Page 4 - Al-Rashed Newsletter April 19

SHIPPING WORLD

1 0 S H I P P I N G T E R M S E V E R Y
I N T E R N A T I O N A L S H I P P E R

S H O U L D K N O W

INCOTERMS (INTERNATIONAL COMMERCIAL TERMS)
- a series of pre-defined commercial terms published by the International Chamber of Commerce. The terms are intended
primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

COD (CHANGE OF DESTINATION)
- a request asking the container ship to discharge your container and transport your goods to another destination than
what was originally booked.

CY-CY (CONTAINER YARD TO CONTAINER YARD)
- the responsibility of the carrier begins (port of loading) and ends (port of discharge) at the container yard.

DM (DEMURRAGE)
- Demurrage is a fee that container lines charge when you haven’t picked up your imported containers in time. When your
containers have been discharged, there is a free period for storing them in the port (provided by the container line). You
have to pick up your containers before the free period expires. If not, you are charged for the number of days your
containers were left in the port.

ROLLOVER
-Your carrier will reschedule your shipment and place your container on the next departing ship.

DT – DETENTION
Detention is a fee that you have to pay if you have picked up your imported containers but didn’t return them to the
shipping line in time.

PORT STORAGE
The port provides a free period of storage (not to be confused with the free period demurrage provided by container lines).
During this period, you have time to take care of customs clearance procedures and transport your goods to a warehouse
or the final destination.

FCL (FULL CONTAINER LOAD) & LCL (LESS THAN CONTAINER LOAD)
FCL is short for Full Container Load. This means you have enough goods to stuff an entire container. LCL is basically the
opposite. It is short for Less than Container Load and means you do not have enough goods to stuff an entire container.
Instead, your individual consignment is combined and shipped together with other consignments in the same container. At
the port of destination, the consignments are separated back into their original individual consignments

BILL OF LADING
The Bill of Lading is a legal document issued by a carrier to a shipper including shipment details such as the type of
goods, quantity, freight rate, and destination. It represents the agreement between the parties involved and helps
guarantee that exporters receive their payment and importers receive their goods. The bill of lading also serves as a
shipment receipt.

STUFFING & STRIPPING
Stuffing is the process of loading a container with loose goods prior to shipment. Stripping is the process of unloading a
container when it arrives at the port.
Source: https://www.hellenicshippingnews.com/10-shipping-terms-every-international-shipper-should-know/