Ocean freight transportation is an essential aspect of international trade. It involves the movement of goods from one country to another through ships. As a result, there are specific terms and conventions that govern the process to ensure that goods are transported efficiently and safely. In this article, we will discuss the English terms for ocean freight transportation.
Bill of Lading
A bill of lading is a legal document that confirms the shipment of goods from the seller to the buyer. It is issued by the carrier, and it contains information about the goods being shipped, the port of loading, the port of discharge, and the terms of the shipment. The bill of lading serves as a receipt for the goods, evidence of the contract of carriage, and a document of title.
Freight Forwarder
A freight forwarder is a company that arranges the transportation of goods from one point to another. They act as intermediaries between the shipper and the carrier and handle all the logistics involved in the transportation process. Freight forwarders are responsible for booking cargo space, negotiating rates, preparing documents, and arranging for customs clearance.
Incoterms
Incoterms are a set of rules that define the responsibilities of the buyer and the seller in an international trade transaction. They determine who is responsible for the cost of transportation, insurance, and customs clearance. Some common Incoterms used in ocean freight transportation include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and DAP (Delivered at Place).
Demurrage
Demurrage is a penalty that is charged when cargo is not loaded or unloaded within the agreed time frame. It is usually charged on a daily basis and can be quite expensive. Demurrage can occur when the cargo arrives at the port before the ship is ready to load or when the cargo is not picked up within the allotted time after it has been discharged from the ship.
Freight Rate
The freight rate is the cost of transporting goods from one point to another. It is usually calculated based on the weight or volume of the cargo, the distance between the ports of loading and discharge, and the type of cargo being shipped. Freight rates can vary depending on the season, the availability of cargo space, and the demand for transportation.
Containerization
Containerization is the process of packing and transporting goods in containers. Containers come in standard sizes and can be easily loaded onto ships, trucks, and trains. Containerization has revolutionized the shipping industry by making it more efficient, secure, and cost-effective.
In conclusion, ocean freight transportation involves many technical terms and conventions that are essential to understanding the process. The terms and concepts discussed in this article are just a few of the many that are used in the industry. It is crucial for anyone involved in international trade to have a good understanding of these terms to ensure the smooth and efficient transportation of goods.