POL and POD in Ocean Freight: What They Mean and Why They Matter
In international ocean freight shipping, the terms POL and POD are essential for understanding the movement of cargo from origin to destination. These terms indicate the main loading and unloading ports used during transportation, and they play a critical role in how shipping routes, schedules, and charges are defined. Below is a clear explanation of POL, POD, Place of Receipt, and Place of Delivery to help shippers better understand the logistics workflow.
01. POL – Port of Loading
Port of Loading (POL) refers to the port where the cargo is loaded onto the vessel. It is typically a seaport located in the country of origin.
For example, if the cargo is loaded at Tianjin Port, the bill of lading (B/L) will list “Tianjin” as the POL.
A POL can be:
Origin Load Port – where the shipment begins
Transshipment Port – where containers are unloaded and transferred to another vessel
Transshipment is common in global logistics. When cargo is discharged at a transshipment port and loaded onto a second vessel, that port can also be considered a POL for the next leg of the journey.
The first leg is called the head leg, and the following leg is known as the on-carriage or second leg.
02. POD – Port of Discharge
Port of Discharge (POD) refers to the port where the cargo is unloaded from the vessel. It is usually the main port in the destination country.
Example:
If goods are shipped from Tianjin and delivered to Shijiazhuang, but the vessel unloads in New York, then New York is the POD.
If transshipment occurs—such as cargo being unloaded in Busan, Korea during transit—Busan also temporarily acts as a POD for that leg of the route.
Understanding POD is crucial for calculating:
Import procedures
Customs clearance
Destination handling charges (DHC)
Container pickup and delivery costs
03. Place of Receipt
Place of Receipt, also known as Port of Receiving, is the inland point where the carrier first takes possession of the cargo from the shipper.
This is common in multimodal or inland–ocean combined transport.
Example:
If the carrier receives the cargo in Shijiazhuang, which is an inland point connected to Tianjin Port, the bill of lading should indicate Shijiazhuang as the Place of Receipt, not Tianjin.
This term is especially important for CY–CY, CY–Door, Door–CY, and Door–Door shipments.
04. Place of Delivery
Place of Delivery, sometimes written as Port of Delivery or Port of Destination, refers to the final delivery location where the carrier hands the cargo over to the consignee.
If the final delivery location is a seaport, then “Port of Delivery” can be used.
If the final destination is an inland city, especially in sea–land combined transport, “Place of Delivery” is more accurate.
Understanding this term helps avoid disputes about who is responsible for trucking costs, unloading charges, and customs procedures at the final destination.
Conclusion
POL, POD, Place of Receipt, and Place of Delivery are key logistics terms that define how your cargo moves through the global supply chain. Properly distinguishing these terms on the bill of lading helps ensure smooth transportation, accurate documentation, and cost transparency. For companies engaged in international trade, understanding these concepts is essential for planning efficient and compliant shipping operations.
