Shipping Terminology
Here are major shipping terms that are bandied around while vehicle is being shipped.
Term | Full Form | Description |
3PL | 3rd Party Logistics | A third party, who takes care of the logistics value chain. |
BAF | Bunker Adjustment Factor | A kind of fuel surcharge added to the freigt rates. |
Barge | A kind of small ship | Flat Bottomed cargo carrying boat. It is used for movement of small quantity cargo. Mainly used for coastal or river movements. |
BL | Bill of Lading | BL is issued by the carrier (Shipping Line/NVOCC). This is the document which is presented to the shipping line at POD, and then only cargo can be cleared. |
Break Bulk | Break Bulk Cargo | The cargo which can be counted (Other than Containers). It includes Steel coils, Vehicles etc. |
Bulk Cargo | Bulk Cargo | The cargo like coal, limestone etc. These are loaded in the hatches of the ships with the help of cranes having grabs. |
CAF | Currency Adjustment Factor | A kind of surcharge added to freight rates, to mitigate the currency risk. |
CAN | Cargo Arrival Notice | A document issued by carrier/agent to the importer, notifying him about the arrival of cargo. |
CBU | Completely Built Unit | Vehicles being shipped in fully built form. |
CFS | Container Freight Station | CFS is a kind of customs bound warehouse, where stuffing and destuffing of containers are done. These are near to the ports. |
CKD | Completely Knocked Down | Vehicles being shipped in parts. One vehicle is knocked down in many small small parts and these parts are shipped in containers. |
CoC | Carrier Owned Container | The containers owned by the carriers. |
CY | Container Yards | These are genaral purpose yards, where generally empty containers are stacked. |
DBL | Draft Bill of Lading | The B/L issued by the Carrier to Freight Forwarder. This is just to check the actual format of the B/L as per LC. Master B/L is issued on the basis of DBL and after MBL is issued, this remains null and void. |
DC | Dangerous Cargo | Cargos like petroleum, chemical etc. Special equipments are required to handle these. |
Demurrage | Demurrage | The penalty paid by the charterar to the owner of the ship for delay in completing the voyage. |
Dispatch | Dispatch | The money paid by the owner of the ship to the charterar for completing the voyage in advance. Genarally the rate will be half of demurrage rate. |
DO | Delivery Order | A document issued by carrier/agent to the importer, giving him the authority to collect the cargo. This is issued after B/L is surrendered to the carrier/agent. |
EGM | Export General Manifest | A document issued by carrier/agent to the port authorities stating that a container is going for export. |
FAK | Freight of all Kind | Freight charged by linear operators. Quoted in terms of per TEU. |
FCL | Full Container Load | When one container contains cargo for only one consignee. |
Feeder | Feeder Service | A kind of shipping service in which ships ply between a distant port and some port having linear service. For Ex- service between Haldia and Colombo. In this case Haldia is a distant port whereas many linear routes pass through Colombo. |
FEU | Forty Feet Equivalent Unit | A container of 40′ length. One FEU is equal to 2 TEU. |
FR | Flat Rack | A kind of container which has just the bottom, like a rack. Generally used for oversized cargo. Freight is more. |
Freight | Freight | Money charged by shipping lines to take the cargo from one port to another. |
HBL | House Bill of Lading | The B/L issued by Freight Forwarder to the Shipper. In this B/L the name of actual importer will reflect as consignee. |
IATA | International Air Transport Organisation | An organisation of all the air transporters across the world. Any new air transporter needs an IATA license to operate. |
ICD | Inland Container Depot | ICDs’ are a kind of CFS only. The only difference is that ICDs’ are far from the ports. These are generally called Dry Ports. |
IGM | Import General Manifest | A document issued by carrier/agent to the port authorities stating that a container is coming for imports. |
LC | Letter of Credit | LC is the master document. It is opened by the bank of consignee in favour of the shipper. All the terms & conditions of the trade are mentioned in this document. |
LCL | Less than Container Load | When one container contains cargo for more than one consignee. |
Lo-Lo | Lift On Lift Off | It is generally used to describe the kind of terminals where vehicles/containers or any cargo are lifted through lifts and put onto the ship. |
Mate’s Receipt | Mate’s Receipt | A declaration given by the captain of the ship about the cargo. B/L is issued based on this. |
MBL | Master Bill of Lading | The B/L issued by Carrier to the Freight Forwarder. In this B/L Freight Forwarder will be shown as consignee. This is done to hide the actual importers details from the Carrier. |
MLO | Main Line Operator | The shipping lines, having linear services. |
MTO | Multimodal Transport Operator | A Kind of license issued by DG-Shipping. It authorises carriers to issue multimodal B/L. |
OT | Open Top | A kind of container which has no ceiling. used for oversized cargo. Freight is more than general container. |
POD | Port of Discharge | The port where cargo is to be discharged. |
POL | Port of Loading | The port where cargo has been loaded on the ship. |
Reefer | Refrigerated Container | The containers having refrigeration units. They have a battery to operate on and are connected to external power at ports and on ships. used for shipping meats, fruits etc. |
RMQ | Rail Mounted Quay | A kind of crane used at container terminals. |
Ro-Ro | Roll On Roll Off | It is a kind of terminal used to ship the vehicles in CBU forms. Vehicles are just driven through the terminal and parked in the ship. |
SKD | Semi Knocked Down | Vehicles being shipped in parts. One vehicle is knocked down into 4-5 major parts and these parts are shipped. |
Slot | Slot | Money charged by shipping lines from NVOCC operators to take containers from one port to another. |
SoC | Shipper Owned Container | The containers which have been arranged by the shipper/agent and not by the shipping line. |
TAMP | Tariff Authority of Major Ports | A statutory body formed by GoI. It regulates the tariffs charged at all the 12 major ports in India. |
TEU | Twenty Feet Equivalent Unit | Represents a unit for containers. One TEU is equal to one container of 20′ length. |
THC | Terminal Handling Charges | Charges to be paid to terminal operator (Most of the cases-Ports). It includes loading charges and charges paid to the stevedores. |