Useful Terms to Use When Talking to a Freight Broker

Is it your first time to seek professional logistics services help from a freight forwarding company in Singapore? Don’t worry about not being able to understand most of the terms in your quotation, because this list will help you understand the most commonly used terms in freight forwarding business:

• Air Freight – In simplest terms, air freight is the transportation of goods through a commercial or charter air carrier. It is the task of the freight forwarder to arrange and negotiate with a shipping company that’s connected to an air carrier service.

• Air Waybill – This contract shows the agreement between the shipping company and the air carrier. It also confirms the receipt of good by the carrier.

• Bill of Lading – This is the document that shows the contract between the shipping company and the charter. Customs will need to see this document for clearance and it is also designated as the title of the cargo for sea freight.

• Bonded Goods – These are the goods that are kept in the warehouse because the customs have not yet been paid for the clearance or inspection.

• Carnet – Used for international freight, this document serves as a passport for goods that are eligible for tax-free entry or temporary duty entry.

• Carrier – This is the term used for the party responsible for the physical transportation of the goods. Regardless of whether Singapore freight master has a contract for sea freight, air freight, and land freight, the trucks, cargo liners, and airliners are all called carriers.

• Certificate of Origin – This document will indicate the country of origin or the place where the goods have been produced or manufactured. The freight forwarding services broker can help you arrange this to include the tax information of the exporter, consignee, number and type of package, description of the items, and a unique number.

• Consignee – This is the term used to describe the receiver or buyer of the goods being transported. The consignee can also assist the shipper or sender in arranging for the logistics services of the goods.

• Customs – The department or office that is responsible for the collection of taxes and duties on imported and exported goods. The representative that acts as the intermediary during the customs clearance for the shipper is called the customs broker, while the person that performs the clearance for the consignee or receiver is the customs clearance agent.

• Demurrage or Detention – The shipper or the consignee will be asked to pay extra charges for keeping a shipment in the port or warehouse longer than the allotted time. It is the responsibility of the freight forwarder in Singapore to remind the shipper or consignee of this.

• Door to Door – This is the term used to describe the services that deliver the goods from the origin to the destination. Either the shipper or the consignee is responsible for all the charges of the logistics services and for the arrangement of a contract with a freight forwarder.

• Freight Forwarder – A freight forwarding company will act as your representative to the shipping company and the logistics company. They are responsible for arranging the contracts and making sure that all the parties involved in the transportation of goods will fulfill their roles.

• Freight Broker – The freight broker is the individual sent by the freight forwarder to assist you personally with the documents and fees. The freight broker is licensed and experienced in logistics services and the trade laws.

• Full Container Load – FCL is the term used to describe the full use of ocean containers usually with dimensions of 1 x 20 feet or 1 x 40 feet.

• Full Truck Load – The average size of a truck trailer used by a logistics company is about 53 feet.

• Groupage – If a shipper cannot fill a container, the goods will have to be placed in a groupage or a collection of small consignments that will make up a full load.

• Incoterms – These are international rules that guide the interpretation of foreign trade documents and activities.

• Land Freight – The transport of goods through trucks or rail.

• Less than a Truck Load – This is the term used when other shipments from other shippers are consolidated into one container truck. The term less than a container load (LCL) on the other hand is used for consolidated shipments for ocean container that are later transferred to trucks or rail.

• Modes – This refers to the type of transportation used for the movement of goods. The most common modes of transportation in export and import are trucks, rail, ocean liners, and airplanes.

• Ocean or Sea Freight – The transport of goods via ocean liners.

• Pallet or Skid – This is the name for the wooden 48 x 42-inch platforms used to hold cargo. The shipping company or the shipper can pay for the pallet or skid.

• Security Surcharge – An extra fee charged by the air carrier or the sea carrier. Air freight is based on the weight of the cargo in kilos, while the ocean or sea freight is based on the container, bill of lading, or the revenue ton.

• Shipping or Shipper – This is the term used to describe the person who wants to send the goods or the freight. The shipper will have to talk to a freight forwarder to arrange the transport of goods to the consignee or buyer.

• Through Bill of Lading – This is the document issued by the carrier or the shipping company responsible for the transportation of goods. The specific bill of lading is used for multiples modes, and not just for sea freight.

• Warehouse – The building where the goods can be stored temporarily until all the duties are paid.

• Value Added Tax – The tax imposed based on the value of the goods, which can vary based on the type of items.

If there are other terms not listed here, you should not hesitate to ask you freight forwarder to explain them to you. After all, the freight forwarding services company is supposed to be your partner and representative when it comes to negotiations for local freight and international freight.