Expert - The Mini Encyclopedia: Shipping and Importing from China Terms.
Industries often have their own internal language that is a bit non inclusive to the lay person. Freight forwarding, logistics and shipping from China is no different. Today we will help clear the haze of this improbable language barrier! Incudes a free mini encyclopedia on shipping and importing from China terms.
On route to work this morning I'm sitting on the train doing a couple of things, I suppose you could say multitasking....
1. I have a few questions in front of me from some clients and interested prospects such as.....
- How to calculate landed prices from China?
- What is the shipping process from China..?
- Are you guys a shipping agent in China?
So it's going to be a pretty China focused day albeit that's not surprising or unexpected. What is a little unexpected is...No. 2...
2. Since I can answer the above questions with respect in my sleep, I'm pretty interested, no more than that...Intrigued by the conversation held between the groups of teenagers also on their way into the city to enjoy a school holiday activity in the performing arts – I know this because firstly I'm an expert eavesdropper and secondly is it just me or do teenagers speak very, very loudly? Anyway I hear one of them say “hopefully today won't be a wombat” and they all had a good chuckle and agreed that no one likes a “wombat”. I've always thought a wombat is a very strong muscular creature often compared to being badger like or one of the main characters in the brilliant "A Country Practice" if you are old enough to remember that. No?... a wombat has another meaning – ‘Waste of money, brains and time'. They do say you learn something every day and this particular lesson I might just pass on and utilize in the right circumstances.
I began thinking about the use of acronyms and where I hear them – only seconds of me turning on my work PC and settling in for a day that involved mostly the shipping from China stuff ...the penny drops that I speak at a secret language all of its own "the International Freight Forwarding language" of sentences that are cryptic at best if you have no experience with it. So I listen for a minute and it's like..... Our little WOMBAT like gem with questions like:
- Is that DDU or DDP?
- It's an FOB shipment.
- What are the EXW on that job?
- Do they want a CFR quote or CIF?
- Did they send the SLI?
I realize that yes there is an odd code language between us International Freight Forwarders shipping from China and wherever else. Collectively they can be described as Incoterms – the international rules for the interpretation of trade terms designed by the Chamber of Commerce.
IMHO and as I RBTL my POV is that these Incoterms are very useful when organizing import and export shipments; working in different times zones and organizing shipments with many different agents and clients overseas these incoterms prove to be a valuable tool when quoting accurately, ensuring full shipment needs are met and the invoicing is correct.
DDU – Delivery duty unpaid.
DDP – Delivery duty paid.
FOB – Free on board.
EXW – Ex works.
CFR – Cost and Freight.
CIF – Cost, Insurance and Freight.
IMHO – In my humble opinion.
RBTL – Read between the lines.
POV – Point of View.
SITD – Still in the dark.
HTH – Hope this helps.