As in any other industry, international logistics uses specialized terminology essential for conducting business negotiations, drafting contracts, determining delivery terms, and other critical processes.
Every participant in the logistics chain should understand the meaning of these terms. Remembering all the abbreviations can be challenging, so we’ve prepared a brief guide. You can refer to it if you forget the meaning of an important term. These terms help avoid misunderstandings and reduce the likelihood of errors during the shipping process.
1. Incoterms – international trade rules
When drafting an international contract, the sender and receiver agree on delivery terms. To avoid confusion, it is important that all participants in the logistics process use the same terminology. The Incoterms rules, developed by the International Chamber of Commerce, help establish the responsibilities of parties during the transportation of goods.
2. COD – change of destination
If you need to change the destination of your cargo, you can request a COD (Change of Destination) from the shipping line. This allows the container to be unloaded at a different location than the one specified in the bill of lading.
3. CYCY – container yard to container yard
CYCY (Container Yard to Container Yard) means that the carrier's responsibility begins at the container yard in the port of loading and ends at the container yard in the port of unloading.
4. DM (Demurrage)
Demurrage is a fee charged by container lines for storing containers in the port after the free period has expired.
5. Rollover – container not loaded onto the vessel
This term refers to a situation where the container was not loaded onto the vessel due to customs issues, overbooking, or the absence of a ship. The container will be sent on the next available vessel.
6. DT (Detention)
Detention is a fee for using a marine container beyond the set period after it has been taken out of the port. The charge accrues until the empty container is returned.
7. Port Storage
After unloading, containers are moved to a container yard, where they are provided a free storage period. If the cargo is not picked up in time, the port may charge a storage fee.
8. FCL и LCL
FCL (Full Container Load) is when a container is fully loaded with goods from one shipper.
LCL (Less than Container Load) is when several shippers combine their goods in one container.
9. Bill of lading
A bill of lading is a legal document governing the transport of cargo. It includes information about the cargo, sender, receiver, and the points of departure and destination.
10. Stuffing & Stripping – loading and unloading
Stuffing refers to the process of loading a container, while stripping refers to the process of unloading it upon arrival at the port.
If you need reliable and professional partners for international transportation, Grand Logistics Company is ready to offer you the best solutions. We are logistics experts, and our experience will help you avoid complications during the transportation process. Submit a request now, and we will take care of delivering your cargo!
