Some people are considered smart because the others cannot understand them. They have certain definitions and theories which are far from the convention or have found a way to explain basic concepts in the most contemporary of sorts, leaving us to chew over the real intent behind a particular concept. One look at the terms and conditions of a business contract is clear to say that they all take insurance under the shelter of the maxim – if you can’t convince them, confuse them.
With big brands signing up with major online retailers for exclusive sale of their flagship products spiced up with extravagant discounts, people are thronging to their favourite online shopping destinations – who in turn are only too happy to cater to the demands of their shoppers.
Higher number of transactions means an increase in shipping. With shipping costs going through the roof by the day and not tame as they used to be once upon a time, it is important for businesses who have an intense amount of shipping to do to understand fully or have an idea about the terms and jargons used in the shipping fraternity.
BAF (Bunker Adjustment Factor):
This is not to be confused with CAF which is (Currency Adjustment Factor). BAF is imposed in basic ocean freight to stabilise cost-of-freight during global price fluctuations of oil. CAF, on the other hand is added to basic ocean freight rates to subdue or mitigate losses/gains against fluctuations in the exchange currency.
Demurrage:
The additional time taken for loading/unloading a vessel than the established, resulting in a delay toward the scheduled departure. This is normally an encumbrance borne by the charter or shipper and not the vessel’s operator.
Free Carrier (FCA):
This means the seller is responsible to undertake the costs of landing goods at the designated shipping point.
HAWB (House Air Waybill) :
It is an airway bill issued by the carrying airline’s agent.
Marine Cargo Insurance:
This covers loss or damage of goods at sea. This insurance compensates the merchandise owner of losses incurred in fire, shipwreck, piracy, and other causes.
Tare Weight:
Is the weight of an empty vehicle or container. The net weight is determined after deducting it from the gross weight.
Twenty-Foot Equivalent Unit (TEU):
This is a measure used to identify the ship’s cargo-carrying capacity.
Without Reserve:
This awards rights to a shipper’s agent or representative to employ necessary adjustments abroad without having to take consent from the represented group.
The more we understand about shipping paraphernalia the better it is for us. Understanding the jargons will help us get a detailed picture of our shipping arrangements.
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