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Useful Shipping Terms: What Every Shopper Needs to Know

by Lou-Ann Jordan Oct 2, 2023

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Most of us have had to ship an item at some point. Whether you’re retiring to the Caribbean after living abroad or relocating to another island, there’s always something to be shipped.

In addition to these scenarios, an increasing number of us shop online. While we may patronise our local retailers, some products cannot be accessed locally, or brands and technologies may not yet have made their way to our region. In any event, local shipping companies regularly service a large volume of customers.

As we engage in shipping and freight forwarding, the mass of our items may vary. Sometimes, there may be a need to ship relatively small items such as apparel, beauty products, and small appliances or kitchenware. At other times, it’s bulky cargo that has to be transported. In either case, the shipping world is full of terms that may confound us. However, we must become familiar with them, as doing so will make shopping online and shipping easier.

So, we’re starting at ground zero and reviewing some of the most commonly recurring terms in the world of cargo shipping.

Findyello article on useful shipping terms with image of woman's hand holding a package and surrounded by other packages and packaging items.

Useful Shipping Terms Every Shopper Needs to Know

Freight – is anything that’s being transported by air, sea, or land. It may also refer to how the product(s) are transported.

Cargo – is a term often used synonymously with freight. In the truest sense, when we speak of cargo, we refer to the goods or products to be shipped.

Air freight shipping service – Some shipping companies transport goods strictly by air carrier because this method is faster. Typically, smaller packages are transported via air freight. Most often, clothing, small electronic items, and personal care items are transported by an air carrier.

Customs duties or charges – are taxes/tariffs that are levied on imported goods by the local authorities. Often, these charges are meant to safeguard local economies. The figure you’ll pay is based on a percentage of the cost and classification of the goods.

Cubic metre and Cubic feet – abbreviated as CBM and CFT, determine how much to charge for shipping. Those transporting your shipment use such measurements to assess its volume. You can try calculating the volume by multiplying the length, width and height in metres or feet. The final cost is based on the volume and weight.

LCL – Less than a container load (LCL) refers to cargo transported by sea that isn’t enough to fill a 20 or 40-ftcontainer. In such cases, your shipping company will group and transport your items with other goods.  

FCL – as the term suggests, a Full Container Load (FCL) is a classification that will be used when the quantity of your goods is enough to fill an entire container.

Hazardous materials or dangerous goods – these are items that may pose a health or safety risk. Substances or solids that are toxic, flammable, corrosive, or explosive and biological and radioactive materials fall within this classification. For example, lithium batteries, aerosols, pesticides, paints, petrol, varnish, fire extinguishers and fireworks are a few items considered hazardous.

Bill of Lading – documents the type, quantity and destination of goods that are being shipped. It is an agreement between the shipper and the person receiving the cargo. It establishes who is responsible for the cargo while in transit and details the outcome should damages or loss occur.  

Waybill – may look like the bill of lading, but it’s not because it’s non-negotiable. This document lists the name and address of the person sending the shipment (consignor) and the one responsible for receiving the goods (consignee). Along with a description of the cargo, it has its point of origin, destination, and route.

Proforma invoice – is more like an estimate than a commercial or shipping invoice, as it isn’t generated by payment. It documents all the details of your goods, and you can request it before the shipment is sent. You will, however, need the commercial invoice to clear items at Customs.

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You’re now well on your way to shipping with ease. You can refer to this list if, at any point, you get stuck.

Also, are you shipping cargo and need a shipping company, agency, or broker? Check out our listings here on Findyello.

Sources: Aquantuo, DCL Corp, Jonas Browne & Hubbard Grenada, Shipping Solutions, and Transworld.