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Shipping Terms

Arrival Notice - A notice stating the ships arrival given to those listed to receive it in the Bill of Lading.

B/L (Bill of Lading) - A contract between a shipper and a transportation company that establishes the terms for shipping. It also serves as a document of title, a contract of carriage, and a receipt for goods.

Customs Invoice (also call the Invoice) - Prepared by the exporter or a Freight Forwarder and describes the goods bought. It is used for import clearance.

FOB (Free On Board) - A term that mean the seller carries all responsibilities for costs and risks to a certain point (usually the Port of Destination in car exporting) and then responsibility shifts to the customer. The term requires the seller to clear the goods for export.

CFR or C&F (Cost-Freight) - Seller pays the necessary cost and freight charges to get to the Port of Destination. Risk of loss/damage and additional costs after the goods have been delivered on board are placed on the buyer. This term requires the seller to clear the goods for export.

CIF (Cost-Insurance-Freight) - Same as CFR/C&F, but also includes the seller responsibility for Marine Insurance. The seller pays the insurance premium. This doesn't include Customs duties and taxes. The term also requires the seller to clear the good for export.

Freight Forwarder - An agent that works on the behalf of the shipper (exporter) and is used to make the booking reservations for shipment.

Marine Insurance - Insurance that covers damage or loss of goods while at sea. This insurance excludes any losses that can be recovered from the carrier. This insurance has two main variants: Total Loss Coverage which only pays when vehicle is completely lost/damaged and Full Coverage which covers any loss/damage. Marine Insurance coverage ends at the port of discharge.

Ro/Ro (Roll on/Roll off) - A term used to describe a shipping method in which cars are driven (rolled) on and off the ship instead of being lifted into it by crane with a container.

Container Shipping - A term used to describe a shipping method in which cars are loaded into containers for shipment and remain in one till the completion of shipment. This option is used especially when the vehicle cannot be transported via Ro/Ro.

Port of Destination - The port in which the shipper will ship your goods to.




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