The 7 Most Common Abbreviations in (Digital) Shipping and What They Mean

What is a B/L? 

B/L stands for Bill of Lading and is one of the most important legal documents in shipping. Besides the abbreviation B/L, other acronyms such as BoL and BL are also being used when referring to the document. The B/L provides details regarding the type, quantity, and destination of goods being carried by a shipping company. It also serves several other important purposes.

We provide an easy method to submit a B/L to our customers via the BL Draft Approval tool in our Online Business Suite. With this web solution, you can review, edit, and approve your Bills of Lading in an intuitive and efficient manner. There’s also no need any more to print and scan the desired changes as it can be done within the tool. 

Detention and Demurrage – what is the meaning behind DND?

DND is short for Detention and Demurrage. Sometimes, you will also find the abbreviation D&D. Detention and Demurrage refers to an extra charge that arises when containers are kept at the destination terminal for longer than the time that has been agreed upon. DND is intended to help clarify contentious issues relating to claims for damages. It is always about the time a container spends inside the loading terminal. Was the time longer than agreed or did everything go according to contract?

Electronic Data Interchange – EDI – what does this term entail?

Electronic Data Interchange, or EDI, is a communication and data transfer technology that is essential for the entire shipping process. EDI refers to the exchange of business documents between two parties in a standard electronic format. When it comes to shipping, the EDI shipping system aids in managing the documentation for:

• Purchase orders
• Bill of Lading
• Warehouse details
• Shipping details
• Documents relating to customs
• Documents relating to the inventory
• Documents relating to the shipping status
• Payment documents
• Invoices and advance ship notices

Thanks to EDI all of the above-mentioned documents can be generated and downloaded into the receiver’s respective system which makes the entire exchange process faster, smoother and less error prone.

ETA and ETD – the arrival and departure estimations

ETA stands for Estimated Time of Arrival, whereas ETD means Estimated Time of Departure. Both estimations play a big role in planning and executing the supply and delivery chain for all parties involved. For port authorities it is vital to know the exact ETA to efficiently prepare for the vessel's arrival. The ETD moreover has an influence on port management as authorities will know when there is more space available for the next vessel to dock. It is also an important indicator to calculate the ETA, as the departure time of the vessel will obviously affect its arrival time.

Besides ETA there is the abbreviation ATA - short for Actual Time of Arrival. Ideally, ETA and ATA match but sometimes there will be discrepancies between the estimated time and the actual time of arrival due to circumstances and influences like tides, traffic jams or planning obstacles. For ETD, the related term is ATD - which stands for Actual Time of Departure. This term shows if the vessel left the port of origin on time. This makes the ATD one of the most important time indicators for all following steps within the supply chain.

You can keep an eye on your shipments’ ETA and ATA data in our tracking tools in the Online Business Suite.

What does FAK mean in shipping?

FAK stands for Freight all Kind. In a nutshell, FAK refers to a pricing system that combines different classes of shipments into one classification. In this manner, these different goods can be transported as a single shipment and at one fixed rate. A FAK rate prices all types of freight within the container the same without a differentiation between each commodity. Thus, billing errors and mountains of paperwork can be avoided. FAK simplifies the processes and combines commodities of different freight classes in one single group. It also makes it easier for freight forwarders to provide quotations to their customers and to book available spaces with the respective carrier. The FAK tariff rate is determined by the carrier. Apart from the above-mentioned simplicity, FAK rates also offer a higher flexibility and more efficiency as shipments with a FAK rate can be booked more conveniently and use the available space more efficiently.

It helps to reduce shipping costs - the meaning behind SOC

SOC is defined as shipper owned containers. SOCs can be owned by either a business or an individual. These shipper owned containers are often used to ship goods across long distances. Basically, a container is called shipper owned, when the beneficial cargo owner (BCO), freight forwarder or NVOCC organize and use their own container to ship goods. SOCs are the opposite of COCs which are Carrier Owned Containers and thus, provided by the respective carrier. Customers are able to book a container slot on the shipping vessel while using their own containers. Utilizing SOCs has several benefits.

These are:

• Control of supply
• Control of ownership
• Cost control

Using your own container bears also some responsibilities. The shipper is responsible for acquisition, maintenance and the return of the containers. When using a carrier owned container, these tasks will be carried out by the carrying agent.