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Shipping Glossary



Misrepresenting freight or weight on shipping documents.

Container with built in forced ventilation.

A port at which the ocean carrier cannot call but which has a coastal container vessel linking it to a container terminal.

A short-sea vessel used to fetch and carry goods and containers to and from deep-sea vessels. A small or medium sized ship used to convey cargo from the deep sea vessel's port of call to other ports where the throughput of cargo does not economically justify a direct call by the ocean vessel or it being prevented from calling because of draft restrictions.

Applies to frozen sea areas, e.g. Hudson Bay, Great Lakes, Baltic etc.

Service with a sailing on the same day each week. Flat Rack:- A container consisting of a base and two ends but no sides or roof.

Polythene bag to allow bulk liquids and powders to be carried in G.P's

Goods lost by shipwreck and found floating on the sea.

Circumstances beyond the control of either party to a contract.

A motorised vehicle with forklike lifting apparatus used for cargo handling.

The seller's obligations are fulfilled when the goods have been placed alongside the ship on the quay or in the lighters. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment. Note that unlike F.O.B., F.A.S requires the buyer to clear the goods for export.

An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.

Named point. It is based on the same main principle as F.O.B, except that the seller fulfills his obligations when he delivers the goods into the custody of the carrier at the named point. If no precise point can be mentioned at the time of the contract of sale, the parties should refer to the place or range where the carrier should take the goods into his charge. The risk of loss of or damage to the goods is transferred from seller to buyer at that time and not at the ships rail.

Carrying vessel not to bear any expense incidental to loading and discharging.

That amount of time that a carrier's equipment may be used without incurring additional charges.

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.

Vertical distance from uppermost continuous deck to loadline or waterline at a given draft.

The amount payable for the carriage of goods. Sometimes also used to describe the goods themselves, which are better, described as cargo in marine transportation. The charge for transporting goods by water.

System whereby freight is charged per container irrespective of the nature of the cargo.

The Carrier's Agent Freight Carriage and Insurance paid to:- The term is the same as "Freight or Carriage Paid to" but with the addition that the seller has to procure transport insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

The seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail.

An independent business which handles export shipments for compensation. At the request of the shipper/exporter, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter's name. The forwarder arranges for marine insurance, makes the necessary overseas communications and advises the shipper on overseas requirements of marking and labeling. The forwarder operates on a fee basis paid by the exporter or importer, depending on the terms of sale. Exporters should be aware that the Freight Forwarder appointed should have international representation.

The freight charge is calculated in relation to any particular unit, piece or package, whichever of a Measurement Ton or Weight Ton yields the greater revenue at the appropriate rate, except that as far as the Ocean Freight Rate is concerned: a] for items marked "W" in the Commodity Index the Freight Ton means 1000; b] for items marked "M" in the Commodity Index the Freight Ton means 1 cubic metre.

The direction on a vessel parallel to the center line.

A container load of goods, the merchant being responsible for packing and unpacking the container.

System whereby freight is charged per container irrespective of the nature of the cargo.

This is incurred when a full or empty container cannot be delivered or is not available for collection upon arrival of the cartage vehicle at a depot or consignee/shipper's premises.