Signed in as:
Signed in as:
Definitions of some of the most frequently used freight forwarding terms.
ABF - Australian Border Force, is the law enforcement agency responsible for the protection of Australian borders.
Air Waybill (AWB) – A document that functions as proof of goods being received for shipment by an air carrier - like a ticket for a passenger.
AQIS - Australian Quarantine Inspection Service is the Australian government agency responsible for enforcing Australian quarantine laws.
Arrival Charges - or "destination charges" are fees charged by the Shipping Line (FCL) or Consolidator (LCL) for handling the cargo on arrival at destination. These charges are determined by the incoterm negotiated at time of order.
Arrival Notice - Notification provided by the carrier to the consignee or notify party, on when a shipment is due to arrive.
Bill of Lading – A contract of carriage between the Shipper, Consignee, and Carrier stating the terms and conditions of carriage.
Blank Sailing – Cancelled sailing. In order to reduce capacity and increase freight rates, organised groups of carriers or shipping lines in the international shipping industry create blank sailings by omitting sailings that were previously scheduled.
Block and bracing – Where wood or something else is used to keep shipments in place in trailers or containers.
Bonded Warehouse – A warehouse authorised by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Bulk freight – Freight not in packages or containers. Usually comes in the form of a liquid.
Bunkers – A maritime term referring to fuel used aboard the ship. In the past, fuel coal stowage areas aboard a vessel were in bins or bunkers.
CAF (Currency Adjustment Factor) – Freight surcharge imposed to take into account foreign currency fluctuations.
Carrier – Someone who uses transports goods from A to B.
Carnet – A document from customs allowing the holder of goods to carry/send merchandise temporarily into certain countries for display without paying import taxes.
Cartage – A term used in trucking referring to the movement of goods.
CBM (Cubic Metre) - The unit of measurement used to calculate cargo volume. Calculate total volume: Length x width x height (in metres).
CHAFTA (China Australia Free Trade Agreement) - A free trade agreement specifically for trade between China and Australia, showing country of origin. Enables importers into Australia in most cases import duty exemptions.
CFR (Cost and Freight) - Incoterm that determines that the seller is required to clear the goods for export, deliver them onboard the ship at the port of departure, and pay for transport of the goods to the named port of destination only.
CFS (Container Freight Station) – Is where LCL cargo is taken for consolidation (at origin) and de-consolidation (at destination). The CFS charges a fee for this service, based on the volume of the cargo.
CIF (Cost, Insurance and Freight) – Incoterm that determines that the seller is required to clear the goods for export, deliver them onboard the ship at the port of departure, pay for transport of the goods to the named port of destination only, and includes transit insurance.
Certificate of Origin – A declaration document that details the country in which your goods are manufactured. Australian Customs may require this in order to provide import duty exemptions on importing to Australia.
Commercial Invoice – A key document, detailing the price and quantity of the sold goods. It will also contain the incoterm used, and seller and buyer details.
Consignee – The business to whom the shipment is being delivered (usually the purchaser of the goods).
Consignor – Someone (usually the seller) who sends goods to the consignee – they’re the legal owner until a consignee pays them.
Consolidated shipment – When 2 or more shipments are combined to save shipping costs.
Customs (Australian Border Force) – Government bodies who collect duties imposed by a country on imports and exports.
Customs Clearance – Procedures where cargo is formally reviewed by customs, and a customs declaration is processed in order for cargo to be able to enter the country.
DAT (Delivered at Terminal) – An Incoterm rule that dictates the seller delivers the goods, once unloaded from the arriving means of transport. Goods are placed at the disposal of the buyer at the named terminal, at the named port or place of destination.
DAP (Delivered at Place) – An Incoterm rule that dictates the seller is responsible for delivery of the goods, ready for unloading, at the named place of destination.
DDP (Delivered Duty Paid) – An Incoterm rule dictates that the Seller delivers the goods to a place previously agreed to by the seller and the buyer. This can be any location. The agreed place of delivery (e.g. the terminal) needs to be specifically named. The main difference with Delivery at Place (DAP) is that the seller takes care of the import formalities and transportation to the final named destination.
Declared value – A shipment value imported for resale, as declared by the shipper/owner.
Detention/Demurrage – A charge imposed by the carrier for excess retention of their equipment (such as poorly timed loading or unloading).
Drop & Return - The truck will drop the container to the ground, and leave it onsite for you to unpack. They will then return at a later time/date to collect emptied container.
Dunnage – Filler material in empty spaces to keep cargo from moving or falling.
Embargo – An event stopping freight from being accepted or handled (like sanctions or a war).answer to this item.
ETA – Estimated Time of Arrival.
ETD – Estimated Time of Departure.
Ex Works (EXW) – A Incoterm that dictates the seller is expected to have the goods ready for collection at the agreed place of delivery (commonly the seller’s factory or warehouse). The buyer is accountable for all subsequent costs and risk, including all export procedures, starting with loading the goods onto a transport vehicle at the seller’s premises.
FCL (Full Container Load) - This means goods from a single shipper occupy the entire container.
FOB (Free On Board) – A Incoterm that dictates the seller clears the goods for export and ensures they are delivered to and loaded onto the vessel for transport at the named port of departure. Risk and responsibility is then transferred to the buyer from this point.
Fuel Surcharge (FSC) – A fuel price which can substantially change the cost of moving freight.
General Cargo – Goods (whether unpacked or packed) for example in cartons, crates, bags or bales. General cargo can be shipped either in break-bulk or containerised.
GST (Goods and Services Tax) – payable on the landed cost of goods.
HAWB (House Air Waybill) – A shipment document issued by carrying airlines’ agents, usually a freight forwarder.
Harmonised System – A system used for classifying goods in international trade (developed by the Customs Co-operation Council, now called the World Customs Organisation). The codes used to classify are called HS Codes.
HS Code - (Harmonised System) A system used for classifying goods in international trade (developed by the Customs Co-operation Council, now called the World Customs Organisation).
Import Permit – Document implemented by governments of the ultimate destination country to control importation of certain restricted commodities. e.g weapons
Incoterms – Terms maintained by the International Chamber of Commerce (ICC) and used in foreign trade contracts to define who pays and is responsible for what parts of the shipment process.
LCL (Less than Container Load) – a consolidated container load, meaning multiple shippers and buyers in the one container.
Letter of Credit – Financial document issued by a bank at the consignee’s request guaranteeing payment for cargo.
Live Unload - This is where the truck waits onsite while the container is unloaded. Also known as a "drop & wait".n answer to this item.
Marine Cargo Insurance – Insurance covering loss of or damage to goods whilst in transit.
Packing Declaration – A document issued by the shipper, declaring the kind of packing material used in your goods. Generally only required for sea freight shipments. Without this document, Australian Customs will require a mandatory cargo inspection on arrival.
Packing List – A document issued by shipper to carrier/consignee/customs showing all information about the packages being shipped.
Pallet - A flat transport structure normally made from wood or plastic, which supports goods in a stable fashion while being lifted by a forklift, pallet jack, or front loader.
Pallet Jack – Tool to lift and move pallets and other heavy objects.
POD (Proof of Delivery) – Signed documents showing a shipment was delivered and received.
Reefer – Shipping Container with insulated walls and a self-powered refrigeration unit (generally used for transporting food).
Roll-On, Roll-Off (RORO) – Type of ship designed to load and discharge cargo rolling on wheels or tracks.
Sideloader Delivery - A Side Loader Truck (also known as a side-lifter) is the best solution for delivery when there is limited space in front or behind where the container is to be located. The truck drives or reverses beside the space the container will sit. The container is then offloaded via two crane arms onto the ground (on the drivers’ side of the vehicle only), and lands between the two out rigger feet of the side loader.
Shipper – Consignor, exporter or seller named in the bill of lading.
Shipping Mark – Letters, numbers, symbols used on outside of cargo to allow for identification.
Shipping Weight – The gross weight in kilograms of shipments (including the weight of crates, boxes, container, etc).
Tare Weight – Weight of the container only, without the weight of the goods it contains or dunnage.
Transshipment – Act of sending an exported product through an intermediate country before routing it to the country of final destination.
Transit Time – Total amount of time from freight being picked up to freight being delivered at final destination.
Volumetric Weight - Volumetric weight refers to the overall size of a package and is measured in volumetric kilograms. Volumetric weight can be calculated by multiplying the length, width and height of a parcel (in cm) and dividing that figure by 5000 (some carriers use a divisor of 4000).
W/M (Weight or Measurement) - The rate charged under W/M will be whichever produces the highest revenue between the weight of the shipment and the measure of the shipment. The comparison is based on the number of metric tons the cargo weights compared to the number of cubic meters of space the cargo measures.