International Freight and Incoterms Overview

Vocabulary-style flashcards covering the fundamentals of international freight, shipping documentation, and Incoterm groupings based on the lecture notes.

International Freight

The transportation of goods and materials across national borders involving movement by sea, air, rail, or road.

Shipper

The exporter or the people who send and ship out the shipment.

Consignee

The importer or the people who receive the shipment/cargo.

Incoterms

Standardised trade terms that define the responsibilities, costs, and risks between buyers and sellers in international transactions.

Port of Loading

The origin point where cargo is loaded onto a vessel or transport vehicle.

Port of Discharge

The destination point where cargo is unloaded from a vessel or transport vehicle.

Harmonised System Coder (HS Codes)

A specific shipping requirement code used for the classification of goods.

Bill of lading

A transportation document required specifically for ocean freight that provides proof of ownership.

Air waybill

A transportation document required specifically for air freight.

CMR document

A transportation document required for road freight.

CIM consignment note

A transportation document required for rail freight.

Material Safety Data Sheets (MSDS)

Documentation required for shipments to ensure compliance with specific regulations for hazardous materials.

Group E, Ex Works-EXW

A term where the buyer has maximum responsibility and arranges all transportation; risk transfers at the seller's factory.

Group F (FCA/FAS/FOB)

A group where the buyer arranges the main international shipping and the seller delivers goods to the carrier; risk transfers when goods are loaded.

Group C (CFR/CIF/CPT/CIP)

A group where the seller pays for the main international shipping, but risk transfers to the buyer before shipping begins.

Group D (DPU/ DAP/ DDP)

A group where the seller arranges all transportation to the destination and assumes all risks until delivery occurs.

FASL (free alongside ship)

A specific Incoterm rule used only for sea and inland waterway transport.

FOB (free on board)

An Incoterm for sea and inland waterway transport where the buyer arranges main shipping and risk transfers once loaded.

CIF (cost, insurance and freight)

A sea/inland waterway rule where the seller pays for main shipping and insurance, though the buyer covers loss during the main voyage.

DDP (delivered duty paid)

The specific Incoterm in Group D where the seller has maximum responsibility.