Glossary
The most important sea freight terms – short and easy to understand.
- B/L – Bill of Lading
- The most important sea freight document. The shipping line confirms receipt of the goods. The original B/L is a document of title: whoever holds it can collect the goods at the destination port.
- Sea waybill
- Like a B/L, but not a document of title. The goods are delivered to the named consignee without original documents having to be sent – fast and simple.
- Telex release
- The original B/Ls are surrendered at origin and the release is sent electronically to the destination port. The consignee then no longer needs paper documents.
- THC – Terminal handling charges
- Charges for handling the container at the terminal, split into origin (OTHC) and destination (DTHC).
- Demurrage
- Charge for a full container still at the terminal after the free days have expired – e.g. because the goods were not cleared or collected in time.
- Detention
- Charge for a container kept outside the terminal after the free days have expired – e.g. while being loaded or unloaded at the customer’s premises.
- VGM – Verified gross mass
- The verified gross weight of the packed container. It must be reported to the shipping line and terminal before loading, otherwise the container will not be loaded.
- Cut-off / closing
- The latest time by which containers, documents or VGM must be at the terminal or with the shipping line for the cargo to sail on the planned vessel.
- ETD / ETA
- Estimated time of departure / arrival of the vessel.
- FCL / LCL
- Full container load: one entire container for a shipment. Less than container load: a groupage container in which several shippers share the space.
- TEU / FEU
- Container units: TEU = one 20-foot container, FEU = one 40-foot container (equal to 2 TEU).
- Transhipment
- The container is transferred to another vessel at an intermediate port, e.g. from a large ocean vessel to a feeder ship.
- Blank sailing
- A sailing cancelled by the shipping line – e.g. due to low demand or holidays. The cargo then has to be rebooked onto another vessel.
- Reefer
- Refrigerated container with its own cooling unit for temperature-controlled goods such as food or pharmaceuticals.
- BAF – Bunker adjustment factor
- Shipping line surcharge for fluctuating fuel costs, usually adjusted monthly or quarterly.
- Pre-carriage / on-carriage
- Transport from the shipper to the port of loading (pre-carriage) or from the port of discharge to the consignee (on-carriage) – by truck, rail or barge.
- ATLAS
- The IT system of German customs. Export declarations are submitted electronically via ATLAS and the exit of the goods is confirmed.
- EORI number
- Identification number for businesses in EU customs procedures. Commercial export declarations are not possible without it.
- Incoterms
- International delivery terms of the ICC. They define who bears which costs and risks and where responsibility passes from seller to buyer – currently Incoterms® 2020.
- FOB – Free on board
- The seller delivers the goods, cleared for export, on board the vessel at the port of loading. From there, the buyer bears the cost and risk of the sea freight.
- CIF – Cost, insurance and freight
- The seller pays the sea freight and minimum insurance to the port of destination. However, the risk passes to the buyer on loading at the port of origin.
- DAP – Delivered at place
- The seller delivers to the agreed place in the destination country and bears costs and risk up to that point. Import duties and taxes are paid by the buyer.