Page 5 - Glossary of Shipping Terms

SHIPPING TERMS

TERM DESCRIPTION

CIF (Incoterm®) One of 11 Incoterms® can be used only for sea or inland waterway transport. “Cost, Insurance and
Freight”, means that the seller delivers the goods on board the vessel or procures the goods already so
CIP (Incoterm®) delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel.
The seller must contract for and pay the costs and freight necessary to bring the goods to the named
Claused Bill port of destination.
Clean Bill of Lading The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods
Collecting Bank during the carriage.
Collection Bank
Combined Transport One of 11 Incoterms®, can be used for any mode of transport. “Carriage and Insurance Paid to”, means
Commercial Invoice that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed
place (if any such place is agreed between the parties) and that the seller must contract for and pay the
Conference costs of carriage necessary to bring the goods to the named place of destination.
Conference Rate The Seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods
Confirmed Letter of Credit during the carriage.
A Bill of Lading claused to show that the goods received by the shipping company were not in good
Confirming Bank order and condition.
Consignee A bill of lading which states that the goods have been shipped in apparent good order and condition
Consignor without any qualification or remarks.
Consolidated Cargo A bank that acts as an agent to the seller's bank (the presenting bank). The collecting bank assumes no
Consolidation responsibility for either the documents or the merchandise.
Consolidator
Container Bank in the drawee country that is instructed to collect payment from the drawee
Container freight Station
(CFS, C.F.S.) Carriage by more than one mode of transport against one contract of carriage.
Container Load Plan
(CLP) Represents a complete record of the transaction between exporter and importer with regard to the
Container Number goods sold. Also reports the content of the shipment and serves as the basis for all other documents
Container Part Load about the shipment.
Container Seal Number
Container Size An association of ship owners operating in the same trade route who operate under collective conditions
and agree on tariff rates.

Freight rates arrived at by a conference of carriers, generally water carriers.

A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An
exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign
bank defaults.

The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises
to pay the beneficiary upon presentation of documents in compliance with the letter of credit.

A person or company to whom the shipments of commodities are to be consigned.

The person or company consigning a shipment to buyer that is shown on the bill of lading as the shipper.

Cargo containing of shipments of two or more shippers, usually shipped by a firm called a consolidator.
The consolidator takes advantage of lower F.C.L. rates, and savings are passed on to shippers.

The combination of many small shipments into one container.

A person or firm performing a consolidation service for others.

A vehicle designed to transport cargo of many types in continuous transportation. It is also referred to
an unit of packaging which is smaller in sense in which articles are packed.

Consolidation depots where parcels of cargo are grouped and loaded into containers.

A document prepared to show all details of cargo loaded in a container, e.g. weight (individual and
total), measurement, markings, shippers, consignees, the origin & destination of goods, and location of
cargo within the container.

The unique identification of a container.

A shipment that does not utilize the full volume of a container nor the maximum payload by weight;
additional part loads may be added.

The number of high security seal provided by OOCL.

The length of a container i.e. 20'' (6 meters), 40'' and 45'' (12 meters).

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