If you are in international trade business, be it exports, imports, or manufacturing; these are some of the most important international trade and shipping terms you must know.
These shipping terms are widely used to describe the methods used to ship the goods and manage terms with the suppliers. Whether you are working in a supply chain organization or importing something for your personal needs, these terms will help you figure out what technicality is involved in your documents.
MOQ: Minimum Order Quantity. It is the minimum amount or quantity that you need to order from a supplier.
OEM: Original Equipment Manufacturer. OEM is a manufacturer that manufactures products on behalf of a brand and delivers them.
ODM: Original Design Manufacturer. ODM designs, tests, and manufactures the product under the brand’s name.
Packing List: List of shipped goods from the supplier to customers.
Proforma Invoice: A preliminary bill before shipping the goods to the customers.
PO: Purchase Order. A buyer provides this to the supplier with the specific needs, pricing, and terms.
INV: Short form of invoice. Generally used in written communication to avoid lengthy typing.
TEU: Twenty-Foot Equivalent Unit. It is a standard measure of shipping containers.
FCL: Full Container Load. Shows that the container was stuffed fully, mostly with one good.
LCL: Less-than-Container Load. Shows that the container is not loaded fully with one good.
HS Code: Harmonized System code. Unique code is given to every product and service for better classification.
ETA: Estimate Time of Arrival. A timeframe by when the goods will reach to buyer or the next shipping point.
B/L: Bill of Lading. B/L is provided by the shipping company when the goods are loaded on the vessel.
POL: Port of Loading. This term is used in shipping to mention where the goods were loaded on the vessel.
POD: Port of Discharge. POD mentions where the goods are supposed to be unloaded.
T/T: Telegraphic Transfer. A method of payment used in the international trade business.
So, these are the most common shipping terms used in the international trade business. If you are also working in the import and export business, make sure to bookmark this page in your browser and have a look at these terms once you get time.