International Shipping Terms and Definitions Part 2
Let’s learn some more shipping terms and definitions to help you better understand the unique set of terms and acronyms that are used in the shipping industry. If you have not read Part I of this article then we suggest you do it now.
Bill of Lading (B/L): A document that establishes the terms between a shipper and a transportation company. It is a document of title, a contract of carriage or in layman’s terms a receipt for goods being transported or shipped.
Carrier: Is a term referring to a Ship Line, Freight Forwarder or NVOCC
Customs: Government agency charged with enforcing the rules and regulations passed to protect the country’s import and export revenues.
Customs Duties and Taxes: The documents, duties or taxes that you may be required to produce and or pay vary depending on your status for entering the country. The regulations are subject to change without notice. Each situation is individual and unique. You could be entering as a returning citizen, a retiree, a student, with a work visa or a tourist visa just to name a few. It is essential that you contact the consulate or embassy for your destination country or visit your destination country’s government Customs website for the latest updates in regulations or requirements. If you cannot find the information you need on the website, there is always a way to contact Customs via email and you can then ask questions unique to you and your shipment. It is your responsibility to have the proper documentation available for the Customs Clearance Agent.
Customs Clearance Agent: The person who facilitates the paperwork for normal customs clearance of your shipment.
Density: The weight of cargo per cubic foot or other unit of measure.
Destination: This is an easy one – the location where a shipment ends its movement.
Door to Door Service (D/D): Your household goods are picked up at your door (origin in the US – can be your home or a storage facility) and delivered to your door in your destination country (can be your home or a storage facility). Customs clearance will be handled (paperwork facilitated by Customs Clearance Agent) for you.
Door to Port Service (D/P): Your household goods are picked up at your door (origin in the US – can be from your home or a storage facility) and discharged at the port of destination. You will need to clear your shipment through Customs and arrange to have your items picked up and delivered to your home or storage facility.
Drayage: This is a term used by trucking companies that truck a container to and from the port and or container yard of the ship line.
ETA (Estimated Time of Arrival) when your shipment is estimated to arrive in your destination country.
ETD – Estimated Time of Departure – the time and or date your shipment leaves the US.
Export: The shipment of goods leaving the US to a foreign country.
FMC: You may have heard the term FMC, but what is it and why is it important in an international shipment? FMC (Federal Maritime Commission) is the U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarding Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements. Now that you know this, you may still be asking yourself, what does this mean? To put it simply, a company that is shipping items overseas must be licensed by the FMC or they legally cannot ship items overseas. This OTI (Ocean Transportation Intermediary) license can be of a FF (Freight Forwarder) or an NVOCC (Non Vessel Operating Common Carrier).
Freight Forwarder (FF) is a person whose business is to act as an agent on behalf of the shipper. Non Vessel Operating Common Carrier (NVOCC or NVO) is a cargo consolidator in ocean trades who will buy space from a carrier and sub / sell it to smaller shippers. INTLMOVE has an NVOCC License.
