Basic Shipping Terms

Container

The boxes used in carrying cargo at sea. They are normally in two sizes, 20 foot (or 6 meter), or 40 foot (or 12 meter). Unless if the receiver has used one bought at the port of origin, these belong to the shipping line, and should be returned to them. The weight of the cargo that can be carried in a container differs with location, and consultation must be sought in order to avoid overload fines.

Tare weight

The weight of the empty container. The container dimensions can be found on this link.

https://discovercontainers.com/shipping-container-dimensions/

Shipping line

Also termed carrier. This is the company that operates ships and rents out the containers for those who do ocean transport. The shipping line is not the shipper, who is the sender of goods.

Shipper

The consignor, or sender of goods from the port of origin, to the port of destination

Consignee

The receiver of the goods at the port of destination.

Notify Party

The party to be advised of arrival of container at the port of destination.

Bill of Lading

The evidence of the contract of carriage, drafted by the supplier, showing the shipper, consignee, notify party, vessel that loaded from first port of loading, cargo descriptions. The Bill of Lading must be surrendered at the office of release for release to be gotten, and if the full set of documents is not submitted, then the part submitted must be authenticated by the consignee. The Bill of Lading is normally a negotiable instrument, and the party with the full set can get release. Misplacing the Bill of Lading will result in the inability to get release, unless if a Letter of Indemnity is obtained according to the shipping line’s stipulation.

Waybill

Works more like the Bill of Lading, but does not have to be surrendered for cargo to be released. The consignee only has to identify themselves.

Port Storage

The penalty levied by the port authority, for cargo that has stayed within their facilities beyond the end of freetime. This is levied per calendar day.

Detention

The penalty levied by the shipping line for the delayed return of the empty container for use in export.

Demurrage

The penalty levied by the shipping line for the delayed unpacking of the container.

Merchant Haul

Where a shipment is booked only to the port of discharge, with the importer, termed the merchant, assuming responsibility of moving cargo to the destination, and return the empty container at nominated terminal. This is shown by a clause on the Bill of Lading stating that movement would be on cost and risk of merchant.

Carrier Haul

Unlike Merchant Haul, the carrier would also be responsible for carrying the shipment inland, to a point of delivery, either by rail or truck.

Incoterm

The contract between seller and buyer that clarifies their roles, and where they start and end. There are 11 incoterms, please refer to the following link, for guidance:

https://www.shippingsolutions.com/blog/beginners-introduction-to-incoterms?hs_amp=true