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Terms used in freight forwarding such as Business Process Model,Bunker Surcharge,Bunker Adjustment Factor etc.
This post explains about terms used in freight forwarding such as Business-to-Consume,Business Process Model,Bunker Surcharge,Bunker Adjustment Factor,BULK SHIPMENTS ,Bulk Cargo,Basic Service Rate,Breaking Bulk,Brokerage etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in freight forwarding
Break-Bulk: The separation of a single consolidated bulk load into smaller individual shipments for delivery to the ultimate consignees. This is preceded by a consolidation of orders at the time of shipment, where many individual orders which are destined for a specific geographic area are grouped into one shipment in order to reduce cost.
Breakbulk:Non-containerised cargo.
Breaking Bulk -1. In the container and airfreight trade: The action of unpacking a groupage or FAK container.2. As a traditional shipping term: To open the ship’s hatches and commence discharge of the cargo.
BROKER - Also known as a Customhouse Broker. A licensed broker is one who has passed the Customs brokers exam and FBI background check and is authorized by U.S. Customs to conduct Customs brokerage. This person is thoroughly knowledgeable about Customs regulations and is responsible for maintaining those regulations. The term broker can also be used more broadly to refer to an individual or a company that conducts Customs business on behalf of an importer.
Brokerage - Freight forwarder/broker compensation as specified by ocean tariff or contract.
Brokerage - Fee paid to freight forwarder by the carrier for services performed.
BROKERS:Companies that help both shipper and carrier achieve low freight rates and efficient utilization of carrier equipment.
Brussels Tariff Nomenclature:The old Customs Co-operation Council Nomenclature for the classification of goods. Now replaced by the Harmonised System.
BSC:Bunker Surcharge.
BSI Container Specification:Accidents of a nature beyond human control such as flood, lightning or hurricane usually quoted as 'force majeure'.
BSR -Basic Service Rate. An ocean container shipping term which actually means the base ocean freight rate for the port-to-port segment of the transit. It may have several surcharge factors applied to it.
BSRA- ‘Basic Service Rate Additional’ – Means the same as APCA, THC and PSC. A charge for loading or unloading containers on or off vessels.
BSRA:Basic Service Rate Additional - the charge levied by shipping companies to importers for LCL cargo, including the port charges, transport to an unpacking depot (see CFS) subsequent sorting and storage of the goods and finally loading onto a vehicle collecting the goods for delivery to the buyer
Buffer Stock:A quantity of goods or articles kept in store to safeguard against unforeseen shortages or demands.
Bulk area: A storage area for large items which at a minimum are most efficiently handled by the pallet load.
Bulk Cargo - Not in packages or containers; shipped loose in the hold of a ship without mark and count. Grain, coal and sulfur are usually bulk freight.
Bulk Cargo:cargo that is stowed loose on transportation vehicles, in a tank or hold without specific packaging, and handled by pump, scoop, conveyor, or shovel. Examples: grain, coal, petroleum, chemicals.
Bulk Carriers:A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count.
Bulk Container:A container designed for the carriage of free-flowing dry cargoes, which are loaded through hatchways in the roof of the container and discharged through hatchways at one end of the container.
Bulk Freight - Not in packages or containers, shipped loose in the hold of the ship. Grain, coal and sulfur are usually bulk freight.
BULK SHIPMENTS - Shipments which are not packaged, but are loaded directly into a vessel's holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities. Large machinery or other items which will not fit into a standard ocean container are also considered bulk shipments.
BULK SHIPMENTS:Shipments which are not packaged, but are loaded directly into the vessel's holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities.
Bulk storage: The process of housing or storing materials and packages in larger quantities, generally using the original packaging or shipping containers or boxes.
Bulkhead -Traditionally applied to the vertical partition walls inside a ship, but is also used to denote the front wall of a container.
Bundle: A group of products that are shipped together as an unassembled unit.
Bundling: An occurrence where two or more products are combined into one transaction for a single price.
Bunker Adjustment Factor A surcharge applied by an ocean carrier to ocean freight rates to recover costs associated with Bunker fuel.
Bunker Adjustment Factor:Abbreviation: BAF.Adjustment applied by liner or liner conferences to offset the effect of fluctuations in the cost of bunkers.
Bunker Charge - An accessory charge sometimes added to freight rates to account for fuel costs.
Bunker Surcharge (BAF, BSC) :Bunker Adjustment Factor (BAF), or Bunker Surcharge (BSC) are surcharges assessed by the carrier to freight rates to reflect current cost of bunker.
Bunker Surcharge- See Bunker Adjustment Factor
Bunkers:Heavy oil used as fuel for ocean vessels.
Bunkers:Quantity of fuel on board a vessel.
Bureau Veritas:French classification society.
Business Process Model:The business process model provides a breakdown (process decomposition) of all levels of business processes within the scope of a business area. It also shows process dynamics, lower-level process interrelationships. In Summary it includes all diagrams related to a process definition that allows for understanding what the business process is doing (and not how).
Business Process:A business process is the action taken to respond to particular events, convert inputs into outputs, and produce particular results. Business processes are what the enterprise must do to conduct its business successfully.
Business-to-Business (B2B): As opposed to business-to-consumer (B2C). Many companies are now focusing on this strategy, and their sites are aimed at businesses (think wholesale) and only other businesses can access or buy products on the site. Internet analysts predict this will be the biggest sector on the Web.
Business-to-Consumer (B2C): The hundreds of e-commerce Web sites that sell goods directly to consumers are considered B2C. This distinction is important when comparing Websites that are B2B as the entire business model,
Buyer:Party to which merchandise is sold. The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment and on this place the
C & F (CFR):Charges incurred up to arrival of cargo at stated port payable by consignor. Ensuing charges payable by consignee.
The above details describes about terms called in freight forwarding such as Business-to-Consume,Business Process Model,Bunker Surcharge,Bunker Adjustment Factor,BULK SHIPMENTS ,Bulk Cargo,Basic Service Rate,Breaking Bulk,Brokerage etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post. Terms used in freight forwarding such as Blocking or Bracing,Bonded Goods,Bonded Warehouse,Booking
The above information is a part of Import Export Training course online
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