Terms used in shipping such as Freight Management,Freight Conference,Freight Class,Freight Broker,Freight Carriage etc.
This post explains about terms used in shipping such Freight Tariff,FREIGHT RATE,Freight Management,Freight Conference,Freight Class,Freight Broker,Freight Carriage,freight ,Free Trade Zones 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 shipping
Free Trade Zones - "Free Trade Zones" (sometimes called "customs free zones" or "duty free zones") is a generic term referring to special commercial and industrial areas at which special customs procedures allow the importation of foreign merchandise (including raw materials, components, and finished goods) without the requirement that duties be paid immediately. If the merchandise is later exported, duty free treatment is given to reexports. The zones are usually located in or near ports of entry. Merchandise brought into these zones may be stored, exhibited, assembled, processed or used in manufacture prior to reexport or entry into the national customs territory. When manufacturing activity occurs in free trade zones, it usually involves a combination of foreign and domestic merchandise, and usually requires special governmental authority. Types of free trade zones include: foreign trade zones (and foreign trade subzones); free ports; and transit zones. See: Drawback Economic Zones Export Processing Zones Foreign Access Zones Foreign Trade Zones Free Ports Free Trade Area Transit Zones.
Freedom Support Act - The FSA, signed into law in October 1992, authorizes a range of programs to support free market and democratic reforms in Russia, Ukraine, Armenia, and other states of the former Soviet Union.
freight - Used as a term or cargo.
Freight All Kinds - FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.
Freight Bill:A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially.An Invoice.
Freight bill:the carrier's invoice for transportation charges applicable to a freight shipment.
Freight Bill-of-Lading (Freight Bill, BL or BoL):A document providing a binding contract between a shipper and a carrier for the transportation of freight, specifying the obligations of both parties. Serves as a receipt of freight by the carrier for the shipper. Usually designates the consignee, and the FOB point.
Freight Broker - Is the broker who is always successful in contracting somewhat above the market level, but who will never risk the loss of business due to the details of a particular Charter-Party clause.
Freight Carriage ... and insurance paid to - This term is the same as "Freight/Carriage Paid to ..." but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
Freight Carriage ... paid to - Like C & F, "Freight/Carriage paid to ..." means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all modes of transport including multi-modal operations and container or "roll on-roll off" traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.
Freight Claim:when merchandise is either delivered over, short or damaged and reconciliation must be made with the trucking company for payment of goods.
Freight Class:a number ranging from 50 to 500 that is assigned by the NMFC and used by less than truckload carriers to determine at what rate freight should be charged.
Freight Collect - Freight payable at destination, also referred to as freight forward.
Freight Collect:The freight and charges agreed by the shipper and carrier is payable at destination.
Freight Conference - See conference.
Freight FOB Terms-of-Sale:Indicates (1) Who arranges for transport and carrier, (2) Who pays for transport, (3) Where/when does title (ownership) of goods transfer from seller to buyer (FOB point). Freight charges: collect, prepaid, prepaid and charged back. Collect: Buyer pays the freight charges. Prepaid: seller pays. Prepaid and charged back: seller prepays (bears), bills buyer for the charges.
Examples:1. FOB-origin, freight collect: consignee pays freight charges and owns goods in transit.2. FOB-destination, freight prepaid: shipper pays freight charges and owns goods in transit.3. FOB-destination, freight prepaid and charged back: shipper owns goods in transit, pays for freight but bills consignee for the charges.
Freight for All Kinds ( FAK ):FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.
Freight Forwarder - An agent whose functions are to help expedite shipments by preparing the necessary documents and making other arrangements for the movement of merchandise.
Freight Forwarder - An independent business which handles export shipments for compensation. At the request of the shipper, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter's name. The forwarder arranges for cargo insurance, makes the necessary overseas communications, and advises the shipper on overseas requirements of marking and labeling. The forwarder operates on a fee basis paid by the exporter and often receives an additional percentage of the freight charge from the common carrier. An export freight forwarder must be licensed by the Federal Maritime Commission to handle ocean freight and by the International Air Transport Association (IATA) to handle air freight. An ocean freight forwarder dispatches shipments from the United States via common carriers, books or arranges space for the shipments, and handles the shipping documentation.
Freight Management:when a 3rd party logistics provider is utilized to negotiate and manage the shipping of all goods, no matter which modes of transportation are necessary to get product there.
Freight Payable at Destination - Method of paying the freight often used for shipments of bulk cargoes whose weight is established on discharge from the ship.
Freight Prepaid - Freight which is payable before the contract has been performed. Very often, the bills of lading are signed and exchanged with the shipper for his payment of freight.
Freight Quotation - Freight quoted by a shipping line or liner conference, which may be given as an indication only.
Freight Rate - Amount of money paid to a shipowner or shipping line for the carriage of each unit of cargo, such as a ton, a cubic meter or container load. Also referred to as rate of freight.
FREIGHT RATE:The charge made for the transportation of freight.
Freight rates - The charge made by a shipping line for the transportation of freight aboard one of its ships from one place to another.
Freight Size:Freight is most often measured by its weight, and transportation vehicles of varying sizes typically have weight capacities that cannot be exceeded due to engineering or regulatory reasons. Freight may also be measured by cube, which generally refers to the volume of the freight. A vehicle is said to cube-out if it does not exceed its weight capacity, but its volume is completely full.
Freight Tariff - Schedule, published by a liner conference or shipping line, containing freight rates for a variety of commodities likely to he carried by the lines and whether these are payable on the weight of commodity or its cubic measurement. The tariff also contains details of charges for heavy lifts and long length cargoes, and terminal charges. Apart from matters of rating, the tariff of a liner conference states the geographical areas served, the names of the member lines and the conference's general regulations.
Freight Ton - Unit of cargo on which a freight rate is based, generally one ton or one cubic meter whichever is greater. Also called revenue ton.
Freight Weight Measures:Short ton (American) 2000 lbs. Long ton (English) 2240 lbs. Metric ton (1000 kg.) 2204.6 lbs.
The above details describes about terms called in shipping such as Freight Tariff,FREIGHT RATE,Freight Management,Freight Conference,Freight Class,Freight Broker,Freight Carriage,freight ,Free Trade Zones 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 shipping business below this post.Terms used in shipping such as Framework Agreement,Franc Zone ,Free Alongside,Free Carrier,Free Astray,Free List
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