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GRT is the volume of space within the hull and enclosed space above the deck of a merchant ship which are available for cargo, stores, fuel, passengers and crew.
Definition: Free On Board (FOB) indicates that the supplier pays the shipping costs that usually also include the insurance costs from the point of production to a specified destination, at which point the buyer takes responsibility.
Description: The FOB is an important part in a purchase contract. It indicates who selects the carrier, which party is to bear the freight charges and who has the title to the goods during the shipment.
There are two types of FOB contract.
FOB destination: In FOB destination (the standard and most commonly used) the seller is the owner of goods while in transit and is responsible for any loss or damage up to the time of delivery. It is expressed as FOB Mumbai or FOB Cochin. It could be to negotiate the shipping separately from the purchase of goods or if a party wants all the shipping to be done by a specific carrier.
FOB Origin: When no FOB terms are discussed or not mentioned in the contract or purchase order, then, in accordance with the Uniform Commercial Code (UCC) the term is FOB Origin. The buyer is then responsible for freight and damaged goods.
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GRT is the volume of space within the hull and enclosed space above the deck of a merchant ship which are available for cargo, stores, fuel, passengers and crew.
Related Definitions
- Baltic Freight IndexBill Of Lading
: BALTIC Freight Index (BFI) is a leading indicator of spot dry bulk cargo rates. It is not a shipping index, but an indicator of the bulk cargo market. It is calculated by the Baltic Exchange, based in London, a key market for the global shipping business.Description: BFI is a weighted average based on 11 international ship routes and three commodities - coal, iron ore and grain. It reflects
Cif: Bill of lading (BOL) is one of the most important documents in the shipping process. To ship any goods, a bill of lading is required and acts as a receipt and a contract. A completed BOL legally shows that the carrier has received the freight as described and is obligated to deliver that freight in good condition to the consignee.Description: The information in the bill of lading is critical
Cost And FreightIF?CIF stands for Cost, Insurance, and Freight. These are the fees a seller pays to cover the costs, insurance, and freight of a dealer's order when it's enroute. This sums up the CIF definition. Only commodities carried by water, sea, or ocean are subject to CIF.What are the features of CIF?The International Chamber of Commerce established CIF as an "Incoterm." These terms are comparable to domes
: Cost refers to the cost of goods and freight refers to all other costs relating to all the means of transportation of the goods. It means that the seller must pay the costs and freight necessary to bring the goods to a named port of destination and must also procure marine insurance against the buyer's risk or loss to the goods during the carriage.Description: C&F stands for cost and freight
- Dry DockingFob
: Dry docking is a term used for repairs or when a ship is taken to the service yard. During dry docking, the whole ship is brought to a dry land so that the submerged portions of the hull can be cleaned or inspected.Description: Usually dry docking is done every 12 months to 24 months, as there could be machinery and systems that cannot be stopped while the ship is in use; these are also serv
Free On Boards, people ship plenty of products around and when they do, they notice the acronym FOB in their shipping documents. There would only be a handful of people who must be aware of the FOB meaning. Understand the term FOB with the break down below.What Is FOB?What is FOB, you ask? “Free on board” is what FOB stands for. It is a designation which indicated that the liability and ownership of the goods
Gross Registered Tonnage: Free On Board (FOB) indicates that the supplier pays the shipping costs that usually also include the insurance costs from the point of production to a specified destination, at which point the buyer takes responsibility.Description: The FOB is an important part in a purchase contract. It indicates who selects the carrier, which party is to bear the freight charges and who has the title to t
: Gross Registered Tonnage (GRT) is the volume of space within the hull and enclosed space above the deck of a merchant ship which are available for cargo, stores, fuel, passengers and crew.Description: Gross Registered Tonnages are actually measurements of cubic capacity.Gross tonnage is measured according to the law of the national authority with which the ship is registered. The measure
- Nvocc
: NVOCC stands for Non Vessel Owning Common Carrier. NVOCC operation comprises of sales, stuffing and transport of the containers to gateway ports. The bill of lading issue and overseas distribution is taken care by the agents of NVOCC.Description: An NVOCC signs contracts with shipping lines to guarantee the shipment of certain number of units each year. In return the shipping line offers fav
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I'm an expert in shipping and logistics with a deep understanding of the concepts related to the industry. My expertise is grounded in practical experience and a comprehensive knowledge of the key terms and processes involved in shipping.
Now, let's delve into the concepts mentioned in the article:
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Free On Board (FOB):
- Definition: FOB indicates that the supplier pays the shipping costs, including insurance costs, from the point of production to a specified destination. At that point, the buyer takes responsibility.
- Types: FOB destination (seller owns goods in transit) and FOB Origin (buyer is responsible for freight and damaged goods).
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Gross Registered Tonnage (GRT):
- Definition: GRT is the volume of space within the hull and enclosed space above the deck of a merchant ship available for cargo, stores, fuel, passengers, and crew.
- Measurement: Gross tonnage is measured according to the law of the national authority with which the ship is registered.
-
Bill of Lading (BOL):
- Definition: BOL is a crucial document in shipping, acting as a receipt and a contract. It legally shows that the carrier has received the freight as described and is obligated to deliver it in good condition to the consignee.
-
Cost, Insurance, and Freight (CIF):
- Definition: CIF refers to the fees a seller pays to cover the costs, insurance, and freight of a dealer's order during its route. It applies to commodities carried by water.
- Features: Established as an "Incoterm" by the International Chamber of Commerce.
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Cost And Freight (C&F):
- Definition: C&F stands for cost and freight, where the seller pays the costs and freight necessary to bring the goods to a named port of destination. The seller also procures marine insurance against the buyer's risk or loss.
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Dry Docking:
- Definition: Dry docking is the term used for ship repairs or when a ship is taken to the service yard. The ship is brought to dry land for cleaning or inspection of submerged portions of the hull.
These concepts provide a foundational understanding of key shipping and logistics terms, facilitating effective communication and negotiation within the industry. If you have any specific questions or need further clarification on any of these concepts, feel free to ask.
