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Terms used in freight forwarding such as claused bill of lading ,classification yard,clip-on-unit,certificate of origin etc.
This post explains about terms used in freight forwarding such as claim,classification clause,claused bill of lading ,classification yard,clip-on-unit,certificate of origin , clearinghouse,collection fee ,collect freight,combi ship 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
Claim - When used in Marine Insurance, means a demand made by a shipper or insurance company upon a carrier for payment of a loss sustained through its negligence.
Claim: A charge made against a carrier for loss, damage, delay, or overcharge.
Class - Grouping of articles.
Class Rate: A rate constructed from a classification and a uniform distance system. A class rate is available for any product between any two points.
Classification Clause- In marine insurance, a clause in a cargo policy which stipulates the minimum standard of vessel, as classified by a recognised classification society, required to carry the insured cargo. An additional premium may be charged by the underwriters for the additional risk involved if the vessel is not up to the stipulated standard.
Classification Society:An Organisation, whose main function is to carry out surveys of vessels, its purpose being to set and maintain standards of construction and upkeep for vessels, their engines and their safety equipment. A classification society also inspects and approves the construction of containers.
Classification yard: A railroad terminal area where rail cars are grouped together to form train units.
Classification: An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
Claused Bill of Lading -See Unclean Bill of Lading.
Clean B/L:A bill of lading indicating that the goods were received by the carrier in good order and condition, without any clauses declaring a defective condition in the goods and/or their packing.
Clean on Board:When goods are loaded on board and the document issued in respect to these goods is clean. Note: Through the usage of the UCP 500 rules the term has now become superfluous.
Clean On-Board B/L:A Bill of Lading issued without exceptions.
Clearinghouse: A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
Client:A party with which a company has a commercial relationship concerning the transport of e.g. cargo or concerning certain services of the company concerned, either directly or through an agent.
Clip-on-Unit(COU) -A portable refrigeration unit which can be clipped on to the porthole vents of an insulated container.
CLOSE-OUT :Time by which freight needs to be received in order to be loaded on a specific flight or truck.
CMR- International convention on the carriage of goods by road
CNF -Cost & Freight. A common, but incorrect way of writing the INCOTERM, C & F.
CNF: Cargo and Freight. No Insurance
CNS: Cargo Network Services – North American organization substituting IATA and formed for anti-trust reasons (see also IATA)
CO LOAD - Co-loading is when one NVOCC or air freight forwarder will combine their freight with another NVOCC or freight forwarder and the shipments move in a single consolidation.
CO or C/O: Certificate of origin (see above)
Coastal carriers: Water carriers that provide service along coasts serving ports on the Atlantic or Pacific oceans or on the Gulf of Mexico.
COB - Confirmed on Board is a term used in air freight when a shipment has been confirmed that it is on flight. A COB will generally not be given until the flight has taken off (wheels up) which eliminate any last minute changes.
COD - Collect (Cash) on Deliver; Carried on Docket (pricing); Change of Destination.
COD: Cash On Delivery – payment for the COST of the items being shipped to be remitted by TBAC back to the shipper
COD:Collect on Delivery: cost of goods and freight.
COD; Cash on delivery
Code: A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes, etc.
COFC (Container on Flat Car) - Containers moving on articulated flat cars without chassis.
COGS: See Cost of Goods Sold
COGSA - Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier's liability under carrier's bill of lading. U.S. enactment of The Hague Rules.
COL:Collect Charges.
Collapsible Container- A container with hinged or removable walls and top.
COLLECT CHARGES :Charges for the transportation of freight are paid by the consignee.
COLLECT FREIGHT - Freight charges payable at a destination provided the vessel/aircraft delivers the goods as specified.
Collect Freight:Freight payable to the carrier at the port of discharge or ultimate destination. The consignee need not pay if the cargo does not arrive at destination.
Collect: Freight charges paid by the consignee prior to the release of the bills of lading by the carrier.
Collection Fee (CC Fee) -A percentage surcharge, usually between 2% and 6%, of the total freight bill,charged by carriers and forwarders on collect freight amounts. The charge is applied to recover interest on funds payable at the time of shipment; also to cover fluctuation of exchange rates.
Collection Letter:A collection is the procedure whereby the exporter entrusts the movement of his commercial documents to a remitting bank for further processing through a collection bank for settlement from the buyer. A Collection Letter is the document used by the remitting bank to relay complete and precise instructions to the collecting bank.
Co-loading:The loading, on the way, of cargo from another shipper, having the same final destination as the cargo loaded earlier.
Combi Aircraft -An aircraft designed to carry both passengers and cargo on the main deck.
Combi Ship- A ship designed to carry both conventional and containerised cargo.
Combined Transport / Multimodal B/L:A B/L covering transport by shipping container from an inland place prior to the loading port, to an inland place beyond the destination port. Most freight forwarders and shipping companies title their B/Ls as "Bill of Lading for Combined Transport or Port-to-Port shipment" or similar.
Combined Transport Document:Abbreviation: CTD Negotiable or non-negotiable document evidencing a contract for the performance and/or procurement of performance of combined transport of goods. Thus a combined transport document is a document issued by a Carrier who contracts as a principal with the Merchant to effect a combined transport often on a door-to-door basis.
Combined Transport Operator:Abbreviation: CTO A party who undertakes to carry goods with different modes of transport.
The above details describes about terms called in freight forwarding such as claim,classification clause,claused bill of lading ,classification yard,clip-on-unit,certificate of origin , clearinghouse,collection fee ,collect freight,combi ship 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 certificate of origin , cost and freight,container freight station,channels of distribution
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