Protect your bottom line by understanding these 5 common incoterms with printable pdf when youre new to the world of shipping, the terminology can feel overwhelming. Incoterms 2020 is the ninth set of international contract terms published by the international chamber of commerce, with the first set having been published in 1936. There are more than two hundred terms and their definitions in our glossary. New dpu rule for 2020 explained, 7 key changes for incoterms 2020, free pdf 20pg rulebyrule guide and 11 podcasts on all incoterms, by tfg. If a new ship to location is needed, submit the shipto request form pdf. The consignee is typically the buyer of the goods being delivered. Domestic shipping routes serving alaska and noncontinental u. These trade terms often define the roles of the buyer and seller including ownership, risk and responsibilities of both parties and the transfer of goods throughout the shipping process. Fob definition shipping terms of sale fob, free on board, is a transportation term that indicates that the price for goods includes delivery at the sellers expense to a specified point and no further. The latest information on the coronavirus disease 2019 covid19 is available on coronavirus. The transportation of goods and packages weighing in excess of 150 lbs or more or with a dimension greater than 4 feet in most cases.
Incoterms 2015 an overview international ommercial terms incoterms are internationally recognized standard trade terms used in sales contracts. Who is responsible for the cost of transporting the goods, including insurance, taxes and duties. Fob, free on board, is a transportation term that indicates that the price for goods includes delivery at the. Nonvessel operating common carrier nvocc an fmclicensed cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging. In addition to indicating whether freight is permitted, the freight terms determine when ownership of items transfers to the customer and who is responsible in the event of damage claims. The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business.
One set of terms that causes considerable confusion are incoterms. Disclaimer this information is disseminated under the sponsorship of the u. Glossary of customs and trade terms the following customs and trade terms are intended as a guide to assist anyone who may not be familiar with the vast array of terms and acronyms that populate the world of customs and international trade and travel. In plain english how far along the process will the supplier ensure that the goods are moved, and at what point does the buyer take over the. Accessorial charges charges that are applied to the base tariff rate or base contract rate, e. Pro short for progressive number, the pro is a unique identi.
Common freight term glossary and explanations freightos. Introduction to basic shipping terms the coffee guide. Supply chain and logistics terms and glossary updated february, 2010 please note. There are so many freight related terms that sometimes even the pros are left scratching their heads. Does not apply to large package surcharge if ups is unable to deliver a package because of an invalid, incorrect, or. To help you understand the intricacies of these terms and what they mean for youwell walk you through all eleven of the 2010 incoterms rules. Dictionary of shipping terms, third edition sullivan, eric. List of all most popular abbreviated shipping terms defined. Glossary international freight terms abi automated brokerage interface. Element in the freight charged by a shipping line which reflects the additional costs of serving a particular area. Oct 25, 2019 get your free pdf now, and control your risks and responsibilities for each of the 11 incoterms 2020 at a glance. The international warehouse logistics association iwla does not take responsibilityfor the content of these definitions and doesnot endorse theseas official.
Get your free pdf now, and control your risks and responsibilities for each of the 12 incoterms 2020 at a glance. If, however, you do find yourself caught up in a world of shipping confusion, hopefully our below guide will help you out. Shipping terms latest shipping terms for international. Shipments between ports of a single nation, fre quently reserved to national flag vessels of that nation.
Shipping terms and definitions subject learn more about common shipping terms and acronyms, including definitions and service descriptions for frequently used transportation and logistics language. Freight incoterms international commercial terms are the standard contract term used in sales contracts with importingexporting to define responsibility and liability for shipment of the goods. Shipping terms and definitions arcbest corporation. Glossary of international shipping terms old dominion freight line. Incoterms are trade terms published by the international chamber of commerce icc that are commonly used in both international and domestic trade contracts. Transport expenses are thus the responsibility of the exporter. Acquiescence when a bill of lading is accepted or signed by a shipper or shippers agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Whether youre new to the freight industry or want to brush up on freight terms, our shipping dictionary is your goto resource. Incoterms 2020 rules are icc defined terms for buyers and sellers. We do our best to answer all of your freight shipping. We used our extensive logistics knowledge and experience to create a straightforward guide to freight shipping and logistics terminology. Get the easy explanations of what it all means at shippo here we provide glossary of shipping terms and freight terms with further explanations of common terms. Northwestern university has developed a list of shipto codes pdf to be used by each departmentschool in nufinancials. The concessionaire bears the commercial risk of operating the facility.
That leaves the four c terms as the best options to use with a. Incoterms, international commercial terms, shipping terms. Incoterms international commercial terms are threeletter trade terms developed by international chamber of commerce and widely used in international and domestic contracts for the sale of goods. List of incoterms international commercial terms cfr cost and freight the exporter must deliver the goods at the port of destination selected by the importer. Find definitions for key international shipping and customs terms in this handy glossary. Our exhaustive glossary fleshes out freight, clarifies cargo, and demystifies the documents with easytounderstand explanations of the words and acronyms you will encounter most. Apr 18, 2019 incoterms are trade terms published by the international chamber of commerce icc that are commonly used in both international and domestic trade contracts. In the following, we will talk in detail about the meaning and definiton of all different incoterms and provide a chart with a complete list of all terms. Aframaxtanker the term aframax is based on the average freight rate. A small misunderstanding with the shipping terms could lead to disputes over who was meant to pay for the overseas freight, insurance or other costs involved in the shipment of goods. Items are typically divided by a company defined set ofvalues into a,b and.
The shipper is responsible for coordinating the outbound logistics of their freight. Incoterms explained international commercial terms incoterms or international commercial terms first created in 1936 by the international chamber of commerce, incoterms are uniform, internationally recognized foreign trade terms that refer to the type of agreement for the purchase and shipping of goods internationally. Trade terms are key elements of international contracts of sale. Below are some of the most common freight shipping term and freight shipping abbreviations along with descriptions of how each fits into the larger context of the freight shipping industry. Shipping furniture can be difficult, especially if youre a newbie. What are the most common freight shipping terms and. Also, a term used in some insurance policies to mean a. When youre new to the world of shipping, the terminology can feel overwhelming. D terms require trust because the seller is bearing all of the transport costs.
View and download shipping terms and conditions fedex. An application that expedites the clearance of cargo for the subsequent release of containers. Browse the list of 10 707 shipping acronyms and abbreviations with their meanings and definitions. Glossary of international shipping terms a8a manifest a form issued by a licensed customs broker which allows ccra to monitor in bond shipments as they move through canada. F terms require trust because if the buyer cancels the international transit, the supplier wont have a bill of lading to present to the bank. Oct 18, 2018 intermodal methods of transportation typically refer to the use of a train, boat, plane, or truck shipping. Incoterms citt webinar series 122 the most commonly used domestic shipping terms of sale in north america are. The area immediately in front of or behind a wharf shed on which cargo is. View and download the terms and conditions that apply to all fedex u. Find definitions to many common technical supply chain, logistics and transportation terms. A the specific solutions may differ by country, depending on if additional processing is required by a local regulatory agency or if you or your importer request special processing from a fedex customs broker. Theyre accepted by governments and shippers worldwide, and are used to prevent uncertainty or misunderstandings. For a more in depth look into the most common freight shipping terms and definitions, check out our freight shipping terminology page.
The initials ata are an acronym of the french and english words. If you are new to shipping terms contracts you may be unaware of the different trading practices in their respective countries. The ownership of the concession area port land remains with the government or port authority during the entire concession period. Part 1 the world of shipping is full of confusing terms and acronyms. Weve created a graphic that illustrates frequently used shipping and logistics terms to help you understand and manage the various aspects of your supply chain. Sources drawn on in developing definitions for this glossary include. International shipping terms and definitions fedex. A carrier facility where less than container load shipments are consolidated or unloaded. This mode of transportation allows for decreased shipping time, low damage ratios and for certain commodities, lower shipping costs. Any article encased in an outside shipping container of metal or wood any cylindrical item such as a barrel, drum, pail or tire any package exceeding 60 inches any package with actual weight exceeding 70 pounds. By defining whos responsible for shipping, insurance and tariffs, the incoterms rules ultimately determine your final costs as either a buyer or a seller. For your convenience, we have arranged these into four main categories. If you arent familiar with the transportation industry, acronyms and industry jargon might make it difficult to find the services you need.
Understanding freight shipping terms and definitions. Advisory committee on trade policy and negotiations the actpn is a group membership of 45. Weve compiled all of the most commonly used terms and phrases and their definitions in one place to help make your life easier. The 11 types of incoterms export training guidance. Port charge relating to a vessel moored at approved anchorage site in a harbor. Incoterms 2020 defines 11 rules, the same number as defined by incoterms 2010. The form should have the invoice number, date, shipping date, the mode of transport, delivery and payment terms, description of goods and the quantity. That leaves the four c terms as the best options to use with a letter of credit. Actual gross weight the full weight of a shipment, including goods and packaging. The consignee is whoever is paying for the freight to be moved. A term or definition mentioned herein does not neccessarily reflect the meaning or interpretation applicable to a specific business. Additional chartering terms at the end of a charter party.
A legal document that outlines the types of goods being. Air waybill awb specifies the terms under which the air carrier is agreeing to transport the goods and contains limitations of liability. Shipping and importing is filled with complicated terminology. A bill of adventure is a document signed by the master of the ship that carries goods at owners risk. Glossary of shipping terms download pdf weve put together. The importer bears the expenses of insurance and unloading of the goods. Tariff a list of terms andor rates published by a carrier that includes. Average term used in marine insurance to mean a loss which inav be general secgeneral average or partial sec particular average. A required document identifying the transaction between a seller and buyer. This set of rules defines the responsibilities of buyers and sellers around the delivery of goods.
You can access these by simply clicking on the appropriate category below. Glossary of shipping terms a shipment freight terms. The words and acronyms selected for inclusion are those likely to be encountered. Whether youre new to the freight industry or want to brush up on freight. Department of transportation in the interest of information exchange. Supply chain and logistics terms and glossary iwla. Freightshipping terms are unable to be modified on a purchase order. Nonvessel operating common carrier nvocc an fmclicensed cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port.