International Chemical Business Terms
Below is a list of export and import related terms to help you navigate the international chemical business. All terms are listed alphabetically.
The charge for the marine transportation of cargo. Paid to the shipping company. Also referred to as sea fare. The market prices are formed mainly according to supply and demand situations, and the ocean freight might become the reason of fluctuations in commodity prices. Similar to the air freight, in addition to the basic freight, extra charges called surcharges (BAF, CAF, etc.) may also be applied.
The quote that the seller submits to the buyer ahead of the export contract. The buyer requesting the seller a quote is referred as inquiry, and usually the seller submits the offer upon the receipt of the inquiry.
On board B/L (Shipped B/L)
Regarding the bill of lading, the bill of lading (B/L) issued after the goods were actually loaded on the ship. In contrast to this, the bill of lading issued when the cargo was transferred at the shipping company’s container yard (CY) or container freight station (CSF) is called received bill of lading (received B/L). In general, it can be assumed that if the text written in English in small letter starts with “Shipped”, the document is an on board bill of lading.
Loading on the deck the goods that cannot be loaded in the ship’s hold. Especially for conventional ships, because the goods have an increased risk to be damaged through jettison or washing overboard than the ones loaded in the hold, usually the marine cargo insurance doesn’t provide coverage unless the goods are not covered by a special contract.
Open Top Container
A special container having a removable sheet fixed on its roof. Stevedoring is possible through the upper part of the container and it is suitable for transportation of lengthy and oversized goods difficult to carry in and out through the side door of the container. It is also possible to load goods taller than the container.
One type of bill of lading (B/L). “To Order” or “To Order of XXXX” is mentioned in the Consignee column. The XXXX in “To Order of XXXX” refers to the payee. The bill of lading (B/L) in which “To Order” or “To Order of Shipper” is mentioned in the Consignee column is called simple order B/L or payee order B/L, and regarding this type of bill of lading, the consignor (Shipper) sends the B/L to the negotiating bank issuing the letter of credit (L/C) after making the blank endorsement.