What You Need to Know About Shipping Hazardous Materials. 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. It is applied in many tariffs to cargo as an accessorial charge on base ocean freight. Certificate of OriginA certificate stating the country of origin of the goods. Afloat: The condition of a vessel which is floating freely (not aground or sunk). Considering transport costs, sea freight is a cost-effective choice as a means of transporting goods. The term represents the minimum obligation for the seller. Knowing these terms can also have an impact on important shipping related decisions. What Costs are Included in a Shipping Quote? A term used in marine transportation referring to the time it takes between arrival of a ship and its departure. Customs BrokerA person or corporation licensed by the Australian Customs Service to handle on behalf of importers the process of clearing goods through customs. 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. All Risk: A type of Marine Insurance, which is the widest coverage. 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. See also Bill of Exchange. 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. ... Sea Freight - Ratio is 1CBM = 1 tonne. Open AccountThe seller allows the buyer to send payment at some future time (ie 60 days). < -- Back to international shipping terms. Cash Against Documents (CAD)An arrangement whereby the buyer pays for goods as soon as the buyer receives the seller's documents. Liner termsFreight rates which include loading/unloading charges, generally with regular shipping lines. 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. Packing ListA document which details the contents, and often dimensions and weight, of each package or container. 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. Aft American Group25 S. Arizona Place., Suite 300Chandler, AZ 85225Phone: 480.406.6102Fax: 480-966.3584. DEQ  Delivered Ex Quay (named port of destination) - IncotermsSimilar to DES but the seller must also arrange discharge onto the quay or wharf. 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. Conventional shipThe ship designed with holds which can load almost any type of loose cargo, such as drums, sacks, crates, pallets etc. 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. Flag international ocean freight carriers by U.S. Department of Transportation are in, FCL: Full Container Load. ApplicantThe buyer who has requested his bank to arrange an L/C on his behalf. Typically a B/L is issued in a set of three signed originals or negotiables, one of which must be presented to claim the goods upon which the others become void. BL Fee: Bill of Lading Fee – The shipping line charges this fee for processing the bill of lading on behalf of their client. 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. Delivery is to the ship at the port origin or it is to the consignee at the destination port. 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. The temperature of return air often controls the operation of the refrigeration unit. This means goods are to be delivered to the port of embarkational, but without loading fees. Freight ForwarderA person or corporation who arranges transport of goods on behalf of either the seller or buyer. USEC: United States East Coast – This term applies to all ocean ports along the East Coast of the United States. ConferenceA group of shipping companies who have associated to offer regular services on specific routes at published rates. Need help with your next shipment? It entails your shipment traveling from its port of origin to its destination solely via water routes. 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. Now required only by a handful of countries. Virtually all L/Cs issued under UCP500. 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). Air warmed by the container cargo delivered to the evaporator. How to Get an International Shipping Quote. 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! CAFCurrency Adjustment Factor - an adjustment to shipping companies' freight rates to take into account the effect over time of fluctuations in currency exchange rates. Will there be overtime for the trucking industry? Trade Terms are key elements of international contracts of sale. 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. 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. Consists of a base and two ends of the same dimensions as an ISO container. 5 Key Benefits of Transportation Management Systems. Documents against Acceptance (D/A)see Documentary Collection, Documents against Payment (D/P)see Documentary Collection. Alongside: A phrase referring to the side of a ship. Consular InvoiceThe seller's commercial invoice certified, for a fee, in the exporting country by the consular representative of the importing country. 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. Break-bulk Cargo . The international shipping term used in the ocean freight industry means that the carrier is NOT responsible for the cost of loading and unloading gods onto/from the vessel. If this is shown to be injurious to locally-based suppliers in the foreign market, the government of that country may impose remedies by way of anti-dumping duties. 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. This term may be used for all modes of transport. 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. This term describes a type of intermodal freight involving ocean and truck or rail to move a shipment from one port to another. The airline or forwarder will charge whichever is the greater of the actual weight and volumetric weight. Letter of Credit - ConfirmedA letter of credit which has been further guaranteed by a local bank generally in the exporter's country. This is a term more generally used to describe vessels in service e.g. In most cases, the freight forwarder will assume the legal liabilities of acting as a carrier. 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. Unfortunately, it’s also one of the slowest forms of freight transportation. The seller is responsible to clear the goods for export. CAF: Currency Adjustment Factor – A charge that is expressed as a percentage and applied to the base rate to account for currency fluctuations. For more information on Supplier Management and Ocean Freight Forwarding Services, access the UPS Supply Chain Solutions (Ocean Freight Forwarding) Terms and Conditions. See also Consolidation. RIPI Reverse Inland Point Intermodal – This is similar to IPI except it applies when a shipment is traveling back toward its point of origin. The spare volume of a container or the cargo hold of a vessel where no cargoes are stowed. 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. BIFA (British International Freight Association) An example of this is sea freight – there are shipping terms that are exclusively used for sea freight. This is similar in effect to DDP. OCEAN FREIGHT: It is the cost of shipping a container from one point to another. The greater weight or measurement of goods where 1 ton is either 1000 kilos or 1 cubic metre (for metric system). This term can only be used for sea or inland waterway 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. This term may be used for all modes of transport. TareThe weight of packaging or a container without the goods. It can be helpful to understand what these are when importing and exporting. Sometimes referred to as liner shipping. This term very specifically requires the carriage of the goods in a "seagoing vessel". IPI: Inland Point Intermodal – These shipments move inland from a port via truck or rail to a non-port destination. They help prevent misunderstandings between traders and reduce trade disputes. Small Parcel Shipping Versus Freight Shipping – How Do You Decide? Broker . BUC: Bunker Charge – An extra charge that is sometimes added to steamship freight rates to cover higher fuel costs (see also BAF and FAF). 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. 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