If you’re new to the shipping industry, terms like FCL, COD, DM, and DT will sound vague. but for sea freight forwarder tThese are everyday communication terms. If you are part of this International Shipping Industry, you are expected to know these terms as they are very important when transporting goods around the world. Here is a quick reference guide whenever you fall short in your memory. By understanding the importance of these terms, you can actually get the transaction done quickly and also avoid mistakes and misunderstandings in the supply chain.
Incoterms (Incoterms): In international shipping, the shipment is carried from the origin to its respective destination. While negotiating the terms of transactions, both parties must be on the same platform, speak the same language, and settle on the same terms. This is the time when Incoterms can assist in communication between the parties to settle the same terms regarding costs, risks, tasks and delivery of goods. It is published by the International Chamber of Commerce.
To learn more about Incoterm, click https://www.20cube.com/resources/tools.html or https://www.youtube.com/watch?v=Xwp1_uQ6TPY
CYCY – From container yard to container yard: CYCY is a short term term for container yard to container yard. A container yard is a port-provided facility where containers are stored before they are stuffed and loaded onto a ship or after they are unloaded from the ship. The term describes that the carrier’s liability arises and ends in the container yard
Roll over: What is capsize, it means that the container cannot be loaded onto the ship or vessel. Sometimes due to issues like customs, ship omission or overbooking, the container is not loaded on the ship and it is called container rotation.
In such cases, the carrier reschedules the container and places it on the next departing vessel.
COD – change of destination: Sometimes it may happen that, although the paperwork is over, and the ship has left the port of origin on its way to its destination, but you have to change the destination for some inevitable reason. This is when the term COD can be used, changing the destination. This term will allow you to ask the container ship to release your container and take it to a destination other than the one already booked.
DM – Demurrage Fee: Demurrage charges are charges levied by container lines when containers are not received from the shipping line. There is already a grace time given for container removal, if the containers are not picked up within that time you will be charged for the number of days your containers have been lying in port.
DT – Detention charges: Hold is also a fee that is charged when the container is received but not returned to the container line on time. You will have to pay for those extra days it took to return the containers.
port storage: Your containers have been unloaded from the ship, moved to container yard now, it is your responsibility to get them out of there. The yard offers you a free period to store the container, during which time you have to complete the customs formalities and transport your goods to the warehouse or final delivery destination. In case the containers are not transported on time, the port can charge you some fee, called port fee.
FCL & LCL: FCL is a full container load and that means you have enough cargo to fill the entire container. On the other hand, LCL (less than container load) is just the opposite, which means there are not enough goods to stuff the container and you have to share it with other shippers as well. In LCL, at the port of arrival, consignments are separated into individual shipment.
LCL is suitable for small or medium businesses that do not move large items and can adjust with delivery deadlines. It saves them shipping costs and is also an environmentally friendly alternative.
Padding and stripping: It is very simple, stuffing means loading the container with the goods before shipment and unloading is the unloading or unloading of the container when it arrives at the port.
All of these terms mentioned above are frequently used in international trade, since in the management of logistics, it is important to know them. Knowing the terminology will make your work easier, faster and more accurate.