Shipping Terminology

1. Bill of Lading (BOL): A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being transported. It serves as a receipt for the shipment.
2. Freight: Refers to the goods transported by a carrier, as well as the charges associated with the transportation of those goods.
3. Carrier: A company or individual responsible for transporting goods from one location to another. This can include shipping lines, trucking companies, and airlines.
4. Customs Clearance: The process of getting goods through customs so they can enter or leave a country. This involves paperwork and compliance with local regulations.
5. Incoterms (International Commercial Terms): A set of internationally recognized rules that define the responsibilities of buyers and sellers in international transactions. Examples include FOB (Free On Board) and CIF (Cost, Insurance, Freight).
6. Lead Time: The amount of time between the initiation of an order and its completion. This includes processing, production, and shipping time.
7. Manifest: A comprehensive list of the cargo being transported on a ship or vehicle, used for customs and logistical purposes.
8. Packing List: A document detailing the contents of a shipment, including item descriptions, quantities, and weights. It helps ensure that all items are accounted for during shipping and receiving.
9. Port of Entry:The location where goods are received into a country, subject to customs clearance procedures.
10. Waybill: A document that provides details about the shipment, including the origin, destination, and contents, used for tracking purposes.
11. Demurrage: Charges incurred when a shipment is not picked up from the shipping dock within a specified period, resulting in additional storage costs.
12. Detention: Charges for keeping a shipping container beyond the allowed free time after it has been dropped off at the destination.
13. Air Waybill (AWB): A specific type of bill of lading used for air freight that serves as a receipt for the shipment and a contract between the shipper and the airline.
14. Drop Shipping: A retail fulfillment method where the store doesn’t keep the products it sells in stock. Instead, it purchases the item from a third party and has it shipped directly to the customer.
15. Tracking: The process of monitoring the location and status of a shipment as it moves through the transportation process.

Conclusion

Understanding shipping terminology is essential for anyone involved in logistics and trade. It helps facilitate smoother communication between parties and ensures that everyone is on the same page regarding shipping processes and requirements. If you have any questions or need assistance with your shipping needs, feel free to contact us at Kabeer Khushal General Trading!