Free On Board Incoterm) Forty-Foot Equivalent Unit (FEU) Being based on FCA, this term may be used for any mode of transport. This term is for land transport only. Exchange RateThe price of one currency in terms of another. Value-added service options may vary by origin, destination and freight service selected. Value for DutyThe value of an import declared to the customs upon which customs duty will be calculated. Goods to be delivered ‘alongside”. Incoterms are a set of rules published by the International Chamber of Commerce (ICC). It also shows the details of the consignee so that they can be contacted on arrival of the goods. BeneficiaryThe seller in whose favor an L/C is issued, ie the person who will "benefit" from the L/C. CIF Cost, Insurance and Freight (named port of destination) - IncotermsThis term is similar to CFR but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods. C&F Cost and Freight (named port of shipment) - IncotermsThis abbreviation was changed in 1990 to CFR but is still commonly used. A term used in marine transportation referring to the time it takes between arrival of a ship and its departure. The Bunker Adjustment Factor, or BAF, as it is more commonly known, is one of the charges levied on goods transported via Sea Freight. Freight terminology can be confusing many of the phares we used have developed in different parts of the world at different times - you may even find the same active or document has different names just depending on whether the freight moves by road or air! Intermodal. CIP Cost and Insurance Paid to (named place of destination) - IncotermsThis term is similar to CPT but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from the carrier to the buyer. Incoterms are organized by modes of transport, either any mode or modes of transport and sea and inland waterway transport terms. Pre-paymentThe buyer pays the seller for the goods prior to shipment. In Australia, the value of the goods at the time of export from the exporting country, thus generally the FOB value and using the exchange rate at the date of export. An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a speci- fied price to accommodate an exporter or importer. How does the online freight calculator work? MLB: Mini Land Bridge – IPI and MLB are used interchangeably on occasion. Signed by the carrier, whether a shipping line or a freight forwarder, it serves as a receipt to the consignor for the goods, as evidence of the contract of transport containing the conditions of transport, and as a document of title by which possession of the goods can be transferred. Successful 3PL Selection and Relationships, Minimize the impact of DIM pricing on your budget, DIM Weight and how to minimize its impact, Weight and Research Inspections What they are and… how to reduce their impact on shipping costs, NMFC changes effective 4/18/15 - Concealed Damage window reduced to 5 days. A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | | W | Y | Z. Obviously, it cannot apply to airfreight. Ocean Freight: OF (the money due for the carriage of goods) Bunker: BUC (cost for the fuel used by the vessel during the voyage) Arbitrary: Charge to cover the cost of a feeder vessel to get the container to the main port; Seasonal Charges: Peak Season Surcharge: PSS; Winter Surcharge: For example, it is applicable during winter season to ports in Russia Freight ForwarderA person or corporation who arranges transport of goods on behalf of either the seller or buyer. It entails your shipment traveling from its port of origin to its destination solely via water routes. DDP Delivered Duty Paid (named place of destination) - IncotermsThe seller fulfills his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation, often the buyer's premises. Usually based on the value of the goods (ad valorem), on the physical nature of the goods such as quantity or weight, or on a combination of the value and other factors. "Our mission, is to service our valued clients by providing quality freight carrier options, at cost competitive rates and excellent service levels, all while providing … Now required only by a handful of countries. See also Bill of Exchange. CBP: Customs and Border Protection – This the duty and associated processing fee when shipping goods from one country to another. The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination and the buyer must be able to carry out any required export formalities. RIPI Reverse Inland Point Intermodal – This is similar to IPI except it applies when a shipment is traveling back toward its point of origin. This is similar in effect to DDP. What Costs are Included in a Shipping Quote? It can be helpful to understand what these are when importing and exporting. However, be aware of any extras, for example, additional fees charged for the forwarding service. It covers crane lifts off the vessel as well as drayage of the container and gate fees at the terminal. Use shared truckload when your freight is: There is normally an intermediary involved, ie a bank or an agent acting on behalf of the seller, to ensure that the transaction takes place smoothly. CYContainer Yard - place or depot where individual containers are held prior to loading on board a ship and after unloading from the ship. CertificateA general term for any document issued by the seller or another party, certifying to some action has taken place or some fact about the goods. RO-ROA "roll-on/roll-off" ship, where loaded transport vehicles are driven onto it, such as a car ferry, or where containerized and other cargo is loaded into it by forklifts or similar. Four Myths of Intermodal Shipping – Debunked. Trade Terms are key elements of international contracts of sale. ReeferColloquial for a refrigerated container. The land between the two ports is the “land bridge.”. Our Websites. What Impact Will President-Elect Trump Have On Trucking? 'the company has 10 ships afloat'. The buyer is responsible for customs clearance, and if he fails to do this, he is responsible for the consequences. Landed CostThe total cost which an importer pays to have goods delivered into their premises. The generic name of a number of traditional sailing vessels with one or more masts with lateen sails used in the Red Sea and Indian Ocean region, typically weighing 300 to 500 tons, with a long, thin hull. ________________________________ Photo credit: Copyright: dizanna / 123RF Stock Photo. Customs BrokerA person or corporation licensed by the Australian Customs Service to handle on behalf of importers the process of clearing goods through customs. Virtually all L/Cs issued under UCP500. Additional information including fuel surcharges, holiday schedules and information for processing your UPS Freight shipment. Alongside: A phrase referring to the side of a ship. Sometimes referred to as liner shipping. Also shown sometimes as 167 kg = 1 cbm, More international shipping terms and list of U.S. FCA Free Carrier (named place)- IncotermsThe Seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of a carrier, or another person, named by the buyer at the named place or point. Gross WeightThe total weight of a shipment of goods, including their packaging such as crates, pallets etc. CAFCurrency Adjustment Factor - an adjustment to shipping companies' freight rates to take into account the effect over time of fluctuations in currency exchange rates. 5 Key Benefits of Transportation Management Systems. What Costs are Included in a Freight Quote? ConsigneeThe party is shown on the bill of lading or air waybill to whom the shipment is consigned. FAKFreight All Kinds, as a general description of the goods on a master B/L, covered under the one freight rate regardless of the nature of the individual goods. CharterpartyA written contract between a shipowner and a charterer who rents use of the ship or part of its freight capacity. Incoterms 2000A set of rules for the interpretation of the most commonly used trade terms in foreign trade, recognized throughout the world, issued by the International Chamber of Commerce. USEC: United States East Coast – This term applies to all ocean ports along the East Coast of the United States. Terms & Conditions - Ocean Freight Terms & Conditions - Ocean Freight SEKO Worldwide, LLC NVOCC BILL OF LADING – TERMS AND CONDITIONS. The risk of the loss of or damage to the goods, as well as any additional costs as a result of events after the goods are delivered onboard the vessel, transfers from the seller to the buyer when the goods pass the ship's railing in the shipping port. To avoid confusion, take a look at these ocean freight abbreviations to ensure you’re clear on their meaning on your next shipping quote, invoice, or conversation. 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