Port of Loading (POL) refers to the port where goods are actually loaded onto a vessel for shipment, and is one of the core fields in international trade and maritime shipping contracts. It typically appears after trade terms (such as FOB, CIF, CFR) to specify the geographic starting point for the seller's delivery, risk transfer, and freight calculation. Use cases include: quotations, contracts, letters of credit, bills of lading, shipping notices, etc. Notes: 1) The port of loading must match the trade term; for example, under FOB, the buyer is responsible for the main freight, and the port of loading is the port of shipment; 2) If a letter of credit specifies a port of loading, the actual port of shipment must be consistent with it; otherwise, it may constitute a discrepancy; 3) It is the opposite of the "port of discharge/destination" and must not be confused with it; 4) It is often used interchangeably with "port of shipment," but strictly speaking, "port of shipment" emphasizes the act of loading onto the vessel, while "port of loading" emphasizes the starting point of transportation. In addition, the port of loading may differ due to transshipment ports and must be accurately shown on the bill of lading.
📝 Examples
1. This batch of goods is loaded at the port of departure in Shanghai and is expected to arrive at the destination port in Hamburg 30 days later. (This explains the correspondence between the port of departure and the port of destination as well as the transit time.)
2. The letter of credit requires the port of departure to be Ningbo, but the actual port of loading is Shanghai, resulting in discrepancies in the documents and refusal of payment by the bank. (This explains the strictness of the port of departure in letter of credit transactions and the risk of discrepancies.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner