Shipping Terminology


Free on Board (FOB) – There is a total price of a good, which also includes transportation to the local port; the rest shipping till the port of discharge lay on the buyer.
Cost Insurance Freight (CIF) – There is a total price of a good, which also includes transportation till the port of discharge and insurance costs.
Cost and Freight (C&F, CNF, CFR) – There is a total price of a good, which includes transportation till the port of discharge without insurance.
Freight – mean the cargo transportation itself or special charge for the transportation.
Aboard – mean that cargo is successfully loaded onto the ship.
Chassis – Body of a vehicle including the engine and wheels as a rule.
Cargo – The goods loaded in a special large transport such as a ship, plane or vehicle.
Cargo Manifest – Special document indicating a particular transportation trip which also contains all bills information.
Vanning – Process of loading cargo into the container for the future shipping.
Commercial Invoice – Special Document for the customs, which identify the true value of the item for calculating the duty.
Bill of Lading (B/L) – Agreement between the shipper and the currier.
Bill of Lading Status (B/L Status) – Represent an important information whether the bill of lading surrendered or not surrendered:
  • Surrendered – released (buyer could take his good)
  • Not surrendered – Not released (buyer could NOT take his good)
Amended Bill of Lading – mean that condition could be changed without any extra costs.
Letter of Credit – conformation for foreign bank allowed to take the exact amount of money from the bank in another country.
Irrevocable Letter of Credit – A special agreement between importer’s bank and exporter that whenever exporter asks to pay for the item, the bank will do it without refusing.
Air Waybill (AWB) – The document that is sent by airplane and goes with the package.
Advising Bank – A bank that located in the exporter country. Notify the exporter about a letter of credit and checks is it real or not.
Bank Guarantee – A document that means that the bank or financial organization pay debts of the other person or company in case he is not able to pay back.
Correspondent Bank – Bank that provides service on behalf of another bank, usually foreign.
Issuing Bank – Importer’s bank that makes a letter of credit available in favor of exporter’s bank.
Remittance – An amount of money sent to another person as a payment.
Agency Tariff – Costs which take the agency for the service.
Freight Forwarder – A company specializing in shipping and receiving goods.
Broker – A person or a company that carrying outsell or buy orders for the percentage of the revenue.
Brokerage – Broker’s commission or fee.
Inland Carrier – domestic transportation between ports and inner points.
Supply Chain – The transporting system for the goods that involving people and things to move an item from one place to another.
Consignee – An individual or a firm to whom an item is shipped.
Bonded Warehouse – Special place where all the goods wait until owner will pay the duty.
Foreign Trade Zone – Special place where the goods could be bought without paying duty, usually located in airport or port.
Yard – Special place created to store the goods.
Bureau Veritas – Society which inspecting and rating seagoing vessels all over the world.
Certificate of Inspection – Identify that the item was in the good condition when it left the port.
Certificate of Origin – A document which shows where and whom the good was produced.
Import Licence – Mean that the government allows you to import certain goods.
Manifest – Transport document that shows an initial summary of lading bills for the exact vessel.
Beneficiary – A person(s) who receive money, benefits of something in case of something happened.