FREIGHT TERMINOLOGY

The following section identifies key terminology within the Freight / Logistics industry.
Sea-Air International aims to provide you with an in-depth understanding on how this sector operates.

LCL

Is an abbreviation for “Less Than a Container load”. This term is used to describe a shipment that will not full a 20 or 40ft container; instead the goods are co-loaded with other product for shipping.

FCL

This is a “Full Container Load”. This term is used to describe a shipment that will full a 20 or 40ft container. The shipper packs cargo into a container provided before delivering to the container terminal, or goods are collected and taken to a nominated warehouse for loading then taken to the terminal for shipping.

CIF

This term is for “Cost, Insurance & Freight”. The product is prepaid only to the destination   port by the shipper. This is not a preferred method of shipping because the cost is exclusive of other expenses incurred at the port of destination prior to the goods being released.

FOB

“Free On Board”. This is the preferred cost effective method of shipping. The supplier pays for all export documentation and arranges for the product to be delivered to the port for shipping. Once the product has reached the destination port, the purchaser will organise for the goods to be transported to their location.

EXW

“Ex-Works”. This is where the seller makes the goods available without organising shipping export documents or organising the movement. Therefore the buyer must organise all transportation and expenses. This service is also a preferred method.

RORO

This means “Roll On Roll Off” For larger un-containerised Freight i.e. Wheeled Cargo / Vehicles / Boats on Trailers.

B/L

“Bill of Lading” is a Sea Freight document issued by a carrier detailing the shippers merchandise as evidence of the carriage to the appropriate party. Original documents required for this procedure, unless otherwise specified.

Air Way Bill

An "Air Way Bill" is an Air Freight document issued by an International Airline detailing the shippers merchandise as evidence of the shipping to the appropriate party.

Surrender B/L

No original documentation required, copies accepted. This is a preferred method.

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Sea Freight LCL Example
Sea Freight FCL Example
Sea Freight RORO Example
Sea Freight RORO Example