- Cargo:-This is also called goods or consignment. It is a commodity of several uses coming from one destination (country) to another.
- Shipping:-This is the movement or transportation of cargos from one place (country) to another.
- Freighting:-This is the same thing as shipping especially when the movement or transport is by air or sea.
- Freight Charge:-This is cost of freighting or the transport charge.
- Airway Bill (AWB):-This is a kind of invoice which the airlines give to a consignee as an acknowledgment for receiving a particular cargo from the consignee for shipment.
- Bill of Lading:-The bill of Lading is like the airway bill, but it is being issued by shipping companies for cargo coming through the sea.
- Consignee:-This is the person in whose name the airway bill or the bill of lading is prepared by the airlines and shipping company.He is also called the importer.
- Consignor:-This is the person who is sending the cargo to the consignee. He is also refered to as the exporter.His name is also written on the AWB and the Bill of Lading.
- Freight Forwarder:-This is a third party who stands between the consignor and the airlines,customs at origin and other agencies.
- Clearing Agent:-This is a third party who stand between the consignees the airlines,customs at destination and other agencies.Both the freight forwarder and the clearing agents are professional in cargo handling.
- Container:-This is a big metal box which is usually used by shipping companies to load cargo originating from one place (country) to another. It is mainly of two sizes – 20ft and 40ft.
- Cargo measurement:-This is the determination of the size,weight or volume or dimension of the cargo meant for shipment or transport.For goods being transported by air (air cargo) the weight in KILOGRAM is used for calculating the freight charges. But for goods to be shipped by sea, the size by volume or dimension is determined and used to calculate freight charges. The unit of kilogram is called KG while the unit for volume is cubic meter (CBM) A 20ft and 40ft containers contains about 27(30) and 54(60) CBM’s.
- Shipping Packaging Option:-This is when the consignee (importer) and consignor (exporter) is advised by the freight forwarder to decide which packaging options he likes.The packaging option chosen by the consignor or consignee depends on the size of the goods
Option A-Groupage-This is the putting together of goods belonging to different importers or consignees in on-airway bill or Bill of Lading.This is usually done by the freight forwarder and the goods are separated when they arrived Nigeria and are cleared.
Option B-Non Groupage-This is when a consignee has enough goods that can be packaged on one airway bill or bill of laden or in one container.
Option C-Less Container Load (LCL)-This is another type of groupage but it is usually done by shipping companies. It is usually used for sea cargos. What the shipping companies do is to assemble small CBM goods together and put everything in a 20ft or 40ft or in pallets and send them to Nigeria. But the whole goods are separated on arrival in Nigeria before clearing by the appointed agents of the respective consignees.
Manifest:-This is a paper containing all the useful information about a particular shipment.It gives information about the number of packages,weight,size of the cargo and the names and phone numbers and contact address of the owners or consignees.
Form M:-This is an import documentation form from the Ministry of Finance Federal Republic of Nigeria.The form is usually filled by prospective importers before they can go ahead to import from any part of the world. The forms are obtainable from commercial banks.
Pre-shipment Inspection Agents (PIA):-This is a government appointed company mandated to inspect all cargos for shipment to Nigeria from any part of the world.
Clean Report of Inspection (CRI):-This is a certificate document or certificate issued by the PIA after a satisfactory inspection.
Destination Inspection Agents (DIA):-Like the pre-shipment agent,these are companies appointed by Nigeria Government to inspect goods when they arrive in Nigeria.They also give RAR.
RAR:-Risk Assessment Report.This is an assessement document issued by Destination Inspection Agents,which specifies the customs duty payable to the government treasury.
Contra Band (CB):-This is an item prohibited for import by Nigeria government.That is any item that should not be imported into the country legally or officially.
SGD:-Single Goods Declaration.This is a customs import assessment report.
Pallets:-These are wooden, plastic or metallic bases or stands or cases where goods can be stored for shipment.
Long room:-This is a special custom office where customs clearing documentations otherwise called ASYCODA is carried.All entries on cargos are registered in this office.
Demurrage:-This is when a cargo overstays an acceptable period of time in a particular place or warehouse.Demurrage charges may be paid depending on the terms of keeping the goods in that warehouse or place.
Consolidation:-This is when a company acts as a representative of freight forwarders or airlines.They are called consoles.They receive all the AWBs of a particular airline or all the bill laden from a particular shipper or freight forwarder. They distribute these documents to the respective consignees after paying some handling charges.
Carrier:-This is the airline or the shipping company conveying a particular cargo or consignment from one place or country to another.
Container Deposit:-This is the money which a clearing agent must deposit with shipping companies before taking out a particular container load of goods from a particular seaport. The deposit is refundable once the clearing agents return the container.
Freight Collect:-This is when consignees or importers pay for their freight charges at country of origin of cargo.
Freight Prepaid:-This is when consignees or importers pay for their freight charges at country of destination of cargo.