“10 Shipping Terms Every International Shipper Should Know
COD, CYCY, DM and DT. Say what? To the untrained ear, it’s just gibberish. For international shippers, however, things are different. Knowing the shipping terms is absolutely critical when shipping goods worldwide. That being said, it’s not easy to remember exactly what the various abbreviations stand for. Fortunately, I’ve created this quick reference guide for you to come back to when your memory fails.
1. Incoterms – International Commercial Terms
When purchasing or selling goods, the goods need to be moved from their origin to their destination. The best way to do this is to negotiate at the point of purchase how it is going to be accomplished. But in order for both parties to understand and agree on the particulars, they have to speak the same language and agree on what the terms actually mean.
Incoterms are short for International Commercial Terms. They are a series of pre-defined commercial terms published by the International Chamber of Commerce. The terms are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
2. COD – Change of Destination
Imagine your cargo has been loaded onto a container ship and is now on its way to its destination. For some reason, you realize you have to change your destination!
No need to panic. This is the time to request COD – change destination. This is a request for a container ship to unload your container and deliver your cargo to another destination than the one originally booked.
3. Container Yard to Container Yard (CYCY)
A container yard is a location within a port or terminal where, in the case of import, containers are stored before being loaded onto or unloaded from a ship.
The shipping word CYCY describes the beginning (port of loading) and the end (port of discharge) of the carrier’s responsibility on a container yard.
4. Demurrage (DM)
Demurrage is a charge that container shipping companies charge when your import container is not picked up in time.
Fees related only to the use of the equipment shall be paid by the merchant or international shipper for the carrier’s equipment beyond the free time provided by the carrier to deliver the goods to the port, terminal or warehouse.
After the international shipper unloads the cargo, the port (provided by the container shipping line) has some free time to store them. You must claim your container before the free period expires.
Otherwise, the number of days the container remains in port will be charged by the international shipper.
For example, demurrage charges can also be charged to the container shipper if the container shipper is unable to deliver the container due to customs issues.
A fee can then be charged to store your container for the number of days in port.
5. DT – Detention
If you pick up the import containers but don’t return them to the shipping line in time, detention is a cost you have to pay. Then, you must pay for the additional days it takes to return the container. You may also be subject to demurrage charges if your container cannot be shipped out via the container line because it is not returned in time. Then you have to pay for the extra days you own the container.
6. Full Container Load (FCL)
Full Container Load (FCL) – As the name suggests, for those transporting larger volumes of cargo, they can use the space of a full ISO container.
FCL International Shippers have exclusive rights to the container, so the container will always contain your cargo, from the original packaging to the devan at the destination.
FCL involves a full container load and it will be the product of price, time, underlying product, shipping technology and many other factors to decide whether to use FCL or LCL.
For a named consignee because it will be the cargo; it can be any type of item shipped from a toy, merchandise or equipment.
An example is a toy trader who receives a large order from a supermarket chain, rather than splitting the order and sending each order as a container of parts (by LCL); the container shipper ships as one full case and uses its own container Shipping all products. This means no space is shared with other shippers.
7. Fill and Strip
Containers can be loaded and unloaded at all terminals by dedicated personnel. Loading and unloading can take place at the terminal after shipment or directly from the carrier’s container.
Significant savings can be made in the latter case, especially when loading oversized cargo.
Container handling services are often an additional service a company seeks throughout its supply chain for out-of-gauge item cargo.
8. Port Storage
When the containers are unloaded from the ship, they are transferred to the container yard.
Ports offer free storage periods (not to be confused with free demurrage on container routes).
During this time, the international shipper has time to process the customs clearance process and ship your product to the warehouse or final destination.
This is critical for ports, as space shortages can affect port productivity and cause port congestion.
If the shipper does not clear and transship your container in time, the port can charge port storage fees.
9. Bill of Lading
A bill of lading is a legal document issued by the carrier to the shipper and includes shipping details such as the type of goods, quantity, freight and destination. It represents an agreement between the parties involved and helps ensure that the exporter receives payment and the importer receives the goods. The bill of lading also serves as a shipping receipt.
10. Overturned – The container was never loaded onto the ship
Container scrolling happens sometimes. This means that your container did not make a container. Your container may not be loaded on board due to customs issues, overbooking or missing ships.
Your carrier will reschedule your shipment and place your container on the next outgoing vessel.”
