Basic terms for carriage of cargo

- Bill of Lading, B/L (bill of lading) – the main sea document - invoice for the transportation of cargo;

Shipper – the sender or supplier of the goods;

Consignee - the consignee;

Notify party - the party which the carrier must give notice of the arrival of the goods. It is the freight forwarder or other representative of the recipient in the port;

Freight (Freight) - the payment for transportation of cargo;

Loading loading

Discharging - unloading

feeder (feeder) – this marine line messages for local transportation of the container or oversize cargo in short distance or delivery of containers from/to the port of embarkation for the ocean-going ship. At the conclusion of the agreement on Maritime transport for long distance local feeder services included in the amount of the freight and additional charge is required.

Unit cost and container rolling stock and warehouses

TEU (Twentyfoot Equivalent Unit) - unit of measure of goods equal to the volume of 1x20 ' container. 1х40-foot container = 2TEU

Conditions of carriage

CY (Container Yard) Container terminal 

1. The place of storage containers before/after their further shipment.

2. The condition of transport at departure/arrival — the cost of transportation includes services for sending from/to CY (freight, loading/unloading from the vessel, placing on the CY, does NOT include services for receiving/sending cargo to/from CY);

- DOOR delivery to the door – the condition of transport at departure/arrival-means that the forwarder assumes responsibility for organizing transportation to/from entrance doors/warehouse of shipper/consignee; cost of transportation includes services for sending from/to doors/warehouse of shipper/consignee;

 FI (Free In) free of loading – the condition of transportation during departure-means that the freight does not include the cost of loading onto the vessel;

- FO (Free Out) free of discharge – a condition of carriage at the place of destination – means that the freight does not include the cost of unloading from the ship;

- LI (Liner In) Linear terms in the administration – means that the cost of receiving/processing of cargo at a container terminal and loading onto a ship included in freight rates;

LO (Liner Out) Linear conditions on arrival - means that the cost of unloading from the vessel and receiving/processing of cargo at the container terminal included in freight rates.

     Important! Rate terms always consist of 2 parts – information on the conditions of departure and arrival. For example FILO, LICY, etc.

    Fees to the base freight rate (Paid by the line on account of freight)

Fees to the base freight rate to be paid line in the bill of freight,

ALL IN (ALL Inclusive) «All inclusive» – means that the cost of transportation includes all additional fees, provided the conditions of carriage. For example, if we are talking about freight on the terms LILO, this means that in a bet, except for freight loading and unloading, also includes all associated costs, such as BAF, CAF, etc.;

- BAF (Bunker Adjustment Factory) Bunker surcharge – additional fee to the basic freight rate, the value depends on the cost of fuel on the international market. May change monthly or quarterly. Usually quoted for TEU (e.g. 500 USD/TEU);

CAF (Currency Adjustment Factory) Exchange allowance – additional fee to the basic freight rate, the value depends on changes in the exchange rate. May change monthly or quarterly. Usually quoted in % to the base freight rate;

IMO Surcharge - Surcharge for dangerous goods;

the ISPS or the SEC (security charges) – a port security fee.

GRI – the planned increase in the base rate as of a specific date;

THC (Terminal Handling Charges) - Terminal handling – initially-any services of terminal for cargo handling: loading/unloading from the vessel, moving in a stack, the nomination for works, etc. At present, the practice developed the following understanding of the term – services for the processing of the goods, the payment of which in accordance with the customs of the port makes the sender, if the port of departure (oTHC), or the recipient, if the destination port (dTHC);

Heavy Lift Charge – surcharge for exceeding a certain weight of cargo (used when a large number of heavy loads on a certain direction);

- PCS (Port Congestion Surcharge) – the Allowance due to an overload of container port area;

PSS (Peak Season Surcharge) - the Allowance due to the seasonal increase in traffic at certain times of the year (“high season");

WarRisk (war risks), are charged in the ports in the zone of hostilities;

WinterSurcharge (Winter surcharge), are charged in the ports where there is a possibility of icing the port. Operates in the winter.

Important! Must be specified term rates!

Important! the freight Cost is determined by date of departure of the goods (publication date of the bill of lading at the port of departure)

Additional terms and fees

Additional terms and fees paid by the local agents of the line usually via port forwarding.

Demurrage penalties for excess use of container from its unloading at the terminal until empty return of container to port (for import) or from receipt of the empty container for loading to the loading loaded container on a ship (for export).

the Period of use of the container can be divided into Demurrage and Detention. Then Demurrage penalties imposed for excess use of container from its unloading at the terminal until the time of export from the terminal. Detention penalties imposed for excess usage container since its removal from the terminal until empty return of container to port.

AdministrativeFee = B/LFee = DocsFee (other designations) - fees local agent line for paperwork. May apply for a bill of lading or container.

Additional port charges

Additional port charges are paid port usually via port forwarding, can be collected directly by the port or the local agents of lines.

Storage (Storage) – rate for excess storage of cargo at the port. Is the moment of unloading at the terminal until the time of export from the terminal. Charged at the rates port. Usually quoted for TEUи is increasing the scale (the longer the carrier is in port, the more expensive each day of storage).

- For placing on clearance – rate for work on putting the container on site inspection (customs, sanitary, etc.). Charged at the rates of the port, in fact.

Rates for additional operations – rates for any port not provided for in the usual way of handling container (repacking, weighing, application of seals, labeling, etc.). Charged at the rates of the port, in fact.

Examples of rates for local fees in the port

Containerships: 130 EUR THC + docs 25 EUR + 50 EUR m/h = 205 EUR;

HAPAG: 75 eur THC + ISPS 6 EUR + 35 EUR docs + 25 EUR m/h = 141 EUR;

     container Export – 10 days free, first 5 days – 15 EUR/day, 6 day 30 EUR/day;

     Storage cont. – 5 days free, days 6 – 9 EUR/day;

MSC: 100 EUR THC + 40 EUR docs + m/h 40 EUR + ISPS 15 EUR = 195 EUR;

MAERSK: 120 EUR THC + 35 EUR ddf + 6 EUR ISPS + 30 EUR m/h = 191 EUR;

Hamburg Sud : 110 EUR THC + 30 EUR docs + 16 EUR ISPS = 156 EUR;

OOCL: 74 EUR THC + 30 EUR docs + 11 EUR ISPS + m/h 30 EUR = 145 EUR.