Shipping Terms Glossary

FOB means the seller delivers the goods on board the vessel at the named port of shipment; risk of loss or damage passes to the buyer once the goods are over the ship’s rail.

CIF means the seller bears the cost, insurance, and freight to the destination port; risk transfers to the buyer once the goods pass the ship’s rail at the port of loading.

EXW places the minimum obligation on the seller: the seller only makes the goods available at a named place, after which all transport and costs are the buyer’s responsibility.

FCL means the shipper uses a dedicated container - ideal for large volumes with better cost efficiency.

LCL means multiple shippers share one container; charges are apportioned by each shipment’s volume (CBM) or weight.

A Bill of Lading is issued by the carrier to the shipper as proof that goods are on board, serving as a receipt, evidence of the contract of carriage, and a document of title.

CBM is the unit of cargo volume, calculated as length x width x height (in meters). LCL freight is charged on the greater of volume or weight.

HS codes form the international Harmonized System for goods classification; customs authorities use them to determine duties, rates, and regulatory requirements.

POL is where cargo is loaded and POD where it is discharged - key identifiers in shipping documents and cargo tracking.

ETA is the estimated time of arrival and ATA the actual time of arrival, used to track transport milestones in ocean, air, and logistics.

T/T is a common electronic fund transfer method in international trade, usually combined with documents such as the B/L to control payment risk.

DDP imposes the maximum obligation on the seller: the seller must deliver to the named destination and clear import, bearing all risks and costs.

The AWB is the standard airfreight document, serving as both a receipt for the goods and evidence of the contract of carriage.

The IMO number is a unique 7-digit identifier assigned by the International Maritime Organization to ships over 100 gross tons, permanent for the vessel’s life, used for safety and compliance.

Gross weight: total weight including packaging. Net weight: weight of the goods alone. Tare weight: weight of the packaging (container, pallet, etc.) alone.

The seal number is the unique ID on a container’s security seal, safeguarding cargo integrity in transit; customs and consignees verify against it.