Shipping Terms


Below are the Terms
  • FCL-full container load.
  • LCL-Less than container load; loose container load.
  • CY-container yard.
  • CFS-container freight station.
  • CFS-The CFS is the delivery (or receipt) of loose/Full cargo from (or at) the carrier's container freight station.
  • THC-Terminal Handling Charges.

Bill of Lading : A contract document agreement between the shipper and the customer that acts as a receipt for the goods delivered to the carrier for shipment; a definition or description of the goods and evidence of title to the relative goods .

Certificate of Inspection : It is a document which certifies the merchandise (like perishable goods) that it was in good condition just before its shipment.

Certificate of Manufacture : It is a statement, usually notarized, according to which a producer of goods certifies that the manufacture has been completed according to the contract and the goods are currently at the disposal of the buyer.

Certificate of Origin : It is a certified document presented to the customs authorities showing the national origin of goods for import.

EX-WORK : Carriage to be arranged by the buyer. Risk transfer from the seller to the buyer when the goods are at disposal of the buyer. Cost transfer from the seller to the buyer when the goods are at disposal of the buyer.

FCA : Carriage to be arranged by the buyer or by the seller on the buyer’s behalf. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place. Cost transfer from the seller to the buyer when the goods have been delivered to the carried at the named place.

FAS-Carriage to be arranged by the buyer. Risk transfer from the seller to the buyer when the goods have been placed alongside the ship.Cost transfer from the seller to the buyer when the goods have been placed alongside the ship.

FOB-Carriage to be arranged by the buyer .Risk transfer from the seller to the buyer when the goods pass the ship’s rail. Cost transfer from the seller to the buyer when the goods pass the ship’s rail.

CFR-Carriage to be arranged by the buyer. Risk transfer from the seller to the buyer when the goods pass the ship’s rail. Cost transfer from the seller to the buyer when the goods pass the ship’s rail .

CIF-Carriage and insurance to be arranged by the seller. Risk transfer from the seller to the buyer when the goods pass the ship’s rail. Cost transfer at port of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage.

CPT-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier. Cost transfer at place of destination, buyer paying such costs as are not for the seller’s account under the contract carriage.

CIP-Carriage and insurance to be arranged by the seller. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier. Cost transfer at place of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage.

DAF-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods have been delivered at the frontier. Cost transfer from the seller to the buyer when the goods have been delivered at the frontier.

DES-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship. Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship.

DEQ-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the quay. Cost transfer from the seller to the buyer when the gods are placed at the disposal of the buyer on the quay.

DDU-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer. Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer.

DDP-Carriage to be arranged by the seller. Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer. Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer.

Cash against documents (CAD) : A term in which the commission house or other intermediary transfers title documents to the buyer upon payment in cash.

Cash in advance (CIA) : It is a term in which the price is paid in full before the shipment is made.

Cash with order (CWO) : It is a term in which the buyer pays when the order is made and the transaction becomes binding on both the parties.

Documents against acceptance (D/A) : It is an instructions given to a bank by the shipper indicating that the documents transferring title to goods should be delivered to the buyer (drawee) only upon the buyer's acceptance of the attached draft.

Letter of Credit (L/C) : It is a term used for a letter issued by a bank on behalf of a client to pay a beneficiary the stated amount of money under specified conditions.

Confirmed letter of credit : It is a term used for a letter of credit, which is issued by a foreign bank, and the validity of which has been confirmed by a domestic bank. This is an assured payment by the domestic bank even if the foreign buyer or the foreign bank defaults.

Deferred payment credit : It is similar to the letter of credit which provides payment some time after presentation of shipping documents by exporter .

Irrevocable Letter of Credit : A letter of credit obligating the issuing bank to pay the exporter the specified amount when all the terms and conditions are met by the drawee.

Revocable letter of credit : It is a letter of credit that may be amended or canceled by the drawee after it has been issued by the drawee's bank.

FAS : Free alongside ship. It is a term for pricing which indicates that the quoted price includes the cost of delivering the goods alongside a designated vessel.

FCA : It stands for "Free carrier" to named place. It is an incoterm in which the title and risk passes on to the buyer including the transportation and insurance cost if the seller delivers the goods cleared for export to the carrier. In this case the seller is obligated to load the goods on the buyer's collecting vehicle but it is the buyer's obligation to receive the seller's arriving vehicle unloaded.

FI : It stands for 'Free in.' A pricing term stating that the charter of a vessel is responsible for the cost of loading and unloading goods onto the vessel.

FO : It stands for 'Free Out.' It is a pricing term in which the charterer of a vessel is responsible for the cost of unloading goods from the vessel.

FOB : It is 'Free on board' at named port of export. It is an incoterm where the risk passes to buyer, included the transportation and insurance payment, once delivered on board the ship by the seller. It is only used for sea or inland waterway transportation.