FAF: Fuel Adjustment Factor – Same as BAF. IPI: Inland Point Intermodal – These shipments move inland from a port via truck or rail to a non-port destination. All Risk: A type of Marine Insurance, which is the widest coverage. 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. BL Fee: Bill of Lading Fee – The shipping line charges this fee for processing the bill of lading on behalf of their client. Freight that has not been called for or picked up by the owner or ultimate consignee. 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. ERR: Emergency Rate Restoration – A surcharge added to the cost of freight to cover increases in shipping costs. BoxColloquial term for a shipping container. 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. Shipping Information. This term may be used for any mode of transport, including multi-modal transport. Virtually all L/Cs issued under UCP500. The penalties for miss-declaring or failing to declare hazardous or dangerous cargo are extremely high. Shipping MarksSpecific markings on packages to identify them apart from other packages and to identify them on the relevant documents. 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. Cost, Insurance and Freight, named port of destination (This term can be used for vessel shipments only.) Broken Stowage . These standard trade definitions state the responsibilities of sellers and buyers who enter into international sales contracts. "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 … Knowing these terms can also have an impact on important shipping related decisions. SWIFTSociety for Worldwide Inter-bank Financial Telecommunications, whereby banks can electronically transfer funds, issue L/Cs, etc. Break-bulk Cargo . This fee is payable to a shipping line for receiving a full container load, storing it, and delivering it. Liner termsFreight rates which include loading/unloading charges, generally with regular shipping lines. Weather-How does it impact your shipments? Customs DutyA tax, duty or tariff levied at the time of import upon goods entering a country. 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. Pre-paymentThe buyer pays the seller for the goods prior to shipment. 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. Contact American Group. BUC: Bunker Charge – An extra charge that is sometimes added to steamship freight rates to cover higher fuel costs (see also BAF and FAF). 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. Ullage. 5 Key Benefits of Transportation Management Systems. This term may be used for all modes of transport. 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. ... Sea Freight - Ratio is 1CBM = 1 tonne. Depending on the importing country's requirements, this can be as simple as being issued by the seller or the manufacturer. F. FAS (Free Alongside Ship Incoterm) FCA (Free Carrier Incoterm) FCL (Full Container Load) FOB (Free On Board Incoterm) Forty-Foot Equivalent Unit (FEU) Value for DutyThe value of an import declared to the customs upon which customs duty will be calculated. Air warmed by the container cargo delivered to the evaporator. In most cases, the freight forwarder will assume the legal liabilities of acting as a carrier. 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. ERS: Equipment Repositioning Surcharge – This fee is imposed for the movement of empty containers from one location to another when requested by a shipper. Flag international ocean freight carriers by U.S. Department of Transportation are in, FCL: Full Container Load. Small Parcel Shipping Versus Freight Shipping – How Do You Decide? Goods to be delivered ‘alongside”. Hours of Service and the 34-hour restart: What’s the big deal? Intermodal Versus Multimodal – What’s the Difference and Which Should You Select? 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. 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. They include New York/New Jersey, Savannah, Virginia, and more. The Bunker Adjustment Factor, or BAF, as it is more commonly known, is one of the charges levied on goods transported via Sea Freight. Also known as … CFR Cost and Freight (named port 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 pass the ship's rail in the port of shipment. Flat RackA device which is designed for cargos which will not fit into containers to be shipped on container ships. 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. Delivery is to the ship at the port origin or it is to the consignee at the destination port. Ad ValoremAccording to the value. 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. 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. 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. Letter of Credit - IrrevokableA credit which cannot be revoked, canceled or amended unless the beneficiary agrees. American Group is a 3PL with decades of experience guiding businesses through the selection, preparation, and shipping of their freight. LCLLess than Container Load, a small amount of cargo insufficient to on its own be economically shipped as FCL. if FI, then the shipper is responsible for the cost of loading goods onto a vessel for the international shipping overseas. Conventional shipThe ship designed with holds which can load almost any type of loose cargo, such as drums, sacks, crates, pallets etc. 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. What is Intermodal Transportation and When is it the Best Choice? 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. CAF: Currency Adjustment Factor – A charge that is expressed as a percentage and applied to the base rate to account for currency fluctuations. Shipping freight LCL Vs. other modes of transportation, Sea ports and Container Freight Stations (CFS), http://www.iccwbo.org/incoterms/id3040/index.html. (see also Bill of Exchange, Cash Against Documents and URC522). Four Myths of Intermodal Shipping – Debunked. What is a Forwarding Agent for International Freight? Open AccountThe seller allows the buyer to send payment at some future time (ie 60 days). 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. See also Consolidation. 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. 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 lack of export activity from the country where they were shipped full typically creates the need to do so. The coordinated transport of long-haul movements using any combination of modes, freight forwarders or motor carriers. Air Waybill (AWB)The document which covers transport by air. Letter of CreditA conditional order in writing, issued by a buyer's bank, guaranteeing to pay the seller upon presentation of stipulated documents, strictly in accordance with the credit. Also shown sometimes as 167 kg = 1 cbm, More international shipping terms and list of U.S. Now required only by a handful of countries. Terms & Conditions - Ocean Freight Terms & Conditions - Ocean Freight SEKO Worldwide, LLC NVOCC BILL OF LADING – TERMS AND CONDITIONS. CSA...What is it and how is it determined? 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! 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. OCEAN FREIGHT: It is the cost of shipping a container from one point to another. (See also House B/L and Master B/L). Abbreviations they use include EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), and more. 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. International ocean freight forwarding services are provided by Flexport International LLC, a licensed Ocean Transportation Intermediary FMC# 025219NF. DumpingThe practice of selling goods in a foreign market at a price lower than which they would be sold at in the home market, to gain a competitive advantage over other suppliers. Armed with these translations and explanations, you’re better prepared to discuss your ocean freight requirements. ISPS: International Security Port Surcharge – These are for security of both your container and the vessel while they are at the port. This is similar in effect to DDP. They have been used for a long time in maritime and air transport. CFSContainer Freight Station - place or depot where individual LCL cargo is loaded into, and unloaded from, containers. Unit load 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. Unclaimed freight. 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 seller is responsible to clear the goods for export. This means goods are to be delivered to the port of embarkational, but without loading fees. Letter of Credit - Under ReserveWhere documents with discrepancy/ies are nevertheless negotiated against an L/C, and the negotiating bank reserves the right to take back the funds from the exporter if the discrepancy is not acceptable to either the buyer or the L/C issuing bank. This term may be used for all modes of transport. RIPI Reverse Inland Point Intermodal – This is similar to IPI except it applies when a shipment is traveling back toward its point of origin. American Group25 S. Arizona Place., Suite 300Chandler, AZ 85225Phone: 480.406.6102Fax: 480-966.3584. Being based on FCA, this term may be used for any mode of transport. In many cases, the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. It will be combined with other LCL cargo from other shippers going to the same destination port, into a FAK FCL. Finddivers.com; Shipyards.gr; Shipsafety.gr; Marinesoft.gr; Our Services; Technical Library; RSS; Login Bank GuaranteeA document issued by a bank acting as a guarantor for their customer. Value-added service options may vary by origin, destination and freight service selected. This term very specifically requires the carriage of the goods in a "seagoing vessel". ConferenceA group of shipping companies who have associated to offer regular services on specific routes at published rates. What is the importance of creating an accurate BOL? Notify PartyThe person or company to be advised by the carrier upon arrival of the goods at the destination port. 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. Is There Blockchain in Your Future Supply Chain? For example, floods, earthquakes, civil unrest and so on. How to Get a Job in Transportation or Logistics. 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