FOB (Free On Board)
Shipper/seller uses his freight forwarder to move the merchandise to the port or designated point of origin. "Delivery" is accomplished when the seller/shipper releases the goods to the buyer’s forwarder.
CIF (Cost, Insurance & Freight)
The shipper/seller pays for cost (of merchandise) insurance and freight up to an agreed/predetermined destination point. "Delivery" is accomplished at this time.
EXW (Ex-Works)
Minimum responsibility on the seller with greater responsibility on the buyer. Goods are made available for pickup at the shipper/seller’s factory or warehouse. Delivery is accomplished when the goods are released to the consignee’s freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, exports clearance and handling all other paperwork.
CFR (Cost & Freight)
Shipper/seller is responsible for the cost and freight charges to an agreed/predetermined destination point. "Delivery" is accomplished at this time. It is the buyer’s responsibility to cover insurance from the port of origin/port of shipment to buyer’s door.
FCA (Free Carrier)
Shipper/seller is responsible for arranging transportation, but he is acting at the risk and the expense of the buyer. The seller chooses and works with the freight forwarder or carrier. "Delivery" is accomplished at a predetermined port or destination point and the buyer is responsible for insurance.
DDU (Delivered Duty Unpaid)
The shipper is involved with the task of moving goods from where they are available to the consignee/buyer’s door. Duties, taxes and fees are for the account of the consignee.
DDP (Delivered Duty Paid)
The shipper is involved with the task of moving goods from where they are available to the intended final destination. It is the shipper’s responsibility to insure and carry all costs and risks including the payment of duties and fees.
ABBREVIATIONS
ANF (Arrival Notification Form) – advice to the consignee of goods coming forward.
LCL (Less Container Load) – when cargo is too small to fill up a container. Compatible goods for the same destination are normally grouped into a container and the client is liable for the weight or space his cargo occupies in a container.
B/L (Bill Of Lading) – acts as a receipt for the cargo and contains the terms of the contract of carriage and is a document of title to the goods.
FCL (Full Container Load) – an arrangement whereby the shipper utilises all the space in a container which he packs himself.
Freight Ton – the weight/volume on which freight is charged.
Groupage – consolidation of several LCL consignments into a container.
NVOCC (Non Vessel Operating Common Carrier) – a carrier issuing bills of lading for carriage of goods on vessels which he neither owns nor operates.
Tare - tare weight, sometimes called
unladen weight, is the weight of an empty container. By subtracting it from the
gross weight (laden weight), the weight of the goods carried
(the net weight) may be determined.
TEU (Twenty-Foot Equivalent Unit) – 1X20’ft = 1 TEU; 1X40’ft = 2 TEU
Waybill – a bill of lading that acts as receipt for the goods and evidence of the contract of carriage.