Essential Shipping Terms: A Comprehensive Glossary

This glossary defines common shipping terms used in the international logistics and freight industry.

  1. O/F (Ocean Freight)

    The international shipping term used in the ocean freight industry means that the carrier is NOT responsible for the cost of loading and unloading goods onto/from the vessel.

  2. RT (Revenue Ton)

    A ton on which the shipment is freighted. If cargo is rated as weight or measure (W/M), whichever produces the highest revenue will be considered the revenue ton. Weights are based on metric

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Commercial Road Transport: Company Operations & Contracts

Commercial Road Transport: Company Operations

Transport Company:

  • Owns a vehicle fleet.
  • The traffic department manages the main activity. Workers are organized.
  • Depending on the market, export/return journey traffic, language, etc. are considered.
  • It can “sell” freight that it cannot carry with its own vehicle fleet.

Commercialization of Road Transport: Auxiliary Activities

Transport Operator:

  • Warehouse owner/Distributor: Keeps goods in its warehouse and performs activities of manipulation and order preparation.
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International Trade: Payment Methods & Documents

International Payment Terms

  1. Cash in Advance: The exporter requests money from the customer before any shipment of goods takes place.
  2. Open Account: The exporter sends an invoice to the importer with the shipment and trusts the customer will pay.
  3. Letter of Credit (LC): Issued by a bank at the request of the importer, stating that the bank will pay money to a beneficiary (normally the exporter) upon presentation of specific documents. This involves trusting a third party.
  4. Documentary Collection: The exporter
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International Trade Documents: Key Functions

Key Documents in International Trade

Banking Documents

  • Banking Documents: Used for paying and getting paid.
  • Bill of Exchange: The exporter completes a form instructing their bank to prepare a draft and send it to the importer’s bank.
  • Cash in Advance: The importer sends a check or deposits funds into the exporter’s bank account.
  • Letter of Credit: Must be completed by the importer and given to the opening bank.

Transportation Documents

  • Transportation Documents: Used to keep track of merchandise.
  • Packing List:
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Car Parts and Actions

Vehicle Types

  • Saloon: A car with four doors and a separate area for luggage.
  • Limousine: A very long, large, expensive, comfortable car.
  • Family Car: (C.familiar)
  • Four-wheel Drive (4×4): A strong car for traveling over rough ground.
  • Van: A car for transporting things.
  • Sport Car: A low, fast car, usually for 2 people.
  • Convertible: A car with a roof that can be opened.

Interior Car Parts

  • Steering Wheel: (Volante)
  • Ignition Key: (Llave)
  • Air Vent: (RanuraVenti)
  • Gear Level: (PalanCambio)
  • Pedals: (Pedales)
  • Safety Belt:
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International Shipping and Logistics: Modes, Packaging, Insurance

International Ocean Transport

Types of merchant ships:

  • Wet-bulk (liquid) cargoes: Liquid cargo that is loaded directly into the hold.
  • Dry bulk cargoes: Although dry, the cargo exhibits the properties of a liquid, in that it takes the shape of the hold.
  • Other dry cargo: Shipped in bulk or unitized (shipped in units that are unloaded once at a time, such as boxes, crates, or containers).

Ships are categorized partly by cargo capacity, weight, and partly by dimensions.

International Air Transport

Growth is

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