Shipping Terminology

Dictionary

Free on Board (FOB) – There is a total price of a good, which also includes transportation to the local port; the rest shipping till the port of discharge lay on the buyer.

Cost Insurance Freight (CIF) – There is a total price of a good, which also includes transportation till the port of discharge and insurance costs.

Cost and Freight (C&F, CNF, CFR) – There is a total price of a good, which includes transportation till the port of discharge without insurance.

Freight – mean the cargo transportation itself or special charge for the transportation.

Aboard – mean that cargo is successfully loaded onto the ship.

Chassis – Body of a vehicle including the engine and wheels as a rule.

Cargo – The goods loaded in a special large transport such as a ship, plane or vehicle.

Cargo Manifest – Special document indicating a particular transportation trip which also contains all bills information.

Vanning – Process of loading cargo into the container for the future shipping.

Commercial Invoice – Special Document for the customs, which identify the true value of the item for calculating the duty.

Bill of Lading (B/L) – Agreement between the shipper and the currier.

Bill of Lading Status (B/L Status) – Represent an important information whether the bill of lading surrendered or not surrendered:

  • Surrendered – released (buyer could take his good)
  • Not surrendered – Not released (buyer could NOT take his good)

Amended Bill of Lading – mean that condition could be changed without any extra costs.

Letter of Credit – conformation for foreign bank allowed to take the exact amount of money from the bank in another country.

Irrevocable Letter of Credit – A special agreement between importer’s bank and exporter that whenever exporter asks to pay for the item, the bank will do it without refusing.

Air Waybill (AWB) – The document that is sent by airplane and goes with the package.

Advising Bank – A bank that located in the exporter country. Notify the exporter about a letter of credit and checks is it real or not.

Bank Guarantee – A document that means that the bank or financial organization pay debts of the other person or company in case he is not able to pay back.

Correspondent Bank – Bank that provides service on behalf of another bank, usually foreign.

Issuing Bank – Importer’s bank that makes a letter of credit available in favor of exporter’s bank.

Remittance – An amount of money sent to another person as a payment.

Agency Tariff – Costs which take the agency for the service.

Freight Forwarder – A company specializing in shipping and receiving goods.

Broker – A person or a company that carrying outsell or buy orders for the percentage of the revenue.

Brokerage – Broker’s commission or fee.

Inland Carrier – domestic transportation between ports and inner points.

Supply Chain – The transporting system for the goods that involving people and things to move an item from one place to another.

Consignee – An individual or a firm to whom an item is shipped.

Bonded Warehouse – Special place where all the goods wait until owner will pay the duty.

Foreign Trade Zone – Special place where the goods could be bought without paying duty, usually located in airport or port.

Yard – Special place created to store the goods.

Bureau Veritas – Society which inspecting and rating seagoing vessels all over the world.

Certificate of Inspection – Identify that the item was in the good condition when it left the port.

Certificate of Origin – A document which shows where and whom the good was produced.

Import Licence – Mean that the government allows you to import certain goods.

Manifest – Transport document that shows an initial summary of lading bills for the exact vessel.

Beneficiary – A person(s) who receive money, benefits of something in case of something happened.

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