Struggling to wrap your head around shipping jargon? At Cubus Containers, we know that the language of logistics can often feel like an insider’s club. Whether you’re shipping internationally for the first time or expanding your container-based business, understanding key terms is essential. This glossary will simplify the most important shipping terms so you can focus on what matters — your business.
Essential Shipping Terms Explained
1. Bill of Lading (BOL)
The backbone of shipping documentation, a Bill of Lading is a contract and receipt for your goods. It confirms the type, quantity, and destination of what’s being shipped.
2. Freight Forwarder
Think of a freight forwarder as your logistics partner. They coordinate shipments, handle paperwork, and ensure your goods move seamlessly from point A to point B.
3. Incoterms
Short for International Commercial Terms, these define the seller’s and buyer’s responsibilities in global trade. Common examples include FOB (Free on Board) and DDP (Delivered Duty Paid).
4. Customs Broker
Your guide through the labyrinth of customs regulations, a customs broker ensures your shipment clears borders without a hitch.
5. TEU (Twenty-foot Equivalent Unit)
The standard measure for shipping capacity, referring to a 20-foot-long container. Handy for calculating how much you can ship.
6. Demurrage
A charge incurred when a container isn’t returned within the agreed time frame. Avoiding this fee means careful planning.
7. FOB (Free on Board)
This Incoterm means the seller handles loading goods onto the ship, but the buyer takes responsibility and risk once they’re onboard.
8. Port of Discharge
The port where your goods are offloaded. Understanding this is crucial for coordinating the next steps in your supply chain.
9. Carrier
The entity responsible for physically moving your goods, whether it’s a shipping line, trucking company, or airline.
10. Cargo Manifest
A detailed document listing every item being shipped, its weight, and destination. It’s essential for customs and tracking.
Advanced Terms You Should Know
11. Harmonised System Code (HS Code)
A global standard for classifying goods. Correctly identifying your product’s HS Code is vital for accurate customs clearance.
12. Intermodal Transportation
When goods are shipped using multiple modes of transport (e.g., ship, rail, truck) in a seamless journey.
13. LCL (Less than Container Load)
A cost-effective option if you don’t have enough goods to fill an entire container. Your shipment is consolidated with others.
14. FCL (Full Container Load)
Perfect for large shipments, FCL means you’ve booked an entire container for your goods.
15. Waybill
Similar to a Bill of Lading, but non-negotiable. It provides details about the shipment but doesn’t confer ownership rights.
16. Dead Freight
The cost incurred when you book container space but fail to fully utilise it. Avoid this by accurately estimating your shipment size.
17. Transshipment
The transfer of cargo from one vessel to another en route to its final destination. It’s common in global shipping hubs.
18. Palletisation
The practice of loading goods onto pallets to streamline handling and reduce damage risk.
19. ATA Carnet
A temporary customs document allowing goods to be imported without paying duties or taxes. Ideal for exhibitions or temporary exports.
20. Supply Chain Visibility
The ability to track your goods throughout their journey, offering transparency and control over the entire shipping process.
Why It Matters to Cubus Containers
At Cubus Containers, we believe that understanding the language of shipping is a game-changer. By empowering our customers with knowledge, we help reduce confusion, delays, and unnecessary costs. Our team is always ready to guide you through these terms, ensuring your shipping experience is seamless and stress-free.
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“At Cubus Containers, we believe that clear communication in logistics is as vital as the containers themselves. Knowledge is power in the shipping world.”
Ready to demystify shipping and get your goods moving efficiently? Contact Cubus Containers today for expert guidance and top-quality container solutions.
