Common Shipping Terms

If you are new to shipping or it’s not something that you typically manage it can be quite daunting at first, and this is particularly true when it comes to an understanding of all the shipping terms and responsibilities of each party.

With over 20 years combined experience Allfresch Logistics has gained extensive knowledge of the shipping industry. We wish to share this with our customers by breaking down some of the most common shipping terms.

What is a Bill of Lading?

A Bill of Lading is an official shipping document that details the following:

  • Supplier
  • Customer
  • Customer agent
  • The destination from and to
  • Vessel details
  • Product details

What does Ex-store mean?

Ex-store means that we (Freight Forwarder) or our customer pays for all transport and shipping upfront- from the supplier’s warehouse to the final destination point.

What does FOB stand for?

FOB is an acronym for ‘Free on Board’. This term means that the suppliers pay for all transport up until the containers is on the ship. Once at the port ‘we’ (Freight Forwarder) or the customers pay for the Ocean freight and destination costs.

What does C&F stand for?

Cost and Freight (C&F) or Cost, Freight and Insurance (CIF) means that the supplier pays all transport charges up to the port of arrival. ‘We’ (Freight Forwarder) or customer then pays all destination charges.

What does DDP stand for?

DDP or Delivery Duty Paid means that the supplier must pay for all costs including duty and destination costs up to the point of container unloaded in customer warehouse.

What does FOT mean?

FOT or Free on Truck means that the supplier will pay for all charges as per DDP and including any Warehouse charges until the goods are loaded on to the customer truck.

Other Common Shipping Terms

  • Shipper is referring to the supplier of the goods.
  • Consignee is referring to the customer.
  • The Notify is referring to the customer’s agent, who will often be the party handling the container for them on arrival at destination. This information is required by the shipping line so that they know whom to send the arrival notice or updates to.
  • The 2nd Notify is referring to the Freight Forwarder, i.e. Allfresch Logistics. This information is required by the shipping line so that they know whom to send the arrival notice or updates to.
  • Point of Loading refers to the place at which the container is loaded, i.e. Warehouse address of the supplier
  • Port of Loading is the port from which the Vessel departs once it has been loaded.
  • Port of Discharge refers to the port at which the container is unloaded from the Vessel.
  • Place of delivery refers to the Warehouse or destination of which the containers are to be delivered and unloaded.

Find out more about our Freight Forwarding Services.

If you require more information about shipping and terms of shipping, please contact our dedicated team who are on hand to help.