Glossary of terms

FREIGHT RATE ALWAYS DEPENDS ON THE FOLLOWING FACTORS:
  • linear tariff;
  • the cost of terminal handling of a container (loading on a ship / unloading from a ship);
  • volume of freight traffic;
  • market position (your name);
  • agent / forwarder's commission;
  • possible additional costs at ports of loading / unloading associated with local conditions.
RATE FOR MULTIMODAL CONTAINER TRANSPORTATION CONSISTS OF THE FOLLOWING INDICATORS:
  • for Door to Door delivery: Precarriage + customs clearance + THC Origin + Freight + BAF + CAF + Suez Canal Surcharge (for containers from Southeast Asia) + Piracy Risk Surcharge (for containers from Southeast Asia) + ISPS + THC Destination + Release fee + port fees + TIR, CMR clearance + export
  • for FI to Door delivery (on FOB): Freight + BAF + CAF + Suez Canal Surcharge (for containers from Southeast Asia) + Piracy Risk Surcharge (for containers from Southeast Asia) + ISPS + THC Destination + Release fee + port fees + TIR registration, CMR + export
  • for delivery to CIF: THC Destination + Release fee + port fees + TIR, CMR registration + export

General terms

FREE IN AND OUT No loading and unloading costs
FIOS - free in / out Loading and unloading at the expense of the sender (net freight without surcharges)
FILO - free in / liner out Loading at the expense of the sender / unloading at the expense of the line
LIFO - liner in / free out Loading at the expense of the line / unloading at the expense of the sender
LILO - liner in / out Loading / unloading by line - full line conditions
CAF (currency adjustment factor) Foreign exchange mark-up (indexation of exchange rate differences)
САС (currency adjustment charge) Currency adjustment factor
CAS (Currency adjustment surcharge) Foreign exchange adjustment markup
BAF (bunker adjustment factor) Bunker markup (indexation of changes in bunker prices)
BAC (bunker adjustment charge) Correction factor to the cost of the bunker
CCL (customs clearance) Customs clearance
DOCUMENTATION FEE (release fee) Fee for paperwork
ISPS (international ship and port facility security) Anti-terrorist fee
СONTAINER YARD Container terminal
STUFFING-UNSTUFFING Container filling / unloading
BOOKING NOTE A written application from the client / forwarder / agent to the line with the obligation to provide the goods for transportation.
SHIPPER Sender
CONSIGNEE Recipient
CMR International consignment note
BILL OF LADING (B / L) Bill of lading
SEA-WAY BILL Express release
CBM Cubic meter
CFS Consolidation warehouse
BONDED WAREHOUSE Customs warehouse (temporary storage warehouse, temporary storage warehouse)
BREAK BULK Transportation of a small consignment without using a container
TEU Equivalent volume of a 20-foot container
DROP-OFF CHARGE Fee for returning a container belonging to a carrier at a place other than the destination indicated on the carrier's bill of lading
ETA Estimated arrival date
ETD Estimated date of departure
FCL Full container loading by one sender to the address of one recipient
FEU Unit of volume, equivalent to the volume of a forty-foot container
FI (free in) Free from loading - a condition of carriage upon departure - means that the freight does not include the cost of loading onto the ship
FO (free out) Free from unloading - the condition of carriage at the destination - means that the freight does not include the cost of unloading from the ship
FOR departure station Free in a wagon / on a platform - a condition of carriage upon departure - means that the agreed rate of freightage does not include the cost of work on loading onto a platform / wagon, fitting wagons, supplying containers, etc.
FOR destination station Free in the wagon / on the platform - the condition of carriage upon arrival - means that the agreed rate of freightage does not include the cost of unloading cargo from the platform / wagon, cleaning wagons, delivering containers to the door, etc.
FREIGHT COLLECT The freight is paid by the recipient. These are costs that are paid upon unloading. That is, without paying these costs, the recipient will not receive the goods even if there are shipping documents.
FREIGHT PREPAID The freight is paid by the sender. These are costs to be paid upon shipment. That is, the carrier issues an invoice indicating the costs, if not paid, the sender will not receive the shipping documents and will not send them to the recipient
GRI Additional charge to the base freight rate. Set in accordance with the line conference rate policy, it is usually seasonal in nature
LCL Partial loading of a container, in one container the cargo of several shippers follows to the address of several recipients
OGC Oversized cargo
SHIPPING REQUEST Shipping instructions. They are the basis for filling out the bill of lading
IN-BOND Not cleared through customs (about goods)
MT Metric ton = 1000 kg
REPO Return of an empty container to the nearest carrier stock after unloading
STUFFIN Stuffing - container loading
C / D (customs declaration) Customs declaration
CFS (container freight station) Freight container station, container point
DETENTION Fee for using the container outside the port. It is counted from the moment the container leaves the port until the empty container is returned. Free period is set by the line

Basic terms of sea transportation of cargo

Bill of Lading, B / L (bill of lading) The main maritime document is a waybill for the carriage of goods;
Shipper Consignor or supplier of cargo
Consignee Cargo receiver
Notify party The party to which the carrier must notify of the arrival of the goods. It is the freight forwarder or other representative of the consignee at the port
Freight Payment for shipping
Loading loading
Discharging unloading
Feeder This is a local sea line for transporting a container or oversized cargo for a short distance, or delivering containers from / to the port of loading on an ocean-going ship. When concluding a contract for long distance sea transportation, local feeder transportation is included in the freight amount, and no additional payment is required.
WHARFAGE (port due) Port duty
FICY -free in / container yard Without loading at the port / to the control terminal
LI-DOOR - liner in / door Loading in port by customer's line / door
DOOR-DOOR Door-to-door delivery
DOOR - LO From the "door" to the port of loading (departure) to unloading at the port of destination
SEA-WAY BILL Express release
PRE-CARRIAGE Delivery from the client's "door" to the feeder port
FEEDER CARRIAGE Transportation from the feeder port on small-capacity ships to the base port, where containers are reloaded onto mainline ships
OCEAN / DEEP SEA CARRIAGE Ocean (mainline) transportation between base ports of different continents
ON-CARRIAGE Delivery from the feeder port to the client's "door"
THC (terminal handling charge) Charge for terminal handling of cargo in the port. Initially - any terminal services for cargo handling: loading / unloading from a ship, moving to a stack, placing for work, etc. At present, the following understanding of this term has developed in practice:
  • cargo handling services paid by the sender, if it is the port of departure (oTHC)
  • or recipient if this is the destination port (dTHC)
OTHC (THC origin) THC at the port of departure
DTHC (THC destination) THC at the port of destination
TKL Condition of carriage upon departure / arrival. Means that the freight forwarder assumes the responsibility for organizing transportation from / to the transshipment equipment at the port of departure / destination; the cost of transportation includes, in addition to the freight, loading / unloading from / to the ship, does not include the delivery / removal to / from the transshipment equipment. These conditions of transportation are often used in ports, container terminals (CY) in which are removed from the line of the quay wall and delivery to / from the place loading / unloading is an additional operation.

Unit of measurement of the cost of work and container capacity of rolling stock and warehouses

TEU (Twentyfoot Equivalent Unit) A unit of cargo measurement equal to the volume of a 1x20-foot container. 1x40 'container = 2TEU

Conditions of carriage

CY (Container Yard) Container Terminal
  • storage location of containers before / after their further shipment
  • condition of carriage upon departure / arrival - the cost of transportation includes services for sending from / to CY (freight, loading / unloading from the ship, accommodation at CY , DOES NOT include services for receiving / sending cargo to / from CY )
DOOR Door-to-door delivery Condition of carriage upon departure / arrival - means that the forwarder assumes the responsibility for organizing carriage to / from the entrance doors / warehouse of the sender / consignee; the cost of transportation includes services for sending from / to the front doors / warehouse of the sender / recipient
FI (Free In) Free from loading Condition of carriage upon departure - means that the freight does not include the cost of loading onto the ship
FO (Free Out) Free from unloading Condition of carriage at the destination - means that the freight does not include the cost of unloading from the ship
LI (Liner In) Linear conditions at departure Means that the cost of receiving / handling cargo at the container terminal and loading onto the ship are included in the freight rate
LO (Liner Out) Linear Arrival Conditions Means that the cost of unloading from the ship and receiving / handling cargo at the container terminal are included in the freight rate
ALL IN (All Inclusive) "All inclusive" Means that the cost of carriage includes all additional charges provided for by the conditions of carriage. For example, if we are talking about freight on LILO terms, this means that the rate, in addition to freight, loading and unloading, also includes all associated costs, such as BAF, CAF, etc.;
BAF (Bunker Adjustment Factory) Bunker allowance Additional charge to the basic freight rate, the amount depends on the cost of fuel on the international market. May change monthly or quarterly. Usually quoted for TEU (for example 500 USD / TEU);
CAF (Currency Adjustment Factory) Additional charge to the basic freight rate, the amount depends on the change in the exchange rate. May change monthly or quarterly. Usually quoted as a% of the base freight rate
IMO Surcharge Surcharge for dangerous goods
ISPS or SEC (security charges) Port security dues
GRI Planned increase in the base rate from a certain date
Heavy Lift Charge Surcharge for exceeding a certain weight of the cargo (used when there is a large number of heavy loads in a certain direction)
PCS (Port Congestion Surcharge) Surcharge due to the transshipment of container areas of the port
PSS (Peak Season Surcharge) Surcharge due to seasonal increase in traffic at certain times of the year ("high season")
WarRisk (War risks) Collected at ports in the war zone
WinterSurcharge (Winter surcharge Charged in ports where there is a possibility of icing the port water area. Valid in winter.

    Important information!

  • the conditions of the bet always consist of 2 parts - information on the conditions of departure and arrival. For example FILO, LICY, etc.
  • charges to the base freight rate (Lines are paid against freight)
  • charges to the base freight rate are paid by the lines against the freight
  • the validity period of the bet must be indicated!
  • the cost of freight is determined by the date of departure of the goods (date of issue of the bill of lading at the port of departure)
  • additional conditions and fees are paid to local line agents usually through port forwarders.

Additional terms and fees

Demurrage Penalties levied for excess use of a container from the moment it is unloaded at the terminal until it is removed from the terminal
Detention Penalties levied for use of a container from the moment of its removal from the terminal until the moment the empty container is returned to the port
Administrative Fee B / LFee = DocsFee (other designations are possible) - fees of the local line agent for paperwork. May be charged per bill of lading or per container

Additional port charges

Additional port charges are paid to the port usually through port forwarders, can be collected directly by the port or local line agents.

Storage Rate for excess storage of cargo in the port. It is counted from the moment of unloading to the terminal until the moment of export from the terminal. Charged at port rates. Usually quoted for TEU and has an increasing scale (the longer the cargo is in the port, the more expensive every next day of storage)
Submission for inspection Rate for work on placing a container at the inspection site (customs, sanitary, etc.). Charged at port rates, in fact
Rates for additional operations Port rates for any work not provided for in the usual container handling scheme (repacking, weighing, seals, marking, etc.). Charged at the port rates, in fact
    Examples of rates for local payments at the port:
  • Containerships: 130 EUR THC + 25 EUR docs + 50 EUR m / h = 205 EUR;
  • HAPAG: 75 eur THC + 6 EUR ISPS + 35 EUR docs + 25 EUR m / h = 141 EUR;
  • Container removal - 10 days free of charge, the first 5 days - 15 EUR / day, from 6 day 30 EUR / day;
  • Storage of the container: - 5 days free of charge, from 6 day - 9 EUR / day;
  • MSC: 100 EUR THC + 40 EUR docs + m / h 40 EUR + ISPS 15 EUR = 195 EUR;
  • MAERSK: 120 EUR THC + 35 EUR ddf + 6 EUR ISPS + 30 EUR m / h = 191 EUR;
  • Hamburg Sud: 110 EUR THC + 30 EUR docs + 16 EUR ISPS = 156 EUR;
  • OOCL: 74 EUR THC + 30 EUR docs + 11 EUR ISPS + m / h 30 EUR = 145 EUR

Container type designations

For the convenience of identifying containers, the ISO 6346: 1995 standard introduced "group codes" consisting of two Latin letters.

DC / GP (General Purpose) Standard (general purpose, universal) container
RE, RT, RS (Reefer) Ref container
HI, HR Insulated container
VH Container with non-mechanical ventilation system at the bottom and top of the cargo area
UT (OT - Open Top) Open top container
PF, PS, PC Platform container
TN, TG, TD Tank container
BU Bulk container
HC / HQ (High Cube) Extended container (height increased by one foot compared to standard container)
SOC (Shipper Owned Container) The container is the property of the sender
COC (Carrier's Owned Container) The container is the property of the carrier

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