abbreviations in import and export - IPO LOGISTICS VIETNAM

Abbreviations and Terminology also serve as a foundation in this complex industry. Speaking the same transportation language can help you avoid misunderstandings that may lead to errors and negative impacts, which will affect the quality of service and revenue.

Mode of Transport

By Air: By air
By Sea: By sea

Shipping Methods

FCL: Full Container Load – Renting a full container for cargo
LCL: Less than Container Load – Renting a portion of a container (partial cargo)

Types of Containers:

Standard Container/Dry Container/General Purpose/High Cube: STD/DC/GP/HC
Common container sizes are 20 feet and 40 feet (20DC/STD/GP – 40DC/STD/GP – 40HC)
A 40HC container is 30.48 cm (1 foot) taller than a 40STD container.
Additionally, there is a 45HC container – 5 feet taller than the 40HC container.
Flat Rack: FR (Usually used to transport oversized, overweight, or over-length cargo)
Open Top: OT (Open-top container: used for transporting oversized or overweight cargo)

Along with these types of containers, you may also hear the terms “In Gauge” and “Out Gauge.”

In Gauge means that the dimensions of the cargo are smaller than or equal to the size of the container, meaning the cargo fits within the container.
Out Gauge means that one of the dimensions of the cargo extends outside the container.
Platform: Used for transporting oversized, overweight, or over-length and over-width cargo.
Reefer Containers: 20RF/40RF/40HR have the same dimensions as standard containers but are equipped with refrigeration units (often referred to as refrigerated containers, used for transporting frozen or temperature-sensitive goods).
Tank Containers: 20TK (often called tank containers, typically used for transporting liquids).

Below are the standard dimensions of commonly used containers globally:

Dimensions

20’ST | 40’ST | 40’HC | 45’HC
20’x8’x8’6″ | 40’x8’x8’6″ | 40’x8’x9’6″ | 45’x8’x9’6″
Length: 5,900 mm | 12,034 mm | 12,034 mm | 13,556 mm
Width: 2,352 mm | 2,352 mm | 2,352 mm | 2,352 mm
Height: 2,393 mm | 2,395 mm | 2,700 mm | 2,700 mm

Weight

20’ST | 40’ST | 40’HC | 45’HC
20’x8’x8’6″ | 40’x8’x8’ | 40’x8’x9’6″ | 45’x8’x9’6″
Maximum cargo weight including container: 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs)
Average container weight: 2,230 kg (4,916 lbs) | 3,740 kg (8,245 lbs) | 3,900 kg (8,598 lbs) | 4,700 kg (10,261 lbs)
Maximum cargo weight: 28,250 kg (62,280 lbs) | 26,740 kg (58,951 lbs) | 26,580 kg (58,598 lbs) | 25,780 kg (59,039 lbs)

Terms Related to Shipping Schedules:

POL: Port of Loading – Loading port
POD: Port of Discharge – Discharge port
Port Pairs: Combination of multiple ports at origin and destination
ETA: Estimated Time of Arrival – Expected time of arrival
ETD: Estimated Time of Departure – Expected time of departure
ATA: Actual Time of Arrival – Actual time of arrival
ATD: Actual Time of Departure – Actual time of departure
MLB: Mini Land Bridge – A multimodal container transport where the container is shipped by sea from country A to country B, passing through a significant land portion in either country A or B.
Rotation: The order in which ships call at different ports
Transit Time: The time taken to transport cargo from port A to port B
Direct Service: Container cargo is shipped from port A to port B on the same ship.
Transshipment Service: When a container is shipped by two or more different ships from port A to port B.

Multimodal Transportation Terms:

Pre-carriage: Transport from the cargo collection point to the loading port.
On-carriage: Transport from the discharge port to the final inland destination.
Live load: Picking up an empty container from the port or depot, bringing it to the customer’s warehouse, and waiting until the cargo is fully loaded into the container before delivering it to the port or depot.
Live unload: Picking up a loaded container from the port or depot, bringing it to the customer’s warehouse, and waiting until the cargo is fully unloaded, then returning the empty container to the port or depot.
Drop & pick: The only difference from live load/unload is that the container is delivered to the customer’s warehouse, and the container hauler returns after a set period to pick up the container (two trips).
Drop & hook: Similar to drop & pick, but instead of returning the tractor to the customer’s warehouse, the container hauler picks up another container (empty or loaded) at the customer’s warehouse and takes it to the port or depot.
Chassis split: First, you need to understand the term “chassis,” which is simply the trailer on which the container is placed for transportation. If the pickup location does not have a chassis available, the container hauler must bring a chassis from elsewhere (either owned or rented) to the pickup location. For example, if port A does not have a chassis available, the hauler might have to move to another location to pick up a chassis and bring it to port A.
Pre-pull: This term means that the container hauler pulls a container from the port or depot and stores it at their yard instead of immediately delivering it to the customer’s warehouse. This is a common practice among container haulers in Vietnam to avoid delays in picking up containers, which could disrupt the customer’s loading schedule. They pull the container in advance and store it at the yard, so it is ready to be delivered to the customer’s warehouse when requested.
Stripping: The process of unloading different small shipments from the same container, usually done at the forwarder’s warehouse or another location arranged by them.

Document Terminology:

Owner: The owner of the goods
Shipper: Anyone responsible for transporting goods, usually the owner (can be an exclusive shipper or an NVOCC)
Consignee: The receiver of the goods at the destination port.
Notify: The party/person designated on the Bill of Lading to be notified when the cargo arrives
Beneficial Cargo Owner: BCO (Entities that have a direct contract with shipping lines)
NVOCC: A company operating in the field of sea freight, considered a carrier but unlike shipping lines (which own ships), they do not own any vessels. However, they can issue secondary bills of lading (House B/L) to their customers, publish tariff rates, and enter into service contracts with shipping lines. To become an NVOCC, one must first be a Freight Forwarder.
Freight Forwarder: An intermediary service provider that stands between the shipper and the carrier.
Broker: An intermediary at the destination port (often the notify party) responsible for customs clearance.
Master Bill of Lading (MBL): Original bill of lading
MBL functions as a transportation contract, a receipt of goods, and a document confirming ownership of the goods.

Payment Terms in Import-Export

Prepaid: Shipping costs paid at the loading port, commonly known as prepaid.
Collect: Shipping costs paid at the discharge port, commonly known as collect.
Elsewhere: Shipping costs paid in a country other than the loading or discharge port.

Types of Costs (Most Common):

Commercial Costs:

Ocean Freight (OF/OCF): Ocean freight charge
Bunker (BUC): Fuel charge
Arbitrary: In Vietnam, this is called feeder charge. It is the cost of transporting containers by barge from a lower port to a main port where the mother vessel departs.

Seasonal Costs:

Peak Season Surcharge (PSS): Peak season surcharge. For example: during New Year’s, Christmas, or the busiest shipping times of the year.
Winter Surcharge: Winter surcharge, usually applied in European or American countries. For example, during winter, containers shipped to Russia may incur this fee.
Congestion Surcharge: Port congestion surcharge. Charged to cover exceptional costs incurred due to port congestion at loading or discharge ports.

Operational Costs:

Wharfage (WHA): This fee can be understood as the port docking fee. Usually, the port authority charges this to shipping lines when their ships dock or use the pier.
ISPS: International Ship and Port Facility Security Charge – Security charge
THC: Terminal Handling Charge – Handling charge, calculated based on the type of container.
Roll Over Fee: This fee is charged when a container misses the intended connecting ship due to their error.

Equipment Fees:

Per Diem: Charged daily
Storage: Charged per unit
Demurrage: Container storage fee charged when the container is left at the port beyond the free time.
Detention: Container storage fee charged when the container is retained at the warehouse beyond the free time. It applies to containers outside the port (e.g., at the factory or forwarder’s warehouse).
Drop Fee: Empty container return fee, charged when the empty container is returned at a different location from where it was originally picked up.
Equipment Repositioning Surcharge: Charged when the container must be moved from one location to another (usually this fee occurs when containers must be moved from a low-demand area to a high-demand area).

Handling Costs:

Chassis Usage Fee: Charged for the use of the chassis when moving containers by road.
Drop & Pick Fee: Two-trip fee, as explained above
Chassis Split: Two-trip fee, as explained above
Trucking Surcharge: Additional trucking charge
Toll Fee: Road toll fee
Stop-off Fee: Stop fee charged when the container is delivered to multiple locations.

This guide provides you with the basic knowledge and essential skills for reading, understanding, and evaluating each line of detailed quotes. It helps you avoid mistakes during the booking process with customers. Don’t forget, transportation knowledge is always updated. To avoid lagging, you need to continuously research, read, and learn about the industry to stay ahead.

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IPO LOGISTICS SERVICE COMPANY LIMITED

Mode of Transport

By Air: By air

By Sea: By sea

Shipping Methods

FCL: Full Container Load – Renting a full container for cargo

LCL: Less than Container Load – Renting a portion of a container (partial cargo)

Types of Containers:

Standard Container/Dry Container/General Purpose/High Cube: STD/DC/GP/HC

Common container sizes are 20 feet and 40 feet (20DC/STD/GP – 40DC/STD/GP – 40HC)

A 40HC container is 30.48 cm (1 foot) taller than a 40STD container.

Additionally, there is a 45HC container – 5 feet taller than the 40HC container.

Flat Rack: FR (Usually used to transport oversized, overweight, or over-length cargo)

Open Top: OT (Open-top container: used for transporting oversized or overweight cargo)

Along with these types of containers, you may also hear the terms “In Gauge” and “Out Gauge.”

In Gauge means that the dimensions of the cargo are smaller than or equal to the size of the container, meaning the cargo fits within the container.

Out Gauge means that one of the dimensions of the cargo extends outside the container.

Platform: Used for transporting oversized, overweight, or over-length and over-width cargo.

Reefer Containers: 20RF/40RF/40HR have the same dimensions as standard containers but are equipped with refrigeration units (often referred to as refrigerated containers, used for transporting frozen or temperature-sensitive goods).

Tank Containers: 20TK (often called tank containers, typically used for transporting liquids).

Below are the standard dimensions of commonly used containers globally:

Dimensions

20’ST | 40’ST | 40’HC | 45’HC

20’x8’x8’6″ | 40’x8’x8’6″ | 40’x8’x9’6″ | 45’x8’x9’6″

Length: 5,900 mm | 12,034 mm | 12,034 mm | 13,556 mm

Width: 2,352 mm | 2,352 mm | 2,352 mm | 2,352 mm

Height: 2,393 mm | 2,395 mm | 2,700 mm | 2,700 mm

Weight

20’ST | 40’ST | 40’HC | 45’HC

20’x8’x8’6″ | 40’x8’x8’ | 40’x8’x9’6″ | 45’x8’x9’6″

Maximum cargo weight including container: 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs) | 30,480 kg (67,197 lbs)

Average container weight: 2,230 kg (4,916 lbs) | 3,740 kg (8,245 lbs) | 3,900 kg (8,598 lbs) | 4,700 kg (10,261 lbs)

Maximum cargo weight: 28,250 kg (62,280 lbs) | 26,740 kg (58,951 lbs) | 26,580 kg (58,598 lbs) | 25,780 kg (59,039 lbs)

Terms Related to Shipping Schedules:

POL: Port of Loading – Loading port

POD: Port of Discharge – Discharge port

Port Pairs: Combination of multiple ports at origin and destination

ETA: Estimated Time of Arrival – Expected time of arrival

ETD: Estimated Time of Departure – Expected time of departure

ATA: Actual Time of Arrival – Actual time of arrival

ATD: Actual Time of Departure – Actual time of departure

MLB: Mini Land Bridge – A multimodal container transport where the container is shipped by sea from country A to country B, passing through a significant land portion in either country A or B.

Rotation: The order in which ships call at different ports

Transit Time: The time taken to transport cargo from port A to port B

Direct Service: Container cargo is shipped from port A to port B on the same ship.

Transshipment Service: When a container is shipped by two or more different ships from port A to port B.

Multimodal Transportation Terms:

Pre-carriage: Transport from the cargo collection point to the loading port.

On-carriage: Transport from the discharge port to the final inland destination.

Live load: Picking up an empty container from the port or depot, bringing it to the customer’s warehouse, and waiting until the cargo is fully loaded into the container before delivering it to the port or depot.

Live unload: Picking up a loaded container from the port or depot, bringing it to the customer’s warehouse, and waiting until the cargo is fully unloaded, then returning the empty container to the port or depot.

Drop & pick: The only difference from live load/unload is that the container is delivered to the customer’s warehouse, and the container hauler returns after a set period to pick up the container (two trips).

Drop & hook: Similar to drop & pick, but instead of returning the tractor to the customer’s warehouse, the container hauler picks up another container (empty or loaded) at the customer’s warehouse and takes it to the port or depot.

Stripping: The process of unloading different small shipments from the same container, usually done at the forwarder’s warehouse or another location arranged by them.

Document Terminology:

Owner: The owner of the goods

Shipper: Anyone responsible for transporting goods, usually the owner (can be an exclusive shipper or an NVOCC)

Consignee: The receiver of the goods at the destination port.

Notify: The party/person designated on the Bill of Lading to be notified when the cargo arrives

Beneficial Cargo Owner: BCO (Entities that have a direct contract with shipping lines)

Freight Forwarder: An intermediary service provider that stands between the shipper and the carrier.

Broker: An intermediary at the destination port (often the notify party) responsible for customs clearance.

Master Bill of Lading (MBL): Original bill of lading

MBL functions as a transportation contract, a receipt of goods, and a document confirming ownership of the goods.

Payment Terms in Import-Export

Prepaid: Shipping costs paid at the loading port, commonly known as prepaid.

Collect: Shipping costs paid at the discharge port, commonly known as collect.

Elsewhere: Shipping costs paid in a country other than the loading or discharge port.

Types of Costs (Most Common):

Commercial Costs:

Ocean Freight (OF/OCF): Ocean freight charge

Bunker (BUC): Fuel charge

Arbitrary: In Vietnam, this is called feeder charge. It is the cost of transporting containers by barge from a lower port to a main port where the mother vessel departs.

Seasonal Costs:

Peak Season Surcharge (PSS): Peak season surcharge. For example: during New Year’s, Christmas, or the busiest shipping times of the year.

Winter Surcharge: Winter surcharge, usually applied in European or American countries. For example, during winter, containers shipped to Russia may incur this fee.

Congestion Surcharge: Port congestion surcharge. Charged to cover exceptional costs incurred due to port congestion at loading or discharge ports.

Operational Costs:

Wharfage (WHA): This fee can be understood as the port docking fee. Usually, the port authority charges this to shipping lines when their ships dock or use the pier.

ISPS: International Ship and Port Facility Security Charge – Security charge