Skip to content
Your International Freight Solutions Specialists.

International Shipping Terms

TERMLITERALLY MEANSBRIEF DESCIPTION (Refer to official body for in-depth guide)
ATAActual Time of ArrivalThis is the confirmed arrival date at the destination shipping point. This usually refers to the Port of Discharge not final delivery point
ATDActual Time of DepartureConfirmed departure date from original shipping point.Information only available once received Bills of Lading from carrier as shipped on board.
AEOAuthorized Economic OperatorOrganisations accredited by the AEO scheme have shown their role in the international freight is secure and compliant with regulations
BOLBill of lading ( B/L)Official shipping document containing details of the shipment and shows ownership of the goods. Only 'released' to owner/recipient of the goods
BAFBunker Adjustment FactorShipping Line calculates this factor, also known as the bunker surcharge, based on fluctuating oil prices
CAFCurrency Adjustment FactorA percentage surcharge for Carriers / Agents, to offset possible financial losses for Carrier/Agent due to fluctuating exchange rates between currencies.
CBMCubic MeterCargo Volume in Cubic Meters (LWH in meters). Freight charges based on the greater of CBM or actual weight in Chargeable Weight.
CICommercial InvoiceContains buyer & seller’s details plus type of goods, quantity, price per product & terms of sale & to declare goods to customs,determining duties and taxes
CNEEConsigneeThe Person or Company receiving the shipment, to whom it is Consigned. Shipper sends the goods to Consignee
COCCarrier Owned ContainerRefers to a shipping line owned container used in shipping goods (vs SOC, a shipper owned container)
COOCertificate of OriginCertifies the country where goods originated, issued by Chamber of Commerce or Embassy of the exporting country. Can be required by customs to determine lower duties due trade agreements
CSCConvention for Safe ContainersPlate affixed to shipping container confirming it's been thoroughly inspected by competent professional & considered safe for use for a set period of time
CYContainer YardA Container Yard is a collection and distribution point for shipping containers (full & empty)
DRODepot release orderDocument from a Consignee or Freight Carrier that orders the release of the cargo for transportation to another party
EDIElectronic Data InterchangeComputerized data exchange protocol in submitting data mainly for customs clearances.
EORIEconomic Operator Registration and IdentificationIssued once per entity, an EORI number lets customs keep a record of what’s being imported and exported. Prerequsite to import goods into UK.
ENSEntry Summary DeclarationProvided by shipper or importer used to electronically submit information about impending import before its entry into Customs system for clearance.
ETAEstimated time of ArrivalUsed for the date that the ship or plane is due to arrive at it's destination (arrival) port
ETDEstimated time of DepartureUsed for the date that the ship or plane is due to depart its origin port and begin its journey.
FAKFreight All Kindstypically refers to a full container loaded with mixed cargo as a general discription of contents. Not for hazardous or regulated goods.
FCRForwarder's cargo receiptShipper's Freight Forwarder/Agent document when shipment & responsibility handed over to Consignee's Forwarder/Agent
FCLFull Container Loadsufficiency of cargo to fill a shipping container; normally a 20' (6m), 40' (12m). Typically refers to one shipper's cargo (vs LCL -less than full container- cargo)
GWTGross weightthe actual weight of the cargo to be shipped, including packaging (nett weight excludes packaging) (not the CBM or Volumetric weight)
HAWBHouse Airway Billissued by an Airfreight freight forwarder/consolidator, details supplier and Consignee, destination, carriage and weights, does not confer title of goods. Refer MAWB
HBLHouse Bill of ladingissued by a Sefreight freight forwarder/consolidator, details supplier and Consignee, destination, carriage and weights, does not confer title of goods. Refer BOL
INCOIncoterms “Incoterms®” is an acronym standing for INternational COmmercial terms. “Incoterms®” is a trademark of the International Chamber of Commerce.
ISOInternational Std OrganizationThe ISO is an international standard-setting body composed of representatives from various national standards organisations.
L/CLetter of Credita contract, issued & facilitated by Banks, in which the terms of documentary credit transactions , for Export/Import Trade of goods, are detailed and agreed
LCLLess than Container Loadwhere insufficient goods to make a Full Container Load (FCL) are shipped in a container by a consolidator/agent, ie a shared container.
LOILetter of IndemnityA document protecting the cargo owner from losses due to loss, theft, destruction, or other harmful events impacting the shipment.
LOLOLift On/Lift OffRefers to a charge for lifting a container on and off a conveyance (train, lorry)
NOANotice of Arrivalthe Carrier of Agent sends a pre-advice or notice of impending arrival of goods detailing all relevant information
OTHCOrigin Terminal Handling ChargeCharges by Terminal Operator regarding container movement and handling
OWSOverweight SurchargeSurcharge levied by shipping lines for containers exceeding stated or acceptable weights, but within legal weight limitations for said container.
PKGPackagesreferring to the type of packaging used, eg pallet, carton, box, bag and reflected on Packing List.
PSSPeak season SurchargeFee levied by shipping lines in High Season due space scarcity on vessels (normally August - October)
PODPort of DischargeThe port at which the goods are discharged from vessel
POLPort of LoadingThe port at which goods are loaded onto vessel
POPurchase OrderNumbered Commercial document and official offer issued to Seller, indicating everything Seller requires, including type, quantity, price of goods or services.
RORORoll on Roll OffCargo ships designed to carry wheeled cargo, such as cars, trucks, semi-trailer trucks etc by means of a ramp to portside dock or quay.
SOCShipper Owned ContainerShipper purchases and utilizes their own shipping container for transport (accepted eg, subject to valid CSC plates)
SIShipping InstructionsConfirms that space has been allocated on a vessel for shipment
SCMSupply Chain Managementprocess of managing the flow of goods from raw material to finished product and all steps and transport in between
SKDSemi Knocked Downmachines (eg vehicles) knocked down into a very limited number of parts to facilitate shipping (dimensions / weight criteria vs. CKD (Completely Knocked Down) 
TEUtwenty foot equivalent unitrefers to a 20' or 6m shipping container (vs FEU a 40' or 12m container)
THCTerminal Handling ChargeCost of handling the goods or container at a port. In FCL is for moving actual container, in LCL it is the packing/unpacking of cargo
TLXTelex ReleaseTelex release and express release refer to electronic hand over of Bills of Lading by carrier
ULDUnit Loading DeviceAirfreight terms for airline pallets or containers to convey cargo specifically made and configured to fit various aircraft types
VGMVerified Gross Massverified weight of the loaded container before loading. Legally required, implemented by SOLAS (Safety of Lives at Sea)
WMWeight or Measurethe freight cost will depend on whether the actual weight or the volumetric (CBM) weight will be used. In Seafreight 1 CBM = 1000kgs (ton)

QUICK CONTACT

Get in touch with us here:

NEED FREIGHT SOLUTIONS?
Get started here >>
Back To Top