Understanding Technical Jargon in Freight Forwarding

In the world of freight forwarding, knowing industry terminology and processes is essential. As logistics evolve with technology and changing global trade, understanding how to quote shipments accurately is crucial. According to the?International Federation of Freight Forwarders Associations (FIATA), the global logistics industry is projected to reach $12 trillion by 2027, highlighting the importance of effective logistics management. Whether you're working with steamship lines, terminals, stevedores, or truckers, a solid grasp of industry terms can improve your operations.?

For newcomers, defining the charges involved in a shipment can feel overwhelming. This article clarifies key terms and concepts through a realistic scenario, helping you navigate today’s logistics challenges.?

The Scenario?

Imagine you are a freight forwarder tasked with quoting the transport of a 75,000 kg (75 tons) compressor from New Orleans, Louisiana, to Burns Harbor, Illinois. Your solution involves trans-loading the cargo from a carrier to a barge, navigating the Mississippi River, and offloading at the destination.?

What seems straightforward reveals a web of terminology you must understand to provide an accurate quote. Key terms like?Trans-loading,?Transshipping,?To Under Hook,?From Under Hook, and?First Place of Rest?are vital for understanding the quoting process in today’s freight environment.?

Key Terms Defined?

Trans-loading?

Trans-loading is the process of transferring cargo from one mode of transport to another to continue its journey.? Examples:?

• Container ship to barge?

• Container ship to truck?

• Container to flatbed truck?

With the rise of intermodal shipping, trans-loading is common as shippers optimize routes and reduce costs. The?Council of Supply Chain Management Professionals (CSCMP)?reports that intermodal freight transport has grown by approximately 5% annually, emphasizing its increasing significance in logistics.?

Transshipping?

Transshipping involves moving cargo between different carriers using the same transport mode.? Example:?

• Trucking from Montreal to Toronto, then another truck from Toronto to Detroit.?

This practice allows for flexibility and efficiency, especially in areas with varying regulations. The?American Trucking Associations (ATA)?noted that the trucking industry transported 72.5% of all freight in the U.S. in 2021, underlining the importance of effective transshipping practices.?

To Under Hook?

To Under Hook?means cargo is being moved from the ship’s deck to the dock (terminal) floor, assuming the ship has its own crane. Once released on the dock, the cargo is considered “under the ship’s hook.” This term is relevant in today’s automated ports, where port automation can improve efficiency by up to 40%, according to a study by the?World Bank.?

From Under Hook?

Conversely,?From Under Hook?refers to the movement of cargo after it has been released from the ship, heading to its next destination.?

First Place of Rest?

The?First Place of Rest?is the initial location where the cargo rests after being moved from under the hook. This term is important in warehouse and distribution contexts. The?Warehousing Education and Research Council (WERC)?estimates that efficient warehousing can reduce logistics costs by 10-30%, making this term particularly relevant.?

The Clear Solution?

Let’s break down the transportation process using these terms:?

1. Trans-Loading Charges 1: From Under Hook to First Place of Rest?

1. Trans-Loading Charges 2: From First Place of Rest to Barge?

1. Barge Service: To transshipment location (midway)?

1. Transshipment Barge Service: To Burns Harbor?

1. Unloading at Burns Harbor 1: From Barge to Under Hook?

1. Unloading at Burns Harbor 2: From Under Hook to First Place of Rest (storage)?

What appears to be a simple solution involves multiple steps and charges that require careful consideration in today’s logistics landscape.?

In conclusion, breaking down seemingly simple solutions is crucial to ensure all components are included when quoting clients. A thorough understanding of current terminology and processes will help you avoid mistakes and maintain your reputation. Remember: measure twice, quote once. Inaccurate quotes can lead to client dissatisfaction and harm your credibility.?

At Falcon International, we provide peace of mind by ensuring every aspect of your shipping needs is managed. As the logistics landscape evolves, so do our solutions, keeping you ahead in this fast-paced industry.?

Sources?

• International Federation of Freight Forwarders Associations (FIATA)?

• Council of Supply Chain Management Professionals (CSCMP)?

• American Trucking Associations (ATA)?
• The World Bank