Glossary of shipping and import terms from China

Term	Name	Meaning
FCL	Full Container Load	Booking a whole container for your cargo only; you pay the container price regardless of how full it is. Suits cargo close to container capacity.
LCL	Less than Container Load	Your cargo shares a container with other shipments; you pay per cubic metre or tonne, whichever is greater, subject to a minimum.
CBM	Cubic metre	Cargo volume unit: length × width × height in metres. A 60×40×50 cm carton is 0.12 CBM.
20GP	20-foot container	Standard 20 ft dry container with about 33 CBM internal capacity; usable volume is lower depending on carton shapes.
40GP	40-foot container	40 ft dry container with about 67 CBM internal capacity.
40HQ	40-foot high cube	40 ft container about 30 cm taller than standard, around 76 CBM; the most used for light, bulky Yiwu goods.
POL	Port of Loading	The port where cargo is loaded onto the vessel, e.g. Ningbo or Shanghai for Yiwu goods.
POD	Port of Discharge	The port where cargo is discharged in the destination country.
ETD / ETA	Estimated departure / arrival	ETD is the expected departure of the vessel or flight, ETA the expected arrival. Both are estimates and can change.
Transit time	Transit time	Time from departure at the port of loading to arrival at the port of discharge, excluding preparation, clearance and delivery.
Transshipment	Transshipment	Moving a container from one vessel to another at an intermediate port, which can lengthen the journey.
B/L	Bill of Lading	Carrier-issued document proving receipt of goods, used to collect them at destination.
Telex release	Telex release	Release of cargo without the original paper B/L, once charges are settled with the shipper.
AWB	Air Waybill	The air transport document travelling with the shipment, with a number for tracking.
Chargeable weight	Chargeable weight	Air freight is priced on actual or volumetric weight, whichever is greater. A common volumetric factor is CBM × 167 kg.
W/M	Weight or Measure	LCL pricing basis: cubic metre or tonne, whichever is greater.
THC	Terminal Handling Charge	Port charge for handling the container at the terminal, applied at origin and destination.
BAF	Bunker Adjustment Factor	Surcharge that moves with fuel prices; may be included in or added to the freight rate.
Demurrage	Demurrage	Charge when a container stays at the port beyond its free days.
Detention	Detention	Charge for returning the empty container to the carrier late after it leaves the port.
Free days	Free days	Days allowed before demurrage and detention start; varies by carrier and port.
CY / CFS	Container Yard / Freight Station	CY handles full containers; CFS is where LCL cargo is consolidated and devanned.
VGM	Verified Gross Mass	Officially declared weight of the packed container, mandatory before loading.
HS Code	Harmonized System code	International customs classification number used to determine duties and restrictions at destination.
Commercial invoice	Commercial invoice	Sales invoice listing goods, value and quantity, relied upon by customs.
Packing list	Packing list	List of each carton's contents, weights and dimensions, used for clearance and checking.
COO	Certificate of Origin	Document proving where goods were made; may be needed for trade-agreement benefits.
EXW	Ex Works	Seller makes goods available at its premises; the buyer handles everything after that.
FOB	Free On Board	Seller bears costs until goods are loaded on the vessel at the port of loading.
CIF	Cost, Insurance and Freight	Seller pays freight and insurance to the destination port; risk passes at loading.
DDP	Delivered Duty Paid	Seller bears all costs including import duties up to the buyer's address.
Consolidation	Consolidation	Receiving goods from several suppliers and combining them into one shipment to save cost.
Freight forwarder	Freight forwarder	A company that organises transport on your behalf and books with carriers and airlines.
Customs broker	Customs broker	Licensed party at destination that completes customs formalities and duty payment.
MOQ	Minimum Order Quantity	The smallest quantity a supplier will produce or sell per order.
DG cargo	Dangerous goods	Cargo under special transport rules, such as batteries and flammable liquids, needing specific documents and packing.

Shipping and import glossary

Terms

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