China Printing Glossary: Shipping Terms

SHIPPING TERMS:
Bill of Lading: A shipping document noting the loading details of cargo on a vessel. Unless other arrangements, such as a Telex release, have been made, the Bill of Lading is generally the document required for a consignee to claim goods.

CBM: “Cubic Meters” The standard volumetric measuring standard for international shipping.

CIF: “Cargo Insurance Freight” A shipping arrangement whereby costs and services include moving loss-insured cargo to the port of destination, whereafter the importer assumes responsibility for customs clearance, destuffing and final delivery to door.

CFS: “Cargo Freight Station” A shipping arrangement whereby cargo is imported and moved to a bonded warehouse, where containers may be de-stuffed and loaded on to truck or rail transport for delivery to a remote destination.

DDP: “Delivered Duty Paid” A shipping arrangement whereby cargo is imported and delivered all the way to the door of the consignee, and where any applicable Import Duties are paid by the shipper.

DDU: “Delivered Duty Unpaid” A shipping arrangement whereby cargo is imported and delivered all the way to the door of the consignee, but where consignee is responsible for any applicable import duties.

FOB: “Free on Board” A shipping arrangement whereby cargo is delivered to the port of origin, loaded into containers, and placed on board the carrying ship, whereafter the consignee is responsible for all costs and arrangements henceforth.

Pallets: Cargo loading devices, usually made of wood or plastic, that are easily lifted and moved by a forklift. Almost always used in Ocean shipping.

Shrinkwrap: The process by which cartons stacked on a pallet are wrapped in cellophane sheeting to prevent them from moving or falling over in transit.

Telex release: A process by which a shipper may electronically authorize release of goods to a consignee without presentation of the Bill of Lading.