Forwarder, Shipper, Carrier, Consignee, Notify Party

Freight Forwarder is a person or corporation who arranges transport of goods on behalf of

either the seller or buyer. In many cases the freight forwarder will also consolidate several
small shipments into one larger one to take advantage of better freight rates. In most cases the
freight forwarder will assume the legal liabilities of acting as a carrier
Shipper is the person or company who is usually the supplier or owner of commodities
shipped. Also called Consignor.
Carrier is a person or company that transports goods or people for any person or company
and that is responsible for any possible loss of the goods during transport.
Consignee is the party shown on the bill of lading or air waybill to whom the shipment is
consigned. Need not always be the buyer, and in some countries will be the buyer's bank. See
also Bill of Lading - Order B/L and Notify Party.
Notify Party is the person or company to be advised by the carrier upon arrival of the goods
at the destination port.

Free In (FI) / Free Out (FO)

Conditions of Carriage
CY (Container Yard) Container Terminal - 1. Place of storage containers before / after their
further shipment. 2. Conditions of carriage for departure / arrival time - the cost of
transportation includes services for sending from / to CY (freight, loading / unloading from
the vessel, placing on the CY, does NOT include underwriting services / shipments to / from
CY);
Free In (FI) - in the international ocean freight terminology the word Free means Not
included. I.e. if FI, then the shipper is responsible for the coast of loading goods onto a
vessel for the international shipping overseas.
Free Out (FO) is the international shipping term in ocean freight that indicates that the
consignee (recipient) is responsible for the cost of unloading cargo from the vessel at the
destination.
Free In and Out (FIO) is the international shipping term used in the ocean freight industry
means that the carrier is NOT responsible for the cost of loading and unloading gods
onto/from the vessel.

Liner terms (LI/LO) - qualification to a freight rate which signifies that it consists of the
ocean carriage and the cost of cargo handling at the loading and discharging ports according
to the custom of those ports. This varies widely from country to country and, within countries,
from port to port: in some ports, the freight excludes all cargo handling costs while in others
the cost of handling between the hold and the ships rail or quay is included.
Free into Store (FIS) is an unofficial trade term indicating that the seller's price includes all
costs up to delivery to the buyer.
Door to door Said of a service or freight rate provided by a container shipping line whereby
goods are loaded into a container at the shippers premises and not unloaded until they arrive
at the consignees premises. Free carrier (F.C.A) New combined transport incoterms
replacing FOB where CT is involved but applicable to all mode of transport.
Important! information about conditions of delivery always contain the cost of cargo
handling at the loading and discharging ports. For example FILO, LIFI

Gross Weight, Nett Weight, Tare, Volumetric

Gross Weight is the total weight of a shipment of goods, including their packaging such as
crates, pallets etc.
Nett Weight is the weight, or mass, of the goods themselves without any packaging.
Tare is the weight of packaging or a container without the goods.
Volumetric - a notional or calculated weight for bulky goods sent by air. Generally stated as
6000cm3 = 1 kg, meaning that the total volume in cubic centimetres is divided by 6000 to
give an equivalent weight in kgs. The airline or forwarder will charge whichever is the greater
of the actual weight and volumetric weight. Also shown sometimes as 167 kg = 1 cbm
Use our Volume Weight Calculator
Measurement unit cost of the work and the Container rolling stock and depots
TEU (Twenty foot Equivalent Unit) - a unit of measurement of the goods, equal to the
volume of 1x20-foot container. 1h40-foot container = 2TEU

Shipping Surcharges - CAF, BAF, All In

All in rate - meaning that the cost of transportation includes all the additional fees provided
for under the conditions of carriage. For example, in the case of freight under LILO, this

means that in the U.S., except for freight, loading and unloading, also includes all related
costs, such as BAF, CAF, etc.
Basic Service Rate Additional (BSRA) is the charge levied by shipping companies to
importers for LCL cargo, including the port charges, transport to an unpacking depot (see
CFS) subsequent sorting and storage of the goods and finally loading onto a vehicle collecting
the goods for delivery to the buyer
Bunker Adjustment Factor (BAF) - an adjustment to shipping companies' freight rates to
take into account fluctuations in the cost of fuel oil (bunkers) for their ships.
Currency Adjustment Factor (CAF) is an adjustment to shipping companies' freight rates to
take into account the effect over time of fluctuations in currency exchange rates.
IMO surcharge is applied when transporting goods classified by the UN as hazardous (in
accordance with the IMDG code (International Marine Dangerous Goods code)) , the shipping
company imposes a surcharge on the sea freight. This relates to the additional handling
required for planning the goods at the terminal and onboard the ship.
ISPS or SEC - security charges
GRI - planned increase of a base rate from a certain date
THC, Terminal handling charge, levied by CY and CFS operators for goods passing
through their operations. THC are additional costs, on top of the sea freight, charged by the
shipping company for the handling of containers at the container terminal before being loaded
onboard a vessel. Examples include the unloading of the container from a truck, stacking and
transport from the stacking location to just below the crane. This concerns FCL (Full
Container Load) shipments.
Heavy Weight Charge is a surcharge for exceeding certain weight. 20ft containers exceeding
the weight of 14,000 kg tare (container) are subject to a heavy weight surcharge (HWT). An
empty 20ft container weighs approximately 2,300 kg. 40ft containers are not subject to a
heavy weight surcharge. Both 20ft and 40ft containers can carry a load of more than 28,000
kg.
Port Congestion Surcharge applied by shipping lines to cover losses caused by congestion
and idle time for vessels serving that port. Shipping lines therefore have the right to impose a
surcharge on the freight to recover revenue lost. Another factor which influences port
congestion surcharge would be labour disputes. Port congestion surcharges are calculated as a
percentage of the freight rate.

PSS (Peak Season Surcharge) is added to cargo moving from ASIA. This fee remains in
effect for the duration of a typical Peak Season, currently from June 1 - October 31.

Winter Surcharge is imposed for all containers to cover extra costs related to serving the port
due to harsh weather, convoy restrictions, ice conditions etc. This surcharge is only effective
during winter period.

Additional terms and fees

Additional terms and fees to local agents of the line usually via port forwarding.
Demurrage penalties are imposed for excess use of container from its unloading at the
terminal until the return of empty containers at the port (for imports) or from the date of
receipt of the empty container to be loaded before the loading of a container loaded on a ship
(for exports).
Period of container can be divided into Demurrage and Detention. Then Demurrage penalties
imposed for excess use of container from its unloading at the terminal until the time of export
from the terminal. Detention penalties imposed for excess usage container since its removal
from the terminal until the return of empty containers at the port.
Administrative Fee = B / LFee = DocsFee (available in other notation) - Fees local agent line
for paperwork. May apply for a bill of lading or container.
Additional port charges
Additional charges are paid port to port usually via port forwarding, can be collected directly
to the port or the local agents of lines.
Storage - the rate for excess storage of cargo at the port. Is calculated from the moment of
unloading at the terminal until the time of export from the terminal. Charged are charged at
port rates. Usually quoted for TEU, s increasing the scale (longer the carrier is in port, the
more expensive each day of storage).
For nomination for inspection - the rate for work on putting the container on the ground
clearance (Customs, health, etc.). Charged at the rate the port, in fact. Rates for additional
operations - the rates for any port is not provided for in the usual way of handling container
(repacking, weighing, sealing, labeling, etc.). Charged at the rate the port, in fact.

Sample rates for local payments in the port

Containerships: 130 EUR THC + 25 EUR docs + 1950 EUR m / h = 205 EUR;
HAPAG: 75 eur THC + 6 EUR ISPS + 35 EUR docs + 1925 EUR m / h = 141 EUR;
Export of container - 10 day free trial, the first 5 days - 15 Eur / day, 6 days 30 EUR / day;
Keeping contact. - 5 days free of charge, day 6 - 9 Eur / day;
MSC: 100 EUR THC + 40 EUR docs + m / h 1940 EUR + ISPS 15 EUR = 195 EUR;
MAERSK: 120 EUR THC + 35 EUR ddf + 6 EUR ISPS + 1930 EUR m / h = 191 EUR;
Hamburg Sud: 110 EUR THC + 30 EUR docs + 16 EUR ISPS = 156 EUR;
OOCL: 74 EUR THC + 30 EUR docs + 11 EUR ISPS + m / h 30 EUR = 145 EUR.

Air Waybill (AWB)

The document which covers transport by air. It is issued by the carrier, whether an airline or a
freight forwarder, as a non-negotiable document serving as a receipt to the consignor for the
goods, and containing the conditions of transport. It also shows the details of the consignee so
that they can be contacted on arrival of the goods.

HAWB
House AWB issued by a freight forwarder acting as a carrier.
MAWB
The term used for the AWB issued on airline's stationery to a freight forwarder for all of
the goods covered by one or more House AWBs on the one flight going from one loading
airport to one destination airport.

Bill of Exchange
Bill of Exchange is an unconditional order in writing, issued by the seller (drawer) instructing
the buyer (drawee) to pay the seller's bank (payee) a specified amount (normally the full
invoice value) on demand (at sight) or at a fixed or determinable future time. A suitable form
can be obtained from the seller's bank, or drawn up on a blank sheet of paper.
Sight Draft
A bill of exchange drawn "at sight" meaning that as soon as the drawee accepts the bill it falls
due for payment.
Bill of Lading (B/L)
The document which covers transport by sea. Signed by the carrier, whether a shipping line or
a freight forwarder, it serves as a receipt to the consignor for the goods, as evidence of the
contract of transport containing the conditions of transport, and as a document of title by
which possession of the goods can be transferred. Typically a B/L is issued in a set of three
signed originals or negotiables, one of which must be presented to claim the goods upon
which the others become void.

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.
Congen B/L
A standard form of bill of lading used in shipments by chartered ship.
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.
Dirty/Foul/ Claused B/L
A bill of lading with any clauses declaring a defective condition in the goods and/or their
packing. Almost invariably not acceptable to banks for presentation under L/Cs and
almost always not acceptable to the buyer. (See also Clean Bill of Lading).
House B/L
A bill of lading issued by a freight forwarder acting as a carrier. The terms and conditions
of the contract may well be different to the terms and conditions contained on the
shipping company's B/L, which can in extraordinary circumstances lead to legal
complications should a dispute arise.
Master B/L
The term used for the B/L issued by a shipping company to a freight forwarder for all of
the goods covered by one or more House B/Ls on the one ship going from one loading
port to one destination port.
Ocean B/L
A B/L covering port-to-port shipment. Typically banks continue to use this term on L/Cs
even though the majority of international shipments are containerised (See also
Multimodal B/L).
On Board/ Shipped On Board B/L
A B/L evidencing that the goods were not only received by the carrier but were actually
loaded on board in good order and condition. "Shipped" indicates that not only were the
goods on board, but that the ship has departed the port.
Order B/L
A negotiable B/L, in which the goods are consigned "to order of" a particular party, often
the shipper in which case the consignee is mostly shown simply as "to order".
Straight B/L
A non-negotiable B/L in which the goods are consigned directly to a named consignee.
Said To Contain STC

Said to contain, often placed before the description of goods on a bill of lading because the
carrier does not know the nature or quantity of goods actually placed in the packages or the
containers.
On Board / Shipped On Board
A notation on a bill of lading, indicating that not only did the carrier receive the goods in good
order and condition, but they were also placed on board the ship.
Bill of Sale
A Bill of Sale is a legal document made by a 'seller' to a purchaser, reporting that on a specific
date, at a specific locality, and for a particular sum of money or other "value received", the
seller sold to the purchaser a specific item of personal, or parcel of real, property of which he

had lawful possession. It is a written instrument which evidences the transfer of title to
personal property from the vendor, seller, to the vendee, buyer.
Bill of Sale is often used in the USA when selling small items and vehicles such as
quadricycles.
Carnet
Carnet is a document, normally issued by a Chamber of Commerce which is a member of the
International Chamber of Commerce (ICC) to enable the holder to temporarily take
merchandise into certain countries, as samples or for display purposes, without the need to
pay import duty or pay a bond for the duty. The issuer will require the holder to give them
security by way of a bank guarantee.