Glossary Of Trade & Shipping Terms
If you own an import-export business in Laredo, TX, there may have been multiple times when you had to transport your merchandize across borders. When going through the whole shipping process, you are likely to encounter several technical terms that you may find difficult to comprehend. However, having an in-depth knowledge of these terms is essential to understand the freight forwarding process from start to finish.
Given below are some common jargons associated with trade and shipping:
It refers to a shipping document used by air freight forwarders. Air waybill is a documented contract between the airline and shipper that states the terms and conditions for transporting the goods. It states the shipping destination, product details, transportation charges and consignee information.
Bill Of Lading
The bill of lading (BOL or B/L) is similar to air waybill, except that it covers the goods transported by sea. It also contains all the important information about the freight forwarding agreement between the shipper and carrier. Bill of lading also serves as a receipt that needs to be presented by the consignee to take the possession of goods on arrival.
Goods that are shipped loose and not in a container are referred to as breakbulk cargo. These goods are typically grouped or consolidated for shipment. Later, the consignment is unloaded and distributed at a breakbulk terminal to be dispatched to different destinations.
Certificate Of Free Sale
The certificate of free sale is a document validating that the goods are in compliance with the import guidelines of the destination country. It is generally issued by a government authority to provide assurance to the importer that the goods are up to the quality standards. Certificate of free sale is most often issued for food items, cosmetics, medicines, pharmaceutical equipment and other such products.
Free On Board (FOB)
It implies that the seller is responsible for the risks and costs associated with the delivery of the goods up to a specific destination. Upon arrival at the port, all further transportation costs, obligations and damages have to be borne by the buyer. FOB is applicable only for ocean or inland waterway transportation.
Free Trade Agreement (FTA)
It is an arrangement that approves an unrestricted exchange of goods between the importer and exporter, irrespective of the national borders between them. The free trade agreement addresses the issue of labor mobility, import quotas, tariff and or tax issues between the two parties.
Santos International is a leading freight forwarding company in Laredo, TX. The company provides domestic as well as international shipping services through land, rail and sea. For more information, you can call us at (956) 717 – 9707 or visit 419 Grand Central Boulevard, Laredo, Texas 78041.