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Terms used in freight forwarding such as freight forwarder,freight release,freight prepaid, freight, foreign trade zone,fumigation etc.
This post explains about terms used in freight forwarding such as freight forwarder,freight release,freight prepaid, freight,fuel-surcharge,foreign trade zone,fumigation,general rate increase,gateway city 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
Freight Forwarder: An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.
FREIGHT PAYABLE AT DESTINATION :Method of paying the freight often used for shipment of bulk cargoes whose weight is established on discharge from the ship.
Freight Payable at Destination:When the ocean freight of a shipment is paid at the time of delivery at the foreign port.
Freight Prepaid: The freight and charges to be paid by the consignor.
Freight Prepaid:Freight and charges are required to be paid by a shipper before an original bill of lading is released.
Freight Release (Freight Bill Receipt) - Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain release of the cargo. (Normally, once the freight is paid, releases are usually arranged without additional documentation).
FREIGHT STATUS ANSWER (FSA): A standard CargoIMP message identifier used to reply to a Status Request (FSR) indicating latest status, or statuses, in the movement of the nominated shipment.
FREIGHT STATUS REQUEST (FSR): Standard CargoIMP message identifier used to request the current status of a nominated shipment.
FREIGHT STATUS UPDATE (FSU): Standard CargoIMP message identifier used to notify/update interested parties with a (change of) status of a shipment as recorded in the system of the handling party.
Freight Tonne- In Ocean shipping, the base tonne (ie. 1000kg = 1 m3)to which the freight rate is applied and from which the freight amount is calculated.
Freight: Goods being transported from one place to another.
Freight:(a) The price paid to the carrier for the transportation of goods or merchandise by sea or air from one place to another. (b) Freight is also used to denote goods which are in the process of being transported from one place to another.
FREIGHT:The money charged by the carrier for transporting goods.
FRT: Freight.
FSC: Fuel Sur Charge. This is a fuel surcharge usually added to air freight.
FTA: Freight Transport Association or Free Trade Agreements
FTHC: Foreign Terminal Handling Charge is a destination fee that is paid to the port of destination to handle the container and is usually paid by the consignee
FTL: See Full Truck Load
FTL: See EUV
FTL:Full Truck Load, an indication for a truck transporting cargo directly from supplier to receiver.
FTZ: See Free Trade Zone
FTZ: Foreign Trade Zone or zone includes one or more restricted-access sites, including sub zones, in or adjacent to a CBP port of entry, operated as a public utility under the sponsorship of a zone grantee authorized by the Board, with zone operations under the supervision of CBP.
FUEL SURCHARGE: A surcharge imposed to help offset increased fuel costs – applied as a percentage to freight charges
Fuel-surcharge (FSC), Fuel adjustment factor (FAF):This surcharge is assessed by a carrier (steamship line, barge, airline, trucker) in addition to their base freight charge and allows them to maintain long-term rates for transporting cargo with the flexibility to adjust for fuel costs that can be volatile in the short-term.For example, if ocean carrier "X" has a base ocean rate of $3,000 to transport a 20 ft. container of widgets from Los Angeles to Honolulu and their current FSC based on market prices for fuel-oil is 50%, then a surcharge of $1,500 would be applied to their base ocean rate for transporting the container.
Fulfillment Agent: May be designated as an agent to plan, schedule, or control the process of executing the logistics chain.
Fulfillment: The act of fulfilling a customer order. Fulfillment includes order management, picking, packaging, and shipping.
Full Container Load (FCL): A term used when goods occupy a whole container.
Full Set Off B/L's:Usually means the issuance of the three original's and three copies of the ocean Bill of Lading. This term is generally accepted by banks and shippers.
Full Set Off B/L's:Usually means the issuance of the three original's and three copies of the ocean Bill of Lading. This term is generally accepted by banks and shippers.
Full Truck Load (FTL): A term which defines a shipment which occupies at least one complete truck trailer, or allows for no other shippers goods to be carried at the same time.
Fumigation :Treatment of cargoes with a pesticide-active ingredient that is a gas under treatment conditions. It is a process required by many importing countries for the importation of wood and related products.
FVD:Full Value Declared.
G.M.T.; Greenwich mean time.
G.R.I. ;General rate increase - Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.
Gang:A number of workmen acting together especially for loading and/or discharging operations of a vessel in combination with the necessary gear. (On a vessel for instance 6 gangs can be ordered to discharge or load.)
Gap analysis: The process of determining and documenting the variance (gap) between goals and current performance.
Garments On Hangers:Clothes in containers on hangers and hung from rails during transit, reducing the handling required for the garments.
GATEWAY - A point at which freight moving from one territory to another is inter-changed between transport lines.
Gateway City:Key cities of entry/departure for international shipments, strategically located for the most efficient movement of goods.
GATT - General Agreement on Tariffs and Trade. A multilateral (multi-country) treaty whose purpose is to help reduce trade barriers between the member countries. Another purpose is to promote trade through tariff concessions.
Gauge, Out of - In reference to non- containerized, over sized cargo. Cargo that exceeds the permissible height, width, and/ or length limits allowed for road transportation. Out of gauge cargo requires special permits, and special chassis equipment. “In gauge” is commonly used when describing the nature of cargo that is non- containerized, not over sized, denoting that no special provisions are needed for over the road transportation.
GDSM - Abbreviation for "General Department Store Merchandise." A classification of commodities that includes goods generally shipped by mass-merchandise companies. This commodity structure occurs only in service contracts, and is often no longer accepted as a valid description of cargo.
General Agreement on Tariffs and Trade: GATT Major international agreement on trade and tariffs between many nations all over the world. The discussions are now held by the WTO.
The above details describes about terms called in freight forwarding such as freight forwarder,freight release,freight prepaid, freight,fuel-surcharge,foreign trade zone,fumigation,general rate increase,gateway city 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 freight forwarding trade below this post.
Terms used in freight forwarding such as fortuitous,foot equivalent unit,foul bill ,free arrival depot , freight bill,freight charge,freight forwarder
The above information is a part of Import Export Training course online
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