Understanding Sea Freight Shipping Terminology

In the world of international trade and logistics, understanding sea freight shipping terminology is crucial for smooth operations and effective communication. Whether you are a seasoned logistics professional or new to the industry, this comprehensive guide will help you navigate through the complexities of sea freight terminology.

Types of Sea Freight Containers

Sea freight containers come in various sizes and types, each serving specific purposes in shipping. Here are some common terms associated with sea freight containers:

• TEU (Twenty-foot Equivalent Unit)
• FEU (Forty-foot Equivalent Unit)
• Reefer Containers
• Flat Rack Containers

Freight Rates and Charges

Understanding the cost aspects of sea freight shipping is essential for budgeting and planning. Here are some key terms related to freight rates and charges:

• Freight All Kinds (FAK)
• Bunker Adjustment Factor (BAF)
• Peak Season Surcharge (PSS)
• Origin Handling Charge

Incoterms in Sea Freight

Incoterms play a vital role in defining the responsibilities of buyers and sellers in international trade. Here are some commonly used Incoterms in sea freight shipping:

• FOB (Free On Board)
• CIF (Cost, Insurance, and Freight)
• EXW (Ex Works)
• DDP (Delivered Duty Paid)

Mastering sea freight shipping terminology is key to optimizing your supply chain and ensuring efficient cargo movement. With this guide, you are now equipped with the essential knowledge to navigate the intricate world of sea freight logistics.

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