Mastering the Language of International Shipping & Trade: Understanding Key Acronyms and Terminology

Logistics, like every other industry, has its own specific terminology and acronyms. If you are new or somewhat familiar with logistics, this guide will provide definitions for commonly used terms and acronyms that you may have already heard or will encounter in the logistics field. These terms are widely used globally and are organized in alphabetical order for easy reference. Let's begin!

Logistics Terminology: A - Z

3rd Party Logistics (3PL)

Refers to a type of logistics service provider that manages the transportation, warehousing, and distribution of goods for other companies. 3PLs act as an intermediary between companies and their customers, handling the logistics of getting goods from the manufacturer or supplier to the final destination. 3PLs offer a range of services, including transportation management, warehousing, cross-docking, customs brokerage, and freight forwarding. Companies may choose to use 3PLs to outsource certain logistics tasks or to handle their entire supply chain in order to save time and resources.

4th Party Logistics (4PL)

Refers to a type of logistics service provider that coordinates and manages the entire supply chain for other companies. 4PLs act as a strategic partners, creating custom logistics solutions and overseeing the entire supply chain process, including sourcing, procurement, production, transportation, warehousing, and distribution. 4PLs may work with a variety of service providers, including 3PLs, carriers, and warehouses, in order to create a comprehensive logistics solution. Companies may choose to use 4PLs to outsource their entire supply chain management, allowing them to focus on their core business functions. 4PLs are often used for complex, high-volume supply chain operations that require a high level of customization and coordination.

5th Party Logistics (5PL)

Refers to a type of logistics service provider that acts as a strategic advisor and consultant, helping companies to design and implement their supply chain strategies. 5PLs typically have a broad range of expertise in logistics and supply chain management and are able to provide guidance and support to companies as they navigate the complexities of the global supply chain. 5PLs may work with a variety of service providers, including 3PLs and 4PLs, in order to create a customized logistics solution that meets the needs of their clients. Companies may choose to use 5PLs to help them optimize their supply chain operations, reduce costs, and increase efficiency.

Actual Time of Arrival (ATA)

refers to the actual time that a vessel, aircraft, or vehicle arrives at its destination. ATA is an important measure of the efficiency and effectiveness of a transportation or logistics operation, as it can help to determine whether a shipment or delivery has been delayed or arrived on time. ATA may be calculated by comparing the planned arrival time with the actual arrival time, taking into account any delays or disruptions that may have occurred along the way. ATA can be used to inform scheduling and routing decisions and can help to identify potential bottlenecks or inefficiencies in the supply chain.

Actual Time of Departure (ATD)

refers to the actual time that a vessel, aircraft, or vehicle departs from its origin. ATD is an important measure of the efficiency and effectiveness of a transportation or logistics operation, as it can help to determine whether a shipment or delivery is on schedule or has been delayed. ATD may be calculated by comparing the planned departure time with the actual departure time, taking into account any delays or disruptions that may have occurred. ATD can be used to inform scheduling and routing decisions and can help to identify potential bottlenecks or inefficiencies in the supply chain.

AEO Accreditation

AEO Accreditation (Authorized Economic Operator) refers to a certification program for companies in the international supply chain. AEO Accreditation is granted by customs authorities to companies that meet certain standards of security, reliability, and compliance. AEO Accredited companies are considered to be low-risk and are eligible for a range of benefits, including streamlined customs procedures, reduced inspections, and access to priority lanes. AEO Accreditation is recognized globally and is increasingly seen as an important quality mark for companies operating in the global supply chain. AEO Accreditation is available to companies in a variety of sectors, including manufacturers, exporters, importers, carriers, and logistics providers.

All Risks Insurance

All Risks Insurance is a type of insurance coverage that protects against a wide range of potential losses or damages. All Risks Insurance covers losses that are not specifically excluded in the policy, as opposed to named perils insurance, which only covers losses that are specifically listed in the policy. All Risks Insurance is often used to insure high-value items, such as artwork, jewelry, or electronics, as it provides broader protection than named perils insurance. All Risks Insurance can also be used to insure cargo or shipments in the logistics industry, covering losses or damages that may occur during transportation or storage.

ATA Carnet

ATA Carnet (Admission Temporaire/Temporary Admission) is an international customs document that allows the temporary import or export of goods without the payment of duties and taxes. ATA Carnets are issued by national chambers of commerce and are recognized by customs authorities in over 80 countries. ATA Carnets are often used to facilitate the transportation of goods for trade fairs, exhibitions, or demonstrations, and can be used for a variety of items, including samples, professional equipment, and commercial goods. ATA Carnets are an alternative to the traditional customs process, and can help to reduce costs and streamline the process of moving goods across international borders.

Bill of Lading (B/L or BOL)

Bill of Lading (B/L or BOL) is a document that serves as a contract of carriage between the shipper and the carrier, and as a receipt for the goods being shipped. B/Ls are commonly used in the transportation of goods by sea, but can also be used for other modes of transportation, such as air or land. B/Ls typically include information about the shipper, the consignee, the goods being shipped, the route, the terms of carriage, and any special instructions or requirements. B/Ls serve as evidence of ownership and title to the goods, and may be used as a document of title for the purpose of negotiating the sale or transfer of the goods.

Bonded Goods (B/G)

Bonded Goods (B/G) refers to goods that are stored in a bonded warehouse and are not subject to customs duties or taxes until they are released for domestic consumption or export. Bonded warehouses are secured facilities that are authorized by customs authorities to store goods that are awaiting customs clearance or are in transit. Bonded goods can include a wide range of items, including raw materials, finished goods, and spare parts. Companies may choose to use bonded warehouses to store goods that are subject to high duties or taxes, or to defer payment of duties and taxes until the goods are sold or shipped. Bonded warehouses can help to reduce costs and improve cash flow for companies operating in the global supply chain

Bonded Warehouses

Bonded warehouses are secure facilities that are authorized by customs authorities for the storage of goods that are under customs control. These goods have not yet been cleared for import or export and are stored in the warehouse until the necessary customs duties and taxes have been paid. Bonded warehouses are often used by importers and exporters as a way to defer the payment of duties and taxes, as well as to temporarily store goods while awaiting further transportation or processing.

Bunker Adjustment Factor (BAF)

Bunker Adjustment Factor (BAF) is a surcharge applied by shipping companies to cover the cost of fuel used for their vessels. The cost of fuel, also known as bunker fuel, can be a significant expense for shipping companies and can fluctuate dramatically due to factors such as the price of crude oil and taxes imposed by different governments. To account for these fluctuations, shipping companies will often apply a BAF surcharge to the cost of shipping goods. The BAF surcharge is typically calculated as a percentage of the freight charge and can vary depending on the route, shipping company, and type of cargo being transported.

Buyers Consolidation (BCN)

Buyers Consolidation (BCN) is a service offered by freight forwarders and logistics providers that allows multiple small shipments from different suppliers to be consolidated into a single larger shipment. This service is often used by importers and retailers who purchase goods from multiple suppliers, but want to minimize the number of shipments and reduce their overall transportation costs. The freight forwarder or logistics provider acts as a consolidator, receiving the smaller shipments from different suppliers, and then consolidating them into one large shipment before sending it to the buyer. This can reduce the overall shipping costs, and also make the customs clearance process simpler and more efficient.

Carrier

A freight carrier is a company or organization that transports goods and cargo by various modes of transportation such as road, rail, sea, or air. Freight carriers are responsible for the movement of goods from one location to another, and they may specialize in one specific mode of transportation or offer a combination of services.

Some common types of freight carriers include trucking companies, rail companies, shipping lines, and airlines. They may also offer additional services such as warehousing, packaging, and customs clearance. They may operate their own fleet of vehicles or use third party transportation providers. They also provide services such as tracking and tracing of the cargo and delivery confirmations.

Carrier Owned Container (COC)

A Carrier Owned Container (COC) is a shipping container that is owned and operated by a freight carrier or shipping company. COCs are used to transport goods by sea, and they are typically leased or rented to shippers for a specific period of time. A COC is different from a shipper-owned container (SOC), which is owned by the shipper and is used for multiple shipments.

The freight carrier is responsible for the maintenance and repair of COCs and may charge an additional fee for their use. COCs are often used when the shipper does not have enough cargo to fill a full container or when the cargo needs to be shipped on a specific schedule, as it eliminates the need for the shipper to arrange for their own container.

Certificate of Origin

A Certificate of Origin (CO) is a document that certifies the country of origin of goods being exported. It is usually required by customs authorities in the importing country to determine the applicable tariffs and taxes for the goods, and it may also be used for quota and preference purposes. A CO is usually issued by a government agency or a Chamber of Commerce and must be signed and stamped by an authorized official.

The document typically includes information about the exporter, the importer, the goods being exported, and the country of origin. It is important to note that the rules and regulations for obtaining a CO vary depending on the country and the type of goods being exported. Some countries have specific forms and requirements that must be met before a CO can be issued

CFS Charge

CFS (Container Freight Station) charge is a fee applied by a freight forwarder or shipping line for the use of their container freight station (CFS) facility. CFS is a type of warehousing facility that is used for the consolidation and deconsolidation of cargo containers.

It is a common practice for freight forwarders and shipping lines to use CFS facilities to sort and consolidate smaller shipments into full container loads (FCL) prior to shipping, or to break down full container loads into smaller shipments upon arrival at the port of destination. CFS charges usually include the cost of loading and unloading cargo, palletizing and securing cargo, storage, and handling.

The charges also include the cost of labor, equipment and other expenses incurred by the freight forwarder or shipping line in providing these services. These charges are usually based on weight or volume of the cargo, the type of cargo and the duration of storage.

Commercial Invoice

A commercial invoice is a document that serves as a bill for goods sold by the exporter to the importer. It is a legally binding document that provides details about the transaction, including the goods being sold, the price, the terms of sale, and the names and addresses of the buyer and seller.

It is used by customs authorities to determine the value of the goods and to assess the applicable tariffs and taxes. The commercial invoice is also used by banks and other financial institutions to facilitate the payment process. A commercial invoice should include the following information:

• the name and address of the exporter and importer

• the date of the invoice

• a description of the goods being sold

• the quantity and unit price of each item

• the total price of the goods

• the terms of sale (such as FOB, CIF, etc.)

• the mode of transport and the date of shipment

• the HS code (harmonized system code) of the goods

• any additional charges such as freight, insurance, or packing costs.

Consignee

A consignee is the person or organization that is named in the shipping documents as the recipient of the goods being shipped. The consignee is typically the person or organization that has purchased the goods and is responsible for receiving them at the port of destination.

The consignee is also the party responsible for the payment of the freight and other charges related to the shipment of the goods, and for the clearance of the goods through customs. In transport and logistics, consignee often refers to the end recipient of a shipment, which may be different from the person or company that placed the order for the goods. For example, a manufacturer may ship goods to a distributor, who then sells the goods to a retailer, who then sells the goods to a consumer.

In this example, the consignee would be the consumer. It is important to note that the consignee can also act as the importer of record and take on the responsibilities and liability of the importer.

Consolidator

A consolidator is a company or organization that specializes in combining small shipments from multiple shippers into a larger shipment. This is known as freight consolidation. Consolidators typically work with freight forwarders and logistics providers to arrange the transportation of goods. They combine smaller shipments from different shippers into one large shipment, which can help to reduce overall shipping costs and simplify the customs clearance process.

Consolidators can also arrange for the storage of goods, packaging and other logistics services. Some consolidators also provide services such as tracking and tracing of the cargo and delivery confirmations. They can also handle the customs clearance and documentation for the consolidated shipment. They often work with different modes of transportation such as air, sea or road.

Consolidators offer a cost-effective and efficient solution for small and medium-sized businesses that do not have the volume of cargo to fill a full container, but still want to take advantage of the lower rates and other benefits that come with shipping in bulk

Freight Container

A freight container, also known as a shipping container, is a large, standardized, and reusable container used to transport goods by various modes of transportation such as ships, trucks, and trains. Freight containers are made of steel or aluminum and come in a variety of sizes and configurations to accommodate different types of cargo. They are designed to be weather-tight, secure, and easily stackable, making them ideal for shipping large quantities of goods over long distances.

The most common freight containers are 20 feet and 40 feet long, but there are also larger sizes such as 45-foot and 53-foot containers. These are standardized in terms of size, weight, and handling features to allow different types of cargo to be loaded and unloaded easily and safely. They are also equipped with locking mechanisms to secure the cargo.

Freight containers have made international trade more efficient by allowing goods to be shipped quickly and safely, while also reducing the cost of transportation. They also have the ability to be loaded and unloaded by cranes and other specialized equipment, making them ideal for use in ports and other transportation hubs.

Container Freight Station (CFS)

A Container Freight Station (CFS) is a facility used for the consolidation and deconsolidation of cargo containers. It is used by freight forwarders, shipping lines, and logistics providers as a way to sort and consolidate smaller shipments into full container loads (FCL) prior to shipping, or to break down full container loads into smaller shipments upon arrival at the port of destination.

CFS is typically located near ports, airports, or other transportation hubs, and provides services such as loading and unloading cargo, palletizing and securing cargo, storage, and handling. CFS may also provide additional services such as packaging, labeling, and customs clearance. The use of CFS can help to reduce overall shipping costs and simplify the customs clearance process.

CFS is an important part of the supply chain, as it provides a link between the shipper and the carrier. It is responsible for receiving and handling the cargo, preparing it for transport and loading it into the container. CFS also ensures that the container is properly sealed and that the necessary documents are in order before it is shipped.

Container Yard (CY)

A Container Yard (CY) is a location where containers are stored and handled before and after they are loaded onto ships, trucks, or trains. It is typically located near ports, airports, or other transportation hubs and is used by freight forwarders, shipping lines, and logistics providers to store containers that are waiting to be loaded or unloaded.

The Container Yard (CY) is a critical element of the supply chain, as it acts as a storage and handling facility for containers and cargo. It is responsible for receiving, sorting, and storing containers, as well as preparing them for transport. This includes loading and unloading cargo, palletizing and securing cargo, and handling customs clearance.

The Container Yard (CY) also plays an important role in the management of the container fleet, as it is responsible for maintaining and repairing the containers. This includes cleaning, painting, and other maintenance tasks.

CY and CFS sometimes used interchangeably. However, CFS is usually a facility where cargo is consolidated or deconsolidated, whereas CY is where the containers are stored and handled before or after loading or unloading.

Cost & Freight (C&F or CFR)

Cost and Freight (C&F or CFR) is a trade term used in international trade that indicates that the seller is responsible for the cost of the goods and the freight charges for transporting the goods to a port of destination. The buyer is responsible for any additional costs such as duties, taxes, and other charges incurred after the goods have been delivered to the port.

Under C&F terms, the seller must arrange for the goods to be loaded onto a shipping vessel at the port of origin, and they are responsible for paying the freight charges to transport the goods to the port of destination. The buyer is responsible for the cost of unloading the goods at the port of destination, as well as any customs clearance, duties, and taxes.

C&F terms are commonly used in international trade when the buyer does not have the resources or expertise to arrange for the transportation of the goods, or when the freight costs are relatively low compared to the value of the goods. This term is also used when the buyer is responsible for arranging for the goods to be transported from the port of destination to the final destination.

Cost, Insurance Freight (CIF)

Cost, Insurance, and Freight (CIF) is a trade term used in international trade that indicates that the seller is responsible for the cost of the goods, the freight charges for transporting the goods to a port of destination, and the cost of insurance for the goods while in transit.

Under CIF terms, the seller must arrange for the goods to be loaded onto a shipping vessel at the port of origin, pay for the freight charges to transport the goods to the port of destination, and also provide insurance coverage for the goods while they are in transit. The buyer is responsible for the cost of unloading the goods at the port of destination, as well as any customs clearance, duties, and taxes.

CIF terms are commonly used in international trade when the buyer does not have the resources or expertise to arrange for the transportation and insurance of the goods, or when the freight and insurance costs are relatively low compared to the value of the goods. This term is also used when the buyer is responsible for arranging for the goods to be transported from the port of destination to the final destination.

Cubic Metre - CBM (M3)

Cubic meter (CBM or m3) is a unit of measurement for volume. It is commonly used in the shipping industry to measure the volume of goods being transported by sea, air or land. A cubic meter is equal to the volume of a cube with sides that are one meter long. It is an international standard unit of measurement used to express the volume of cargo, and it is also used to calculate the freight charges for shipping goods.

In the shipping industry, the cubic meter is often used to measure the volume of goods that are loaded into a shipping container. The volume of the goods is measured by calculating the total cubic meter of the space that the goods take up within the container. This is used to determine the amount of space that is required for the goods and to calculate the freight charges accordingly.

It's important to note that the weight and volume of the goods are not the same, and the freight charges are based on the weight or volume of the goods whichever is greater. The weight of the goods can be measured using a scale, and the volume of the goods can be measured using a ruler or a measuring tape.

Currency Adjustment Factor (CAF)

Currency Adjustment Factor (CAF) is a surcharge applied by shipping companies to account for fluctuations in currency exchange rates. The cost of shipping goods can be affected by the value of different currencies, as shipping companies may have expenses in multiple currencies. To account for these fluctuations, shipping companies will often apply a CAF surcharge to the cost of shipping goods.

The CAF surcharge is typically calculated as a percentage of the freight charge and is adjusted periodically based on the exchange rate of the currency in question. The surcharge is applied to cover the difference between the currency exchange rate at the time the freight rate was agreed upon and the rate at the time of shipment.

The CAF is applied to the freight charges and it is usually used by shipping lines and freight forwarders. It is applied to cover the cost of currency fluctuations and it is used as a way to mitigate the risk associated with currency changes. It is usually applied to long-term contracts and it is a separate charge from the freight charges.

Customs Clearance

Customs clearance is the process of obtaining permission to import or export goods through the formalities and regulations required by the customs authorities of a country. This process involves the submission of various documents and the payment of duties and taxes on the goods being imported or exported. Customs clearance is required for all goods that are transported across international borders, and it is a critical step in the international trade process.

Customs clearance procedures can vary depending on the country and the type of goods being imported or exported. Generally, the importer or exporter must submit a variety of documents, including the commercial invoice, bill of lading, and other shipping documents, to the customs authorities. The customs authorities will then verify the information provided, assess the applicable duties and taxes, and release the goods for import or export once all requirements have been met.

Customs clearance also involves inspections and compliance checks to ensure that the goods being imported or exported comply with the laws and regulations of the country. The process may also include the use of technology such as electronic data exchange, to facilitate the clearance process and minimize the time and cost associated with it.

It is important for importers and exporters to have a good understanding of the customs clearance procedures in the countries where they conduct business to avoid delays, penalties, or other issues.

Delivered At Place (DAP)

Delivered at Place (DAP) is a trade term used in international trade that indicates that the seller is responsible for the cost of the goods and the freight charges for transporting the goods to a place specified by the buyer. The buyer is responsible for the cost of unloading the goods at the place of delivery and any additional costs incurred after the goods have been delivered.

Under DAP terms, the seller must arrange for the goods to be loaded onto a shipping vessel at the port of origin, and they are responsible for paying the freight charges to transport the goods to the specified place of delivery. The buyer is responsible for unloading the goods at the specified place of delivery and any additional costs such as customs clearance, duties, and taxes.

DAP terms are commonly used in international trade when the buyer wants the goods delivered to a specific location such as a factory, warehouse, or jobsite. This term is also used when the buyer wants to take control of the goods at a specific location, rather than at the port of destination.

Delivered Duty Paid (DDP)

Delivered Duty Paid (DDP) is a trade term used in international trade that indicates that the seller is responsible for the cost of the goods, the freight charges for transporting the goods to a specified place, and the payment of any duties and taxes that are incurred during the shipping process. Under DDP terms, the seller is responsible for all costs associated with the delivery of the goods to the buyer, including customs clearance, duties, and taxes.

Under DDP terms, the seller must arrange for the goods to be loaded onto a shipping vessel at the port of origin, and they are responsible for paying the freight charges to transport the goods to the specified place of delivery. They are also responsible for obtaining any licenses or permits required for the shipment and for making all necessary arrangements for the customs clearance and payment of duties and taxes at the port of destination.

DDP terms are commonly used when the buyer does not have the resources or expertise to arrange for the transportation, customs clearance, and payment of duties and taxes for the goods. The term is also used when the buyer wants the goods delivered to a specific location, rather than the port of destination. goods delivered to a specific location, rather than the port of destination.

Delivered Duty Unpaid (DDU)

Delivered Duty Unpaid (DDU) is a trade term used in international trade that indicates that the seller is responsible for the cost of the goods and the freight charges for transporting the goods to a specified place of delivery. The buyer is responsible for the payment of any duties and taxes that are incurred during the shipping process and for any additional costs incurred after the goods have been delivered.

Under DDU terms, the seller must arrange for the goods to be loaded onto a shipping vessel at the port of origin, and they are responsible for paying the freight charges to transport the goods to the specified place of delivery. The buyer is responsible for obtaining any licenses or permits required for the shipment, making all necessary arrangements for the customs clearance and payment of duties and taxes at the port of destination, and for any additional costs such as handling and storage after the goods have been delivered.

DDU terms are commonly used when the buyer has the resources and expertise to arrange for the customs clearance and payment of duties and taxes for the goods. The term is also used when the buyer wants the goods delivered to a specific location, rather than the port of destination, and they will take care of the customs formalities.

Delivery Authorization Document (DAD)

A Delivery Authorization Document (DAD) is a document that authorizes the release of goods to the consignee or the person authorized to receive the goods.

It is a document that is typically used in conjunction with an electronic data interchange (EDI) system and it is used to confirm that the goods have been received and that all the necessary customs clearance and other formalities have been completed.

The DAD document is typically prepared by the carrier or the freight forwarder and it contains details such as the consignee's name and address, the shipping details, the nature of the goods, and the weight and volume of the goods. It also includes information about the customs clearance and any other relevant details such as the payment of duties and taxes.

The DAD document is an important document as it serves as proof that the goods have been received and that all the necessary formalities have been completed. It is also used to ensure that the goods are delivered to the right person and that the right goods are delivered to the right place at the right time.

Delivery Order (D/O)

A Delivery Order (D/O) is a document issued by a carrier, such as a shipping line or an airline, that authorizes the release of goods to the consignee or the person authorized to receive the goods. It serves as proof that the goods have been shipped and that the carrier has fulfilled its obligation to deliver the goods to the specified place of delivery.

The D/O document is typically prepared by the carrier or the freight forwarder and it contains details such as the consignee's name and address, the shipping details, the nature of the goods, and the weight and volume of the goods. It also includes information about the shipping route, the vessel or flight number, and the expected date of arrival at the port of destination.

The D/O document is an important document as it serves as proof of shipment and delivery of the goods. It is also used to track the goods and to ensure that the goods are delivered to the right person and that the right goods are delivered to the right place at the right time. It is also used to clear the goods from the customs and to take the delivery of the goods from the carrier.

Demurrage

Demurrage is a charge assessed by a carrier, such as a shipping line or an airline, for the use of equipment, such as a container or a freight car, beyond the time period agreed upon for loading or unloading. It is a penalty fee that is assessed when cargo is not loaded or unloaded within the time allocated for the purpose and it is intended to compensate the carrier for the additional costs incurred as a result of the delay.

Demurrage charges are typically assessed on a per-day or per-hour basis and they can be significant, depending on the length of the delay and the type of equipment being used. They are often assessed when cargo is not loaded or unloaded within the free time period agreed upon in the contract of carriage.

Demurrage charges can be avoided by adhering to the agreed upon schedule for loading and unloading cargo, and by ensuring that the necessary documentation and permits are in order. It can also be reduced by negotiating with the carrier or by using a freight forwarder who can assist with the logistics and coordination of the cargo.

It's important to note that there is also a related term called "Detention" which is a fee that is charged to the consignee or the shipper for holding the carrier's equipment like container or truck beyond the free time allocated.

Drop Shipping

Drop shipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party, who then ships it directly to the customer. The store acts as a middleman between the manufacturer or wholesaler and the customer.

Drop shipping eliminates the need for a store to hold and maintain a large inventory, which can be costly. It also allows the store to offer a wider variety of products without having to invest in buying large quantities of inventory upfront.

The store will typically have an agreement with the manufacturer or wholesaler and will have access to their products catalog, prices, and inventory levels. When a customer places an order, the store will then place the order with the manufacturer or wholesaler, who will ship the product directly to the customer.

Drop shipping can be a great way for small businesses to get started in retail without having to invest a lot of money upfront. It also allows for flexibility and scalability as the store can expand its product offering without the need for additional warehouse space or inventory management. However, it also comes with its own set of challenges, such as managing inventory levels, dealing with shipping and delivery, and maintaining strong relationships with manufacturers and wholesalers.

Economic Operator Registration and Identification (EORI)

Economic Operator Registration and Identification (EORI) is a unique identification number assigned by Customs authorities to economic operators (businesses and individuals) involved in international trade

It is used to track and trace the movement of goods across borders and to identify the parties involved in the transactions. The EORI number is required for businesses that engage in cross-border trade within the European Union (EU), and it is also used by Customs authorities in other countries for customs clearance and regulatory compliance purposes

Entry Summary Declaration (ENS)

The Entry Summary Declaration (ENS) is a document that is required for all goods being imported into the European Union (EU) from outside of the EU. The ENS contains detailed information about the goods being imported, including information about the consignor, consignee, and the person responsible for paying the duties and taxes.

It also includes information about the nature and value of the goods, as well as any specific regulations that apply to the goods. The ENS must be submitted to customs authorities before the goods can be cleared for entry into the EU. It's also known as the "single administrative document" (SAD) and it's mandatory for import and export of goods in EU.

Estimated Time of Arrival (ETA)

Estimated Time of Arrival (ETA) is an estimate of the time at which a vehicle, vessel, or aircraft is expected to arrive at a specific destination. ETA is used in transportation and logistics to plan and coordinate the movement of goods and people. It helps to ensure that the necessary resources and personnel are available at the destination when the vehicle, vessel, or aircraft arrives.

In the aviation industry, ETA is used by air traffic control to plan and coordinate the landing and takeoff of aircraft at airports. In maritime industry, the ETA is used by shipping companies, ports and other stakeholders to plan and coordinate the arrival and departure of ships. In logistics, ETA is used by supply chain managers to plan and coordinate the delivery of goods to customers.

Estimated Time of Departure (ETD)

Estimated Time of Departure (ETD) is an estimate of the time at which a vehicle, vessel, or aircraft is expected to depart from a specific location. ETD is used in transportation and logistics to plan and coordinate the movement of goods and people. It helps to ensure that the necessary resources and personnel are available at the departure location when the vehicle, vessel, or aircraft is ready to depart.

In the aviation industry, ETD is used by air traffic control to plan and coordinate the takeoff of aircraft from airports. In maritime industry, the ETD is used by shipping companies, ports, and other stakeholders to plan and coordinate the departure of ships. In logistics, ETD is used by supply chain managers to plan and coordinate the pickup and shipment of goods from suppliers.

Ex Works (EXW)

Ex Works (EXW) is a term used in international trade to describe a type of trade agreement between a buyer and a seller. Under an EXW agreement, the seller is only responsible for making the goods available at their premises for the buyer to collect. The buyer is responsible for all costs and risks associated with the transportation of the goods from the seller's premises to the final destination.

Ex Works is the most basic of trade terms and is typically used for small and low-value transactions, where the buyer has their own logistics and transportation arrangements in place. The buyer is responsible for arranging and paying for the freight, insurance, and customs clearance of the goods. The seller is not responsible for loading the goods onto the transport vehicle and is not liable for any damages incurred during transport.

It's one of the Incoterms (International Commercial terms) which is a standard set of trade terms developed by the International Chamber of Commerce (ICC) to facilitate international trade. Other incoterms include FOB, CIF, CPT, DAP and others.

Freight All Kinds (FAK)

Freight All Kinds (FAK) is a pricing structure used in the shipping and transportation industry for the consolidation of multiple types of cargo into one container or truckload. Under an FAK pricing structure, a single rate is applied to all types of cargo, regardless of the commodity or class of the goods. This allows shippers to combine different types of cargo and pay a single rate, rather than paying separate rates for each type of cargo.

FAK is typically used for less-than-truckload (LTL) and less-than-container load (LCL) shipments, where multiple shippers' cargo is consolidated into one truck or container. This allows shippers to reduce their transportation costs by sharing the cost of the truck or container with other shippers.

FAK pricing can be beneficial for shippers with a variety of cargo types, irregular freight volumes, and infrequent shipping schedules. However, it's generally not cost-effective for shippers with high volumes of one type of cargo or for those with regular shipping schedules.

Forwarder's Cargo Receipt (FCR)

A Forwarder's Cargo Receipt (FCR) is a document issued by a freight forwarder as a proof of receipt of the goods entrusted to them for shipment. The FCR acts as a contract between the freight forwarder and the consignor (the person who ships the goods) and it states the terms and conditions of the agreement for the carriage of the goods.

The FCR typically includes details such as the consignor and consignee information, the description of the goods, the point of origin and destination, the freight charges, and any other relevant information related to the shipment. The FCR may also include the freight forwarder's terms and conditions of service, such as their liability for loss or damage to the goods during transportation.

The FCR is an important document as it serves as a receipt of the goods, and it's evidence that the freight forwarder has taken possession of the goods and is responsible for their carriage. It also serves as a document of title, meaning that the consignee can use it to claim the goods upon arrival at the destination.

Free on Board (FOB)

Free on Board (FOB) is a term used in international trade to describe a type of trade agreement between a buyer and a seller. Under FOB, the seller is responsible for loading the goods onto the shipping vessel at the port of shipment, and the buyer is responsible for the transportation of the goods from the port of shipment to the final destination.

FOB is typically used for larger and higher-value transactions, where the buyer does not have their own logistics and transportation arrangements in place. The seller is responsible for loading the goods onto the shipping vessel and is liable for any damages incurred during loading. The buyer is responsible for arranging and paying for the freight, insurance, and customs clearance of the goods from the port of shipment to the final destination.

It's also one of the Incoterms (International Commercial terms) which is a standard set of trade terms developed by the International Chamber of Commerce (ICC) to facilitate international trade. The terms specify the responsibilities of the buyer and the seller, such as which party is responsible for loading the goods, arranging and paying for freight, and insuring the goods during transport.

Freight Forwarders

A freight forwarder is a company that specializes in arranging and coordinating the transportation of goods from one location to another on behalf of its clients. Freight forwarders act as intermediaries between shippers and carriers, and they handle the logistics of shipping goods by air, sea, or land. They provide a variety of services such as:

Arranging for the transportation of goods by the most cost-effective and efficient means

Coordinating the movement of goods through ports and customs clearance

Providing warehousing and storage solutions

Offering cargo insurance

Providing tracking and visibility of the cargo throughout the supply chain

Offering value-added services such as packaging and labeling

Freight forwarders can act as either an agent of the shipper or as a principal, meaning they take ownership of the goods and are responsible for the delivery. They are also able to provide consolidated shipment services, where multiple small shipments are grouped together to form a full container load, which is more cost-effective and efficient for the shipper.

In summary, freight forwarders are intermediaries that help businesses navigate the logistics of shipping and transporting goods globally, by providing them with a range of services from transportation, customs clearance, warehousing and others, that help to optimize the supply chain and reduce costs.

Full Container Load (FCL)

A Full Container Load (FCL) is a shipping term that refers to the use of an entire container for the transportation of goods. In an FCL shipment, the shipper rents an entire container from a shipping line and loads it with their own cargo. The shipper is responsible for the loading and unloading of the container, and the shipping line is responsible for transporting the container to the destination port.

FCL shipping is typically used for larger shipments where the volume of cargo is sufficient to fill an entire container. It allows the shipper to have more control over the handling of their cargo, as the container is sealed at the point of origin and remains sealed until it reaches the final destination. This eliminates the need for cargo to be consolidated or deconsolidated with other shipments, reducing the risk of damage or loss.

FCL shipping is generally more cost-effective for shippers with high volumes of cargo, as it eliminates the need to share the cost of a container with other shippers. It also provides more flexibility in terms of loading and unloading schedules, and it allows the shipper to load the container with a variety of goods.

It's opposed to Less-than-Container Load (LCL) shipping, where multiple shippers' cargo is consolidated into one container, and they share the costs of the container, this option is more suitable for smaller shipments or infrequent shippers.

Garment on Hanger (GOH)

Garment on Hanger (GOH) is a term used in the clothing and fashion industry to describe a method of transporting and displaying garments. In a GOH shipment, clothes are hung on hangers and shipped to retailers or wholesalers in that way, allowing them to be displayed and sold directly from the hanger.

GOH is a popular method of transportation and display for garments such as suits, coats, and dresses, as it eliminates the need for folding and ironing, which can cause creases and damage to the garments. It also allows the garments to be displayed in a way that is similar to how they will be presented in a retail store, making it easier for buyers to visualize how the garments will look on display.

GOH shipping typically requires specialized packing and handling methods to ensure that the garments are not damaged during transport. This includes using specific hangers and covers to protect the garments, and arranging the garments in the container in a way that minimizes movement and damage during transit.

Retailers and wholesalers prefer to receive their merchandise in this way, as it saves time and labor costs associated with unpacking, folding, and preparing the garments for display.

Gross Weight

Gross weight is the total weight of a product, including the weight of its packaging and any other materials used in the shipment. Gross weight is often used to determine the shipping cost and the compliance with weight limitations set by the carrier or regulations.

For example, in the case of shipping cargo by air or sea, the weight of the cargo and the packaging materials is considered as the gross weight. The same applies for land transportation, where the weight of the cargo, pallets, and any other materials used for securing the cargo is considered as the gross weight.

It's an important metric to consider in the logistics and supply chain industry, as it affects the cost of transportation and the compliance with regulations on weight limitations. It's also used to calculate the freight charges and to determine the cargo density for shipping.

It's important to note that it's different from the net weight, which is the weight of the product only, without its packaging and other materials. The net weight is usually used for pricing and labeling of products

High Cube (HC or HQ)

High Cube (HC or HQ) is a term used to describe shipping containers that are taller than standard containers. High cube containers are typically 9 feet 6 inches (2.9 meters) tall, while standard shipping containers are 8 feet 6 inches (2.6 meters) tall.

High cube containers are used to transport goods that are taller than what can fit in a standard container, such as machinery, heavy equipment, and large volumes of packaged goods. They are also useful for storing goods that require more vertical space.

The use of high cube containers allows shippers to transport more goods in one container, which can be more cost-effective than using multiple standard containers. They also provide more volume capacity for the cargo, and they are especially useful for bulky items that are difficult to fit in standard containers.

High cube containers are available in the same standard sizes as standard containers, including 20-foot and 40-foot lengths. They are also available in both dry and refrigerated versions, depending on the needs of the shipment.

It's worth noting that due to the increased height, high cube containers may have limited accessibility to some ports and terminals, and they may not fit in standard shipping vessels. Therefore, it's important to check the compatibility of the equipment and infrastructure before the shipment.

House Airway Bill (HAWB)

A House Airway Bill (HAWB) is a document used in the air cargo industry to accompany a shipment of goods. It serves as a contract of carriage between the shipper and the carrier, and it provides details about the shipment such as the origin, destination, and contents of the package.

The HAWB is issued by the freight forwarder or the shipping agent, known as the "house" carrier, who is acting on behalf of the shipper. It acts as a document of title, meaning that it can be used to claim the goods upon arrival at the destination.

The HAWB typically includes information such as the shipper and consignee details, the description of the goods, the weight and dimensions of the shipment, and any special handling instructions. It also includes the freight charges and any applicable taxes or fees.

It's important to note that it's different from the Master Airway Bill (MAWB), which is issued by the airline carrier, and it covers multiple HAWBs. The MAWB serves as a consolidated document for a group of HAWBs, and it contains similar information as the HAWB, but on a higher level of detail.

In summary, HAWB is a document that serves as a contract of carriage and a document of title for a single air cargo shipment, and it's issued by the freight forwarder or shipping agent acting on behalf of the shipper.

House Bill of Lading (HBL)

A House Bill of Lading (HBL) is a document used in the shipping industry to accompany a shipment of goods. It serves as a contract of carriage between the shipper and the carrier, and it provides details about the shipment such as the origin, destination, and contents of the package.

The HBL is issued by the freight forwarder or the shipping agent, known as the "house" carrier, who is acting on behalf of the shipper. It acts as a document of title, meaning that it can be used to claim the goods upon arrival at the destination.

The HBL typically includes information such as the shipper and consignee details, the description of the goods, the weight and dimensions of the shipment, and any special handling instructions. It also includes the freight charges and any applicable taxes or fees.

It's important to note that it's different from the Master Bill of Lading (MBL), which is issued by the ocean carrier, and it covers multiple HBLs. The MBL serves as a consolidated document for a group of HBLs, and it contains similar information as the HBL, but on a higher level of detail.

In summary, HBL is a document that serves as a contract of carriage and a document of title for a single sea freight shipment, and it's issued by the freight forwarder or shipping agent acting on behalf of the shipper.

Customs Import Entry

A Customs Import Entry is a document that is required by customs authorities for the clearance of goods being imported into a country. It contains detailed information about the goods being imported, including information about the consignor, consignee, and the person responsible for paying the duties and taxes. It also includes information about the nature and value of the goods, as well as any specific regulations that apply to the goods.

The import entry is submitted to customs authorities before the goods can be cleared for entry into the country. Customs officials will use the information provided in the import entry to determine the applicable duties and taxes that must be paid on the goods. They will also use the information to ensure compliance with any regulations or laws that apply to the goods being imported.

The import entry is typically prepared by the importer or a customs broker on their behalf, and it's usually accompanied by other required documents such as commercial invoice, bill of lading, packing list and others. The process of filling in the import entry and obtaining clearance is known as "customs clearance".

It's important to note that the process and requirements for Customs Import Entry vary from country to country, and it's essential for the importer to be familiar with the regulations and procedures of the specific country in which the goods will be imported.

Incoterms

Incoterms (International Commercial terms) are a set of standard trade terms developed by the International Chamber of Commerce (ICC) to facilitate international trade. They are widely used in international trade to clearly communicate the responsibilities of the buyer and the seller, such as which party is responsible for loading the goods, arranging and paying for freight, and insuring the goods during transport.

There are 11 Incoterms, which can be divided into two categories:

E terms (Ex Works, FOB, FCA, CPT, CIP, DAT, DAP and DDP): These terms are used for any mode of transport and they specify the point at which the risk of loss or damage to the goods passes from the seller to the buyer.

F terms (FAS, FOB, and FCA): These terms are used only for sea and inland waterway transport, and they specify the point at which the risk of loss or damage to the goods passes from the seller to the buyer.

The most commonly used Incoterms are:

EXW (Ex Works) - The seller's only obligation is to make the goods available at their premises.

FOB (Free on Board) - The seller is responsible for loading the goods onto the shipping vessel at the port of shipment.

CIF (Cost, Insurance, and Freight)

International Operating Procedure (IOP)

An International Operating Procedure (IOP) is a set of guidelines and procedures that outlines the specific steps and protocols that an organization should follow when conducting international operations. It is designed to ensure consistency, compliance, and standardization in the execution of international projects, programs, and activities.

An IOP typically covers a wide range of topics such as customs clearance, freight forwarding, cargo handling, transportation, and logistics, compliance with laws and regulations, and risk management. It also includes procedures for dealing with unexpected events, such as emergencies or natural disasters, and instructions for reporting and documenting incidents.

IOPs are often used by companies that engage in international trade, by logistics and transportation companies, and by organizations that operate internationally. They are also used by governments, aid organizations, and non-profits.

IOPs are intended to help organizations navigate the complexities of international operations and to reduce the risk of errors, delays, and non-compliance. They can also help organizations to identify and mitigate risks, and to improve efficiency and performance.

In summary, an International Operating Procedure (IOP) is a set of guidelines and procedures that outlines the specific steps and protocols that an organization should follow when conducting international operations. It serves as a tool for ensuring consistency, compliance, and standardization in the execution of international projects, programs, and activities.

International Standard Organisations (ISO)

The International Organization for Standardization (ISO) is an independent, non-governmental international organization that develops and publishes standards for various industries and technologies. These standards are used to ensure that products, services, and systems are safe, reliable, and of good quality.

ISO has published over 22,000 standards covering a wide range of topics, including management systems, technical products, and services, as well as food safety, environmental management, and medical devices. ISO standards are voluntary, but are widely adopted and recognized as a global benchmark for quality and safety in many industries.

Letter of Credit (L/C)

A letter of credit (L/C) is a financial instrument that is used to provide a guarantee for payment in international trade transactions. It is issued by a bank on behalf of a buyer (the applicant) and is addressed to a seller (the beneficiary). The letter of credit provides assurance to the seller that if the specified terms and conditions of the sale are met, the seller will be paid by the issuing bank.

The letter of credit typically includes details such as the names of the buyer and seller, the goods or services being sold, the terms of payment, and the documents that must be presented to the bank in order to receive payment. The most common type of L/C is a "sight" L/C, which requires the seller to present the required documents to the bank and receive payment immediately upon shipment of the goods. Other types of L/C include "deferred payment" L/C, "standby" L/C, "confirmed" L/C, and "unconfirmed" L/C.

In summary, a letter of credit is a guarantee of payment issued by a bank on behalf of a buyer to a seller, which can be used to ensure that payment will be made if the terms of the sale are met.

Letter of Indemnity (LOI)

A letter of indemnity (LOI) is a legal document that is used to provide a guarantee or indemnification against a specific loss or liability. In the context of international trade, it is a letter that is issued by the buyer to the seller, the shipping company, or other parties involved in the transaction, to guarantee that the buyer will assume any financial losses or liabilities that may arise as a result of certain actions or omissions.

For example, a buyer may issue an LOI to a shipping company to indemnify them against any losses that may occur if the shipping documents do not match the actual cargo or if the cargo is seized by customs. Similarly, a buyer may issue an LOI to a seller to indemnify them against any losses that may occur if the buyer is unable to make payment due to a lack of funds or other financial difficulties.

The LOI typically includes the details of the parties involved, the conditions under which the indemnification will be provided, and any specific exclusions or limitations. It is important to note that a LOI is a separate document from a letter of credit, which is a guarantee of payment, not a guarantee of indemnification.

In summary, a Letter of Indemnity (LOI) is a legal document that provides a guarantee or indemnification against a specific loss or liability, usually in the context of international trade. It is issued by the buyer to the seller, shipping company or other parties involved in the transaction to guarantee that the buyer will assume any financial losses or liabilities that may arise as a result of certain actions or omissions.

Lift On/Lift Off (LO/LO)

Lift On/Lift Off (LO/LO) is a type of cargo handling method used in the shipping industry. It refers to the process of loading and unloading cargo onto a vessel using cranes or other lifting equipment. The cargo is typically loaded or offloaded in large containers, which are lifted on and off the ship using cranes.

The LO/LO method is commonly used for shipping large or heavy cargo such as construction equipment, vehicles, and machinery. The cargo is usually loaded into standard 20-foot or 40-foot shipping containers, which are then lifted on and off the ship. The cargo is secured in the containers, which provide protection during transport and make it easy to handle on and off the ship.

There are some advantages to using the LO/LO method, such as speed and efficiency, as it allows cargo to be loaded and unloaded quickly. It is also useful for cargo that may be too large or heavy to be loaded or unloaded manually. However, it also requires specialized equipment and facilities, such as cranes and container yards, which can limit the range of ports and terminals that can handle LO/LO cargo.

In summary, Lift On/Lift Off (LO/LO) is a method used in the shipping industry to load and unload cargo onto a vessel using cranes or other lifting equipment. The cargo is typically loaded or offloaded in large containers, which are lifted on and off the ship. This method is commonly used for heavy or large cargo, but requires specialized equipment and facilities, which can limit the range of ports and terminals that can handle LO/LO cargo.

Less than Container Load (LCL)

Less than Container Load (LCL) is a type of shipping service used in the international trade where multiple consignees' goods are consolidated into one container and shipped to the same destination. This service is used when a shipper does not have enough cargo to fill an entire container. Instead, the shipper's cargo is consolidated with other shippers' cargo in a container, and the shipper only pays for the space used.

When shipping LCL, the shipper will typically package the cargo in a way that allows it to be consolidated with other cargo. This usually means that the cargo is packaged in smaller, manageable pieces. The cargo is then picked up by a freight forwarder, who will consolidate the cargo with other shippers' cargo at a warehouse or container freight station. Once the container is full, it is shipped to the destination port, where it will be deconsolidated and the individual consignees' cargo will be made available for pick up.

LCL service has some advantages, such as cost-effectiveness, as the shipper doesn't have to pay for the entire container, only for the space used. It also allows shippers with smaller quantities of cargo to access international markets. But it also has its disadvantages, such as longer transit times and increased risk of damage to cargo, as it needs to be handled multiple times before reaching the final destination.

In summary, Less than Container Load (LCL) is a type of shipping service used in international trade where multiple consignees' goods are consolidated into one container and shipped to the same destination. This service is used when a shipper does not have enough cargo to fill an entire container, and the shipper only pays for the space used. It has some advantages like cost-effectiveness, but also has some disadvantages such as longer transit times and increased risk of damage to cargo.

Marine Insurance

Marine insurance is a type of insurance that provides financial protection for ships, cargo, freight, and other maritime interests. It covers risks associated with the transport of goods by sea, including the perils of the sea, fire, piracy, and other types of marine losses. The coverage typically includes protection for the ship itself, as well as its cargo and freight, and may also include liability coverage for third-party claims.

There are different types of marine insurance policies, including:

Hull insurance: covers the physical damage to or loss of a ship.

Cargo insurance: covers the loss or damage of cargo while in transit.

Freight insurance: covers the cost of freight in the event of a loss or damage to the cargo.

Liability insurance: covers third-party claims arising from the operation of the ship or the handling of cargo.

Marine insurance policies can be purchased by ship owners, freight forwarders, cargo owners, and other parties with an interest in the maritime trade. The policy can be written on an "all risks" basis, which covers all losses except those specifically excluded, or on a "named perils" basis, which covers only the specific risks named in the policy.

Marine insurance policies are usually written on an annual basis, but coverage can also be arranged on a voyage basis, covering a specific voyage or shipment.

In summary, Marine Insurance is a type of insurance that provides financial protection for ships, cargo, freight, and other maritime interests. It covers risks associated with the transport of goods by sea and includes different types of coverage such as Hull, Cargo, Freight, and Liability insurance. It can be purchased by ship owners, freight forwarders, cargo owners, and other parties with an interest in the maritime trade.

Minimum Order Quantity (MOQ)

Minimum Order Quantity (MOQ) is the smallest quantity of a product that a supplier is willing to sell. It is the lowest quantity of goods that a supplier will accept as an order. This can vary depending on the supplier, the product, and the market conditions.

MOQ is used by suppliers to ensure that they are able to cover the costs of producing, packaging, and shipping the goods, and to ensure that they are able to make a profit on the sale. It also allows suppliers to manage their inventory and production schedules more efficiently.

For buyers, MOQ can be an important factor to consider when placing orders. If a buyer is only interested in purchasing a small quantity of goods, they may need to find a supplier that has a low MOQ or look for alternatives, such as buying in bulk or finding a distributor or wholesaler that can provide smaller quantities.

MOQ is usually stated by the supplier and can be found in their catalogs or on their website. The quantity can vary, it can be per item, per order, per shipment, or per pallet. MOQ can also be influenced by the type of product, the price, and the supplier's production capacity.

In summary, Minimum Order Quantity (MOQ) is the smallest quantity of a product that a supplier is willing to sell, it is the lowest quantity of goods that a supplier will accept as an order. It is used by suppliers to ensure that they are able to cover the costs of producing, packaging and shipping the goods, and to ensure that they are able to make a profit on the sale. For buyers, MOQ can be an important factor to consider when placing orders, and it can vary depending on the supplier, the product, and the market conditions.

Notice of Arrival (NOA)

A Notice of Arrival (NOA) is a document that is used to inform the relevant parties of the arrival of a vessel at a port or terminal. It is typically issued by the ship's captain or agent, and is sent to the port authorities, the consignee, and any other parties that have an interest in the vessel's arrival.

The NOA typically includes information such as the vessel's name and registration, the voyage number, the expected time of arrival, the cargo details, and the number of crew members on board. It also includes information about the ship's next port of call and the final destination of the voyage.

The NOA is an important document as it allows the relevant parties to prepare for the arrival of the vessel and the discharge of its cargo. For example, the port authorities use the information in the NOA to plan the berthing of the vessel and the allocation of cranes and other equipment. The consignee uses the information to arrange for the receipt and delivery of the cargo.

In summary, Notice of Arrival (NOA) is a document that is used to inform the relevant parties of the arrival of a vessel at a port or terminal. It typically includes information such as the vessel's name and registration, the voyage number, the expected time of arrival, the cargo details, and the number of crew members on board. It is an important document as it allows the relevant parties to prepare for the arrival of the vessel and the discharge of its cargo.

Notify Party

A Notify Party, also known as a "Notify Address," is a person or organization that is specified in a shipping document to be notified of the arrival of a shipment or the status of a shipment. It is a party other than the consignee or the importer of record that is notified of the shipment's arrival at the port of destination.

In the context of international trade, the Notify Party is usually the freight forwarder, customs broker, or a local agent who is responsible for handling the customs clearance and delivery of the goods. They are responsible for arranging for the receipt of the goods and the necessary paperwork. They also provide information on the shipment's status and progress, such as the expected time of arrival, to the importer and other parties involved in the transaction.

The Notify Party is typically listed on the bill of lading, air waybill, or other shipping documents, along with the name, address, and contact information of the party.

In summary, Notify Party is a person or organization that is specified in a shipping document to be notified of the arrival of a shipment or the status of a shipment. It is a party other than the consignee or the importer of record that is notified of the shipment's arrival at the port of destination. This party is usually the freight forwarder, customs broker, or a local agent who is responsible for handling the customs clearance and delivery of the goods.

They are responsible for providing information on the shipment's status and progress to the importer and other parties involved in the transaction.

Origin Terminal Handling (OTHC)

Origin Terminal Handling Charge (OTHC) is a fee that is charged by a terminal operator for handling cargo at the port of origin. This fee is typically charged for loading cargo onto a container ship or a bulk carrier for export, and it covers the costs of labor, equipment, and facilities used in the handling and loading process.

OTHC can include activities such as receiving and handling cargo, weighing and measuring cargo, loading cargo onto a vessel, and providing storage and other services. These charges can vary depending on the type of cargo, the terminal's facilities and services, and the level of handling required.

OTHC is usually charged to the shipper or the freight forwarder and is often included in the freight rate or quoted as a separate charge. It is important for exporters to understand and budget for these charges as they can have a significant impact on the overall cost of exporting goods.

In summary, Origin Terminal Handling Charge (OTHC) is a fee charged by a terminal operator for handling cargo at the port of origin. It covers the costs of labor, equipment, and facilities used in the handling and loading process of cargo onto a container ship or bulk carrier for export. This charge can vary depending on the type of cargo, the terminal's facilities and services, and the level of handling required. OTHC is usually charged to the shipper or the freight forwarder and is often included in the freight rate or quoted as a separate charge.

Overweight Surcharge (OWS)

An Overweight Surcharge (OWS) is a fee that is charged by a carrier or shipping company when a shipment exceeds a certain weight limit. This surcharge is applied to cargo that exceeds the maximum weight that is allowed for a standard shipping container or truck. The weight limit and the surcharge amount can vary depending on the carrier, the type of cargo, and the route of the shipment.

The OWS fee is typically applied to cargo that is overweight due to the weight of the packaging or the cargo itself, for example, heavy machinery, steel coils, and other heavy items. The surcharge is intended to cover the additional costs that the carrier incurs when handling and transporting overweight cargo, such as the use of specialized equipment, additional labor, and potential damage to equipment.

The OWS fee is usually quoted separately from the freight rate and is typically based on a per-kilogram or per-pound charge. It can also be based on a percentage of the freight rate. It is important for shippers to understand the weight limits and any surcharges that may apply to their cargo, in order to budget and plan their logistics accordingly.

In summary, Overweight Surcharge (OWS) is a fee charged by a carrier or shipping company when a shipment exceeds a certain weight limit. The weight limit and the surcharge amount can vary depending on the carrier, the type of cargo, and the route of the shipment. The surcharge is intended to cover the additional costs that the carrier incurs when handling and transporting overweight cargo, such as the use of specialized equipment, additional labor, and potential damage to equipment. The OWS fee is usually quoted separately from the freight rate and is typically based on a per-kilogram or per-pound charge.

Packing List

A Packing List is a document that provides a detailed inventory of the items that are included in a shipment. It typically includes information such as the item's description, quantity, weight, and any other relevant details. The packing list is usually prepared by the shipper and is used to provide an accurate and detailed record of the items that are being shipped, as well as to ensure that the shipment is complete and accurate.

The packing list serves as an important shipping document as it provides the recipient with information about what is included in the shipment, and it helps to ensure that the shipment is complete and accurate. It is also used for customs clearance, as it provides detailed information about the contents of the shipment, which is necessary for determining tariffs and taxes.

The packing list is usually included with the shipment, along with other shipping documents such as the bill of lading or air waybill. It is also usually provided to the carrier, freight forwarder, and other parties involved in the shipping process, to ensure that they have accurate information about the contents of the shipment.

In summary, A Packing List is a document that provides a detailed inventory of the items that are included in a shipment. It typically includes information such as the item's description, quantity, weight, and any other relevant details. It serves as an important shipping document as it provides the

Pallet Exchange

Pallet exchange is a process in which empty pallets are exchanged for loaded pallets in order to facilitate the efficient movement of goods. The loaded pallets are typically used to transport goods from one location to another, while the empty pallets are returned to the original location to be used again.

The pallet exchange process is commonly used in the shipping and logistics industry, where goods are transported on pallets that are loaded onto trucks, trains, or ships for transport. The pallets are designed to be easily moved by forklifts and other handling equipment, which makes them ideal for use in warehouses and distribution centers.

Pallet exchange can be done in a variety of ways, depending on the needs of the shipper and the logistics provider. In some cases, the empty pallets may be returned to the shipper, while in other cases they may be returned to the logistics provider. In some cases, the logistics provider may have a pallet pool, where they own the pallets and are responsible for their maintenance and replacement.

Pallet exchange can help to improve efficiency in the logistics process, as it allows for the reuse of pallets, reduces the need for new pallets to be manufactured, and reduces the amount of packaging waste.

In summary, Pallet exchange is a process in which empty pallets are exchanged for loaded pallets in order to facilitate the efficient movement of goods. The loaded pallets are typically used to transport goods from one location to another, while the empty pallets are returned to the original location to be used again. This process is commonly used in the shipping and logistics industry and can help to improve efficiency by reducing the need for new pallets and reducing packaging waste.

Peak Season Surcharge (PSS)

A Peak Season Surcharge (PSS) is a fee that is charged by shipping companies, carriers, and freight forwarders during periods of high demand. This surcharge is applied to compensate for the increased costs that the carrier incurs during peak shipping seasons, such as the holiday season, when the demand for shipping services is higher than usual.

PSS is usually a temporary surcharge that is applied during specific periods of the year, such as the lead-up to the holiday season or during other busy periods when shipping companies are experiencing high demand for their services. The surcharge is usually based on a percentage of the freight rate or a flat fee per shipment, and it is applied in addition to the standard shipping rates.

The PSS fee covers the additional costs that shipping companies incur during peak seasons, such as increased fuel costs, higher wages for employees, and the need to increase the number of ships and cargo planes to meet the increased demand.

PSS is typically applied to all types of cargo and to all shipping lanes, but it can vary depending on the shipping company, the route, and the type of cargo. It is important for shippers to be aware of the PSS fee and to budget and plan accordingly during peak shipping seasons.

In summary, Peak Season Surcharge (PSS) is a fee that is charged by shipping companies, carriers, and freight forwarders during periods of high demand. This surcharge is applied to compensate for the increased costs that the carrier incurs during peak shipping seasons, such as the holiday season, when the demand for shipping services is higher than usual. PSS fee covers the additional costs that shipping companies incur during peak seasons, such as increased fuel costs, higher wages for employees, and the need to increase the number of ships and cargo planes to meet the increased demand. It is typically applied to all types of cargo and to all shipping lanes, but it can vary depending on the shipping company, the route, and the type of cargo.

Port of Discharge (POD)

The Port of Discharge (POD) is the port where a ship completes unloading its cargo at the end of a voyage. It is the final destination of the ship, where the cargo is offloaded and delivered to the consignee or the importer of record. The POD is usually specified in the shipping documents, such as the bill of lading, and is determined by the shipping company or carrier based on the cargo's final destination.

The POD is an important aspect of the shipping process, as it determines the location where the cargo will be delivered and where customs clearance and other formalities will take place. It also determines the transportation method that will be used to move the cargo from the port to the final destination.

In addition, the POD is also an important factor in determining the freight rate and the transit time for the shipment, as the distance and the transit time can vary depending on the POD. Furthermore, the POD plays a crucial role in the planning and scheduling of the shipping, as it will affect the arrival and departure times of the ship, the availability of cargo handling equipment, and the availability of transport and storage facilities.

In summary, the Port of Discharge (POD) is the port where a ship completes unloading its cargo at the end of a voyage. It is the final destination of the ship, where the cargo is offloaded and delivered to the consignee or the importer of record. The POD is an important aspect of the shipping process, as it determines the location where the cargo will be delivered, customs clearance and other formalities will take place, and the transportation method that will be used to move the cargo from the port to the final destination. Furthermore, it plays a crucial role in the planning and scheduling of the shipping, and affects the freight rate, transit time, arrival and departure times of the ship, cargo handling equipment, and transport and storage facilities.

Port of Loading (POL)

The Port of Loading (POL) is the port where a ship takes on cargo and begins its voyage. It is the starting point of the ship's journey, where the cargo is loaded and prepared for transportation. The POL is usually specified in the shipping documents, such as the bill of lading, and is determined by the shipping company or carrier based on the cargo's origin and the shipping schedule.

The POL is an important aspect of the shipping process, as it determines the location where the cargo will be loaded and where customs clearance and other formalities will take place. It also determines the transportation method that will be used to move the cargo to the port and the availability of cargo handling equipment.

In addition, the POL is also an important factor in determining the freight rate and the transit time for the shipment, as the distance and the transit time can vary depending on the POL. Furthermore, the POL plays a crucial role in the planning and scheduling of the shipping, as it will affect the departure time of the ship, the availability of cargo handling equipment, and the availability of transport and storage facilities.

In summary, the Port of Loading (POL) is the port where a ship takes on cargo and begins its voyage. It is the starting point of the ship's journey, where the cargo is loaded and prepared for transportation. The POL is an important aspect of the shipping process, as it determines the location where the cargo will be loaded, customs clearance and other formalities will take place, and the transportation method that will be used to move the cargo to the port. Furthermore, it plays a crucial role in the planning and scheduling of the shipping, and affects the freight rate, transit time, departure time of the ship, cargo handling equipment, and transport and storage facilities.

Purchase Order (PO)

A Purchase Order (PO) is a document that is used to request goods or services from a supplier. It is typically issued by a buyer or purchasing agent to a supplier and includes details such as the item or service being purchased, the quantity, the price, and the delivery schedule. The PO serves as a legally binding agreement between the buyer and the supplier, and it is used to confirm the details of the transaction and to authorize the supplier to proceed with the order.

The PO typically includes the following information:

The name and contact information of the buyer and the supplier

The date of the purchase order

A detailed description of the goods or services being purchased

The quantity of items being purchased

The unit price and total cost of the purchase

The requested delivery date

Any special instructions or terms and conditions

The PO is an important document as it acts as a record of the purchase transaction and it is used by the supplier to prepare and invoice the goods. It is also used by the buyer to track and manage the purchase transaction and to ensure that the goods are delivered on time and meet the required quality standards.

In summary, Purchase Order (PO) is a document that is used to request goods or services from a supplier. It includes details such as the item or service being purchased, the quantity, the price, and the delivery schedule. It serves as a legally binding agreement between the buyer and the supplier, and it is used to confirm the details of the transaction and to authorize the supplier to proceed with the order. It acts as a record of the purchase transaction and it is used by the supplier to prepare and invoice the goods and by the buyer to track and manage the purchase transaction.

Sea Waybill (SWB)

A Sea Waybill (SWB) is a shipping document that is similar to a bill of lading, but it serves a different purpose. It is a non-negotiable document that serves as a receipt for the shipment of goods and it is used for the transportation of cargo by sea. It is issued by the carrier or the shipping company, and it acts as a proof of the contract of carriage between the carrier and the shipper.

The Sea Waybill typically includes the following information:

The name and contact information of the shipper and the consignee

The description of the cargo

The weight and volume of the cargo

The number of packages and the type of packages

The port of loading and the port of discharge

The freight and other charges

The terms and conditions of the contract of carriage

The main difference between a Sea Waybill and a Bill of Lading is that a Sea Waybill is non-negotiable. This means that the shipper or the consignee cannot transfer or sell the rights to the cargo to another party by endorsing the document. Additionally, a Sea Waybill does not serve as a title to the cargo, unlike a Bill of Lading.

In summary, Sea Waybill (SWB) is a shipping document that serves as a receipt for the shipment of goods and is used for the transportation of cargo by sea. It is a non-negotiable document issued by the carrier or the shipping company and acts as a proof of the contract of carriage between the carrier and the shipper. A Sea Waybill typically includes information about the shipper and consignee, cargo, weight, volume, number of packages, ports of loading and discharge, freight, and other charges, and terms and conditions. The main difference between a Sea Waybill and a Bill of Lading is that a Sea Waybill is non-negotiable and does not serve as a title to the cargo.

Shipper

A shipper is a person or company that is responsible for arranging the transportation of goods from one location to another. They are typically the owner of the goods or the person who has been hired by the owner to arrange the transportation. The shipper is responsible for preparing the goods for shipment, including packaging, labeling, and providing all necessary documentation.

The shipper is responsible for selecting the mode of transportation, such as by sea, air, or land, and for selecting the carrier that will transport the goods. They also negotiate the freight rate, schedule the pickup and delivery of the goods, and track the shipment to ensure that it is delivered on time and in good condition.

In addition, the shipper is also responsible for providing the necessary documentation for customs clearance, including the commercial invoice, bill of lading, and other relevant documents. They also ensure that all necessary licenses and permits are obtained, and that the goods comply with all relevant regulations and laws.

In summary, a shipper is a person or company that is responsible for arranging the transportation of goods from one location to another. They are typically the owner of the goods or the person who has been hired by the owner to arrange the transportation. The shipper is responsible for preparing the goods for shipment, selecting the mode of transportation and carrier, negotiating the freight rate, scheduling the pickup and delivery of the goods, tracking the shipment, providing necessary documentation, obtaining licenses and permits, and ensuring that the goods comply with all relevant regulations and laws.

Shipper Owned Container (SOC)

A Shipper Owned Container (SOC) is a shipping container that is owned and operated by the shipper, rather than by the carrier or shipping line. The shipper is responsible for the purchase, maintenance, and repositioning of the container and is also responsible for the costs associated with the container.

SOCs are commonly used for intermodal transportation, where the container is loaded at the shipper's facility and then transported by truck, rail or ship to the final destination. The SOCs help to ensure that the goods are protected during transportation and that the container is available for the next shipment.

The use of SOCs is more common for shippers that have a high volume of cargo and need to ensure that there is always a container available for loading. They also allow the shipper to have more control over the container, such as being able to customize the container with the shipper's branding or to install special equipment.

In summary, Shipper Owned Container (SOC) is a shipping container that is owned and operated by the shipper rather than by the carrier or shipping line. The shipper is responsible for the purchase, maintenance, and repositioning of the container and is also responsible for the costs associated with the container. SOCs are commonly used for intermodal transportation, and help to ensure that the goods are protected during transportation and that the container is available for the next shipment. The use of SOCs allows the shipper to have more control over the container, such as being able to customize the container with the shipper's branding or to install special equipment.

Shipping Instructions (SI)

Shipping Instructions (SI) are a set of instructions provided by the consignor (the person or organization sending the goods) to the carrier and/or freight forwarder specifying the details of how the goods should be shipped.

This may include information such as the type of packaging required, the routing of the shipment, and any special handling instructions. The SI may also include details such as the name and address of the consignee (the person or organization receiving the goods), the shipping method, and any relevant customs or regulatory requirements.

The SI is usually provided to the carrier or freight forwarder in the form of a document, such as a bill of lading or air waybill.

Shipping Line

A shipping line, also known as an ocean carrier, is a company that owns and operates ships for the purpose of transporting cargo between ports. Shipping lines typically operate on specific trade routes, such as between Asia and North America, and they may specialize in the transportation of certain types of cargo, such as containers or bulk goods.

They offer a variety of services such as full container loads (FCL), less than container loads (LCL), and roll-on roll-off (RoRo) services. They also offer different types of contract such as liner terms, tramp terms, and time charter. Shipping lines also provide tracking and tracing systems for customers to monitor the status of their cargo during transit.

Shipping Marks and Numbers

Shipping marks and numbers are codes used to identify and track cargo as it is shipped from one location to another. Shipping marks are typically a series of letters and numbers printed on the outside of a shipping container or package, and they are used to indicate the contents of the package and its destination. Shipping marks may also include information such as the weight or size of the package, the type of cargo, and the shipping company or carrier.

Shipping numbers, also known as bill of lading or airway bill number, is a unique identification number assigned to a shipment by the shipping company or carrier. It is used to track the movement of the cargo from the point of origin to the final destination. This number can be used to access information about the cargo, such as its location, expected arrival time, and any associated documentation.

Both the shipping marks and numbers are important for keeping track of cargo, especially when it comes to customs clearance, freight forwarders and carriers use them as reference for their transportation and handling, and for the final recipient to identify and receive the correct cargo.

Stock Keeping Unit (SKU)

A Stock Keeping Unit (SKU) is a unique identifier assigned to a product by a business or retailer. It is used to track inventory and sales of a product, and it is often used in retail and e-commerce operations.

The SKU is a combination of letters and numbers that uniquely identifies a product within a company's inventory. Each product within a company's inventory will have its own SKU, which helps to differentiate it from other products. The SKU is typically used to track inventory levels, reorder points, sales and other data related to the product.

SKUs are typically used in retail and e-commerce environments, where businesses need to track inventory levels and sales data in order to manage their operations effectively. They are also used in supply chain management and logistics to track products as they move through the supply chain.

In summary, a SKU is a unique identifier assigned to a product that helps businesses to track inventory, sales, and other data related to the product.

Supply Chain Management (SCM)

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the flow of goods, services, and information from suppliers to customers. It encompasses all activities involved in sourcing raw materials and components, manufacturing and assembling products, and delivering them to customers. The goal of SCM is to optimize the entire supply chain process in order to improve efficiency, reduce costs, and increase customer satisfaction.

SCM involves a wide range of activities, including:

Sourcing and procurement: Identifying and selecting suppliers, negotiating contracts, and managing the flow of materials and components from suppliers to the manufacturer.

Production planning: Determining the most efficient way to produce products, taking into account factors such as demand, capacity, and lead times.

Inventory management: Managing the flow of goods and materials through the supply chain, including the use of inventory management systems to track inventory levels and reorder points.

Logistics and distribution: Coordinating the transportation and delivery of goods to customers, including the use of logistics management systems to optimize routes and delivery schedules.

Customer service: Managing customer relationships, including the handling of customer inquiries, complaints, and returns.

SCM also involves integrating and coordinating all of these activities with the other functions of the business, such as finance, marketing, and information technology.

To effectively implement SCM, companies use various tools and technologies such as enterprise resource planning (ERP) systems, transportation management systems (TMS), warehouse management systems (WMS), and supply chain planning systems (SCP). They also use data analysis and modeling methods to optimize their supply chain performance.

Tail-lift

A tail-lift, also known as a liftgate or a tailgate lift, is a mechanical device that is mounted on the rear of a truck or trailer. It is used to load and unload cargo from the vehicle by raising and lowering the cargo platform to ground level. Tail-lifts are commonly used in the transportation and logistics industry to facilitate the loading and unloading of heavy or bulky items that cannot be easily loaded by hand.

Tail-lifts typically consist of a hydraulic lift mechanism and a cargo platform that can be raised and lowered. The lift mechanism is powered by a hydraulic pump and cylinder, and the platform can be controlled by the driver or an operator using a control panel. Tail-lifts come in a variety of sizes and configurations, and can have capacity ranges from few hundred pounds to thousands of pounds.

Tail-lifts are commonly used in the transportation of goods such as furniture, appliances, and construction materials. They can also be used to load and unload pallets and other types of cargo containers. They are especially useful in cases where the cargo is too heavy or bulky to be loaded by hand, or where there is limited access to the cargo area of the vehicle. Tail-lifts are also used to accommodate people with mobility issues, and they are a common feature on delivery trucks, cargo vans, and refrigerated trailers.

Tariff Code

A Tariff Code, also known as a Harmonized System (HS) code or a Customs Tariff code, is a standardized numerical code used to classify goods in international trade. The purpose of the code is to provide a common classification system that can be used by all countries, making it easier to identify and classify goods for customs and trade purposes.

Tariff codes are based on the Harmonized System (HS) of the World Customs Organization (WCO), which is a standardized system of names and numbers for classifying goods in international trade. Each code is composed of six digits, and it is used to identify a specific product or group of products. As the trade flows between countries, the HS codes are used to classify the goods for the purpose of customs tariffs and taxes, regulations, and statistics.

The first two digits of the code represent the chapter of the HS, the next two digits represent the heading, and the last two digits represent the subheading. The codes are arranged in a logical and hierarchical structure that allows for the easy identification of goods.

Businesses, freight forwarders, and customs brokers use tariff codes to classify their goods and ensure that they are correctly declared and assessed for customs duties and taxes. They are also used to track trade statistics, and to monitor compliance with trade agreements and other regulations.

Telex Release

Telex Release is a system that allows a shipping line or carrier to release cargo to a consignee (the person or organization receiving the goods) without the need for the original bill of lading (B/L) to be physically presented. It is a system that allows for electronic transmission of shipping documents such as bill of lading and shipping instructions from the carrier to the consignee or their agent.

Under a Telex Release, the carrier will release the cargo to the consignee or their agent upon receipt of a telex message, or electronic message, from the shipper or the shipper's agent authorizing the release of the cargo. This process is used to speed up the cargo release process, as it eliminates the need for the original bill of lading to be physically presented to the carrier.

The Telex Release system is usually used in situations where the original bill of lading is held by a bank as collateral for a letter of credit, or where the consignee is unable to physically present the original bill of lading to the carrier. It is also used to release cargo that is shipped on a freight on board (FOB) or free carrier (FCA) basis, where the risk of loss or damage to the cargo passes to the buyer as soon as the cargo is loaded on the shipping line's vessel or at the carrier's terminal.

However, Telex Release system may require additional authorizations from the parties involved, and it may not be applicable in all countries or ports, so it is important to confirm the acceptance and requirements of the telex release system with the carrier or freight forwarder.

Terminal Handling Charge (THC)

Terminal Handling Charge (THC) is a fee charged by a terminal operator, stevedore, or shipping line for handling cargo at a port or terminal. It is typically charged on a per-container or per-unit basis and covers the cost of services such as loading and unloading cargo from ships, moving cargo within the terminal, and providing equipment such as cranes and forklifts.

THC is usually assessed on both import and export cargo, and it is typically based on the type of cargo, the size and type of container, and the level of handling required. The THC rate can vary depending on the port or terminal, and it may be subject to change depending on market conditions or other factors.

THC is a separate charge from freight charges, and it is typically paid by the shipper, consignee, or freight forwarder. It is not always included in the freight quote and it is important to check with the carrier or freight forwarder if THC is included or not. It is also important to check the THC rate and the charges of different ports or terminals before making a decision on where to load or unload the cargo.

In summary, Terminal Handling Charge is a fee that covers the cost of handling cargo at a port or terminal and it is usually assessed on both import and export cargo. It is a separate charge from freight charges and it is usually paid by the shipper, consignee, or freight forwarder.

Transit Time

Transit time refers to the amount of time it takes for a shipment to travel from the point of origin to the final destination. Transit time can vary depending on the mode of transportation, the distance of the shipment, and the routing of the shipment. It also can be affected by factors such as customs clearance, weather conditions, and other unforeseen events.

For sea freight, transit time is typically measured in days and it starts from the date the vessel departs from the port of origin until the date it arrives at the port of destination. For air freight, transit time is measured in hours, and it starts from the time the aircraft departs from the airport of origin until the time it arrives at the airport of destination. For land freight, transit time is measured in days and it starts from the time the truck departs from the origin until it arrives at the destination.

When planning a shipment, it is important to consider the transit time in order to ensure that the cargo will reach its destination on time. Transit time can be used to compare different shipping options and to determine the most efficient and cost-effective way to move the cargo.

It is important to note that transit time is an estimated time and it may be affected by unforeseen events such as strikes, natural disasters, and other unexpected events. Therefore, it is important to check with the carrier or freight forwarder for the most accurate transit time and to make sure that the cargo will reach the destination on time.

Twenty-Foot Equivalent Unit (TEU)

A Twenty-Foot Equivalent Unit (TEU) is a measure of containerized cargo capacity for ships and terminals. It is defined as the capacity of a standard 20-foot-long shipping container. The TEU is used to measure the cargo-carrying capacity of a vessel or a container terminal, and it is a standard unit of measurement in the shipping industry.

The TEU allows for an easy comparison of the capacity of different ships and terminals, as it is a standard unit of measurement. It is commonly used to measure the capacity of container ships, and it is also used to measure the capacity of container terminals and intermodal facilities.

A 40-foot container is 2 TEU, a 45-foot container is 2.25 TEU, and a 53-foot container is 2.67 TEU.

Knowing the TEU capacity of a ship or a terminal, allows shipping companies and cargo owners to make informed decisions on which ships or terminals to use, and it also allows ports and terminals to plan and optimize their capacity.

In summary, Twenty-Foot Equivalent Unit (TEU) is a standard unit of measurement used to measure the cargo-carrying capacity of a vessel or a container terminal. It is defined as the capacity of a standard 20-foot-long shipping container and it is used to compare the capacity of different ships and terminals. It is commonly used to measure the capacity of container ships, and it is also used to measure the capacity of container terminals and intermodal facilities.

Weight Per Measure (W/M)

Weight Per Measure (W/M) is a unit of measurement used in the shipping industry to indicate the weight of a cargo in relation to its volume. It is typically used to measure dry bulk cargo, such as grains, coal, and ore, and it is expressed in kilograms per cubic meter (kg/m³) or pounds per cubic foot (lb/ft³).

W/M is an important measurement because it helps to determine the amount of cargo that can be loaded into a ship or a truck, and it also helps to determine the freight charges. A higher W/M indicates that the cargo is denser, and therefore, more cargo can be loaded into a ship or a truck. A lower W/M indicates that the cargo is less dense and less cargo can be loaded into a ship or a truck.

To calculate the W/M, the total weight of the cargo is divided by the total volume of the cargo. The weight can be measured by using a scale, and the volume can be measured by using a ruler or a measuring tape.

In summary, Weight Per Measure (W/M) is a unit of measurement used in the shipping industry to indicate the weight of a cargo in relation to its volume, it is typically used to measure dry bulk cargo. It is expressed in kilograms per cubic meter (kg/m³) or pounds per cubic foot (lb/ft³) and it is an important measurement because it helps to determine the amount of cargo that can be loaded into a ship or a truck, and it also helps to determine the freight charges.

Verified Gross Mass (VGM)

Verified Gross Mass (VGM) is the weight of a shipping container, including both the weight of the container itself and the weight of all the cargo inside. It is used in international shipping as a safety measure to ensure that ships are not overloaded and to prevent accidents at sea.

The VGM is typically verified by a certified weight scale or by using calibrated equipment. The International Maritime Organization (IMO) has established regulations requiring that the VGM be provided to the shipping company before the container is loaded onto the ship.

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