Facts about Common Shipping Terms
Shipping is an important play for traders. Being a good trader, either you are importer or exporter; you need to know about trading basics. But the most important thing is shipping terms. I found many ways to trade with other countries, trading ins and outs and other necessary prospects for importers and exporters but shipping is an important and necessary role of this process.
I was in business of consumer electronics from China and I mainly export my manufacturing to India, Pakistan, United States, Turkey, Malaysia and some other European countries. I am writing this because shipping of consumer electronics is such a hard game. I am compiling here some good shipping terms which I had read during my business. These all will be very helpful for Importers and Suppliers from all over the world.
AWB (Air Waybill) – Air Waybill is an important document while shipping goods from one country to another. The document is the evidence for products from the courier service provider. But the document can’t perform as a “Document of Title” for goods.
BCL (Bank Confirmation Letter) – It is the letter which is provided by the buyer’s bank to the bank of Suppliers which assures that Importer can pay the cost of goods.
B/L or BOL (Bill of Lading) – This document is quite common in Importers and Exporters because it is being used between Transportation and Shipper Company as an acknowledgment of receiving of goods and placement of goods on ship.
CIF (Cost, Insurance, Freight) – It is quite common term being used by Importers and Exporters. CIF means to all the expanses like insurance & freight and price for goods are included under the mentioned price.
FOB (Free on board) – It is a pricing term which indicates all transportation and insurance charges will be paid by the Supplier of the product.
COD (Cash on Delivery) – It means that the Importer will pay the amount of goods and other expanses after the delivery of product.
COGS (Cost Of Goods Sold) – It is the original cost of the product exclusive of profits but all direct and indirect expanses are included in this price.
DDP (Delivered Duty Paid) – The term is occurs when suppliers are responsible to deliver the goods on importers’ mentioned location and paid full with insurance cost and taxes.
L/C (Letter of Credit) – This term will be helpful for the Exporters because it is a form of letter acts as a evidence of products that are given without receiving any payment.
P.O.D. (Proof of Delivery) – This is a form of letter use as a evidence of delivery of products to the mentioned location and being received by mentioned Importer or Buyer.
T/T (Telegraphic Transfer) – T/T is an electronic medium of transferring money from one country to another. It is the most used way of payment in trading business.
These are only some of many Shipping Terms I am sharing with you because of lack of time. There are so many other occur while shipping which we will cover under next articles. Basically, these terms are quite common among Suppliers and Importers while using online platforms for Trade.
Posted by: Ja on May 14 2012Tags: Business
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