Ever felt lost in a sea of shipping terminology?
Whether you’re new to the logistics industry, an e-commerce entrepreneur, or someone navigating international trade, the world of shipping jargon can be daunting. But fear not! This glossary will break down the most common terms, giving you the confidence to speak like a shipping pro.
Essential Shipping Terms
1. Bill of Lading (BOL)
A legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of goods being transported. It serves as a receipt and a contract between the shipper and the carrier.
2. Freight Forwarder
A company or individual that organises shipments for individuals or corporations to move goods from the manufacturer to a market or customer.
3. Incoterms
Short for “International Commercial Terms,” these are a set of rules defining the responsibilities of sellers and buyers for the delivery of goods under sales contracts. Examples include EXW (Ex Works), FOB (Free on Board), and DDP (Delivered Duty Paid).
4. Customs Broker
A licensed individual or company that assists importers and exporters in meeting government import/export requirements, ensuring smooth customs clearance.
5. TEU (Twenty-foot Equivalent Unit)
A standard unit for describing a ship’s cargo capacity, referring to a 20-foot-long container.
6. Demurrage
A fee charged by a shipping line to the importer for the use of a container beyond the allowed free time.
7. FOB (Free on Board)
An Incoterm meaning the seller delivers goods on board the vessel chosen by the buyer. The risk transfers to the buyer once the goods are loaded.
8. Port of Discharge
The port where cargo is unloaded from a vessel.
9. Carrier
The company responsible for transporting goods. This could be a shipping line, trucking company, or air freight provider.
10. Cargo Manifest
A document listing all cargo aboard a vessel, including details such as weight, dimensions, and destination.
Advanced Shipping Terms
11. Harmonised System Code (HS Code)
A standardised numerical method of classifying traded products, used worldwide to identify goods for customs purposes.
12. Intermodal Transportation
The use of two or more modes of transport (e.g., ship, truck, train) to move goods from origin to destination.
13. LCL (Less than Container Load)
A shipment that does not occupy an entire container, shared with other shipments.
14. FCL (Full Container Load)
A shipment that uses an entire container exclusively for one customer.
15. Waybill
A non-negotiable document issued by a carrier that provides details about the shipment, without transferring ownership of the goods.
16. Dead Freight
Charges applied when the shipper books more space than needed but doesn’t fully utilise it.
17. Transshipment
The transfer of goods from one vessel to another during transit.
18. Palletisation
The process of placing goods onto pallets for easier handling and transportation.
19. ATA Carnet
An international customs document allowing goods to be temporarily imported without paying duties and taxes.
20. Supply Chain Visibility
The ability to track products in transit from manufacturer to final destination in real time.
Pro Tips for Navigating Shipping Jargon
- Ask Questions: Never hesitate to seek clarification on terms you don’t understand.
- Leverage Technology: Use digital tools and platforms that simplify logistics and provide real-time updates.
- Build Relationships: A good freight forwarder or customs broker can be an invaluable resource.
- Stay Updated: Shipping terms and regulations evolve. Make it a habit to stay informed.
Case Study: Demystifying Shipping for a New E-Commerce Business
Sophie, a small business owner in London, decided to expand her homeware brand internationally. Overwhelmed by terms like “HS Code” and “Incoterms,” she partnered with a freight forwarder who explained the jargon and handled the logistics. With their help, Sophie successfully shipped her first international order and avoided costly delays. Now, she feels confident navigating the shipping world, proving that a little knowledge goes a long way.
“Understanding shipping jargon isn’t just for logistics experts; it’s a game-changer for anyone in global trade.” — Logistics Expert
Ready to navigate shipping like a pro? Contact us today for personalised guidance and resources to simplify your logistics journey.
