Does acronyms such as D.T, COD, DM, etc sound gibberish to you? For a newbie these terms might seem from Mars but for an International shipping service, it is vital to be aware of all such terms to surge ahead in international logistics market. International shipping company should be aware of smallest of details while offering India to China shipping services.
Shipping goods across international borders is more complex than sending goods within a country from Point A to Point B. Let us tell you about some of the terms which every India to China Shipping Company should know about:
Incoterms – International Commercial Terms
When you buy or sell goods, they have to be moved from point of origin to final destination. The ideal way how to go about it is settle everything at point of purchase. For this, both countries need to agree on same thing. Inco terms are a series of predefined commercial terms which are published by the International Chamber of Commerce. These terms indicate tasks, costs, and risks linked with transportation as well as delivery of goods.
COD – Change of Destination
COD refers to Change of Destination. This is basically a request asking container ship to discharge the container and transport goods to any other destination than what was booked originally.
CYCY – Container Yard to Container Yard
Before shipping goods are stored at the port in container yard. The shipping term CYCY means that responsibility of carrier commences at port of loading. It culminates at port of discharge at container yard.
DM – Demurrage
This is a fee charged by container lines when you have not picked your imported containers on time.
If your container does not get into the vessel due to reasons such as customs problems, overbooking, vessel omissions, etc this is known as rollover.
DT – Detention
This is a fee which you need to pay in case you’ve picked the containers but did not return them to shipping line on time. So you will pay for extra number of days you have taken to return the containers.
The port allows certain free period of storage. During this span, you take care of things such as customs clearance procedures etc. If you fail to clear your goods and move containers in time, the port will charge you Port Storage fee.
FCL & LCL
FCL means Full Container Load. This means there are sufficient goods to fill the entire container. LCL stands for Less than Container Load. It means you do not have sufficient goods to stuff the whole entire container.
Bill of Lading
This is a legal document which is issued by the carrier to the shipper. This includes shipment details like kinds of goods, their quantity, freight rate, and final destination. The bill of lading serves purpose of shipment receipt.
Stuffing & Stripping
Stuffing is process of loading the container with loose goods just ahead of shipment. Stripping is process of unloading the container when it reaches the port.
So, these are some of the terms which every India to China Shipping Company should be aware of so that shipping business is carried on smoothly.