(See also House B/L and Master B/L). This typically includes the costs of goods, international transport, insurance premium, port charges, customs duties, delivery charges, bank charges etc. Force MajeureA clause in a contract which protects both parties in the event that part of the contract cannot be complied with due to causes outside the control of the parties and could not have been avoided by exercising due care. When time is of the essence, LC Freight can provide reliable, cost effective options to deliver your freight on time. Air warmed by the container cargo delivered to the evaporator. Incoterms are a set of rules published by the International Chamber of Commerce (ICC). ConferenceA group of shipping companies who have associated to offer regular services on specific routes at published rates. CYRC: Container Yard Receiving Charge – Also known as CYC (Container Yard Charge) or a Terminal handling charge. Need not always be the buyer, and in some countries will be the buyer's bank. Shipping MarksSpecific markings on packages to identify them apart from other packages and to identify them on the relevant documents. They are trading vessels primarily used to carry heavy items, like fruit, fresh water, or merchandise. 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. Overcoming the Complexities of International Freight. Panama Canal Expansion – How is it impacting shipping? What is Intermodal Transportation and When is it the Best Choice? 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. Alongside: A phrase referring to the side of a ship. Will there be overtime for the trucking industry? The coordinated transport of long-haul movements using any combination of modes, freight forwarders or motor carriers. Being based on FCA, this term may be used for any mode of transport. This term may be used for all modes of transport. ISPS: International Security Port Surcharge – These are for security of both your container and the vessel while they are at the port. FIS  Free into Store - IncotermsAn unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. The Bunker Adjustment Factor, or BAF, as it is more commonly known, is one of the charges levied on goods transported via Sea Freight. 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. Shared truckload (STL) A freight mode that enables several shippers to share trailer space in one multi-stop full truckload. TransshipmentGoods are transferred from one ship to another at an intermediate port. 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. A suitable form can be obtained from the seller's bank, or drawn upon a blank sheet of paper. Armed with these translations and explanations, you’re better prepared to discuss your ocean freight requirements. Value for DutyThe value of an import declared to the customs upon which customs duty will be calculated. Commercial Freight Only, FCL: Containers with Household Goods (no cars), Shipping Household Goods – General Information, Importing Goods to the USA / U.S. Customs Broker. The seller is responsible to clear the goods for export. Free Carrier (FCA) Free carrier (FCA) terms mean that the seller must hand over the cargo to the … What is a Forwarding Agent for International Freight? Trade Terms are key elements of international contracts of sale. AI: All Inclusive – The total price to move cargo from point of origin to destination (transportation costs only). DEQ  Delivered Ex Quay (named port of destination) - IncotermsSimilar to DES but the seller must also arrange discharge onto the quay or wharf. Letter of Credit - DiscrepancyWhere a document does not comply strictly with the terms and conditions of an L/C. What Costs are Included in a Shipping Quote? Need help with your next shipment? if FI, then the shipper is responsible for the cost of loading goods onto a vessel for the international shipping overseas. 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. 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 Broken Stowage . Terms & Conditions - Ocean Freight Terms & Conditions - Ocean Freight SEKO Worldwide, LLC NVOCC BILL OF LADING – TERMS AND CONDITIONS. ________________________________ Photo credit: Copyright: dizanna / 123RF Stock Photo. This term should not be used if the seller is unable directly or indirectly to obtain any necessary import license or approval. Value-added service options may vary by origin, destination and freight service selected. AWS: All Water Service – This is one of the most cost-effective and eco-friendly ways to ship your cargo. Documentary CollectionA method whereby the seller uses the services of his bank to ensure that the buyer only receives the shipping documents under conditions specified by the seller, ie upon payment, or upon acceptance, of the seller's bill of exchange. For example, floods, earthquakes, civil unrest and so on. Self-Driving Trucks -- Where are They Headed? (See also Collections). Incoterms are organized by modes of transport, either any mode or modes of transport and sea and inland waterway transport terms. 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. American Group25 S. Arizona Place., Suite 300Chandler, AZ 85225Phone: 480.406.6102Fax: 480-966.3584. MLB: Mini Land Bridge – IPI and MLB are used interchangeably on occasion. These ships generally rely on infrastructure on the wharf to load and unload the containers. 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. These two terms are often used interchangeably in ocean freight and refer to the operator of the vessel itself. Open AccountThe seller allows the buyer to send payment at some future time (ie 60 days). Being based on FCA, this term may be used for any mode of transport. What Impact Will President-Elect Trump Have On Trucking? FIO (Free In and OUT) Ullage. Flat RackA device which is designed for cargos which will not fit into containers to be shipped on container ships. All Risk: A type of Marine Insurance, which is the widest coverage. This is similar in effect to DDP. It also shows the details of the consignee so that they can be contacted on arrival of the goods. The seller is responsible to clear the goods for export. "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 … All Rights Reserved. They have been used for a long time in maritime and air transport. Also shown sometimes as 167 kg = 1 cbm, More international shipping terms and list of U.S. 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. In the international ocean freight terminology, the word “Free” means “Not included”. What Costs are Included in a Freight Quote? 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. 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. 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. Exchange RateThe price of one currency in terms of another. Unfortunately, it’s also one of the slowest forms of freight transportation. VolumetricA notional or calculated weight for bulky goods sent by air. 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. TEUA twenty-foot equivalent unit, the means of describing the carrying capacity of a train or ship. How is AI used in Supply Chain Management and Logistics? BL Fee: Bill of Lading Fee – The shipping line charges this fee for processing the bill of lading on behalf of their client. It is strongly recommended that every exporter and importer has a copy of the "Uniform Customs and Practice for Documentary Credits", International Chamber of Commerce publication 500. What You Need to Know About Shipping Hazardous Materials. This term can only be used for sea or inland waterway transport. You’ll clearly understand all the ocean freight abbreviations and be able to make educated shipping decisions. USEC: United States East Coast – This term applies to all ocean ports along the East Coast of the United States. Typically this term would be used for bulk cargo on a chartered ship. IPI: Inland Point Intermodal – These shipments move inland from a port via truck or rail to a non-port destination. (See also Letter of Credit). Landed CostThe total cost which an importer pays to have goods delivered into their premises. International Shipping Terminology – Seafreight Terminology. USGC: United States Gulf Coast – This term applies to all the freight ports along the Gulf Coast of the United States. These ships are designed with their own derricks for loading and unloading. 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. 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. They help prevent misunderstandings between traders and reduce trade disputes. In many cases, the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. Aft DemurrageExtra charges paid to a carrier when loading and/or unloading has not been completed within the specified time. Obviously, it cannot apply to airfreight. Can be inland or at the dock-side. Hours of Service and the 34-hour restart: What’s the big deal? 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. Demurrage and Detention Fees – What’s the Difference and How Can You Avoid Them? 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. 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. 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. Ad ValoremAccording to the value. Non-conference shipping lines are sometimes referred to as independent or outsiders. This is a flat rate per container when it is charged. Four Myths of Intermodal Shipping – Debunked. 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. CSA...What is it and how is it determined? Consular InvoiceThe seller's commercial invoice certified, for a fee, in the exporting country by the consular representative of the importing country. BIFA (British International Freight Association) ReeferColloquial for a refrigerated container. Break-bulk Cargo . 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. 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. F. FAS (Free Alongside Ship Incoterm) FCA (Free Carrier Incoterm) FCL (Full Container Load) FOB (Free On Board Incoterm) Forty-Foot Equivalent Unit (FEU) 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. It will be combined with other LCL cargo from other shippers going to the same destination port, into a FAK FCL. 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. 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. Delivery is to the ship at the port origin or it is to the consignee at the destination port. 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. 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. This term describes a type of intermodal freight involving ocean and truck or rail to move a shipment from one port to another. 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. 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