SHIPPING
TERMS:
Bill of Lading: A shipping document noting
the loading details of cargo on a vessel. Unless other
arrangements, such as a Telex release, have been made,
the Bill of Lading is generally the document required
for a consignee to claim goods.
CBM: “Cubic Meters” The standard
volumetric measuring standard for international shipping.
EXW: Ex Works -- Title and risk pass
to buyer including payment of all transportation and insurance
cost from the seller's door. Used for any mode of transportation.
FCA: Free Carrier -- Title and risk pass
to buyer including transportation and insurance cost when
the seller delivers goods cleared for export to the carrier. Seller
is obligated to load the goods on the Buyer's collecting
vehicle; it is the Buyer's obligation to receive the Seller's
arriving vehicle unloaded.
FAS: Free Alongside Ship --Title and
risk pass to buyer including payment of all transportation
and insurance cost once delivered alongside ship by the
seller. Used for sea or inland waterway transportation.
The export clearance obligation rests with the seller.
FOB: Free On-Board -- Title and risk pass to buyer
including payment of all transportation and insurance
cost once delivered on board the ship by the seller. Used
for sea or inland waterway transportation.
CFR: Cost and Freight -- Title, risk
and insurance cost pass to buyer when delivered on board
the ship by seller who pays the transportation cost to
the destination port. Used for sea or inland waterway
transportation.
CIF: Cost, Insurance and Freight -- Title
and risk pass to buyer when delivered on board the ship
by seller who pays transportation and insurance cost to
destination port. Used for sea or inland waterway transportation.
CPT: Carriage Paid To -- Title, risk
and insurance cost pass to buyer when delivered to carrier
by seller who pays transportation cost to destination.
Used for any mode of transportation.
CIP: Carriage and Insurance Paid To --Title
and risk pass to buyer when delivered to carrier by seller
who pays transportation and insurance cost to destination.
Used for any mode of transportation.
DAF: Delivered at Frontier -- Title,
risk and responsibility for import clearance pass to buyer
when delivered to named border point by seller. Used for
any mode of transportation.
DES: Delivered Ex Ship -- Title, risk,
responsibility for vessel discharge and import clearance
pass to buyer when seller delivers goods on board the
ship to destination port. Used for sea or inland waterway
transportation.
DEQ: Delivered Ex Quay (Duty Paid) --
Title and risk pass to buyer when delivered on board the
ship at the destination point by the seller who delivers
goods on dock at destination point cleared for import.
Used for sea or inland waterway transportation.
DAP: Delivered at Place -- the seller pays all costs of transportation (export fees, carriage, insurance and destination port charges) up to and including the delivery of the goods to the final destination. The buyer is responsible to pay only the import duty/taxes/customs costs. The buyer also is responsible to unload the goods from the vehicle at the final destination. This term applies to any mode of transport.
DDP: Delivered Duty Paid -- Title and
risk pass to buyer when seller delivers goods to named
destination point cleared for import. Used for any mode
of transportation.
Pallets: Cargo loading devices, usually
made of wood or plastic, that are easily lifted and moved
by a forklift. Almost always used in Ocean shipping.
Shrinkwrap: The process by which cartons
stacked on a pallet are wrapped in cellophane sheeting
to prevent them from moving or falling over in transit.
Telex release: A process by which a shipper
may electronically authorize release of goods to a consignee
without presentation of the Bill of Lading.
