The most commonly used transport document. Its importance lies in its function, which is threefold. Firstly, it is evidence of a contract of carriage. Secondly, it is a receipt for goods and thirdly, it is a document of title. It also assumes a major role as evidence for insurance claims. Bills of Lading are issued in sets comprising one or more. Because of their widespread use, many different forms have been developed to cover particular circumstances. These include: On Board or Shipped Bill, Received for Shipment Bill, Combined Transport Bill, Through Bill, Claused Bill, Charter Party Bill, Reefer Bill, Waybill

CFR Cost and Freight

Seller’s Responsibilities — contract for the carriage, freight to port of destination, export clearance (taxes etc), provide invoice and clean transport document (B/L), loading costs.

Buyer’s Responsibilities — Accept delivery upon shipment with required documents and also from carrier at port of destination, pay unloading cost if not included in freight.

CIF (Cost, Insurance and Freight)

The only difference between CIF and CFR is that under CIF the seller is to obtain and pay for the cargo insurance. This is paramount since under CFR and CIF terms the risk passes from seller to buyer when the goods pass the rail of that ship. The seller is only required to provide minimum insurance cover.

CIP (Carriage and Insurance Paid To)

Same as CPT except that the seller must procure cargo insurance, just as under a CIF contract.

Exchange Rate

The price of one currency expressed in terms of another currency — a market level at which currencies are exchanged.

EXW (Ex Works)

Seller’s Responsibilities — Deliver goods at own premises.

Buyer’s Responsibilities — Take delivery at Seller’s premises, organise delivery at own risk and expense.

FAS (Free Alongside Ship)

Seller’s Responsibilities — Deliver goods alongside ship, provide "alongside receipt".

Buyer’s Responsibilities — Nominate carrier, contract of carriage, freight and deliver to own premises at own risk and expense, provide export clearance, taxes etc.

FOB (Free on Board)

Seller’s Responsibilities — Deliver the goods on board the ship, provide export clearance (taxes etc), provide clean on board receipt, pay those loading costs not included in freight.

Buyer’s Responsibilities — nominate carrier, contract of carriage, freight and delivery to own premises at own risk and expense.

Forwarding Agent/ Forwarder

Persons desiring to send goods overseas often leave the ?entire arrangement of their shipping contracts to persons who specialise in arranging the delivery of the goods from the port of arrival.

T/T

Telegraphic transfer