Shipping Expressions

1. Bill of Lading (B/L)

A Bill of Lading is a legal document issued by the carrier to the shipper, acknowledging the receipt of goods for transportation. It serves as a contract of carriage and a title of ownership. There are different types of Bills of Lading, including:

• Straight Bill of Lading – Non-negotiable, delivered only to a specified consignee.
• Order Bill of Lading – Negotiable and can be transferred to another party.
• Clean Bill of Lading – Indicates that goods were received in good condition.
• Claused Bill of Lading – Indicates damages or discrepancies in the shipment.

2. Freight Forwarder

A Freight Forwarder is an intermediary who organizes shipments on behalf of shippers. They handle documentation, customs clearance, and transportation logistics to ensure smooth delivery of goods. Freight forwarders are crucial for international shipping, as they simplify complex procedures and negotiate rates with carriers.

3. Incoterms (International Commercial Terms)

Incoterms define the responsibilities of buyers and sellers in international trade. Some of the most commonly used Incoterms include:

• FOB (Free on Board) – The seller is responsible for transporting goods to the port of departure. The buyer assumes responsibility after loading.
• CIF (Cost, Insurance, and Freight) – The seller covers transportation and insurance costs until the destination port.
• EXW (Ex Works) – The buyer assumes full responsibility for transportation from the seller’s premises.
• DDP (Delivered Duty Paid) – The seller handles all costs, including customs duties, until the goods reach the buyer.

4. TEU (Twenty-Foot Equivalent Unit)

TEU is a standard measurement used in the shipping industry to indicate the capacity of container ships. One TEU represents a 20-foot shipping container, while a 40-foot container equals two TEUs.

5. Customs Clearance

Customs clearance is the process of obtaining approval from customs authorities to import or export goods. This involves submitting required documents such as:

• Commercial invoices
• Packing lists
• Certificates of origin
• Import/export permits

Customs brokers assist in this process to ensure compliance with regulations and avoid delays.

6. FCL vs. LCL (Full Container Load vs. Less than Container Load)

• FCL (Full Container Load) – The entire shipping container is used by a single shipper. It is cost-effective for large shipments.
• LCL (Less than Container Load) – Shipments from multiple shippers are consolidated into one container. This is ideal for smaller shipments but may involve additional handling.

Read more: What is LCL and FCL Shipping?

7. Demurrage and Detention

• Demurrage – Fees charged when a container remains at the port beyond the free storage period.
• Detention – Fees incurred when a container is not returned to the shipping line within the allowed time after unloading.

Avoiding these charges requires careful logistics planning.

8. Freight Charges

Freight charges refer to the cost of transporting goods by sea, air, or land. These charges depend on factors such as weight, volume, distance, and type of cargo. Shipping companies like Lian Visman offer competitive freight rates based on market conditions and shipment size.

9. Cargo Insurance

Cargo insurance protects goods from loss or damage during transit. Common types of cargo insurance include:

• All Risk Insurance – Covers most damages except those explicitly excluded.
• Total Loss Insurance – Covers only total destruction or loss of cargo.
• Named Perils Insurance – Covers specific risks, such as fire or theft.

10. ETA vs. ETD (Estimated Time of Arrival vs. Estimated Time of Departure)

• ETA (Estimated Time of Arrival) – The expected date and time when a shipment will reach its destination.
• ETD (Estimated Time of Departure) – The scheduled date and time when a shipment will leave the port of origin.

Tracking these times is crucial for supply chain management.