ocean freight terminology
CharterpartyA written contract between a shipowner and a charterer who rents use of the ship or part of its freight capacity. ISF: Importer Security Filing – A US Customs and Border Protection (CBP) regulation requiring importers and vessel carriers to provide data electronically to CBP for in-bound ocean shipments. Plus discussing it with a carrier may feel like their speaking a foreign language if you aren’t familiar with the abbreviations they’re using. Bill of Lading (BOL) - The bill of lading (BOL) is the legally-binding contract between the shipper and the carrier, broker or agent that defines all aspects of the freight shipping arrangement including what is being shipped and to whom. 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. Bill of ExchangeAn unconditional order in writing, issued by the seller (drawer) instructing the buyer (drawee) to pay the seller's bank (payee) a specified amount (normally the full invoice value) on demand (at sight) or at a fixed or determinable future time. Non-conference shipping lines are sometimes referred to as independent or outsiders. Intermodal Versus Multimodal – What’s the Difference and Which Should You Select? The Bunker Adjustment Factor, or BAF, as it is more commonly known, is one of the charges levied on goods transported via Sea Freight. goods, freight planning is an important component of the statewide and metropolitan planning process. Duty DrawbackIf goods which have been imported, and upon which customs duty has been paid, are exported or have been used in the manufacture of goods which have been exported, then the exporter may be entitled to a refund of the original import duty paid. BL Fee: Bill of Lading Fee – The shipping line charges this fee for processing the bill of lading on behalf of their client. These ships generally rely on infrastructure on the wharf to load and unload the containers. What is Intermodal Transportation and When is it the Best Choice? C&F Cost and Freight (named port of shipment) - IncotermsThis abbreviation was changed in 1990 to CFR but is still commonly used. All Rights Reserved. What You Need to Know About Shipping Hazardous Materials. Typically this term would be used for bulk cargo on a chartered ship. On Board / Shipped On BoardA notation on a bill of lading, indicating that not only did the carrier receive the goods in good order and condition, but they were also placed on board the ship. They include Seattle, San Francisco, Oakland, Long Beach/Los Angeles, and more. Bill of Lading (B/L)The document which covers transport by sea. How Will You Benefit From Intermodal Transportation? TareThe weight of packaging or a container without the goods. All Risk: A type of Marine Insurance, which is the widest coverage. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. 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. Freight ForwarderA person or corporation who arranges transport of goods on behalf of either the seller or buyer. 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. 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. Being based on FCA, this term may be used for any mode of transport. The land between the two ports is the “land bridge.”. SWIFTSociety for Worldwide Inter-bank Financial Telecommunications, whereby banks can electronically transfer funds, issue L/Cs, etc. VolumetricA notional or calculated weight for bulky goods sent by air. It can be helpful to understand what these are when importing and exporting. 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. How to Get a Job in Transportation or Logistics. Weather-How does it impact your shipments? Terms & Conditions - Ocean Freight Terms & Conditions - Ocean Freight SEKO Worldwide, LLC NVOCC BILL OF LADING – TERMS AND CONDITIONS. An example of this is freight that is transported via water from the West Coast to the East Coast of the United States and then by truck or rail to Ohio. 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. 1.1 Please carefully read these Terms as they govern the contractual relationship between the Customer and CEVA, unless and to the extent prevailing valid contractual arrangements are in force between the Customer and CEVA in respect of the relevant Shipment. Shipping MarksSpecific markings on packages to identify them apart from other packages and to identify them on the relevant documents. These standard trade definitions state the responsibilities of sellers and buyers who enter into international sales contracts. Aft 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. An individual, partnership or corporation which arranges transportation service for client companies. BIFA (British International Freight Association) 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. This term may be used for all modes of transport. Need help with your next shipment? Open AccountThe seller allows the buyer to send payment at some future time (ie 60 days). CYContainer Yard - place or depot where individual containers are held prior to loading on board a ship and after unloading from the ship. 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. 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. It is issued by the carrier, whether an airline or a freight forwarder, as a non-negotiable document serving as a receipt to the consignor for the goods, and containing the conditions of transport. This term may be used for any mode of transport, including multi-modal transport. 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. if FI, then the shipper is responsible for the cost of loading goods onto a vessel for the international shipping overseas. 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 Also shown sometimes as 167 kg = 1 cbm, More international shipping terms and list of U.S. American Group25 S. Arizona Place., Suite 300Chandler, AZ 85225Phone: 480.406.6102Fax: 480-966.3584. How is AI used in Supply Chain Management and Logistics? Virtually all L/Cs issued under UCP500. GAS: Gulf of Aden Surcharge – Compensates shipping lines for additional costs incurred due to transit through the Gulf of Aden. Goods to be delivered ‘alongside”. Cost, insurance, and freight (CIF) is an expense paid by a seller to cover the costs, insurance, and freight of a buyer's order while it is in transit. What Costs are Included in a Shipping Quote? American Group today announced that it joined the SmartWay Transport Partnership, Ways To Contain Your Trade Show Freight Shipping Costs. Bank GuaranteeA document issued by a bank acting as a guarantor for their customer. FO is the international shipping term in ocean freight that indicates that the consignee (recipient) is responsible for the cost of unloading cargo from the vessel at the destination. 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. Alongside: A phrase referring to the side of a ship. Tips to make your tradeshow freight shipping go smoothly, Seven Factors Affecting Freight Transportation Today. DEQ Delivered Ex Quay (named port of destination) - IncotermsSimilar to DES but the seller must also arrange discharge onto the quay or wharf. This fee is payable to a shipping line for receiving a full container load, storing it, and delivering it. 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. Obviously, it cannot apply to airfreight. Insurance CertificateA certificate issued by the insurance underwriter giving details of a particular transaction which is held insured under an insurance policy. Although the seller agrees to pay all costs and freight to the port of destination, his responsibility for delivery ends when the goods have been delivered on board the overseas vessel at the port of shipment. Shipping freight LCL Vs. other modes of transportation, Sea ports and Container Freight Stations (CFS), http://www.iccwbo.org/incoterms/id3040/index.html. This term can only be used for sea or inland waterway transport. A simple explanation of shipping terms. 'the company has 10 ships afloat'. Being based on FCA, this term may be used for any mode of transport. Now required only by a handful of countries. U.S. trucking services are provided by Flexport International, LLC, a FMCSA licensed property broker USDOT #2594279 and MC #906604-B. Will these solutions ease delays at Ports? 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. CAF: Currency Adjustment Factor – A charge that is expressed as a percentage and applied to the base rate to account for currency fluctuations. Electronic Logging Devices - The New ELD Requirement. 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. Term DraftA bill of exchange drawn for a period other than at sight or on demand. In some countries where the buyer may have trouble arranging an import license, the applicant may be a third party acting on behalf of the buyer. Value for DutyThe value of an import declared to the customs upon which customs duty will be calculated. BUC: Bunker Charge – An extra charge that is sometimes added to steamship freight rates to cover higher fuel costs (see also BAF and FAF). Cost and Freight (C&F) means that the seller must pay the costs and freight in order to transport the goods to the port of destination in question. How does the online freight calculator work? These two terms are often used interchangeably in ocean freight and refer to the operator of the vessel itself. ApplicantThe buyer who has requested his bank to arrange an L/C on his behalf. ________________________________ Photo credit: Copyright: dizanna / 123RF Stock Photo. A term used in marine transportation referring to the time it takes between arrival of a ship and its departure. Overcoming the Complexities of International Freight. 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. They help prevent misunderstandings between traders and reduce trade disputes. Most freight shipments that move by ocean, air, or rail are part of intermodal shipping that involves LTL or a TL service to deliver the cargo to the next mode of transportation. Expedited Freight Shipping Methods to Consider, 6 Factors Influencing Ocean Freight Rates, Air vs Ocean – 6 Factors to Consider When Shipping Internationally, American Group's 2017 National Carrier of the Year is UPS Freight. If you are new to shipping terms contracts you may be unaware of the different trading practices in their respective countries. Need not always be the buyer, and in some countries will be the buyer's bank. FIO (Free In and OUT) ReeferColloquial for a refrigerated container. For example, floods, earthquakes, civil unrest and so on. TenorThe period of time before a bill of exchange falls due for payment. Air warmed by the container cargo delivered to the evaporator. It will be combined with other LCL cargo from other shippers going to the same destination port, into a FAK FCL. Container shipThe ship designed to take ISO (International Standards Organisation) containers in vertical cells within the ship's holds as well as on the deck. Air Waybill (AWB)The document which covers transport by air. This term can only be used for sea or inland waterway transport and its correct use is only when using a chartered ship, or when goods are not containerized. 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. ERR: Emergency Rate Restoration – A surcharge added to the cost of freight to cover increases in shipping costs. Trade Terms are key elements of international contracts of sale. LCLLess than Container Load, a small amount of cargo insufficient to on its own be economically shipped as FCL. The spare volume of a container or the cargo hold of a vessel where no cargoes are stowed. Can be inland or at the dock-side. < -- Back to international shipping terms. Value-added service options may vary by origin, destination and freight service selected. Additional information including fuel surcharges, holiday schedules and information for processing your UPS Freight shipment. ManifestA list of the various shipments being carried on a ship or aircraft. CFSContainer Freight Station - place or depot where individual LCL cargo is loaded into, and unloaded from, containers. 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