Bill of lading

Bill of Lading Legal document signed by or for the captain/master, agents, Owners of a vessel or the (common) carrier. It is written evidence of the contract of carriage by sea and/or by land. It is

(1) A receipt of the goods (in the owner’s/carrier’s or his/their agent’s custody) and

(2) An undertaking to carry and deliver the goods safely to the place directed/agreed, dangers of the sea excepted, against

(3) Surrender of the document where/when provisions in the document stipulate delivery to order of a named person, to order (blank) or to bearer

4) It evidences the terms of the contract of carriage.

Shipper

1) Person who consigns something (e.g. the goods of an individual shipment).

2) Legal entity or person named on the bill of lading or waybill as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a carrier.

Consignee

Person to whom something is consigned or shipped and entitled to take delivery.

Notify Party

Company/person who appears on the bill of lading or waybill to be notified when the cargo arrives at destination. Could be different from the consignee, but is often the actual receiver of the goods. A notify party has no particular rights (beyond the notification) under the bill of lading or waybill.

Freight Forwarder

(1) Person engaged in assembling, collecting, consolidating shipping and distributing less than trailer load freight.

(2) Also, a person acting as an agent in the transshipping of freight to or from foreign countries and clearing freight through federal customs.

Delivery Order

An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release.

A document which is neither a bill of lading or a waybill but contains an undertaking which

(1) is given under or for the purposes of a contract for the carriage by sea of goods to which the document relates, or of goods which include those goods; and

(2) is an undertaking by the carrier to a person identified in the document to deliver those goods to that person which the document relates.

Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.

Marks and Numbers

The identifying details on or of a package or the actual markings that appear on the packages.

Ro-Ro Roll on/Roll off

Vessel used for carrying cars and light trucks. Vehicles are driven on and driven off, as opposed to being loaded with cranes or other external equipment.

Shipping Order

Equivalent of booking and contract of carriage evidencing the agreement to transport goods.

Notice of Arrival

Documentation that notifies the consignee of arrival information for the goods and the freight charges due to be paid in exchange for the goods.

Manifest

A list of cargo being carried by a ship as declared by the shipper.

Stevedore Terminal Operator

Is designated to facilitate the operation of loading and discharging vessels and various terminal activities. Also known as longshoreman.

Letter of Credit

A letter of credit is a payment term generally used for international sales transactions. it is basically a mechanism which allows importers or buyers to offer secure terms of payment to exporters or sellers in which a bank, or in cases more than one bank, gets involved. The technical term for letter of credit is Documentary Credit.

Shipping Terms

EXW   {+ the named place}

Ex Works

Ex means from. Works means factory, mill or warehouse, which is the seller’s premises. EXW applies to goods available only at the seller’s premises. Buyer is responsible for loading the goods on truck or container at the seller’s premises, and for the subsequent costs and risks.

In practice, it is not uncommon that the seller loads the goods on truck or container at the seller’s premises without charging loading fee.

The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.

FAS   {+ the named port of origin}

Free Alongside Ship

Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller’s expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks.

FOB   {+ the named port of origin}

Free On Board

The delivery of goods on board the vessel at the named port of origin (loading), at seller’s expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the export quotation, indicate the port of origin (loading) after the acronym FOB, for example FOB Valletta.

FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyer’s premises, which may include the import customs clearance and payment of import customs duties and taxes at the buyer’s country, depending on the agreement between the buyer and seller.

CFR   {+ the named port of destination}

Cost and Freight

The delivery of goods to the named port of destination (discharge) at the seller’s expense. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F.

CIF   {+ the named port of destination}

Cost, Insurance and Freight

The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller’s expense. Buyer is responsible for the import customs clearance and other costs and risks.