INCO TERMS
Ex Works (EXW)
This term means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
Embargo
Generally refers to any event that prevents someone from accepting or handling freight. Typically, embargos come into play due to international conflict, but may also result from weather events — such as floods and tornadoes — and other occurrences, like congested highways. The BOL accounts for all of these exceptions and complications.
Bulk Freight
Bulk freight includes freight such as raw materials, commodities, or unpackaged goods. LTL carriers do not usually carry bulk freight since they specialize in shipments that move around often, which usually requires packaging. However, there are always exceptions.
SHIPPING TERMS TO KNOW...
Back Haul
A return load. Instead of returning to a load’s origin with an empty trailer, a carrier will find another load (the "back haul") going back to the original location.
Bill of Lading (BOL)
This is the legal document that shows that the carrier has received the freight as described, and is obligated to deliver that freight in good condition to the consignee. One BOL is required for each shipment.
Carrier
Any individual, company or corporation engaged in transporting goods. Can be specific like a car carrier for vehicle shipping.
Consignee
The person or place to whom the goods are addressed and the final destination where a shipment will be transferred for the last time.
Container Chassis
A type of trailer specifically designed to carry a shipping container.
Cost, Insurance and Freight (CIF)
This term means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Delivered at Terminal (DAT)
This term means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port of place of destination. “Terminal” includes a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
Drayage
The charge made for local handling of freight. Common in tradeshow and international car shipping.
Free on board (FOB)
The seller agrees to deliver merchandise, free of transportation expense, to the place specified by the contract.
LCL (Less-than-Container-Load)
An ocean-shipping and intermodal industry term; LTL equivalent in container shipping. Container freight stations at ports serve as consolidation and deconsolidation terminals. Historically, LCL also stands for less-than-carload. Before the prominence of interstate trucking, railroads offered less-than-carload (LCL) service but this business has largely disappeared.
Low Boy
An open flatbed trailer, where the main body of the trailer is very low to the ground so that it can haul oversize or wide loads; often construction equipment, or other extremely bulky or heavy loads.
PRO or Tracking Number
A number assigned by the carrier to reference your shipment. It is also used for tracking your shipment.