International Shipping Terminology – Seafreight Terminology
All Risk: A type of Marine Insurance, which is the widest coverage.
Alongside: A phrase referring to the side of a ship. Goods to be delivered ‘alongside”. This means goods are to be delivered to the port of embarkational, but without loading fees.
Bill of Lading: A contract between the owner of the goods and the carrier.
Bonded Warehouse: The US Customs authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the customs territory.
C&F: Cost and Freight. Meaning price quoted including cost of goods and transportation fee.
CIF: Cost Insurance and Freight. Meaning price quoted including cost of goods, transportation and Insurance.
Carriage paid to: Carriage paid to (CPT) and carriage and insurance paid (CIP) a named place of destination. Used in a place of CFR and CIF, respectively for shipment by modes other than water.
Clean Bill of Lading: A receipt of goods issued by a carrier with an indication that the goods were received in ‘good order.”
Commercial Invoice: A Document for the goods from the seller to the buyer.
Consignee: The person to whom goods have been consigned to.
Consignment: Delivery of goods from an exporter to a consignee.
Customs Clearance: The procedure involved getting cargo released through Customs.
DDP: Delivered Duty Paid
DDU: Delivered Duty Unpaid
Delivered at Frontier: Goods should be delivered to the frontier (border post) up to which the seller is prepared to take responsibility.
Demurrage: Excess time taken for loading or unloading a vessel. Demurrage refers only to situations in which the shipper, rather than the operator, is at fault.
Export License: A Government document authorizing exports of specific goods.
Free Alongside Ship: When goods are placed alongside a named ship at a named areas within a named port.
Free Carrier: FCA to a named place. This term replaces the former “FOB named inland port” to designate the sellers responsibility for the cost of loading goods at the named shipping point.
Free on Board FOB: The Supplier is responsible for the loading for the goods and the cost.
Freight Forwarder: An independent business which handles export shipments. The forwarder takes care of all documentation needed to move the shipment from origin to destination.
Gross Weight: The full weight of a shipment.
Insurance Certificate: This is used to assure the consignee that the goods are covered by insurance.
Irrevocable letter of Credit: A letter of credit in which the specified payment is guaranteed by the bank, if all terms and conditions are met.
Letter of Credit: A financial document issued by a bank at the request of the consignee.
Marine Cargo Insurance: Compensates the owner of the merchandise for losses in excess of those which can be legally recovered from the carrier.
NVOCC: Non-Vessel Operating Common Carrier -A company which consolidates small shipments from different sources into a single container.
Ocean Bill of Lading: A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier.
Open Account: Arrangement in which goods are shipped to a foreign buyer before, and without written guarantee of payment.
Ships Manifest: A list signed by the captain of a ship.
T/T: Telegraphic transfer
Tare Weight: The weight of a container and/or packing materials without the weight of the goods it contains.
Through Bill of Lading: A single Bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee.
Transshipment: Transshipment refers to sending an exported product through an intermediate country before routing it to the country intended to be its final destination.
Wharfage: A charge by the pier/docks for handling incoming or outgoing cargo.