Freight forwarding companies play a crucial role in global trade, facilitating the movement of goods across borders. Understanding common English terms used in freight forwarding is essential for professionals in the industry. Below are some key terms and their explanations:
- Freight Forwarder: A company or individual that arranges the shipment of goods on behalf of shippers, handling logistics, documentation, and customs clearance.
- Bill of Lading (B/L): A legal document issued by a carrier to acknowledge receipt of cargo for shipment, serving as a contract and proof of ownership.
- Incoterms (International Commercial Terms): Standardized trade terms (e.g., FOB, CIF, EXW) that define the responsibilities of buyers and sellers in international transactions.
- Customs Clearance: The process of getting goods through customs authorities, involving documentation and payment of duties and taxes.
- Container: A standardized metal box used for transporting goods by sea, rail, or road (e.g., 20ft or 40ft containers).
- FCL (Full Container Load): A shipment where the shipper uses an entire container for their goods.
- LCL (Less than Container Load): A shipment where multiple shippers share a container, with goods consolidated by the forwarder.
- Air Waybill (AWB): A document that serves as a contract for air freight shipments, similar to a bill of lading but for air transport.
- Drayage: The transport of goods over a short distance, often from a port to a warehouse or rail terminal.
- Duties and Taxes: Government-imposed charges on imported or exported goods, calculated based on value, quantity, or type.
- Hazardous Materials (Hazmat): Goods that are dangerous or regulated, requiring special handling and documentation.
- Tracking and Tracing: The process of monitoring the location and status of shipments in real-time.
- Warehousing: The storage of goods in a facility before, during, or after transit.
- Cargo Insurance: Coverage that protects against loss or damage to goods during transportation.
- Proof of Delivery (POD): A document signed by the recipient as evidence that goods were delivered.
Mastering these terms enhances communication and efficiency in freight forwarding services, ensuring smooth operations in the logistics chain.
