Shipping Terms and Definitions

Basic Marine Insurance: There are different types of marine insurance available. Specific coverage is detailed by the provider. However, it basically covers loss and / or damage to goods during transit.
Bill of Lading (B/L): This document serves as receipt of your shipment and the details of your contract with the shipper and transportation company.
Broker: A broker negotiates the transportation details for your international shipment. This person receives a fee for the service.
CBM (CM): Either version means cubic meter and is a measurement of volume.
CFT: Cubic Feet. This is the volume measurement that determines how much space is used.
Container: Steel containers are used to secure household goods during shipments. They are typically 20 feet or 40 feet long. They can be transported by truck or rail (train) and cranes are used to stack them on ships. The versatility of containers makes the logistics of overseas shipments easier.
Customs: Government agency that regulates goods (your belongings) entering the country. This agency is also responsible for collecting duties.
Customs Entry: Place at port where customs requires a declaration of incoming goods.
Demurrage: Penalty fee assessed against shipper for delaying carrier’s equipment. There is a free time allotment, so fees are assessed after the allotted time.
Density: Mass (weight) per unit volume.
Destination: Place where shipment is being sent.
Door-to-Door: Shipment is picked up from door and delivered to shipper’s door in new destination.
ETA: Acronym for – Estimated Time of Arrival.
Export: Goods being sent to another country.
FCL: Full Container Load – Your shipment alone – Not a shared container.
FMC (F.M.C.): The Federal Maritime Commission is the regulatory agency responsible for parameters and guidelines of ocean activities and commerce.
GRI: General rate increase is an increase in tariffs across-the-board that are added to base charges.
Groupage: Consolidating smaller shipments to larger containers.
In Transit: Movement from place to place…
Insurance: Safeguards shipper against any loss and / or damage for your overseas shipments. Different insurance cover types may insure loss and damage or only loss.
LCL: Less than Container Load – a shipment that does not fill a full container. A shared container shipment; not just for your shipment.
Lift Van: Crate for Less than Container Load (LCL) shipments provides added protection for your shipment.
Loading: Lifting and placing already packed items or cargo into a truck, container, boat or airplane
Measurement Cargo: Charges in transportation for the measurement, rather than the weight, of cargo.
Non-Vessel Operating Common Carrier (NVOCC): Organizes shipments or carriers for individuals or companies.
Origin: Place where shipment starts its journey overseas.
Packing: Preparing furniture and household goods for shipment such as wrapping furniture and putting items into boxes for shipping. This is different than loading.
Pallet: This object has a flat surface on which to stack boxes and other goods.  Stacking items on pallets makes it easy for forklifts to move the shipment and to load the container. Items are typically shrink- wrapped to the pallet to hold them safely and securely in place.
Perils of the Sea: Factors for which the carrier is not responsible. This usually refers to environmental factors.
Port to Door: Shipment loaded at port of origin and delivered to shipper’s door.
Port to Port: Shipper is responsible for delivering shipment to the port of origin and picking them up at destination port. Carrier is responsible for transporting between ports.
Quarantine: When something is hazardous to the public’s health, it is placed under quarantine. This can even happen to ships. When this happens, a ship is designated to a specific area with a Q flag raised until the quarantine can be lifted.
Ro/Ro: Wheeled vehicles are rolled on/ rolled off vessels or trucks instead of using cranes to move these items.
Ship Demurrage:  Ancillary cost for delaying ship beyond allotted time period.
Shipper: Individual who is hiring third party to ship their goods.
Shrink Wrap: Polymer plastic film that is used to secure items, sometimes to a pallet. The plastic shrinks when heat is applied, which holds items securely in place.
Terminal Handling Charge: Charge for services at the terminal.
Transit Time: Time it takes for the shipment’s movement
Unloading: Offloading goods or cargo from a ship or truck.
Warehouse: This is a location where goods are stored.
Warehousing: Storing of freight, cargo or goods in warehouse.
W.M. (W/M): Weight or measurement. This process determines the amount that will be charged for freight. The fees are assessed on whichever is higher, the weight or measurement.