Do You Know These Shipping Terms? – Common Delivery Terms To Know About

The product you intend to ship is referred to as a shipment, and logistics refers to the method used to get your shipment from its point of origin to its destination. 

When your online order status shows: the item is currently in transit to the destination. It is going through a series of processes (logistics) to be able to reach you.

The supply chain already includes several tasks, including ordering, buying, shipping, and warehousing, and logistics is one of them.

Common Delivery Terms One Should Know About

Here are a few shipping terms that one must know about :

1. Incoterms (International Commercial Terms)

The commodities must be transported from their place of origin to their destination while being bought or sold. 

Negotiating how it will be done at the point of purchase is the best method to do this. 

However, they must have a common language and agree on what the terms actually imply in order for both sides to comprehend and agree on the specifics.

2. COD – Change of destination

Consider your goods as they travel to their destination after being loaded aboard a container ship. Then you suddenly realize you need to modify your destination for whatever reason!

No need to freak out!

It is now appropriate to ask for a COD or change of destination. This is a request that the container ship conveys your products to a different location than the one to which they were initially scheduled.


Container Yard To Container Yard is abbreviated as CYCY. 

Containers are stored in port facilities called container yards either before being loaded onto ships or after being unloaded from ships. 

The shipping abbreviation CYCY explains that the container yard is where the carrier’s obligations start (port of loading) and terminate (port of discharge).

4. DM – Demurrage

When you don’t pick up your imported containers on schedule, container lines charge you a demurrage fee. 

Following discharge, there is a free period for storing your containers in the port (provided by the container line). 

Containers must be picked up before the free period ends. Should this occur, you will be charged for each day your containers were left in the port.

5. Rollover

Occasionally, containers will be rolled. This indicates that the vessel did not make your container. 

Customs issues, overbooking, or vessel oversights could prevent your container from being put aboard the ship.

Your shipment will be rescheduled by your carrier, who will then board your container on the following ship out.

6. DT – Detention

If you picked up your imported containers but didn’t return them to the shipping line in a timely manner, you will be charged a detention fee. 

After that, you will be charged for the additional days it took you to return the containers. 

If you have containers that the container line cannot ship out because you didn’t return them on time, you may also be assessed demurrage fees. 

The additional days the containers were in your possession will subsequently be charged to you.

7. Port Storage

Your containers are transported to a container yard after being discharged from a ship. 

The port offers unrestricted storage time (not to be confused with the free period demurrage provided by container lines). 

You have time to handle the customs clearance processes and move your items to a warehouse or the final location during this time. 

This is significant for ports since a shortage of room could reduce output and increase congestion. 

The port may charge you for Port Storage if you don’t clear your products and relocate your containers on time.

8. FCL 

Full Container Load is shortened to FCL. This indicates that you have enough products to fill a container to the brim.

9. LCL

For small or midsize enterprises who don’t have particularly significant goods quantities yet can’t afford to miss delivery deadlines, LCL is frequently advantageous. 

As the goods are sent at cheaper rates, it frequently enables savings on freight expenditures. LCL is an environmentally beneficial choice because it shares space.

10. Bill of Lading

A carrier will give a shipper a bill of lading that contains information on the shipment, including the kind of goods being shipped, how many there will be, the freight charge, and the final destination. 

It serves as a representation of the understanding between the parties and helps to ensure that importers get their products and exporters get paid. 

The bill of lading doubles as a receipt for shipments.

11. Stuffing & Stripping

Before shipping, a container is stuffed or loaded with loose contents.

When a container arrives at the port, it is unloaded through a procedure known as stripping.

12. Warehousing

You know how the message displays when you order something online: origin post is preparing shipment

That is when the products are being processed to be shipped to the consumer from the warehouse where it is kept. 

When goods and products are stored in a warehouse, it is called warehousing.

13. Blind Shipment

A B/L in which the carrier has an agreement that the shipper or consignee information is not provided.

14. Carrier

Any person or organization that agrees to perform or obtain the performance of transportation by rail, road, sea, air, inland canal, or by a combination of these modes.

15. Consignee

A person or business to whom goods are delivered.

16. Tendered to Delivery Service Provider

Simply put, it indicates that your parcel has been delivered to the neighbourhood post office. The box has been given to the subcontractor by DHL, FedEx, or UPS to be sent to you.

17. Courier

A word that refers to the handling of documents and packages that is quick, accelerated, and personalized.

Some examples of courier delivery services are – FedEx, UPS label created (label created is when the item payment has been made and it is waiting for its first in-transit).

UPS also has services like UPS Next Day Air Saver which promises a guaranteed delivery the next day.

All In All

The process of delivery sounds fairly simple – making goods reach point A to point B, but the logistics associated with it are what make the process fairly complicated. 

The shipping and delivery terms listed above are very common and widely used.

Thank you for reading it up till here. I hope you found the information provided useful.

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