Navigating the world of international shipping can be complex. Understanding key terms is essential for smooth and efficient shipping operations. Here’s a guide to some of the most important international shipping terms:
Accessorial Charges: These are additional fees for services beyond the standard pickup and delivery, such as wait time, storage, and packing.
Bill of Lading: A document issued by the carrier that serves as a receipt, contract, and title of ownership for the shipped goods.
Bonded Warehouse: A customs-controlled warehouse where imported goods can be stored until duties are paid.
Cubic Feet (CBF/CF/CFT): A unit of volume measurement used to describe the size of a shipment, characterized by foot-long edges.
Cubic Meter (CBM/CM): A unit of volume that describes a cube with meter-long edges, used to measure shipment size on carrier vessels.
Destination Delivery Charge (DDC): An accessorial fee based on container size, covering costs like cargo lifting, drayage, and gate fees.
Documentation Fee (DOC): A fee for preparing and processing shipping documents, applicable to both domestic and international shipments.
Freight Prepaid (FPP): Indicates that shipping costs have been paid in advance, making the freight cost nonrefundable.
Full Truckload Shipping (FTL): A shipping method where an entire trailer is dedicated to a single customer, offering time and cost efficiency for large shipments.
HAZMAT: An abbreviation for hazardous materials, requiring special handling and communication to the carrier.
Intermodal: Refers to shipments that use multiple modes of transportation, such as rail and truck.
Less Than Truckload (LTL): A shipping method where multiple customers' goods are transported on the same trailer, with handling at various points along the route.
Packing List: A detailed list of all items in a shipment, indicating how goods should be handled.
Peak Season Surcharge (PSS): A fee applied during high-volume shipping periods, typically from summer to November, to account for increased demand.
Piracy Risk Surcharge (PRS): An additional charge to mitigate the risk of piracy during ocean shipping.
Port Congestion Surcharge (PCS): A fee applied when there are delays or disturbances at the port, such as strikes or work slowdowns.
Port Security Fee (PSF): A charge issued by port authorities in North America to cover security-related expenses.
Said to Contain (STC): A term on a bill of lading indicating the carrier has received a certain quantity of packages but is unaware of the exact contents.
Shipper’s Export Declaration (SED): A document required for U.S. exports valued over $2,500, serving as a census record and regulatory requirement.
Terminal Handling Charge (THC): Charges collected at ports to cover handling and maintenance costs, varying by port.
Value Added Tax (VAT): A tax on goods at each stage of production or sale where value is added, often passed on to consumers.
Weight or Measure (W/M): Used to determine freight rates based on the weight or volume of cargo for export goods.
By familiarizing yourself with these terms, you can navigate the complexities of international shipping more effectively.
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