Ocean freight is one of the more complex transport options for your goods as they traverse the globe, and understanding the trade terminology is often an uphill battle. However, while we always encourage you to work closely with a freight forwarder through the heavy lifting, understanding this terminology can help you be more informed and make more accurate decisions when building your supply chain. 

Today, we’re going to look at some of the more common terms and acronyms that are used in the world of ocean freight and try to break them down in layman's terms so you can engage with this transport type as effectively as possible. Many of them indicate different ocean freight shipping container sizes, but knowing the options can be important when considering how you want your goods shipped. 

Transportation Terms

CY/CY

CY/CY stands for ‘Container Yard to Container Yard’. It refers to when an ocean carrier is contracted to move goods from a designated container yard at the origin to a designated container yard at the destination. 

Importantly, all transport costs to and from these container yards are typically not included in the contracted price. 

Port/Port

In a very similar vein to CY/CY, Port/Port refers to moving a container from the port of loading to the port of discharge. Also, similarly to CY/CY, all costs required for the transport to and from these ports, up to and including terminal charges, are not included in the contracted price. 

Free In/Free Out

A slight advancement on the Port/Port terms, Free In/Free Out, is most commonly used in the Mediterranean. Shippers under Free In/Free Out contracts are responsible for the relevant terminal charges at both ends. The ocean carrier is simply contracted to ship the container from one port to another. 

Unlike Port/Port terms, Free In/Free Out makes it clear from the outset that the shipper must pay any relevant terminal charges.

Full Container Load Vs Less Than Container Load

FCL

FCL stands for ‘Full Container Load’. Generally speaking, this means that shippers have paid for the whole container to move from point to point. In nearly every case, there will be just one shipper per container. The common examples for this are for car manufacturers, coffee roasters, and agricultural enterprises, which can afford to have a whole container to themselves. Most smaller retailers leverage LCLs as detailed below. 

LCL

LCL stands for ‘less than container load’. Sometimes, a shipper will not need a full container for their goods, and in such cases, the shipper can book just a portion of the container. This arrangement is an LCL. 

Under these terms, the shipper is charged only for the portion of the container the freight occupies. As a point of caution, in most cases, the cost of shipping LCL is significantly less than that of an FCL. However, as there are other shippers in the container, LCL shipping does take more time, as there is coordination with multiple shippers to fill an entire container.

Liner Terms

Liner Terms are most commonly used when carriers contract space amongst each other. A shipper who has contracted liner terms with the carrier is not responsible for any terminal handling charges. The terms of the contract will cover all port charges at origin and destination.

Types of Ocean Freight Shipping Containers

GP, ST, STD

GP, ST, and STD stand for ‘General Purpose’ or ‘Standard,’ and they refer to the size and type of a typical container. If you are looking for the container sizes for standard ocean freight, GP, ST, and STD are the ones. 

Standard container sizes are 20’ or 40’ long with a height of 8’6”. Standard or general-purpose containers are able to carry cargo that does not require protection from heat or cold, and that does not need to be kept cool or frozen. All containers are 8’ in width. 

As you might expect, the 20’ container costs less than the 40’; however, it doesn’t necessarily work out to half the cost. A general rule of thumb is that a 40’ is about the average container cost, and a 20’ is about 75% of that.

HC, HQ

High Cube Containers are similar to standard containers, with the exception that they are 9’6” in height. As they are larger, they generally cost slightly more to ship than standard containers, though not always. Several trades today price 40’ HC containers the same as the 40’ Standard.

45’, H5’

In very specific trades, ocean carriers will offer 45’ containers. These containers are 45’ long and 9’6” high. The additional cost of shipping a 45’ over a standard or High Cube can range from an additional cost of 25-30%.

RE, RF

RE and RF are abbreviations for refrigerated containers. Refrigerated containers come in both the 20’ and 40’ HC sizes. They are designed to keep products frozen, cool, or heated for several weeks at a time. Some refrigerated containers can even keep products frozen well below -50 Celcius. Bear in mind that the cost to ship a refrigerated container is significantly higher than that of a standard box.

OT

OT stands for ‘open top’ and refers to open top containers. Many products require loading from the top of the container, and to meet this demand, shipping lines have produced specialized containers that have the roof removed. Generally speaking, the roof is replaced with a tarp, which can be removed to allow for access and top-loading before being reattached to protect the product. 

Open top containers are generally in limited supply, so the cost of shipping is higher than that of a standard container. The cost often depends on availability with individual carriers, so if a shipper requires an open-top container, it may be necessary to contact several shipping lines.

FR

FR stands for ‘Flatrack’ containers. These containers have the sides and roof removed, which allows for side or top loading. Freight moving on Flatrack containers is generally oversized and may be overwidth. 

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Of course, this is just a brief overview of some of the terminology related to ocean transportation, and if you are confused by it, not to fear, PCB Freight Management is here to help you through the process. 

We also offer additional support in the form of our Ocean Transaction Guide, which can help you understand the roles and responsibilities that make up an ocean transaction. 

When establishing your supply chain, we have the team, the experience, and the knowledge to maximize your efforts and ensure your goods get where they are going as expeditiously as possible. Explore our ocean freight service offerings, and when you are ready to hit the high seas, be sure to get in touch!