Terminology
Terminology Describing Condition of Equipment & Shipping Terms
Several terms are widely accepted in the compressed air industry to describe the condition of equipment.
CONDITION OF EQUIPMENT TERMINOLOGY
New – New from the manufacturer, factory warranties apply and factory options are available.
New Surplus – Unused machinery that is surplus to the owner, manufacturer or distributor and still carries the manufacturer’s warranty.
New – Old Stock – Unused machinery that is surplus to the owner, manufacturer or distributor but no longer carries the original warranty. May have been installed but not used.
New – Freight Damaged – Unused machinery that has been damaged during storage or shipping. Generally in good operating condition. Damage will be outlined in the discription.
Excellent – As New – Newer unit (generally less than 2 years old) and without any known mechanical or cosmetic defects. Very clean appearance.
Very Good Condition – Unit without any known mechanical or cosmetic defects and relatively low operating hours.
Good Condition – Unit without any known mechanical or cosmetic defects, but with higher operating hours.
Fair Condition – Unit with high operating hours. Should be rebuilt before being placed back in operation. Rebuildable unit.
Poor – Requires extensive repairs, possibly inoperable, should be used as parts machine only.
As Is – Machine in its present mechanical and cosmetic condition with all faults.
As Removed From Service – Machine in its present mechanical and cosmetic conditions with all faults and has not been cleaned or serviced.
Serviced – New air filter, oil filter and oil change.
Reconditioned/Refurbished – New air filter, oil filter, separator elements, oil change, repair/replace any damaged or faulty components, clean/repaint, test run.
Rebuilt/Remanufactured – Rebuilt air end, new motor bearings new air filter, oil filter, separator elements, oil change, repair/replace any damaged or faulty components, clean/repaint, test run.
As is – Machine offered in its present condition with no warranty or guarantee expressed or implied.
Where is – Machine is offered where presently located with all costs of removal to be borne by the purchaser. The seller should specify where the machine is located.
Unused – Machine was never used (may have been installed).
Used – As Is Where Is – Equipment is purchased “As is – where is” and no seller or factory warranties apply.
Trade-up Guarantee – Guaranteed percentage of the amount of purchase price toward new or larger machine within certain time limits.
Inspection Under Power – Machine was electrically connected for demonstration to representative or buyer.
First Refusal – First refusal is a hold for a clearly specified time during which seller is obligated to offer first right of purchase for immediate acceptance to holder of first refusal against any other purchaser.
Option – Option is a hold on machine for a clearly specified time during which seller cannot accept an order for machine except from holder of option.
SHIPPING TERMINOLOGY
Terms are used in regards to conditions of shipping, crating, loading and unloading etc.
C & F – Cost + freight. This means that you pay cost of the product plus the cost of transportation to your location, but you don’t require insurance because your company is covered by an independent policy (purchaser pays applicable duties and taxes in his own country).
CIF – Cost + insurance + freight. When you purchase machinery and pay for it with terms “CIF destination”, it means that you pay the suppler for the cost of the goods plus the cost of insurance plus the cost of transportation to the destination, and the suppler will buy insurance and pay for the transporting of the goods to the destination.
Crated – Enclosed in an open-sided wooden shipping crate which will be acceptable to most trucking companies, for overland freight.
Demurrage – Is the charge assessed against cargo remaining in or on terminal facilities after the expiration of free time unless arrangements have been made for storage.
Dockage – Dockage is the charge assessed against a vessel for berthing at the pier.
Export Crated – Equipment is shrinkwrapped in polyfilm and fully enclosed in a plywood covered crate suitable for ocean going freight.
F.O.B. – Free on board or Freight on Board. The responsibility of the seller stops at the FOB point, with regards to freight costs or damage during transport. For example, if a machine is quoted FOB Spokane the responsibility for freight costs or damage during transport from the factory to the buyer’s location will lay with the buyer.
F.O.B. Curb – Unit is sold without provision for loading/unloading. Buyer is responsible for cost and damage during loading/unloading.
Free Time – Is the specific period during which cargo may occupy space assigned to it on Terminal property free of Terminal storage charges and wharf demurrage.
Freight Prepaid – Freight charges will be paid at time of shipment by the supplier.
Freight Prepaid and Charged – Freight charges will be paid at time of shipment by the supplier and will be added to the purchaser’s invoice.
Handling – Handling is the service of moving, receiving or delivering cargo.
Palletized Cargo – Is cargo secured to a pallet to the satisfaction of the carrier. A pallet is a two-level platform, constructed of wood, metal or other material of sufficient strength to accommodate the cargo for which it is used.
Sight Draft Bill of Landing – Shipping documents demanding evidence of payment in full prior to unloading.
Skidded – Machine fitted with suitable runners and cross pieces acceptable to commercial carriers.
Terminal Storage – Is the provision of warehouse or other terminal facilities for the storage of inbound or outbound cargo after the expiration of free time. Storage can be either inside or outside.
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