Maritime Shipping Terms
A document issued by the carrier which consists of a contract between the exporter and the carrier specifying the port of loading, port of arrival, means of transport, freight and the terms of its payment. The bill of lading is deemed a confirmation from the carrier of its receipt of goods in the vessel’s holds. It is also a contract of acquisition to the party to which goods are exported since the bill of lading specifies the goods and the consignee.
Bill of lading
It is a list specifying the names and descriptions of the goods loaded in the wagon, train or vehicle, and it is an official document accepted by the carrier if the goods owner claims from the carrier or insurance company the recovery of any shortage or damage occurring during the shipment.
Waybill
It is a document by which the carrier confirms that it has received the goods and is ready to transport them.
Airway bill
A pricing term which specifies that the price includes the cost of goods, plus insurance, plus freight, until the place of arrival of goods in the importer’s country.
Cost, Insurance and Freight, (CIF)
It is a pricing term which specifies that the responsibility of the seller is limited to the preparation of goods to the buyer in the places belonging to the seller, such as the factory or warehouse. The buyer bears all costs of transporting the goods in addition to any risks resulting from the receipt of goods from the ground of the seller to the places of arrival. This term represents the minimum obligation incurred on the seller.
Ex-Works or Ex-Factory, (EXW)
A pricing term which specifies that the price includes the cost of goods loaded on the carrier in a defined place, and the shipper will be no more responsible for the goods upon their loading onboard the vessel in the port of loading, therefore the buyer bears all expenses and risks incurred by the goods after loading them in the vessel.
Free On Board, (FOB)
It is a pricing term which specifies that the seller fulfills his obligations of delivery when he delivers the goods to the buyer cleared for the import but not discharged from the means of transport in the fixed port of arrival. This term represents the maximum obligation incurred on the seller.
Delivered Duty Paid, (DDP)
Fees paid by the imported due to his delay in returning the shipping containers in the port of destination after granting him a period of one week or two weeks or as per the agreement between the shipping company and the importer. The period starts as from the date of arrival of goods in the port of destination until the returning of empty containers to the port.
Demurrage
The quantity from imported goods allowed with a reduced tariff negotiated in commercial agreement.
Quotas
Fees paid for the ground and storage in the port yards payable by the importer or the party authorized for clearance of goods after the end of the granted grace period.
Ground fees and storage fees