100 Essential International Shipping Terms

General Shipping Terms

• Freight – Goods transported in bulk by truck, train, ship, or aircraft.
• Cargo – Goods or merchandise carried by a ship, aircraft, or other vehicles.
• Consignment – A batch of goods delivered to someone.
• Logistics – The management of the flow of goods from origin to destination.
• Supply Chain – The entire system of producing and delivering a product.
• Intermodal Transportation – Moving cargo using multiple modes of transport (e.g., ship, rail, and truck).
• Multimodal Transportation – Using different transportation methods under a single contract.
• Bill of Lading (B/L) – A legal document issued by a carrier to acknowledge receipt of cargo.
• Waybill – A document providing details of a shipment but not a title document like a Bill of Lading.
• Consignee – The person or entity to whom goods are shipped.

Shipping Containers & Packaging

• TEU (Twenty-foot Equivalent Unit) – A measure of cargo capacity for container ships.
• FCL (Full Container Load) – A shipping method where a container is filled with goods from one shipper.
• LCL (Less than Container Load) – A shipment that does not fill a whole container and is shared with other shipments.
• Dry Container – A standard shipping container without refrigeration.
• Reefer Container – A refrigerated container for transporting temperature-sensitive cargo.
• Open-Top Container – A container with a removable top for loading oversized cargo.
• Flat Rack Container – A container with collapsible sides used for heavy or oversized loads.
• Pallet – A wooden or plastic platform used to stack and transport goods.
• Crate – A wooden or metal box used for shipping fragile goods.
• Dunnage – Packing material used to protect goods during transportation.

Incoterms (International Commercial Terms)

• EXW (Ex Works) – The buyer takes full responsibility for transport from the seller’s premises.
• FCA (Free Carrier) – The seller delivers the goods to a carrier chosen by the buyer.
• FOB (Free on Board) – The seller delivers the goods on board the ship, and the buyer assumes responsibility thereafter.
• CFR (Cost and Freight) – The seller covers transportation costs but not insurance.
• CIF (Cost, Insurance, and Freight) – The seller pays for transportation and insurance until arrival at the destination.
• DAP (Delivered at Place) – The seller delivers the goods to the agreed destination, but the buyer pays for import duties.
• DDP (Delivered Duty Paid) – The seller is responsible for all costs, including duties, until delivery.
• CPT (Carriage Paid To) – The seller pays for transport, but the risk transfers to the buyer at the first carrier.
• CIP (Carriage and Insurance Paid To) – The seller pays for transport and insurance up to the destination.
• DAT (Delivered at Terminal) – The seller delivers the goods to a terminal at the destination port or airport.

Shipping Costs & Charges

• Freight Charges – The cost of transporting goods.
• Demurrage – A penalty for exceeding the allowed free time for container usage.
• Detention – A charge for holding a container beyond the agreed free time outside the port.
• Port Charges – Fees imposed by a port for handling cargo.
• Terminal Handling Charges (THC) – Fees for loading/unloading goods at a terminal.
• Customs Duties – Taxes imposed on imported or exported goods.
• Surcharges – Additional fees added to base freight rates (e.g., fuel surcharges).
• War Risk Surcharge – An extra charge for shipping through conflict zones.
• Bunker Adjustment Factor (BAF) – A surcharge based on fuel price fluctuations.
• Currency Adjustment Factor (CAF) – A surcharge to cover currency exchange rate variations.

Shipping Documents

• Commercial Invoice – A document outlining the value and details of shipped goods.
• Packing List – A document detailing the contents of a shipment.
• Certificate of Origin (COO) – A document certifying the country of origin of goods.
• Letter of Credit (L/C) – A bank guarantee ensuring payment upon shipment of goods.
• Shipping Manifest – A document listing all cargo on a ship.
• Insurance Certificate – Proof of insurance coverage for shipped goods.
• Export Declaration – A document submitted to customs detailing exported goods.
• Import License – Authorization to bring specific goods into a country.
• Proforma Invoice – A preliminary bill sent before shipment.
• Delivery Order – A document authorizing cargo release to the consignee.

Customs & Regulatory Terms

• Customs Clearance – The process of getting goods approved for import/export.
• HS Code (Harmonized System Code) – A standardized code for classifying goods in international trade.
• Bonded Warehouse – A storage facility where imported goods can be kept duty-free.
• Duty-Free – Goods exempt from import/export duties.
• Tariff – A tax imposed on imports or exports.
• Quarantine – A period where goods are inspected for compliance with regulations.
• Sanitary and Phytosanitary (SPS) Measures – Regulations ensuring food and agricultural products meet health standards.
• ATA Carnet – A temporary admission document for duty-free imports.
• Restricted Goods – Items subject to special regulations or permits.
• Embargo – A government-imposed restriction on trade with specific countries.

Shipping Methods & Transport Modes

• Air Freight – Shipping cargo via airplanes.
• Sea Freight – Transporting goods by ship.
• Rail Freight – Transporting goods by train.
• Road Freight – Shipping goods via trucks.
• Breakbulk Cargo – Goods shipped in packages rather than containers.
• RoRo (Roll-on/Roll-off) – A shipping method where vehicles drive onto a vessel.
• Bulk Cargo – Unpackaged cargo like grains, coal, or oil.
• Hazmat Cargo – Hazardous materials requiring special handling.
• Cold Chain Logistics – The transportation of temperature-sensitive products.
• Overland Transport – Transporting goods by road or rail.

Risk & Insurance Terms

• Marine Insurance – Coverage for goods transported by sea.
• argo Insurance – Protection against loss or damage during transit.
• General Average – A principle where all parties share losses incurred in saving a vessel.
• Force Majeure – Unforeseen events beyond control affecting shipping.
• Liability Coverage – Protection against claims of damages.