So you are stuck with your phone all day wondering when your product will get delivered. You are checking each notification. One minute it says the product has shipped, then the next day, it says the product is in transit.
All of us have been there. But, You might also feel curious about these terms and what they mean. For example, different eCommerce and courier services use different terms to describe the state of delivery. If you are curious, here is a list of some of those terms and an explanation for what they mean.
In this article, We have described what some of the most common delivery-related terms mean.
Parcel In Transit Meaning
Sometimes you will receive such a notification when you have ordered something online. Parcel still in transit means that your parcel is being carried or is moving. But it may take more time for your parcel to reach you. In such case, your parcel is usually kept in one of the depots of the courier company, and it will take time to reach you.
FCA is one of the consumers’ obligations that the buyers must complete after clearing all the export regulations. The buyer needs to mention the precise location of the delivery. But if they don’t do it, then the sellers can be the ones to decide the stipulated place where the goods will go.
CFR means Cost of Freight. Under this term, the seller has to pay a minimum cost to maintain the safety of the courier when it is out for delivery.
The responsibility of the seller is limited to sending the product up to the destination port. But, if the product suffers any damage, it is up to the delivery services hired at the destination to take care of the rest.
This is a form of transparency that the seller has to maintain. The seller is under obligation to mention all the steps related to the shipment. The sellers have to provide the buyer with the full information about the cargo.
The seller can rest assured once they produce the buyer with this information. If there is any damage done to the shipment, the buyer has to take care of it once the seller provides this information.
CIF (Cost, Insurance & Freight)
The seller is responsible for ensuring the product’s good condition to the buyer. To ensure this, the seller has to sign the marine insurance. They do it to mitigate the risk.
This insurance is a premium, ensuring that the sellers sign it to retain the damaged goods. In the long term, it helps a seller maintain their company’s credibility.
CIP (Carriage & Insurance)
The seller can also take the whole responsibility of a courier of a buyer and go to an extra length. CIF is the additional cargo insurance that the sellers have to pay once they decide to go overboard and take the entire responsibility on their own.
This term ensures the reimbursement of any damage on the courier during and after the transit when it reaches the buyer. All buyers should consider that this includes only a minimum amount for this insurance. So, if they want to avail it, there is no worry of extra charge.
Frequently Asked Questions (FAQs):
We have covered most of the important areas related to delivery and logistics terms, but here are some relatable questions and answers if you have any further queries–
1. What Are The Different Types Of Packaging?
Here are some of the different types of packaging that we usually see –
- Paperboard Box
- Plastic Boxes
- Rigid Boxes
- Poly Bags
- Chipboard Packaging
- Foil Sealed Bags
2. What Is Logistics In Shipping Terms?
Logistics means the process of managing the movement or transportation of goods, raw materials, and products. Three of the most important phase of logistics include – procurement, storing, and warehousing.
3. What Are The 4 Functional Areas Of Logistics?
Here are the four functional areas of logistics –
- Order processing
- Materials handling
- Controlling inventory
4. What Does STO Mean In Logistics?
Here is what STO in logistics terms mean –
Stock Transport Order. It is the functionality to move stocks from one plant to another following two steps. There are other terms in the logistics like – origin post is preparing shipment.
Now, you don’t need to know all these terms unless you are in this industry. If you want to start a business in the shipping and delivery industry, then it is convenient to know about these terminologies. In this article, we have discussed CFR, CIF, CIP, FAS, FCA, etc.
If you enquired about these terms, you could learn something from reading this article. We hope there are no misconceptions about these terminologies after reading this article. If you have any questions related to the same, you can ask in the comment.
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