7 Shipping Terms Every Exporter Must Know

Shipping terms

International shipping of commodities is a significantly more complex operation than simply delivering an object from one location to another. There are various procedures and regulations to ensure the safe transportation of products to their final destination. You should have some basic knowledge even if you are using reliable carriers like FedEX international shipping. It is critical for those whom import/export goods to keep track of all pertinent terminology – particularly your obligations and responsibilities as an importer.

Understanding these shipping terms in depth will help you know your expenses and risks related to the supply chain. It is important to source a reputable shipping company such as Ogma to bide by the laws correctly. You’ll see where the danger begins and stops, as well as what you’ll need to plan for when it comes to importing and exporting.

You can use shipping software to know about various terms of shipping. You can only minimize errors and avoid misunderstandings in the supply chain if you understand these freight forwarding words and definitions.

A list of terms every exporter must know

  • Incoterms

Incoterms are a set of international norms for interpreting commercial phrases. Incoterms facilitate international trade by allowing traders from various countries to communicate with one another.

The word denotes both parties’ legal responsibilities and is frequently used in other legal documents such as bills of lading and commercial invoices. These terms will also assist you in determining what you should ask your freight forwarder for in terms of the quote.

  • FCL & LCL

Full Container Load (FCL) and Less Than Container Load (LCL) are terms used in freight forwarding. The distinction between these shipping terminologies may appear self-evident. When a shipper transports enough products to fill an entire shipping container, the term FCL is used. 

As a result, LCL is used when a shipper transports many goods that do not require an entire shipping container. Individual LCL consignments are sometimes consolidated and shipped within a single shipping container with other LCL consignments. Shippers should be sure that their consignments will be isolated from the rest when they arrive at their destination in this situation.

  • Bill of Lading

This is one of the most commonly used shipping words. The Bill of Lading is a document that is legal that the shipper receives from the carrier. The sort of products being shipped, their amount, the destination address, and the freight rates are all included in this section. The Bill of Lading can be considered an agreement between two parties to observe specific rules and regulations to ensure that products are delivered on time.

  • Rollover

Rollover is an import/export phrase describing what happens when a container does not promptly load onto a ship. The term “rollover” refers to the transfer of cargo from one sailing to another. A container may not be loaded onto its original scheduled ship for various reasons, including late cargo delivery to the terminal, overbooking, vessel omissions, and customs issues. The carrier reschedules cargo containers to the following sailing with open space or rolls over other cargo to slot the shipment on the next sailing that is already scheduled to capacity in rollover situations.

Rollovers are expensive as they cost time and money for the export or import company. In order to reduce the chances of any rollovers, companies often book their products with companies offering liner shipping services. The accuracy in terms of the routes, destinations, routines and timings makes it easier to establish delivery expectations in a safe and secure manner. This helps in counterbalancing any inadvertent issues like rollovers that can cause serious credibility and financial damages to the company. Liner shipping is a far more robust shipping solution that mitigates risks. 

  • Storage in the port

After a shipper’s goods are delivered to a port, they may be charged for port storage. When shipping containers stay at a port for longer than their permitted free days, ports levy port storage costs.

When shipping containers are unloaded, they are usually moved to a container yard. The port provides a free storage period that varies depending on the quantity or weight of the containers or is a set number of days for all containers, depending on the port. Shippers are responsible for clearing customs and getting their cargo trucked out of the port within their given free days, or they may be charged a port storage fee.

  • Added Benefits

The “free on board” (FOB) refers to whether the vendor or the customer has responsibility for products that are damaged or destroyed during transportation. The buyer risks losing until the items are delivered to the buyer, whereas the seller risks losing until the goods are delivered to the customer.

  • Embroidery and Stripping

Stuffing and stripping are two phrases for shipping that are frequently used interchangeably. Stuffing refers to the process of filling containers with loose goods before shipping them. After international freight forwarding is completed, the unloading of a shipping container is known as stripping.


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