Many people think that container shipping is simply the transportation of an item from A to B.
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In the transportation industry, most people know that’s not true at all. Behind the scenes of the transportation industry, which has been changing the global economy, there are many variables, alternatives and opportunities. All are contributing to the increased complexity in this industry.
One of the biggest challenges for anyone preparing to enter the transportation industry for the first time is the basic knowledge and understanding of it. This article by Eimskip Vietnam is intended to provide those preparing to enter this industry a “key to open the door” to a larger and more exciting world.
Acronyms and terms also play a fundamental role in this complex industry. Speaking the same transportation language can help you avoid misunderstandings that can lead to errors and negative effects that will affect service quality and revenue.
Let’s start with a few basic terms:
FCL: Full container load – Rent a full container for packing
LCL: Less than container load – Rent a part in the container (odd cargo)
Types of containers:
Standard Container/Dry Container/General Purpose/High Cube: STD/DC/GP/HC
Common container types are 20 feet and 40 feet (20DC/STD/GP – 40DC/STD/GP – 40HC)
40HC container is 30.48cm (1 foot) taller than 40STD container
In addition, there is a 45HC container – 5 feet higher than a 40HC container.
Flat Rack: FR (Commonly used to carry goods that are too heavy, too tall or too long)
Open Top: OT (Open Top Container: used to transport goods that are too heavy or too tall)
Accompanying these types of containers, you may also hear about the terms “In Gauge” – “Out Gauge.”
In Gauge means that the dimensions of the goods are less than or equal to the size of the container, simply understood as the goods fit in the container.
Out Gauge means that one of the dimensions of the cargo is outside the container.
Platform: Used to transport goods that are too heavy, too tall or too long and wide.
Reefer Containers: 20RF/40RF/40HR have the same size as standard containers but have refrigeration equipment in the container (usually called refrigerated containers, used to transport frozen goods or need to maintain a stable temperature). In the container)
Tank Containers: 20TK (commonly known as tank containers, often used to transport liquids)
Below are the standard sizes of containers used worldwide for:
Size 20’ST 40’ST 40’HC 45’HC 20’x8’x8’6″ 40’x8’x8’6 40’x8’x9’6″ 45’x8’x9’6″ Length 5,900 mm 12,034 mm 12,034 mm 13,556 mm Width 2,352 mm 2,352 mm 2,352 mm 2,352 mm Height 2,393 mm 2,395 mm 2,700 mm 2,700 mm Weight 20’ST 40’ST 40’HC 45’HC 20’x8’x8’6″ 40’x8 ‘x8’6 40’x8’x9’6″ 45’x8’x9’6″ Maximum cargo weight including case 30,480kg(67,197 lbs) 30,480kg (67,197 lbs) 30,480 kg(67,197 lbs) 30,480 kg( 67,197 lbs) Average case weight 2,230kg(4,916 lbs) 3,740 kg(8,245 lbs) 3,900 kg(8,598 lbs) 4,700 kg(10,261 lbs) Maximum packed weight 28,250 kg(62,280 lbs) 26,740 kg(58,951 lbs) 26,580 kg(58,598 lbs) 25,780 kg(59,039 lbs)
Terms related to train schedules:
POL: Port of Loading – Port of Loading
POD: Port of Discharge – Port of discharge
Port Pairs: Combination of multiple ports of origin and destination
ETA: Estimated time of Arrival – Estimated time of train arrival
ETD: Estimated time of Departure – Estimated train departure time
ATA: Actual time of Arrival – Actual time of arrival of train
ATD: Actual time of Departure – Actual time of departure of the train
MLB: Mini land bridge – An intermodal container transported by ocean liner from country A to country B, passing largely by land in either country A or B.
Rotation: The order in which ships dock at different ports
Transit Time: Transit time from port A to port B
Direct Service: Containers are transported from port A to port B on the same ship.
Transshipment Service: When the container is transported by two or more different ships from port A to port B.
The term multimodal transport:
Pre-carriage: The transportation from the place of consolidation to the port of loading.
On-carriage: The carriage from the port of discharge to the final destination on land.
Live load: Take the empty container at the port or depot, transport it to the customer’s warehouse and wait there until the goods are packed into the container, then lower the packed container to the port or depot.
Live unload: Take the container with goods at the port or depot, bring it to the customer’s warehouse and wait there until the goods are unloaded, then return the empty container to the port or depot.
Drop & pick: The only difference with the term live load/unload is that the container is delivered at the customer’s warehouse and the towing unit will return to tow the container after a certain period of time (2 trips).
Drop & hook: Similar to drop and pick but the unit Towing the container instead of sending the tractor back and dropping the container at the customer’s warehouse, they will tow another container (maybe empty or packed) at the customer’s warehouse and bring it down at the port or depot.
Chassis split: First here you need to understand about Chassis, simply called the trailer by the drivers, used to place the container on the transport tractor. When the container picking area does not have a chassis available, the container towing unit must bring the chassis from another place (they have it or rent it) to the place to pick up the container. For example: If a port A does not have a chassis available or a towing unit does not have a chassis, the unit may have to move to another location to pick up the chassis and tow it to port A.
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Pre-Pull: This term means that the container towing unit pulls a container from the port or depot to and stores the container at the carrier’s yard instead of immediately delivering it to the customer’s warehouse. This case is often widely applied by container towing units in Vietnam to avoid having to wait for a long time to get the container and miss the packing plan of the customer, so they will pick it up first and leave it at the yard, as long as the customer requests it. Drag the container to the warehouse and it will be available right away.
Stripping: The unloading of different small orders from the same container, usually done at the forwarder’s warehouse or at another location arranged by them.
Certificate Terminology:
Owner: The person who owns the goods
Shipper: anyone responsible for transporting the goods, usually the shipper (which can be an exclusive shipper or an NVOCC unit)
Consignee: the consignee at the port of destination.
Notify: designated unit/person on B/L to receive notification when goods arrive
Beneficial Cargo Owner: BCO (Shipping units that have direct contracts with shipping lines)
NVOCC: is a company doing business in the field of ocean freight, considered as a sea carrier, but they are different from shipping lines (Shipping Line) in that they do not own a ship. But they have the ability to issue secondary bills of lading (House B/L) for their customers, have the ability to publish Tariff Rates and have the ability to enter into service contracts (Service Contact) with other customers. Carriers. To become an NVOCC you must first be a Freight Forwarder.
Freight Forwarder: Is an intermediary unit providing transportation services standing between shipper and carrier.
Broker: An intermediary unit at the port of destination (usually the notify party) that is responsible for customs clearance of goods.
Master Bill of Lading (MBL): Original Bill of Lading
MBL has the following functions: Contract of carriage, receipt of goods, documents confirming ownership of goods.
Payment methods:
Prepaid: Shipping costs are paid at the port of loading, often referred to as prepaid.
Collect: Shipping costs are paid at the port of discharge, commonly known as postpaid.
Elsewhere: Shipping costs are payable in a country other than the port of loading or unloading.
Types of expenses (most common):
Trade cost:
Ocean Freight (OF/OCF): Freight
Bunker (BUC): Fuel cost
Arbitrary: This fee in Vietnam is called feeder fee. Fee for towing containers by barge from the landing port to a main port where the mother ship departs.
Seasonal cost:
Peak Season Surcharge (PSS): Peak Season Surcharge. For example: New Year’s Eve, Christmas or the time when the demand for transportation is the busiest of the year.
Winter Surcharge: Winter Surcharge, usually applies to countries in Europe or America. For example, in winter, this fee will apply to containers shipped to Russia.
Congestion Surcharge: Port jam surcharge. Collected to cover exceptional costs incurred due to port jams at the port of loading or unloading.
Operating costs:
Wharfage (WHA): This cost you can understand roughly as the porting fee. Usually the port authority will collect shipping lines when their ships dock or use the pier
ISPS: International Ship and Port Facility Security Charge – Security Fee
THC: Terminal Handling Charge – Charge for loading and unloading goods, calculated by container type.
Roll Over Fee: This fee is charged when the container fails to catch the intended connecting train due to their fault.
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Equipment fee:
Per Diem: That is, collect by day
Storage: Storage fee
Detention: Container storage fee at customer’s warehouse
Demurrage: Fee for storing containers at the yard
The purpose of this article is only to provide background knowledge, so it will not be able to satisfy all the needs of readers. Some of the terms mentioned above have had separate articles on our website and we will have many more articles to continue serving you who are going to school, preparing to graduate or just going. work in this field.
If you need any more information you can leave a comment below or send us an email with a suggestion on the topic you need information on, we will try to accommodate your needs. At Eimskip Vietnam, we have professional people in this field, with a high spirit of learning and ready to receive your comments and suggestions. Let us hear from you! Please contact us immediately for further advice with the information below:
