Continuing from an earlier blog post “ Transco Cargo Logistics Glossary ”, the following includes some more logistics and shipping terms used by freight forwarding companies such as Transco Cargo.
Bulk Cargo – This refers to cargo that are not contained within some form of packaging and is stowed loosely in the modes of transportation be it a vehicle, vessel or hold. Cargo such as this includes grain, coal, and petroleum to name a few.
Cross-Dock – This is a transportation terminal where inbound shipments are directly transferred to the outbound shipping dock, where storage/warehousing are only done so temporarily during the unloading/loading transaction. This is similar to a “transit” situation when airline passengers are concerned, and often occurs when shipping vehicles is done.
Drayage – This refers to road freight/trucking movements of containers/trailers to and from rail intermodal yards and to and from port facilities.
FOB – An acronym for Freight on Board is referred to a “point”. An FOB Point is when the ownership of freight moves from the shipper/consignor to the consignee. The “FOB Origin” is an indication of the fact the consignee owns the cargo goods in transit; the “FOB Destination” is an indication that the shipper/consignor is the owner of the cargo goods in transit. The owner of cargo goods in transit is responsible for any losses/damage to the freight and should provide insurance for it.
Freight Bill-of-Lading – Also referred to as a Freight Bill, BL or BoL, it’s a document that provides a binding contract between two parties, the shipper/consignor and the carrier, specifying the obligations of both parties in the transportation of the freight. It acts as a receipt of freight by the carrier for the shipper and is a document that designates the consignee as well as the FOB point.
Freight FOB Terms of Sale – This document specifies a number of things relating to the FOB, such as (1) indicates who is responsible for arranging transportation and carrier, (2) indicates who pays for transportation, (3) mentions at which point and location the transfer of ownership from seller to buyer (shipper/consignor to consignee) also known as the FOB point occurs, (4) freight charges (whether collect [collect: Buyer pays the freight chargers], prepaid [prepaid: Seller pays freight charges], prepaid and charged back [prepaid and charged back: Seller pays in advance (bears the cost) and then bills the buyer for the charges incurred]). Examples : FOB-Origin, Freight Collect: Consignee pays for freight and holds ownership of cargo in transit. FOB-Destination, Freight Prepaid: Shipper pays for freight and holds ownership of cargo in transit. FOB-Destination, Freight Prepaid and Charged Back: Shipper holds ownership of cargo in transit and pays for freight but bills the Consignee for freight charges incurred.
Stay tuned to the Transco Cargo blog for the next installment of Shipping Terms in the coming weeks.