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Incoterms® are the essential rules for the sale of goods and are applicable throughout the world; provide specific guidance to individuals involved in the import and export of international trade, whether it is submitting a purchase order, packing and labeling a shipment for cargo transportation, or preparing a certificate of origin at port, the Incoterms® rules are regulating all these activities, in any country.
Different legal practices and interpretations among merchants around the world required a common set of rules and guidelines. In response, ICC (International Chamber of Commerce) published the first Incoterms® rules in 1936. ICC is the representative of more than 45 million companies in more than 100 countries, its mission is to make business work for everyone, 365 days a day. of the year anywhere in the world. Since its founding in 1919, ICC has been committed to facilitating international trade.
Although there are other clauses for global trade around the world, such as the United States' Harmonized Tariff Schedule, Incoterms® rules have a global reach. Similarly, Incoterms® rules do not include trade terms codified for national purposes, such as the United States' "less than truckload" (LTL) rule. Unlike national trade policies, Incoterms® rules are universal and provide clarity and predictability for business.
“Incoterms®” is an acronym that stands for international trade terms. “Incoterms®” is a registered trademark of the International Chamber of Commerce, registered in several countries.
ICC last updated the Incoterms® rules in 2019. While Incoterms® 2020 is the most current version of the trade terms, Incoterms® 2010 is still current and can be accessed through ICC (Chamber of Commerce) business resources. International.
| Terms | Definition |
|---|---|
| PIGGYBACK | Term used to refer to the collection on the route that other shipping companies use to be able to use it and make delivery more strategic. (long term is not recommended). |
| FAK | Freight All Kind. This term is used for negotiated rates with a validity of usually one month. |
| DOLLY | It is the action of putting one container on top of another (usually seen in ports). |
| EIR | Equipment Interchange Receipt. Sheet where the approval is given on the conditions of the container. |
| NVOCC | Non Vessel Common Carrier. It is an assignment or permit that forwarders or maritime lines have to be able to consolidate a container with several clients, towards a specific destination. |
| RMA | Return Merchandise Authorization. Used in reverse logistics, when some merchandise is returned by default. |
| VMI | Vendor Managed Inventory. CRM used for inventory management. |
| FULL | It refers to two containers for a single truck. |
| SIMPLE | It refers to a container for a single truck. |
| TEUS | Twenty Foot Equivalent Unit. 2.35x2.39x5.9 40ST 2.39x2.45x12.06 |
| CATS | Steel bars that are used to immobilize and hold the merchandise. |
| ROUNDTRIP | Or back and forth. It is known for when a circuit is created to return the containers abroad and enter the nationals, taking advantage of the cargo that goes to the destination and the one that comes to origin. |
| Terms | Definition |
|---|---|
| ONE WAY | Or direct trip. When cargo is usually packed in a single container to a specific destination. (It is more expensive). |
| AFR | Air Freight Rate. |
| SFR | Sea Freight Rate. |
| FTL | Full Truck Load (Dedicated Merchandise). |
| LTL | Less Than Truck Load (Consolidated Merchandise). |
| FCL | Full Container Load. |
| LCL | Les Than Container Load (Consolidated Container). |
| RFI | Request For Information. (List of characteristics with which an operation complies at the start of a tender). |
| RFQ | Request For Quotation. (filling out a quote) |
| AWARD | Cattle Status. When the customer accepts the quote. |
| CUSTOMER PROFILE | Also known as the letter of instructions on the handling of the client's merchandise. |
| COD | Cash On Delivery. When payment is made on delivery. |
| OTC | Over The Counter. Cover Box. |
| CAO | Cargo Aircraft Only. Cargo planes only. |
| FSC | Fuel Surcharge. Fee that must be paid for the use of aircraft fuel. |
| BCR | Bunker Charge. Fee that must be paid for the use of the ship's fuel. |
| GRI | General Rate Increase: Fee that must be paid for the cost of fuel for the ship. |
| AMS-TRANSMISSION | Fee that must be paid when the merchandise crosses Europe or the USA. |
| AWB | Air Way Bill. Air Waybill, where the data of the merchandise and the shipper come. |
| DG-FEE | Dangerous Fee. Amount charged for handling dangerous goods. |
| CHARTER | Term used for the service sale of an entire aircraft or ship. |
| TARGET | Budget that the client has to carry out the operation against ours. |
| BUYERS CONSOL | Service modality that consists of the consolidation of all customers at origin, in order to fill a single container and distribute them strategically at destination. |
| CFS | Container Freight Station. Place where containers are consolidated and consolidated. It is a term used for when the freight is maritime. |
| CY | Container Yard. It is the place where the containers are consolidated and consolidated. It is a term used for when it is a land freight. |
| DROP OFF | Leave an empty container. |
| CONSIGNOR | Consignor, Seller, or Shiper. Who conditions the merchandise at origin for sale at destination. |
| SHIPPER | Shipping line that will be used for the transfer of goods. |
| CONSIGNEE | Contractor or buyer. He is the one who will pay us the freight and generally he was the one who bought the merchandise. |
| TENDER | It is a series of lists with which the product must comply and several quotes are made. |
| SPOT | It is a negotiated rate per event and is subject to availability and space. |
| LEAD/INQUIRY | Lead or Inquiry is the same as a new customer prospect. |
| PIPELINE | It is a process where each stage of sales is shown where all active or potential customers are added to be added to a customer / prospect portfolio. |
| FORECAST | It is the sales fulfillment forecast that will be closed in the future with the client. |
| GP | Gross Profit. It is the gross profit of the sale, without deducting the costs of the same. |
| P&L | Profit and Loss. It is the differentiation between profit and loss. |
| EBIT | Earnings Before Interests. Factor with which the economic growth of the company is measured internationally and annually. |
| CUSTOMER COVERAGE | Or Customer coverage. Every time we call him and take care of him. It is recommended to do it 2 times a month. |
| Terms | Definition |
|---|---|
| Aden Gulf Surcharge | Surcharge applicable as a consequence of the current piracy attacks in the Gulf of Aden |
| American Manifest Document | Cost for the obligatory electronic transmission to the American customs. |
| Bunker Ajustment Factor | Surcharge applied by shipping lines directly related to oil price fluctuations. (In case of variation in maritime lines, offer will be affected) |
| Full base | When a truck carries 2 containers |
| Simple foundation | When a truck carries a single container (when it is required to change to this modality, a % is charged on the cost of a full container) |
| Currency Adjustment Factor | Surcharge applied by shipping lines due to currency exchange fluctuations. (In case of variation in maritime lines, offer will be affected) |
| Cargo Data Declaration | Shipping companies apply a surcharge per B/L, not per container. |
| Carrier Security Fee | Security surcharge, charged at ports. |
| Chasis Usage Charge | Use of chassis used for the mobilization of containers. |
| Export Accompanying Document | Documentation that accompanies the merchandise to the customs office through which it leaves the European Union in the case of export dispatches with indirect exit. |
| Depot container Control | |
| Hazardous Cargo Fee | |
| Dangerous Goods Declaration | |
| Equipment Imbalance Surcharge | Surcharge charged by the shipping companies to compensate for the additional cost that they have as a consequence of significantly over or under equipment at a point. |
| Emergency Bunker Ajustment Factor | Emergency adjustment factor in fuel rates. |
| Emergency Rate Restoration | Adjustment in the level of freight applied exceptionally (“emergency”) by shipping companies. |
| Entry Summary Declaration | |
| Fuel Surcharge | Fuel rate. It fluctuates according to the price of oil |
| General Rate Increase | General increase in freight |
| Airport Code | |
| Inland Container Depot | |
| International Maritime Organization | |
| International Ship and Port Facility Security Code | Surcharge applied by shipping companies to offset the additional costs of security measures. |
| Liner Out Charges | Surcharge due to the evolution of prices in some African ports. |
| Low Sulphur Fuel Surcharge | Surcharge for pollution of European Union waters. |
|
Co-loaders nomenclature (CARRIER CODE)
|
ECULINE COUNTRIES OUTSIDE ASIA OR EUROPE / MORE EXPENSIVE CHARGES AND PROFIT DECREASES |
| INTERTEAM EUROPE/ RARE COUNTRIES | |
| VANGUARD-NOT USED BECAUSE THERE ARE NO LOCAL CHARGES OR STANDARD RATE | |
| FASTFORWARD- CENTRAL AMERICA AND LATAM | |
| IFS-LATAM Y EUROPA | |
| CHARTERLINK ASIA |
| Terms | Definition |
|---|---|
| Panama Canal Surcharge | Surcharge applicable to goods in transit through the Panama Canal. |
| Peak Season Surcharge | It is a sea freight surcharge that is usually applied in the high season of some types of traffic. |
| 0-3 M3 | USD 15 W/M |
| 4-10 M3 | USD 10 W/M |
| 11 M3 onwards | USD 5 W/M |
| Restrict Air Cargo | |
| Over Weight Surcharge | Surcharge that is charged by shipping companies for transporting heavy containers. Generally applies to 20' teams. This surcharge is at the discretion of each shipping company. |
| Suez Chanel Traffic | Surcharge for the passage of ships through the Suez Canal. |
| Security Manifest Documentation Fee | Shipping companies apply this surcharge per B/L, not per container. |
| Seguro Responsabilidad Civil | Compulsory repercussion of the civil liability insurance of the transit company. |
| Sensitive Cargo Contribution Surcharge | |
| Transit Time | Transit Time is the Shipping Company's estimate of the days of navigation between the Port of Loading and the Port of Discharge, and may change at any time without prior notice. |
| Terminal Handling Charge | Cost of handling the container in a terminal. It usually refers either to the loading of the container to the ship or the unloading from it to the dock. |
| Named accounts | Negotiated, special derived from a high or important volume |
| Freight of all kinds | Any type of rate for any type of load |
| Verified Gross Mass | Weigh the containers with all the final load |
| War Risk Surcharge | It is a maritime freight surcharge that is applied when the ship's route runs through an area in conflict or with a high risk of it being declared. |
| Weight and Mesure |
| Terms | Definition | |
|---|---|---|
| Stop Off | When the same team collects two containers at different points | |
| TRK | Land | |
| OFR | Maritime | |
| AFR | Aerial | |
| Transhipment | Maritime | |
| Transfer | Land | |
| Scale | Aerial | |
| GW | Gross weight | |
| CY | Country Yard- Port to Port | |
| On carriage | FCL. Delivery charges- coordinated by the shipping company itself- | |
| All truck | Container is loaded onto truck | |
| Rail truck- | Train-terminal-ramp coverage- position truck | |
| Rail ramp | For heavy loads, when you do not have the capacity to get on a truck and it continues to be carried on a ramp | |
| Full base | When a truck carries 2 containers | |
| Simple base | When a truck carries a single container (When you want to change to simple mode, a % is charged | |
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