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In almost any industry, shipping plays an important role in sending or receiving different goods. Most of the business owners know how to ship various products or custom printed boxes but they do not know about main shipping acronyms.
As a business owner, you must know the main shipping acronyms. With essential shipping acronyms, you can manage your shipments and ensure everything goes as planned effectively. In this blog post, we are going to share 5 essential shipping acronyms that every business owner should know. Keep reading!
The full form of FOB is “free on board”. FOB is the internal shipping acronym that is widely used in the shipping industry where buyer and seller are direct liable for the goods being transferred from one place to another.
Once the shipped goods cross the rail, the liability totally transfers to the buyer with all the bearing expenses. It is commonly used for inland water shipping purposes.
CPT is the full form of “carriage paid to”. In this, the risk is totally associated with seller. The seller is responsible for all costs/ damages/ risks linked with shipping of goods to required destination.
Once the goods are transferred to required destination, the risk ultimately transfers to the buyer till the goods are being received by first carrier. Normally, it can be used for any mode of transportation.
“Delivered at Place” is the full form of DAP. In this arrangement, the seller takes all the responsibility to move products to the buyer’s location while covering all expenses and costs.
The seller is responsible until the goods unload at the named place or destination of buyer. DAP is used when buyer do not want to take own responsibility until the goods being shipped.
FAS is totally opposite to DAP. It is abbreviated as “free alongside”. In this shipping agreement, buyer is totally responsible for all the risks, costs and damages from the moment seller ship different items or products. It is normally used where the buyer has direct access to the bulk cargo.
POD means “proof of delivery”. This is the last international shipping acronym that is normally used to ensure recipient receives all the goods on time without any delay. It can be used to resolve disputes and acts as a conformation tool.
It plays an important role to fulfill or meeting all shipping obligations, terms & conditions. These delivery obligations are by the carrier and verification of acceptance by the consignee that they receive their goods on time.
If you want to mange your shipments timely with full accuracy, you must know the basic international shipping acronyms. The shipping acronyms we mentioned above plays an important role in knowing about shipping terminologies, terms and conditions.
Also, you will get an idea about how to ship logistics efficiently without causing any shipping issues. For more packaging related tips, ideas and information, you can follow us at YBY Boxes Australia on Facebook and Instagram.
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