A Glossary of International Shipping Terms

International shipping can be a complex process, filled with a variety of unfamiliar terms and acronyms. Whether you're new to the world of shipping or just looking to brush up on your knowledge, this glossary aims to provide definitions and explanations for some of the most commonly used shipping terms. From the basic terminologies to more intricate concepts, here is your go-to guide for understanding the language of international shipping.

1. Bill of Lading (B/L): A legal document issued by the carrier to acknowledge receipt of goods and their agreement to transport them to a specific destination. It serves as a contract between the shipper, the carrier, and the consignee.

2. Cargo: Refers to goods or commodities being transported by any means of transportation, including ships, aircraft, trucks, or trains.

3. Container: A standardized metal box used for the transportation of cargo, designed to be easily handled and transferred between different modes of transport without unpacking.

4. Customs Broker: An individual or company licensed by the government to facilitate the clearance of goods through customs and ensure compliance with relevant laws and regulations.

5. Demurrage: Charges levied on a shipper or consignee when cargo is not picked up or delivered within the allotted time agreed upon in the contract.

6. Freight Forwarder: A company or individual that arranges the transportation of goods on behalf of the shipper, coordinating various logistics services, such as documentation, customs clearance, and cargo handling.

7. Incoterms: International Commercial Terms published by the International Chamber of Commerce (ICC), which define the rights and responsibilities of buyers and sellers in international trade transactions.

8. LCL (Less than Container Load): Refers to a shipment that does not completely fill a container, allowing multiple shippers to share space within a container.

9. Marine Insurance: Insurance coverage specifically designed to protect against loss, damage, or theft of goods during sea transportation.

10. Port of Entry: A designated port where imported goods must clear customs and enter a country.

11. Tariff: A tax or duty imposed on goods during importation or exportation, often based on the type and value of the goods.

12. TEU (Twenty-foot Equivalent Unit): A unit of measurement referring to the capacity of a containerized ship. It represents the volume of a standard 20-foot shipping container.

13. Incidental Charges: Additional costs and fees that may be incurred during the shipping process, including storage fees, terminal handling charges, and war risk surcharges.

14. Free Alongside Ship (FAS): An Incoterm that places the responsibility on the seller to deliver the goods to a designated port and place them alongside the vessel for loading.

15. Letter of Credit (LC): A financial document issued by a bank on behalf of a buyer, guaranteeing payment to the seller upon completion of specified conditions. It provides security and assurance for both parties involved in an international trade transaction.

16. Onboard Bill of Lading: A clause used to indicate that the goods have been physically loaded and secured on board the vessel.

17. Roll-on/Roll-off (Ro-Ro): A method of shipping vehicles and other rolling cargo, where they are driven onto and off of ships using ramps.

18. Volume Weight: Also known as dimensional weight, it is calculated based on the volume of the cargo rather than its actual weight. This calculation helps determine the cost of shipping when transportation charges are based on weight or space utilization, whichever is higher.

19. Wharfage: A fee charged for the use of a wharf or dock for loading or unloading of cargo.

20. Zoning: The process of subdividing ports or harbors into designated areas for various activities, such as cargo handling, customs clearance, or storage.

Understanding these key shipping terms will not only help you navigate the intricacies of international trade but also enable you to communicate effectively with shipping agents, freight forwarders, and other stakeholders involved in the shipping process. As the world becomes increasingly connected through global commerce, being familiar with these terms ensures smooth and efficient operations within the international shipping industry.