Curriculum
Course: Introduction to Sea Freight
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Curriculum

Introduction to Sea Freight

Module 1: Introduction

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Module 2: Terminology & Essential Documents

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Module 3: Types of Shipping Services

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Module 4: Process Flow

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Module 5: Shipping Containers

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Module 6: International Trade

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Module 7: Sea Freight Pricing and Costs

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Module 8: Common Challenges in Sea Freight

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Module 9:Adding Value in Sea Freight Roles

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Module 10: Review & Assessment

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Text lesson

Essential Terms in Sea Freight

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This lesson covers essential sea freight terminology, providing you with the foundational vocabulary needed for effective communication and coordination across the various stages of the shipping process. 

Understanding this terminology will serve as a foundation for your learning, ensuring that you can engage with the material confidently. Try to remember these terms, as they will be essential for effective communication and navigating the industry with confidence.

Port of Loading (POL)

  • Definition: The port where cargo is loaded onto the vessel for transport.  
  • Scenario: A shipment of textiles begins its journey at the Port of Shanghai, the designated POL.  

Port of Discharge (POD) 

  • Definition: The port where cargo is unloaded from the vessel at its destination.  
  • Scenario: The same shipment of textiles is unloaded at the Port of Los Angeles, the designated POD.  

Twenty-foot Equivalent Unit (TEU)

  • Definition: A standard measurement unit representing the capacity of a 20-foot shipping container, used to quantify cargo volume in logistics.  
  • Scenario: A logistics company tracks its shipments by TEUs, noting that a 40-foot container counts as 2 TEUs while a standard 20-foot container counts as 1 TEU.

Incoterms

  • Definition: International rules defining the responsibilities of buyers and sellers during the shipping process.  
  • Scenario: A contract specifies FOB (Free on Board), meaning the seller is responsible for transporting goods to the port and loading them onto the ship.  

Container Freight Station (CFS)  

  • Definition: A facility where cargo is consolidated or deconsolidated before being loaded onto or after being unloaded from containers.  
  • Scenario: A freight forwarder sends smaller shipments to a CFS to be combined into a full container load.  

Container Yard (CY)  

  • Definition: A designated area within a port where containers are stored before loading or after unloading from a vessel.  
  • Scenario: The importer collects containers from the CY at the Port of Los Angeles after customs clearance.  

Full Container Load (FCL) 

  • Definition: A shipment that fills an entire container, typically used for large volumes of goods.  
  • Scenario: An exporter in China ships 25 containers of electronics to the U.S., each as an FCL shipment. 

Less than Container Load (LCL)  

  • Definition: A shipment that does not fill an entire container and is consolidated with cargo from other shippers.  
  • Scenario: A small furniture company ships its products as LCL cargo, sharing a container with other goods to reduce costs.  

Estimated Time of Departure (ETD)

  • Definition: The scheduled date and time when a vessel is expected to depart from the Port of Loading (POL).
  • Scenario: A logistics provider schedules the ETD for a container vessel departing from Shanghai on December 15th at 18:00, enabling the shipper to plan cargo readiness and customs clearance accordingly.

Actual Time of Departure (ATD)

  • Definition: The confirmed date and time when a vessel physically departs from the Port of Loading (POL).
  • Scenario: A vessel with an ETD of December 15th at 18:00 departs on December 16th at 02:00 due to congestion at the port. The revised departure time is recorded as the ATD.

Estimated Time of Arrival (ETA)

  • Definition: The anticipated date and time when a vessel is expected to arrive at the Port of Discharge (POD).
  • Scenario: A shipment from the Port of Loading in Los Angeles has an ETA at the Port of Discharge in Tokyo on January 10th at 09:00, providing importers and customs brokers time to prepare for receiving the goods.

Actual Time of Arrival (ATA)

  • Definition: The verified date and time when a vessel arrives at the Port of Discharge (POD).
  • Scenario: A vessel with an ETA of January 10th at 09:00 arrives on January 12th at 14:30 due to adverse weather conditions. The confirmed arrival time is recorded as the ATA.

Rollover

  • Definition: When a container is not loaded onto the scheduled vessel and is delayed to a later shipment.  
  • Scenario: A shipment is rolled over to the next vessel due to overbooking, delaying its arrival at the destination.  

Detention & Demurrage

  • Definition: Charges incurred when containers are kept beyond the free time allowed either outside (detention) or inside (demurrage) the port.  
  • Scenario: An importer faces demurrage charges for not collecting their containers from the port on time. 

VGM (Verified Gross Mass)

  • Definition: The total weight of a container, including the cargo and packaging, verified before it is loaded onto a vessel.
  • Scenario: An exporter faces delays and fines because their container’s VGM was not submitted on time, preventing it from being loaded onto the ship.