Burnard International agree that freight terminology can be confusing. Many of the phrases we use have developed across different parts of the world at different times.
We've put together a list of some of the most commonly confusing terms here to help you out.
Sea and Air Freight Terminology
Bonded Warehouse
A Customs approved facility that is used to store or manufacture goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if re-shipped to foreign points.
BAF - Bunker Adjustment Factor
A surcharge on the ocean freight rate to offset the oil price – either a fixed sum per TEU or in percent.
Carnet
A customs document permitting the owner of the goods to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.
Chargeable Weight
Freight charges are charged out on the chargeable weight of the shipment. This can either be the actual gross weight or the volumetric weight – whichever is greater. Working out the chargeable weight of a shipment is easy.
Airfreight – Take the cubic measurement of you shipment and multiply by 167
EG – Your shipment is 0.45cbm/25kgs, 0.45cbm X 167 = 75.15
The actual weight is 25kgs, the volumetric weight is 75.15kgs making the volumetric weight the chargeable weight.
Sea Freight - Ratio is 1CBM = 1 tonne
Commercial Invoice
A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
Consolidation
Collecting and packing a lot of smaller consignments from different suppliers to be moved as one shipment to one destination. Each consignment will have its own house-bill number which will then be listed under one Master House Bill. This will allow the receiver to have all shipments to be customs cleared.
Demurrage
Import – The time between when the container is unloaded from the vessel to the pick up off the wharf.
Export – The time between when the loaded container is delivered to the port to the container being loaded on the vessel.
The shipping lines give you a set amount of time for this to be done. Once this allotted time is up charges will apply per day thereafter.
Detention
Import – The time between when the full container is taken from the port to the time is it returned empty.
Export – The time between when the empty container is taken to the customer to its return to the port full.
The shipping lines give you a set amount of time for this to be done. Once this allotted time is up charges will apply per day thereafter.
Devanning
Container Devanning is the process in which a landed container is unsealed (sometimes in the presence of customs) and all its contents are taken out. Also called stripping, unpacking or unstuffing of the container.
Lower Deck
Refers to Air freight cargo that is loaded on the lower deck of an aircraft. Generally this is an aircraft that carriers both passengers and cargo.
Main Deck
Refers to Air freight cargo that is loaded on the main deck of an aircraft. Generally this is a freight only aircraft.
NVOCC - Non vessel operating common carrier
An NVOCC is a freight forwarder or carrier who undertakes to transport goods by sea without owning his own ships; frequently found in the LCL/FCL segment; NVOCC bills of lading are fully bankable.
Stuffing
Container stuffing is the process where cargo is packed into a shipping container.
Domestic Terminology
Outturn
The process of unloading the freight at the destination depot ready to be allocated to a delivery truck.
So now you've got your head around some of the terminology, try it out by talking to our team at your local Burnard International office.
