Frequently Asked Shipping Questions

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Frequently Asked Questions

1. What is a Known Shipper?

The TSA designates a shipper as known by adding them to their database prior to their first shipment. An unknown shipper may not ship cargo on a passenger aircraft.

2. What is Drayage?

The shipping industry refers to drayage as the transporting of goods over a short distance or bringing your containers to and from the port. 

3. Who is the consignee?

The consignee is the person or entity receiving the shipment designated on the bill of lading. Owner of the goods and legally required to be present for the receiving of goods. 

4. What is the difference between a carrier and a freight forwarder?

      A common carrier is a person or entity that transports goods or people for any person or company and is responsible for any possible loss of the goods during transport. A common carrier offers its services to the general public under license or ministerial authority  

     A common carrier (also called a public carrier in British English) is distinguished from a contract carrier, which is a carrier that transports goods for only a certain number of clients and that can refuse to transport goods for anyone else.

      A freight forwarder is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. The carriers can use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often use multiple modes for a single shipment. 

 

5. What are the most commonly used shipping terms?

 

Incoterms – International Commercial Terms

They are a series of pre-defined commercial terms published by the International Chamber of Commerce. The terms are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. 

COD – Change Of Destination

This is a request asking the container ship to discharge your container and transport your goods to another destination than what was originally booked.

CYCY – Container Yard to Container Yard
A container yard is a port facility where containers are stored before they are loaded onto a ship or after they have been discharged from a ship. The shipping term CYCY explains that the responsibility of the carrier begins (port of loading) and ends (port of discharge) at the container yard.

DM – Demurrage
Demurrage is a fee that container lines charge when you haven’t picked up your imported containers in time. When your containers have been discharged, there is a free period for storing them in the port (provided by the container line). You have to pick up your containers before the free period expires. If not, you are charged for the number of days your containers were left in the port. They will be charged for demurrage fees if you have containers that cannot be shipped out by the container line due to, for example, customs problems. You are then charged for the number of days your containers have to be stored in the port.

 

Rollover – The container was never loaded onto the ship
It sometimes happens that containers get “rolled”. This means your container didn’t make the vessel. Not having your container loaded onto the ship may happen because of customs problems, overbooking, or vessel omissions.

 

DT – Detention
Detention is a fee that you have to pay if you have picked up your imported containers but didn’t return them to the shipping line in time. You will then have to pay for the extra number of days it took for you to return the containers. You will then have to pay for the extra number of days the containers have been in your possession.

 

Port Storage
When your containers have been discharged from a ship, they are moved to a container yard. The port provides a free period of storage (not to be confused with the free period demurrage provided by container lines). During this period, you have time to take care of customs clearance procedures and transport your goods to a warehouse or the final destination. This is important to ports as lack of space may affect port productivity and cause port congestion. If you do not clear your goods and move your containers in time, the port can charge you for Port Storage.

 

FCL (Full Container Load) & LCL (Less than Container Load)
FCL is short for Full Container Load. This means you have enough goods to stuff an entire container. LCL is basically the opposite. It is short for Less than Container Load and means you do not have enough goods to stuff an entire container. Instead, your individual consignment is combined and shipped together with other consignments in the same container. At the port of destination, the consignments are separated back into their original individual consignments.

LCL is often beneficial for small or midsize businesses that don’t have very large goods volumes but cannot afford to miss delivery deadlines. It often allows for savings on freight costs as the goods are shipped at lower rates. Sharing space also makes LCL an eco-friendly alternative.

 

Bill of Lading
The Bill of Lading is a legal document issued by a carrier to a shipper including shipment details such as the type of goods, quantity, freight rate, and destination. It represents the agreement between the parties involved and helps guarantee that exporters receive their payment and importers receive their goods. The bill of lading also serves as a shipment receipt.

 

Stuffing & Stripping
Stuffing is the process of loading a container with loose goods prior to shipment. Stripping is the process of unloading a container when it arrives at the port.

 

Source: Greencarrier (https://blog.greencarrier.com/10-shipping-terms-every-international-shipper-should-know/)

 

Texas Global Services

The Freight Forwarder You Can Depend On

6046 FM2920 #307

Spring, TX 77379

+1 832-797-1579