Flexport Glossary: Your Ultimate Guide To Shipping & Logistics Terms

Oct 29, 2025 by Admin 69 views

Hey there, logistics enthusiasts! Ever feel like you're lost in a sea of acronyms and jargon when talking about shipping and supply chains? Don't worry, you're not alone! The world of Flexport and international trade can seem overwhelming, especially when you're just starting out. That's why we've put together this super handy Flexport Glossary, your ultimate guide to understanding all those tricky terms. Whether you're a seasoned shipping pro or just dipping your toes into the world of logistics, this glossary will help you navigate the complexities of freight, import, and export with ease. We'll break down everything from Incoterms to Bill of Lading, ensuring you have a solid grasp of the language of global trade. So, grab a coffee, and let's dive into the fascinating world of Flexport and shipping terms!

Understanding the Basics: Key Terms in the Flexport Glossary

Alright, let's kick things off with some fundamental concepts. These are the building blocks you'll need to understand more complex terms later on. We'll be covering some of the most common terms you'll encounter when dealing with Flexport and the broader shipping landscape. Get ready to have these terms become second nature as you navigate the world of logistics! Remember, understanding these basics is crucial to successfully managing your supply chain. Let's jump in.

Bill of Lading (B/L or BoL): Think of this as the shipping document's ultimate identity card, a receipt for the goods and a contract between the shipper and the carrier. It contains all the essential details about the cargo, its destination, and the agreed-upon terms of the shipping. This document is super important, so keep it safe!
Customs Broker: A pro who knows the ins and outs of import and export regulations. They act as your representative to Customs authorities, ensuring your goods clear smoothly and legally. They're like the guides to help you through the complicated rules. Dealing with them is essential when dealing with international trade compliance.
Carrier: The company that transports your goods – could be an ocean freight line, an air freight service, or a trucking company. They're the ones responsible for getting your cargo from point A to point B.
Container: The metal boxes that hold your goods, also known as shipping containers. They come in various sizes (20-foot, 40-foot, etc.) and are designed for efficient shipping and handling. Pretty crucial for ocean freight.
Customs: The governmental agency responsible for controlling the flow of goods into and out of a country, assessing duties and taxes, and ensuring compliance with regulations. They're the gatekeepers of international trade.
Documentation: All the paperwork required for international shipping, including the Bill of Lading, commercial invoice, packing list, and customs declarations. Keeping your documentation in order is key to avoiding delays.
Export: The act of sending goods from one country to another. Opposite of import.
Import: The act of bringing goods into a country from another country. The flip side of export.
Incoterms (International Commercial Terms): A set of standardized trade terms that define the responsibilities of buyers and sellers in international transactions. They clarify who pays for what and who is responsible for the goods at each stage of the shipping process.
Ocean Freight: The shipping of goods by sea. A primary mode of transportation for international trade, especially for large volumes of cargo.
Air Freight: The shipping of goods by air. A faster but typically more expensive option than ocean freight.
Shipper: The person or company sending the goods. Also known as the exporter.
Supply Chain: The entire network of activities, people, entities, information, and resources involved in getting a product from its supplier to the customer. A complex web that requires excellent supply chain management.

Deep Dive: Essential Terms for International Shipping

Now that we've covered the basics, let's explore some more specific and important terms that you'll encounter in international shipping. Understanding these terms is crucial for anyone involved in Flexport, import, or export. Get ready to level up your logistics knowledge! These definitions will help you become a true expert in the supply chain world. This information is perfect for both beginners and experienced professionals, so take notes, and let's get started!

Arrival Notice: A notification from the carrier to the consignee (the receiver of the goods) informing them that the shipment has arrived at its destination. Basically, it's a heads-up that your goods are here!
Beneficial Cargo Owner (BCO): The actual owner of the goods being shipped. They are the ultimate party who benefits from the delivery of the cargo. A very important entity in the supply chain.
Booking: The process of reserving space on a carrier's vessel or aircraft. You need to make a booking to ensure your goods have a spot on the shipping vessel.
Consignee: The party to whom the goods are being shipped. This is the person or company who will receive the cargo at the destination. Always listed on the Bill of Lading.
Consignor: The party who is sending the goods; the same as the shipper.
Customs Clearance: The process of getting your goods approved by Customs authorities so they can be imported or exported. This involves submitting necessary documentation, paying duties and taxes, and complying with all regulations.
Demurrage: Fees charged by the carrier for keeping a container at the terminal beyond the allowed free time. Avoid these fees by planning your pick-up or delivery accordingly!
Detention: Fees charged by the carrier for keeping a container at your facility beyond the allowed free time. Similar to demurrage, but applies when the container is in your possession.
Duty: A tax imposed by a country on imported goods. The amount of duty depends on the type of goods, their value, and the country's tariff regulations. Paying these is an essential aspect of trade compliance.
Freight Forwarder: A company that acts as an intermediary between the shipper and the carrier. They handle the logistics of the shipping, including booking, documentation, and customs clearance. Flexport is a great example of a freight forwarder.
Harmonized System (HS) Code: A standardized system of names and numbers used to classify traded products. This code is used for customs purposes and helps determine the applicable duties and taxes. Required for import and export declarations.
Landed Cost: The total cost of importing goods, including the purchase price, freight costs, insurance, duties, and other expenses.
Packing List: A detailed list of the items included in a shipment, including their quantity, weight, and dimensions. Essential for customs clearance and inventory management.
Port of Discharge: The port where the goods are unloaded from the vessel. The destination port.
Port of Loading: The port where the goods are loaded onto the vessel. The origin port.
Pro Forma Invoice: A preliminary invoice sent to the buyer before the goods are shipped, outlining the details of the trade transaction.
Shipping Mark: A unique marking applied to the packages to identify the shipment. This helps with tracking and handling.
Tariff: A tax or duty imposed by a country on goods imported from another country. Used to protect domestic industries and generate revenue.
Trade Compliance: The process of ensuring that a company complies with all applicable trade laws and regulations, including customs regulations, sanctions, and export controls. Essential to avoid penalties.

Flexport Specifics: Navigating the Platform and Beyond

Flexport offers a range of services to streamline your shipping and supply chain management. Let's look at some terms that are particularly relevant when using the Flexport platform. Understanding these terms will help you maximize the benefits of using Flexport for your import and export needs. Get ready to learn how Flexport simplifies the complexities of global trade! Whether you are a small business owner or a large enterprise, knowing how to use Flexport is crucial in today's logistics landscape.

Flexport Platform: Flexport's online platform, providing users with visibility into their shipping processes, real-time tracking, documentation management, and communication tools. Your central hub for all things Flexport.
Flexport Ocean: Flexport's ocean freight services, including full container load (FCL) and less-than-container load (LCL) options.
Flexport Air: Flexport's air freight services, offering fast and reliable shipping for time-sensitive cargo.
Flexport Customs: Flexport's customs brokerage services, helping clients navigate the complexities of customs clearance.
Flexport Insights: Data-driven reporting and analytics provided by Flexport to help clients optimize their supply chain and make informed decisions.
Quoting: The process of getting a price estimate for your shipping needs. You can get quotes directly through the Flexport platform.
Tracking: The ability to monitor the location and status of your shipment in real-time, available through the Flexport platform.
Supply Chain Management (SCM): The strategic management of the flow of goods, information, and finances related to a product or service, from the sourcing of raw materials to the delivery of the product to the end consumer. Flexport offers services to help with your SCM.
Trade Finance: Financial services offered by Flexport to support international trade, such as financing for suppliers and buyers.

Incoterms Explained: Your Guide to International Trade Terms

Incoterms are a critical component of international trade, defining the responsibilities of buyers and sellers in the shipping process. Understanding Incoterms is essential to avoid misunderstandings and ensure a smooth transaction. Let's delve into what Incoterms are and some of the most common ones you'll encounter. They help clarify who is responsible for the goods at each stage of the shipping journey. Flexport often helps clients navigate Incoterms.

EXW (Ex Works): The seller makes the goods available at their premises, and the buyer assumes all responsibility and costs from that point forward. The buyer is responsible for everything! Usually the most favorable to the seller.
FCA (Free Carrier): The seller delivers the goods to a carrier nominated by the buyer. The buyer takes over responsibility once the goods are handed over to the carrier. A popular option.
CPT (Carriage Paid To): The seller pays for the freight to the named destination, but the buyer assumes the risk of loss or damage once the goods are handed over to the carrier. Seller is responsible for the shipping cost, but not the risk after delivery to the carrier.
CIP (Carriage and Insurance Paid To): Similar to CPT, but the seller also provides insurance for the goods during transit. The seller handles the shipping and insurance.
DPU (Delivered at Place Unloaded): The seller delivers the goods, unloaded, at a named place of destination. The seller bears all risks and costs associated with delivering the goods and unloading them. The seller covers the cost of unloading the goods at a specific location.
DAP (Delivered at Place): The seller delivers the goods to a named place, but the buyer is responsible for unloading. Seller delivers to the agreed-upon location, but the buyer unloads.
DDP (Delivered Duty Paid): The seller delivers the goods to the named place of destination and is responsible for all costs and risks, including duties and taxes. The seller is responsible for everything, including import duties.

Conclusion: Mastering the Flexport Glossary

There you have it, folks! Your comprehensive Flexport Glossary to help you navigate the world of shipping and logistics. We hope this guide empowers you to confidently understand and use the language of global trade. Remember, continuous learning is key. Keep exploring, keep asking questions, and don't be afraid to dive deeper into these terms. The more you know, the smoother your import and export processes will be, whether you're working with Flexport or any other shipping partner. Understanding this glossary will save you time and money. Happy shipping! And remember, Flexport is here to help you every step of the way!