C D E F
G H I J
K L M N
O P Q R
S T U V
A.T.: American Terms
(Marine Insurance) A term used to differentiate between the conditions of
American Policies from those of other nations, principally England.
ABCC: Association of
British Chambers of Commerce
ABI - Automated Brokerage Interface:
Is a system available to U.S. Customs Brokers with the computer capabilities and
customs certification to transmit and exchange customs entries and other
information, facilitating prompt release of imported cargo.
ABI: Association of
Acceptance: A time
draft (or bill of exchange), which the drawee has accepted and is
unconditionally obligated to pay at maturity. Drawee's act in receiving a draft
and thus entering into the obligation to pay its value at maturity. An agreement
to purchase goods under specified terms.
Ad Valorem ("according to the value"):
A fixed percentage of the value of goods that is used to calculate customs
duties and taxes.
Add Hoc Charter: A
one-off charter operated at the necessity of an airline or charterer.
Admiralty Court: Is
a court having jurisdiction over maritime questions pertaining to ocean
transport, including contracts, charters, collisions, and cargo damages.
Advance Against Documents:
Load made on the security of the documents covering the shipment.
Advising Bank: A bank
that receives a letter of credit from an issuing bank, verifies its
authenticity, and forwards the original letter of credit to the exporter without
obligation to pay.
Advisory Capacity: A
term indicating that a shipper's agent or representative is not empowered to
make definite decisions or adjustment without the approval of the group or
AF: Advance freight
(i.e. prior to shipment)
a company that controls, or is controlled by another company, or is one of two
or more commonly controlled companies.
hiring of a ship in whole or in part
AFT: At or towards the stern or rear
of a ship
Agency Agreement: The
steamship line appoints the steamship agent and defines the specific duties and
areas of responsibility of that agent.
Air Cargo Agent: Is
a type of freight forwarder who specializes in air cargo and acts for airlines
that pay him a fee (usually 5%). He is registered with the International Air
Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight
Forwarder, Foreign Freight Forwarder).
Air Freight Forwarder:
Is a type of freight forwarder who specializes in air cargo. He usually
consolidates the air shipments of various exporters, charging them for actual
weight and deriving his profit by paying the airline the lower consolidated
rate. He issues his own air waybills to the exporters, is licensed by the CAB
(Civil Aeronautics Board) and has the status of an indirect air carrier (See
also Air Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight Forwarder.)
Air Waybill: A bill of
landing that covers both international and domestic flights transporting goods
to a specified destination. This is a non-negotiable document of air transport
that serves as a receipt for the shipper, indicating that the carrier has
accepted the goods listed and obligates itself to carry the consignment to the
airport of destination according to specified conditions.
agreement by a steamship line to provide cargo space on a vessel at a specified
time and for a specified price to accommodate an exporter or importer, who then
becomes liable for payment even though he is later unable to make the shipment.
AITA: International Air Transport
Association, IATA, (French, German).
All Risk Insurance: Is
a clause included in marine insurance policies to cover loss and damage from
external causes, such as fire, collision, pilferage, etc. but not against innate
flaws in the goods, such as decay, germination, nor against faulty packaging,
improper packing/ loading or loss of market, nor against war, strikes, riots and
civil commotions (See Marine Insurance)
All Risk Clause: Is an
insurance provision that all loss or damage to goods is insured except that of
inherent vice (self caused). (See All Risk Insurance).
Alongside: A phrase
referring to the side of a ship. Goods to be delivered "alongside" are to be
placed on the dock or barge within reach of the transport ship's tackle so that
they can be loaded abroad the ship.
AN: Advice note
AP: Additional premium
Arbitration Clause: Is
a standard clause to be included in the contracts of exporters and importers, as
suggested by the American Arbitration Association. It states that any
controversy or claim will be settled by arbitration in accordance with the rules
of the American Arbitration Association.
Assignment of Proceeds:
A stipulation within a letter of credit in which some or all of the
proceeds are assigned from the original beneficiary to one or more additional
transfer of the rights, duties, responsibilities and/or benefits of an
agreement, contract, or financial instrument to third party.
Transports Perissable, (European Agreement on the International Carriage of
Automated Brokerage Interface (ABI):
An electronic system allowing customhouse brokers and importers to interface via
computer with the US Customs Service for transmitting entry and entry summary
data on imported merchandise.
Automated Commercial System (ACS):
The electronic system of the US Customs Service, encompassing a variety of
industry sectors, that permits on-line access to information in selected areas.
Automated Manifest System (AMS): The
electronic system allowing a manifest inventory to be transmitted to the US
Customs Service data center by carrier, port authority or service center
Ballast Bonus (Special
payment above the Chartering price when the ship has to sail a long way on
ballast to reach the loading port.)
Bareboat (Method of chartering of
the ship leaving the charterer with almost all the responsibilities of the
(See Break-Bulk Cargo)
B/D: Banker's Draft
B/E: bill of exchange
B/S: Bill of Sale
BAA: British Airports Authority
BACA: Baltic Air
Banker's Automated Clearing System
BAF: Bunker adjustment
factor: A fuel surcharge expressed as a percentage added or subtracted from the
freight rate reflecting the movement in the market price for bunkers.
Balance of Trade: The
difference between a country's total imports and exports; if exports exceed
imports, favorable balance of trade exists, if not, a trade deficit is said to
Ballast: Heavy weight,
often seawater, necessary for the stability and safety of a ship at sea.
Barter: Trade in which
merchandise is exchanged directly for other merchandise without use of money.
Barter is an important means of trade with countries using currency that is not
BCN: Banker's Cover
BEA: British Exporters Association
Beam: The maximum breadth of a ship.
Belly Cargo: Freight
accommodation below the main deck.
Beneficiary: A firm or
person on whom a letter of credit has been drawn. The beneficiary is usually the
seller or exporter.
Bermuda Agreement: An
agreement concluded in 1946 between the U.K. and the U.S., designed to regulate
future international air traffic. Most governments accept its principles and
follow it inter alia by limiting traffic rights on international routes to one
or two carriers.
Berth: Place alongside
a quay where a ship loads or discharges cargo.
Berth Liner Service:
Is a regular scheduled steamship line with regular published schedules port of
call) from and to defined trade areas.
Berth or Liner Terms:
Is an expression covering assessment of ocean freight rates generally implying
that loading and discharging expenses will be for ship owner's account, and
usually apply from the end of ship's tackle in port of loading to the end of
ship's tackle in port of discharge.
Berth: Is the place
beside a pier, quay or wharf where a vessel can be loaded or discharged.
International Freight Association
Bill of Entry: A
shipper's detailed statement for Customs purposes of the nature and value of
goods in a consignment.
Bill of Exchange (B/E):
Legally defined as "an unconditional order in writing, addressed by one person
to another, signed by the person giving it, requiring the person to whom it is
addressed to pay on demand or at a fixed or determinable future time, a sum
certain in money to or to the order of a specified person, or to bearer". It is
the most general method of obtaining payment for goods shipped abroad.
Bill of Lading: A
document that establishes the terms of a contract between a shipper and a
transportation company under which freight is to be moved between specified
points for a specified charge. Usually prepared by the shipper on forms issued
by the carrier, it serves as a document of title, contract of carriage, and a
receipt for goods. Also see Air Waybill and Ocean Bill of Lading.
Bolster: This is a
piece of equipment equivalent to the bottom of a container without sides. Often
used for stacking parcels of sawn timber and bags of cocoa. Otherwise known as a
flat or pontoon
Bonded Warehouse: A
warehouse storage area or manufacturing facility in which imported goods may be
stored or processed without payment of customs duties.
British Overseas Trade Board
Bottle screws, container shoes, twist locks, chains and chain
tensioners: All pieces of lashing
equipment for securing cargo (twist locks and container shoes are used only on
containers, pontoons and stackmasters).
Boules: A boule is a log that has been
sliced through into at least 12 pieces. The bark is left intact.
Break bulk: Another term for general
cargo, i.e. non-unitized cargoes.
Brussels Tariff Nomenclature Number (BTN):
The customs tariff number used by most
European nations. The United States does not use the BTN, but a similar system
known as the Harmonize Tariff Schedule.
BSC: British Shippers Council
BSI: British Standards Institution
BSS: British Standard Specification
Bunkers: Name given
for vessel’s fuel and diesel oil supplies (originates from coal bunkers).
BV: Bureau Veritas
Abbreviation for "Bill of Lading."
To haul a shipment back over part of a route it has
Abbreviation for "Bunker Adjustment
Factor." Used to compensate steamship lines for fluctuating fuel costs.
Sometimes called "Fuel Adjustment Factor" or FAF.
Light, bulky articles.
Guarantee issued by a bank to a
carrier to be used in lieu of lost or misplaced original negotiable bill of
An act committed by the master or
mariners of a vessel, for some unlawful or fraudulent purpose, contrary to their
duty to the owners, whereby the latter sustain injury. It may include
negligence, if so gross as to evidence fraud.
A term of measure referring to 42
gallons of liquid at 60o F.
A tariff term referring to ocean
rate less accessorial charges, or simply the base tariff rate.
Abbreviation for "Beneficial Cargo
Owner." Refers to the importer of record, who physically takes possession of
cargo at destination and does not act as a third party in the movement of such
The width of a ship.
A switching railroad operating
within a commercial area.
to whom money is payable.
entity for whom a letter of credit is issued.
seller and the drawer of a draft.
Shipped under rate that includes
cost from end of ship's tackle at load port to end of ship's tackle at discharge
Used with reference to charges
assessed for cargo movement past a line-haul terminating point.
A contract term meaning both
parties agree to provide something for the other.
Bill of Exchange:
In the United States, commonly
known as a "Draft." However, bill of exchange is the correct term.
Bill of Lading (B/L):
A document that establishes the terms of
a contract between a shipper and a transportation company. It serves as a
document of title, a contract of carriage and a receipt for goods.
B/L requiring updates that do not change financial status; this is slightly
different from corrected B/L.
Terms & Conditions:
the fine print on B/L; defines what the carrier can
and cannot do, including the carrier's liabilities and contractual agreements.
represents whether the bill of lading has been
input, rated, reconciled, printed, or released to the customer.
refers to the type of B/L being issued. Some examples are: a Memo (ME), Original
(OBL), Non-negotiable, Corrected (CBL) or Amended (AM) B/L.
B/L status; used to cancel a processed B/L; usually
per shipper's request; different from voided B/L.
B/L: A B/L which bears no superimposed
clause or notation which declares a defective condition of the goods and/or the
B/L: B/L that covers cargo moving over
B/L: B/L combined or consolidated
from two or more B/L's.
B/L: B/L requiring any
update which results in money or other financially related changes.
B/L: Non-negotiable B/L
primarily containing routing details; usually used by truckers and freight
B/L: Another original Bill of Lading set if first
set is lost. also known as reissued B/L.
B/L: Non-negotiable B/L
where there are no hard copies of originals printed.
B/L: A contract of
carriage between a shipper and forwarder (who is usually a NVOCC); a
B/L (GBL): A bill of
lading issued by the U.S. government.
B/L: B/L covering parts of a shipment, which are
loaded at more than one location. Hitchment B/L usually consists of two parts,
hitchment and hitchment memo. The hitchment portion usually covers the majority
of a divided shipment and carries the entire revenue.
B/L: B/L issued by a
freight forwarder or consolidator covering a single shipment containing the
names, addresses and specific description of the goods shipped.
B/L: B/L covering cargo moving via multimodal
means. Also known as Combined Transport B/L, or Multimodal B/L.
Form B/L: B/L form with all Terms & Conditions
written on it. Most B/L's are short form which incorporate the long form
clauses by reference.
B/L: Unfreighted B/L with no charges listed.
B/L: B/L issued by the U.S. military; also known
as GBL, or Form DD1252.
Numbers: U.S. Customs' standardized B/L numbering
format to facilitate electronic communications and to make each B/L number
B/L: The B/L is a title document to
the goods, issued "to the order of" a party, usually the shipper, whose
endorsement is required to effect is negotiation. Thus, a shipper's order
(negotiable) B/L can be bought, sold, or traded while goods are in transit and
is commonly used for letter-of-credit transactions. The buyer must
submit the original B/L to the carrier in order to take possession of the goods.
See Straight B/L. Sometimes means a file copy of a B/L.
B/L validated at the time of loading to transport. Onboard Air, Boxcar,
Container, Rail, Truck and Vessel are the most common types.
Discharge B/L: B/L covering cargo with
more than one discharge point option possibility.
B/L: See Negotiable B/L.
The part of the B/L set that has value, especially when negotiable; rest of set
are only informational file copies. Abbreviated as OBL.
for Shipment B/L:
Validated at time cargo is received by ocean carrier
to commence movement but before being validated as "Onboard".
B/L set which has completed a prescribed number of
edits between the shippers instructions and the actual shipment received. This
produces a very accurate B/L.
Term B/L: Opposite of Long Form B/L, a
B/L without the Terms & Conditions written on it. Also known as a Short Form
B/L. The terms are incorporated by reference to the long form B/L.
One of two or more B/L's which have been split from a single B/L.
late B/L; in banking, a B/L which has passed the time deadline of the L/C and is
Indicates the shipper will deliver the goods to the
consignee. It does not convey title (non-negotiable). Most often
used when the goods have been pre-paid.
Order" B/L: See Negotiable B/L.
U.S. Customs' standardization: four-alpha code
unique to each carrier placed in front of nine digit B/L number; APL's unique
B/L Identifier is "APLU". Sea-land uses "SEAU". These prefixes are also used as
the container identification.
Related to Consolidated B/L; those B/L's absorbed in the combining process.
Different from Canceled B/L.
Bill of Lading Port of Discharge:
Port where cargo is discharged from
means of transport.
Bill of Sale:
Confirms the transfer of ownership
of certain goods to another person in return for money paid or loaned.
Bill to Party:
Customer designated as party paying
The weight shown in a waybill and
freight bill, i.e., the invoiced weight.
A bond covering a group of persons,
articles or properties.
rate applicable to or from a group of points.
special rate applicable to several different articles in a single shipment.
A waybill covering two or more
consignments of freight.
A B/L wherein the paying customer
has contracted with the carrier that shipper or consignee information is not
Stowing cargo destined for a
specific location close together to avoid unnecessary cargo movement.
Railcars grouped in a train by
destination so that segments (blocks) can be uncoupled and routed to different
destinations as the train moves through various junctions. Eliminates the need
to break up a train and sort individual railcars at each junction.
Blocking or Bracing:
Wood or metal supports (Dunnage) to
keep shipments in place to prevent cargo shifting.
Abbreviation for "Bales."
To gain access to a vessel.
The basic unit of measurement for
lumber. One board foot is equal to a oneinch board, 12 inches wide and one foot
long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains
ten board feet.
Movement of a tractor, without
trailer, over the highway.
A set of wheels built specifically
as rear wheels under the container.
A device fitted on a chassis or
railcar to hold and secure the container.
Port of initial Customs entry of a
vessel to any country. Also known as First Port of Call.
Freight moving under a bond to U.S.
Customs or to the Internal Revenue Service, and to be delivered only under
A warehouse authorized by Customs
authorities for storage of goods on which payment of duties is deferred until
the goods are removed.
Arrangements with a carrier for the
acceptance and carriage of freight; i.e., a space reservation.
Reservation number used to secure
equipment and act as a control number prior to completion of a B/L.
Bottom Side Rails:
Structural members on the
longitudinal sides of the base of the container.
A type of air circulation in a
temperature control container. Air is pulled by a fan from the top of the
container, passed through the evaporator coil for cooling, and then forced
through the space under the load and up through the cargo. This type of airflow
provides even temperatures.
The front of a vessel.
A closed rail freight car.
unload and distribute a portion or all of the contents of a rail car, container,
loss of space caused by irregularity in the shape of packages.
void or empty space in a vessel or container not occupied by cargo.
A person who arranges for
transportation of loads for a percentage of the revenue from the load.
compensation as specified by ocean tariff or contract.
Not in packages or containers;
shipped loose in the hold of a ship without mark and count." Grain, coal and
sulfur are usually bulk freight.
A container with a discharge hatch
in the front wall; allows bulk commodities to be carried.
partition separating one part of a ship, freight car, aircraft or truck from
Cargo-securing devices mounted in
the floor of containers; allow lashing and securing of cargo.
An extra charge sometimes added to
steamship freight rates; justified by higher fuel costs. (Also known as Fuel
Adjustment Factor or FAF.)
A Maritime term referring to Fuel
used aboard the ship. Coal stowage areas aboard a vessel in the past were in
bins or bunkers.
An inland location where cargo is
received by the ocean carrier and then moved to a coastal port for loading.
A port where cargo is received by the ocean
carrier and stuffed into containers but then moved to another coastal port to be
waded on a vessel.
C&F Terms of Sale, or INCOTERMS.:
Obsolete, albeit heavily used, term
of sale meaning "cargo and freight" whereby Seller pays for cost of goods and
freight charges up to destination port. In July, 1990 the International Chamber
of Commerce replaced C&F with CFR.
Water transportation term
applicable to shipments between ports of a nation; commonly refers to coast-wise
or inter-coastal navigation or trade. Many nations, including the United States,
have cabotage laws which require national flag vessels to provide domestic
Abbreviation for "Currency
Adjustment Factor." A charge, expressed as a percentage of a base rate, that is
applied to compensate ocean carriers of currency fluctuations.
A Customs document permitting the
holder to temporarily carry or send merchandise into certain foreign countries
(for display, demonstration or similar purposes) without paying duties or
posting bonds. Any of various Customs documents required for crossing some
A document prepared by the captain of a vessel
on arriving at port; shows conditions encountered during voyage, generally for
the purpose of relieving ship owner of any loss to cargo and shifting
responsibility for reimbursement to the insurance company.
A barge equipped with tracks on which up to
about 12 railroad cars are moved in harbors or inland waterways.
Use of individual carrier/rail equipment
through a central agency for the benefit of carriers and shippers.
Metal strip and lead fastener used for locking
freight car or truck doors. Seals are numbered for record purposes.
Freight loaded into a ship.
A manifest that lists all cargo
carried on a specific vessel voyage.
Cargo Not Otherwise Specified. Usually the
rate entry in a tariff that can apply to commodities not covered under a
specific item or sub item in the applicable tariff.
Cargo reserved by a Nation's laws
for transportation only on vessels registered in that Nation. Typically
the cargo is moving due to a direct or indirect support or activity of the
C & D: Collected and delivered
C & E: Customs & Excise
C & I: Is a quoted price includes cost
of goods and insurance.
C&F: Is a quoted price includes cost
of goods and freight.
C.C.E.F: Is a Customs Centralized
C.I.F: Is a quoted price includes cost
of goods, insurance and freight.
C.I.T.E.S: Committee on International
Trade of Endangered Species.
C/P: Charter party
C/V: Certificate of value
C/VO: Certificate of Value and Origin
CAA: Is the Civil Aviation Authority.
Government body responsible for regulating U.K. airlines.
CAAC: Customs and Allied Affairs
Cabotage: Is where
cargo is carried on what is essentially a domestic flight and therefore not
subject to international agreements that fix set rates. Cabotage rates are
negotiable between shipper and airline and apply on flights within a country and
to its overseas territories.
CAD / Can:
has two meanings in the industry
CAD/CAM: Computer Aided
Design/Computer Aided Manufacturing.
CAD: The acronym meaning "cash against
documents," a method of payment for goods in which documents transferring title
are given to the buyer upon payment of cash to an intermediary acting for the
adjustment factor: A surcharge expressed as a percentage (or subtracted) from
the freight rate compensating the Line (or shipper) for a change in the exchange
rates relationship between the currency of freight collected from the shippers
and currency of costs incurred by the Line.
Cage: The transporting
of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under
CAN: Customs Assigned
Cargo Receipt: Is a receipt of cargo
for shipment by a consolidator (used in ocean freight).
merchandise/commodities/freight carried by means of transportation.
Carnet: A customs
document permitting the holder to carry or send merchandise temporarily into
certain foreign countries (for display, demonstration, or similar purpose)
without paying duties or posting bonds.
Any person who undertakes to perform or
procure the performance of carriage by rail, road, sea, air, inland waterway or
Carrier - Common: A
public or privately owned firm or corporation that transports the goods of
others over land, sea, or through the air, for a stated freight rate. By
government regulation, a common carrier is required to carry all goods offered
if accommodations are available and the established rate is paid.
Carriers(s) Containers or Shipper(s) Containers:
The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers
over which the carrier or the shipper has control either by ownership or by the
acquisition thereof under lease or rental from container companies or container
suppliers or from similar sources. Carriers are prohibited from purchasing,
leasing or renting shipper owned containers.
Cartel: Is an
association of several independent national or international business
organizations that regulates competition by controlling the prices, the
production, or the marketing of a product or an industry.
Most ocean freight is billed on the
basis of weight or measurement tons (W/M). Weight tons can be expressed in short
tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos
(2204.62 pounds). Measurement tons are usually expressed as cargo measurement of
40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)
A rate applicable to a carload of
Any person or entity who, in a
contract of carriage, undertakes to perform or to procure the performance of
carriage by rail, road, sea, air, inland waterway or by a combination of such
A certificate required by U.S.
Customs to release cargo properly to the correct party.
Usually refers to intra-city hauling on drays
Customs form permitting in bond cargo to be
moved from one location to another under Customs control, within the same
Customs district. Usually in motor carrier's possession while draying cargo.
Cash Against Documents (CAD):
Payment for goods in which a commission house, or other intermediary, transfers
title documents to the buyer upon payment in cash.
Cash in Advance (C.I.A.):
Payment for goods in which the price is paid in full before shipment is made.
This method is usually used only for small purchases or when the goods are built
CBI: Confederation of
CC/O: Certificate of
Connecting carrier agreement:
A contract between carriers such that line or both operators will transport a
said amount of cargo on behalf of the other on the other's Bill of Lading, thus
acting as a bridge for cross traded cargoes needing a first or second leg
carrier to compliment the first
Common Customs Tariff (within the EU)
CDV: Current domestic
Cell Guides: Metal
Guides fitted in the vessel holds for easy positioning of marine containers in
Certificate of Analysis:
A certificate required by some countries as proof of the quality and composition
of food products or pharmaceuticals. The required analysis may be made by a
private or government health agency. The certificate must be legalized by a
foreign consul of the country concerned, as is the case with such similar
certificates as the phytosanitary certificate.
Certificate of Inspection:
A document certifying that the goods were in apparent good condition immediately
prior to shipment.
Certificate of Manufacture:
A statement in which a producer specifies where his goods were manufactured,
certifies that manufacturing has been completed, and confirms that the goods are
at the buyer's disposal.
Certificate of Origin:
A statement signed by the exporter, or his agent, and attested to by a local
Chamber of Commerce, indicating that the goods being shipped, or a major
percentage of them, originated and were produced in the exporter's country.
CES: Is a Customs
CFR: Cost and Freight
- One of the thirteen Inco terms and one of four 'C' terms.
seller must clear the goods for export.
A sales term denoting that
the seller is responsible for arranging and paying for the carriage of goods to
the agreed port of discharge, excluding insurance costs.
CFR is used for goods that
are to be carried by sea.
CFS (Container Freight Station):
The term CFS at loading port means the location designated by carriers for the
receiving of cargo to be packed into containers by the carrier. At discharge
ports, the term CFS means the bonded location designated by carriers in the port
area for unpacking and delivery of cargo.
CFS CHARGE (Container Freight Charge):
The term CFS Charge means the charge assessed for services performed at the
loading or discharging port in packing or unpacking of cargo into/from
containers at CFS.
CFS Receiving Service:
The term "CFS Receiving Services" means the service performed at loading port in
receiving and packing cargo into containers from CFS to CY or shipside. "CFS
Receiving Services" referred herein are restricted to the following
empty containers from CY to CFS
Drayage of loaded
containers from CFS to CY and/or ship's tackle
Physical movement of cargo
into, out of and within CFS
Stuffing, sealing and
Ordinary sorting and
internal container load plan
CFS/CFS (Pier to Pier):
The term CFS/CFS means cargo delivered by break-bulk to Carrier's CFS to be
packed by Carrier into containers and to be unpacked by Carrier from the
container at Carrier's destination port CFS.
CFS/CY (Pier to House):
The term CFS/CY means cargo delivered break-bulk to Carrier's CFS to be packed
by Carrier into containers and accepted by consignee at Carrier's CY and
unpacked by the consignee off Carrier's premises, all at consignee's risk and
CH: Custom House
Chargeable Kilo: Rate
for goods where volume exceeds six cubic metres to the tonne.
Charges to be paid by the buyer on arrival of the goods.
Charter party Bill of Lading:
A bill of lading issued under a charter party. It is not acceptable by banks
under letters of credit unless so authorized in the credit.
Charter Party: The
contract between the owner of a ship and the individual or company chartering
it. Among other specifications, the contract usually stipulates the exact
obligations of the ship-owner (loading the goods, carrying the goods to a
certain point, returning to the charterer with other goods, etc.); or it
provides for an outright leasing of the vessel to the charterer, who then is
responsible for his own loading and delivery. In either case, the charter party
sets forth the exact conditions and requirements agreed upon by both sides.
meant a flight where a shipper contracted hire of an aircraft from an airline.
Has usually come to mean any non-scheduled commercial service.
Charterer: Person or
company who hires a ship from a ship owner for a period of time.
Chassis: A wheel
assemble including bogies constructed to accept mounting of containers.
CIA: The acronym
meaning "cash in advance," a method of payment for goods whereby buyer pays
seller in advance of shipment of goods.
CIF & C: Cost,
Insurance, and Freight & Commission
CIF & E: Cost,
Insurance, and Freight & Exchange
CIF & I:
Cost, Insurance, and Freight & Interest
CIF (cost, insurance and freight):
Seller is responsible for inland freight, ocean/air freight, and marine/air
insurance to the port of final entry in the buyer's country. The buyer is
responsible for inland transportation to his or her location.
CIFC & I: Cost,
Insurance, Freight, and Commission & Interest
CIP: Carriage and
Insurance Paid To - One of the thirteen Inco terms and one of four 'C' terms.
seller has the same obligation asunder CPT but is also responsible for contracts
for insurance of goods during the carriage. The seller also pays the insurance
Under CIP the seller is
only required to obtain minimum insurance cover.
of International Trading Houses Associations
Class Rates: A class
of goods or commodities is a large grouping of various items under one general
heading. All items in the group make up a class. The freight rates that apply to
all items in the class are called class rates.
Classification: is a
customs term. The placement of an item under the correct number in the customs
tariff for duty purposes. At times this procedure becomes highly complicated; it
is not uncommon for importers to resort to litigation over the correct duty to
be assessed by the customs on a given item.
Claused Bill of Lading:
Is a bill of lading which has exemptions to the receipt of merchandise in
"apparent good order" noted.
Clean Bill of Lading:
is a bill of lading, which covers goods, received in "apparent good order and
condition" and without qualification.
Clean Draft: Is a
draft to which no documents have been attached.
Liaison Committee of Common Market Forwarders
CM (cm): Centimeters
CNS: Cargo Network
Services, an IATA company. See IATA.
COD: Cash on delivery,
customers own delivery
Collective Paper: All
documents (commercial invoices, bills of lading, etc.) submitted to a buyer for
the purpose of receiving payment for a shipment.
Combi: Is an aircraft
with pallet or container capacity on its main deck as well as in its belly
Container/Break-bulk vessel - this type of ship accommodates both container and
break-bulk cargo. It can be either self-sustaining or non-self sustaining.
Combo/Combi: Combination vessel:
A dry vessel designed to carry either dry bulk (grain, etc,) break bulk or
containers. Such vessels are normally equipped with their own cranes.
Commercial Code: A
published code designed to reduce the total number of words required in a
Commercial Invoice: An
itemized list of goods shipped, usually included among an exporter's collection
Commercial Risk: Risk
carried by the exporter (unless insurance is secured) that the foreign buyer may
not be able to pay for goods delivered on an open account basis.
An official authorized by the U.S. Treasury to determine proper tariff and value
of imported goods.
Common Carrier: A firm
or individual that transports persons or goods for compensation.
Conference: A group of
vessel operators joined together for the purpose of establishing freight rates.
Vessel: Ship designed to accommodate containers and roll-on roll-off
cargo. It can be self-sustaining.
Designated to accommodate three types of cargo, usually self-sustaining.
Confirmed Letter of Credit:
A letter of credit, issued by a foreign bank with validity confirmed by a U.S.
Confirmed Letter of Credit:
A letter of credit, issued by a foreign bank, with validity confirmed by a U.S.
bank. An exporter who requires a confirmed letter of credit from the buyer is
assured of payment by the U.S. bank even if the foreign buyer or the foreign
taking and holding of private property by government or agency acting for a
government. Compensation may or may not be given to the owner of the property.
Consignee Marks: A
symbol laced on packages for identification purposes; generally consisting of a
triangle, square, circle, diamond, cross, with letters and/or numbers as well as
port of discharge.
Consignee: Person or
firm to whom goods are shipped under a bill of landing.
individual or company, to whom a seller or shipper sends merchandise and who,
upon presentation of necessary documents, is recognized as merchandise owner for
the purpose of declaring and paying customs duties and taking the property of
the goods in his possession.
Consignment: Is the
physical transfer of goods from a seller (consignor) with whom the title
remains, to another legal entity (consignee) who acts as a selling agent,
selling the goods and remitting the new proceeds to the consignor.
Consignor: A term used
to describe any person who consigns goods to himself or to another party in a
bill of lading or equivalent document. A consignor might be the owner of the
goods, or a freight forwarder who consigns goods on behalf of his principal.
An arrangement whereby various shippers pool their boxed goods on the same
shipment, sharing the total weight charge for the shipment.
agent, which brings together a number of shipments for one destination to
qualify for preferential airline rates.
Consortium: The name
for an agreement under which several nations or nationals (usually corporations)
of more than one nation, join together for a common purpose. It could be for
management or exploitation of a natural resource, as in the case of some
international petroleum consortiums.
Consul: A government
official residing in a foreign country, charged with representing the interests
of his or her country and its nationals.
A formal statement, made to the consul of a foreign country, describing goods to
Special forms signed by the consul of a country to which cargo is destined.
Consular Invoice: A
document, required by some foreign countries, describing a shipment of goods and
showing information such as the consignor, consignee, and value of the shipment.
Certified by a consular official of the foreign country, it is used by the
country's customs officials to verify the value, quantity and nature of the
A document, required by some foreign
countries, describing a shipment of goods and showing information such as the
consignor, consignee, and value of the shipment. Certified by consular official
of the foreign, it is used by the country's customs official to verify the
value, quantity, and nature of the shipment.
Container: Metal box
used for the carriage of cargo. Usual dimensions 20 x 8 x 8.5ft or 40 x 8 x
Money paid by the shipper for the use of containers or other Line owned
equipment beyond a specified ‘free time’ period.
Container Ship: Ocean
going ship designed to carry containers both internally and on deck. Some are
Container vessel: Ship
specially designed to carry shipping containers. The vessel often has bays into
which the containers are lowered and where they are held in place by upright
steel sections called cell guides. Containers are frequently carried on deck
where they need to be lashed and secured.
Container: The term
container means a single rigid, non-disposable dry cargo, insulated, temperature
controlled flat rack, vehicle rack portable liquid tank, or open top container
without wheels or bogies attached, having not less than 350 cubic feet capacity,
having a closure or permanently hinged door that allows ready access to the
cargo (closure or permanently hinged door not applicable to flat rack vehicle
rack or portable liquid tank). All types of containers will have constructions,
fittings and fastenings able to withstand without permanent distortion, all the
stresses that may be applied in normal service use of continuous transportation.
All containers must bear manufacturer's specifications.
Containerization: Is a
concept for the ultimate unitizing of cargo used by both steamship lines and air
cargo lines. Containers allow a greater amount of cargo protection from weather,
damage, and theft.
Containers (Air Cargo):
Many types of air cargo containers are offered: The containers are designed in
various sizes and irregular shapes to conform to the inside dimensions of a
Are designed to be moved inland on its own chassis and can be loaded at
the shippers plant for shipment overseas. Basic types of containers are; dry
van, open top, half high, hi cube, flat rock, tank container, refrigerated
container, insulated container, tilting container. Average outside dimensions
are generally 20, 35, and 40 feet in length, 8 feet wide and 8 feet high
Continuous Bond: is an
annual customs bond insuring compliance with all regulations and requirements.
Contract Rate: Is a
charge levied by carriers selling capacity forward over a given route to a
shipper of forwarder; the client is therefore assured of capacity, which must be
paid for regardless of load carried.
Coordinating Committee for Export Controls (COCOM):
An informal group of 15 western countries established to prevent the export of
certain strategic products to potentially hostile nations.
Correspondent Bank: A
bank that, in its own country, handles the business of a foreign bank.
COU: Clip-on unit
Counter-trade: is a
reciprocal trading arrangement, which includes a variety of transactions
involving two or more parties.
is a special duties imposed on imports to offset the benefits of
subsidies to producers or exporters of the exporting country.
CPT: Carriage Paid To
- One of the thirteen Inco terms and one of four 'C' terms.
seller pays the freight for the carriage of the goods to the named destination.
Under CPT the seller must clear the goods for export i.e. obtain the export
license, pay export taxes and fees if required and furnish the buyer with the
invoice and relevant documents.
can be used for any mode of transport
Cranage: Charge for
use of wharf crane when a ship's own appliances for loading or unloading are now
Credit Risk Insurance:
Insurance designed to cover risks of nonpayment for delivered goods.
CRF: Clean Report of
Findings, details the quality, quantity and state of goods
Curl: Small nugget of
dense hardwood which has a high oil content. This is used for bearings and is
very rare. Sometimes used in Takaradi.
Customhouse Broker: An
individual or firm licensed to enter and clear goods through Customs.
Customs Bonded Warehouse:
Is a warehouse where imported goods may be stored for a total of three years
without the payment of duty or taxes.
Customs Court: Is the
court to which importers might appeal or protest decisions made by Customs
Customs Tariff: Is a
schedule of charges assessed by the federal government on imported goods.
Customs Union: Is an
agreement between two or more countries in which they arrange to abolish tariffs
and other import restrictions on each other's goods and establish a common
tariff for the imports of all other countries.
CWE: Cleared without
CWO: The acronym
meaning "cash with order," a method of payment for goods where cash is paid at
the time of order and the transaction becomes binding on both buyer and seller.
CY (Container Yard):
The term CY means the location designated by Carrier in the port terminal area
for receiving, assembling, holding, storing and delivering containers, and where
containers may be picked up by shippers or re-delivered by consignees. No
container yard (CY) shall be a shipper's, consignee's, NVOCC's, or a forwarder's
place of business, unless otherwise provided.
CY/CFS (House to Pier):
The term CY/CFS means containers packed by shipper of carrier's premises and
delivered by shipper to Carrier's CY, all at shipper's risk and expense and
unpacked by Carrier at the destination port CFS.
CY/CY (House to House):
The term CY/CY means containers packed by shipper off Carrier's premises and
delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY
and unpacked by consignee off Carrier's premises, all at the risk and expense of
Cash Against Documents (CAD):
Method of payment for goods in
which documents transferring title are given the buyer upon payment of cash to
an intermediary acting for the seller, usually a commission house.
Cash in Advance (CIA):
A method of payment for goods in
which the buyer pays the seller in advance of the shipment of goods. Usually
employed when the goods, such as specialized machinery, are built to order.
Cash With Order (CWO):
A method of payment for goods in
which cash is paid at the time of order and the transaction becomes binding on
both buyer and seller.
Abbreviation for "Cubic Meter."
Abbreviation for "Consumption
Entry." The process of declaring the importation of foreign made goods for use
in the United States.
The construction system employed in
container vessels; permits ship containers to be stowed in a vertical line with
each container supporting the one above it.
Center of Gravity:
The point of equilibrium of the
total weight of a containership, truck, train or a piece of cargo.
A document certifying that
merchandise (such as of Inspection perishable goods) was in good condition
immediately prior to its shipment.
document issued by the U.S. Coast Guard certifying an American flag vessel's
compliance with applicable laws and regulations.
Certificate of Origin:
A certified document showing the origin of
goods; used in international commerce.
Abbreviation for "Container
Freight Station." A shipping dock where cargo is loaded ("stuffed") into or
unloaded ("stripped") from containers. Generally, this involves less than
container load shipments, although small shipments destined to same consignee
are often consolidated. Container reloading from/to rail or motor carrier
equipment is a typical activity.
A written contract between the
owner of a vessel and the person desiring to employ the vessel (charterer); sets
forth the terms of the arrangement such as duration of agreement, freight rate
and ports involved in the trip.
A frame with wheels and container
locking devices in order to secure the container for movement.
A piece of wood or other material
placed at the side of cargo to prevent rolling or moving sideways.
Abbreviation for "Cost and
Insurance." A price that includes the cost of the goods, the marine insurance
and all transportation charges except the ocean freight to the named point of
Abbreviation for "Cost, Insurance,
Freight." (Named Port) Same as C&F or CFR except seller also provides insurance
to named destination.
Price includes commission as well as CIF.
CIF & E:
Abbreviation for "Cost, Insurance,
Freight And Exchange."
Abbreviation for "Cost, Insurance,
Freight, Collection And Interest."
CIFI & E:
Cost, Insurance, Freight, Interest
Abbreviation for "Completely
Knocked Down." Parts and sub-assemblies being transported to an assembly plant.
Abbreviation for "Carload" and "Containerload".
A demand made upon a transportation
line for payment on account of a loss sustained through its alleged negligence.
A publication, such as Uniform
Freight Classification (railroad) or the National Motor Freight Classification
(motor carrier), that assigns ratings to various articles and provides bill of
lading descriptions and rules.
The designation provided in a
classification by which a class rate is determined.
A railroad yard with many tracks used for
assembling freight trains.
An anti - trust act of the U.S.
Congress making price discrimination unlawful.
Clean Bill of Lading:
A receipt for goods issued by a
carrier with an indication that the goods were received in "apparent good order
and condition," without damage or other irregularities. If no notation or
exception is made, the B/L is assumed to be "cleaned."
Cleaning in Transit:
The stopping of articles, such as
peanuts, etc., for cleaning at a point between the point of origin and
The size beyond which cars or loads
cannot use Limits bridges, tunnels, etc.
A strip of wood or metal used to
afford additional strength, to prevent warping, or to hold in place.
Refrigeration equipment attachable
to an insulated container that does not have its own refrigeration unit.
Abbreviation for "Cubic Meter"
Abbreviation for "centimeter."
transportation along the coast.
(cash ) on Delivery
on Docket (pricing).
Abbreviation for the Railway
Service "Container On Flat Car."
Carriage of Goods by Sea Act. U.S.
federal codification passed in 1936, which standardizes carrier's liability
under carrier's bill of lading. U.S. enactment of The Hague Rules.
A bank that acts as an agent to the
seller's bank (the presenting bank). The collecting bank assumes no
responsibility for either the documents or the merchandise.
A draft drawn on the buyer, usually
accompanied by documents, with complete instructions concerning processing for
payment or acceptance.
Combination Export Mgr.:
A firm that acts as an export sales
agent for more than one non-competing manufacturer.
A rate made up of two or more
factors, separately published.
Represents a complete record of the
transaction between exporter and importer with regard to the goods sold. Also
reports the content of the shipment and serves as the basis for all other
documents about the shipment.
Article shipped. For dangerous and
hazardous cargo, the correct commodity identification is critical.
A rate published to apply to a
specific article or articles.
A transportation company which
provides service to the general public at published rates.
Law that derives its force and
authority from precedent, custom and usage rather than from statutes,
particularly with reference to the laws of England and the United States.
Damage that is not evident from
viewing the unopened package.
An association of ship owners operating in the
same trade route who operate under collective conditions and agree on tariff
Confirmed Letter of Credit:
A letter of credit, issued by a
foreign bank, whose validity has been confirmed by a domestic bank. An exporter
with a confirmed letter of credit is assured of payment even if the foreign
buyer or the foreign bank defaults.
The bank that adds its confirmation to another
bank's (the issuing bank's) letter of credit and promises to pay the beneficiary
upon presentation of documents specified in the letter of credit.
A carrier, which has a direct physical
connection with, or forms a link between two or more carriers.
A person or company to whom
commodities are shipped.
A symbol placed on packages for identification
purposes; generally a triangle, square, circle, etc. with letters and/or numbers
and port of discharge.
stock of merchandise advanced to a dealer and located at his place of business,
but with title remaining in the source of supply.
A shipment of goods to a consignee.
A person or company shown on the
bill of lading as the shipper.
Cargo containing shipments of two
or more shippers or suppliers. Containerload shipments may be consolidated for
one or more consignees.
A person or firm performing a
consolidation service for others. The consolidator takes advantage of lower full
carload (FCL) rates, and savings are passed on to shippers.
Construction Differential Subsidy:
A program whereby the U.S.
government attempted to offset the higher shipbuilding cost in the U.S. by
paying up to 50% of the difference between cost of U.S. and non U.S.
construction. The difference went to the U.S. shipyard. It is un-funded since
A government official residing in a
foreign country who represents the interests of her or his country and its
A formal statement describing goods
to be shipped; filed with and approved by the consul of the country of
destination prior to shipment.
A document, certified by a consular
official, is required by some countries to describe a shipment. Used by Customs
of the foreign country, to verify the value, quantity and nature of the cargo.
An official signature or seal
affixed to certain documents by the consul of the country of destination.
Consumption Entry (CE):
The process of declaring the importation
of foreign-made goods into the United States for use in the United States.
A truck trailer body that can be
detached from the chassis for loading into a vessel, a rail car or stacked in a
container depot. Containers may be ventilated, insulated, refrigerated, flat
rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A
container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0"
or 8'6" in width, and 8'6" or 9'6" in height.
Arrangements with a steamship line
to transport containerized cargo.
Container Freight Station:
Document showing contents and
loading sequence of a container.
An agreement between parties that
allows the efficient use and supply of containers. A common supply of containers
available to the shipper as required.
An area designated for the stowage
of cargoes in container; usually accessible by truck, railroad and marine
transportation. Here containers are picked up, dropped off, maintained and
Container Yard (CY):
A materials handling/storage facility
used for completely unitized loads in containers and/or empty containers.
Commonly referred to as CY.
Cargo that will fit into a
container and result in an economical shipment.
Stowage of general or special
cargoes in a container for transport in the various modes.
A load sufficient in size to fill a
container either by cubic measurement or by weight.
Cargo that is prohibited.
A legally binding agreement between
two or more persons/organizations to carry out reciprocal obligations or value.
Any person not a common carrier
who, under special and individual contracts or agreements, transports passengers
or property for compensation.
Sophisticated, computer controlled
systems that manage the mixtures of gases within a container throughout an
intermodal journey reducing decay.
Vertical frame components fitted at
the corners of the container, integral to the corner fittings and connecting the
roof and floor structures. Containers are lifted and secured in a stack using
the castings at the ends.
A bank that, in its own country,
handles the business of a foreign bank.
Cost, Insurance and Freight (CIF):
Cost of goods, marine insurance and
all transportation (freight) charges are paid to the foreign point of delivery
by the seller.
An additional duty imposed to
offset export grants, bounties or subsidies paid to foreign suppliers in certain
countries by the government of that country for the purpose of promoting export.
Transverse members fitted to the
bottom side rails of a container, which support the floor.
An abbreviation for "Cubic." A unit
of volume measurement.
When a container or vessel has
reached its volumetric capacity before its permitted weight limit.
1,728 cubic inches. A volume contained
in a space measuring one foot high, one foot wide and one foot long.
A government office where duties
are paid, import documents filed, etc., on foreign shipments.
A person or firm, licensed by the
treasury department of their country when required, engaged in entering and
clearing goods through Customs for a client (importer).
Government agency charged with
enforcing the rules passed to protect the country's import and export revenues.
Customs Bonded Warehouse:
A warehouse authorized by Customs
to receive duty-free merchandise.
All countries require that the
importer make a declaration on incoming foreign goods. The importer then
normally pays a duty on the imported merchandise. The importer's statement is
compared against the carrier's vessel manifest to ensure that all foreign goods
are properly declared.
A form requiring all data in a
commercial invoice along with a certificate of value and/or a certificate of
origin. Required in a few countries (usually former British territories) and
usually serves as a seller's commercial invoice.
Customs of the Port:
A phrase often included in charter
parties and freight contracts referring to local rules and practices which may
impact upon the costs borne by the various parties.
The latest time cargo may be
delivered to a terminal for loading to a scheduled train or ship.
Hundred weight (United States, 100
for Container Yard
designation for full container receipt/delivery.
Abbreviation for "Dangerous and
Abbreviation for "Doing Business
As." A legal term for conducting business under a registered name.
"Destination Delivery Charge." A charge, based on container size, that is
applied in many tariffs to cargo. This charge is considered accessorial and is
added to the base ocean freight. This charge covers crane lifts off the vessel,
drayage of the container within the terminal and gate fees at the terminal
D.W: Deadweight (tons
of 2,240 lbs.)
D.W.C: Deadweight for
D/O: Delivery order
DAF: Delivered At
Frontier - One of the thirteen Inco terms and one of five 'D' terms.
seller is obliged to deliver the goods at the frontier before the customs border
of the adjoining country. The goods should be made available and cleared for
export. The seller must also provide documents to enable the buyer to take
delivery such as the document of transport or warehouse warrant.
Articles or substance capable of posing a significant risk to health, safety or
property, and that ordinarily require special attention when being transported.
Date Draft: Draft that
matures in a specified number of days after the date it is issued, without
regard to the date of Acceptance. See Draft.
DCA: Department of
Civil Aviation. Commonly used term to denote the government department of any
foreign country that is responsible for aviation regulation and granting traffic
DDP: Delivered duty
paid. Also known as "free domicile."
Delivered duty unpaid. Reflects the emergence
of "door-to-door" intermodal or courier contracts or carriage where only the
destination customs duty and taxes (if any) are paid by consignee.
Dead Freight: means
freight charges paid by the charterer of vessel for the contracted space, which
is left partially unoccupied.
Dead Leg: is a sector
flown without payload.
Deck Cargo: Is cargo
carried on deck rather than stowed under deck. On deck carriage is required for
certain commodities, such as explosives.
Deferred Payment Credit:
Type of letter of credit providing for payment some time after presentation of
shipping documents by exporter.
Deferred Rebate: The
return of a portion of the freight charges by a carrier or a conference shipper
in exchange for the shipper giving all or most of his shipments to the carrier
or conference over a specified period of time (usually 6 months). Payment of the
rate is deferred for a further similar period, during which the shipper must
continue to give all or most of his shipments to the rebating carrier or
conference. The shipper thus earns a further rebate which will not, however, be
paid without an additional period of exclusive or almost exclusive patronage
with the carrier of conference. In this way, the shipper becomes tied to the
rebating carrier or conference. Although, the deferred rebate system is illegal
in U.S. foreign commerce, it generally is accepted in the ocean trade between
Demurrage: A penalty
for exceeding free time allowed for loading or unloading at a pier or freight
terminal. Also a charge for undue detention of transportation equipment or
carriers in port while loading or unloading.
Density: Density means
pounds per cubic foot. The cubage of loose articles or pieces, or packaged
articles of a rectangular, elliptical or square shape on one plane shall be
determined by multiplying the greatest straight line dimensions of length, width
and depth in inches, including all projections, and dividing the total by 1728
(to obtain cubic feet). The density is the weight of the article divided by the
cubic feet thus obtained.
DEQ: Delivered Ex Quay
(Duty Paid) - One of the thirteen Inco terms and one of five 'D' terms.
seller is obliged to deliver the goods on the quay at the port of destination,
cleared for importation. The seller must pay unloading costs and provide import
clearance such as import licences, pay duties, taxes and fees. The buyer simply
takes delivery of the goods.
DES: Delivered Ex Ship
- One of the thirteen Inco terms and one of five 'D' terms.
seller is obliged to deliver the goods on board the ship at the port of
destination, uncleared for importation.
seller must provide documents to enable the buyer to take delivery of the goods
i.e. the bill of lading.
buyer must pay unloading costs and provide import clearance ie duties, taxes &
Destination Control Statement:
Any of various statements that the U.S. government requires to be displayed on
export shipments and that specify the destination for which export of the
shipment has been authorized.
One leg of a move without a paying
cargo load. Usually refers to repositioning an empty piece of equipment.
A long ton of cargo that can be
stowed in less than 40 cubic feet.
The number of tons of 2,240 pounds
that a vessel can transport of cargo, stores and bunker fuel. It is the
difference between the number of tons of water a vessel displaces "light" and
the number of tons it displaces when submerged to the "load line."
Place where loose or other
non-containerized cargo is ungrouped for delivery.
The weight by which a shipment is less than
the minimum weight.
Order to pick up goods at a named
place and deliver them to a pier. Usually issued by exporter to trucker but may
apply to a railroad, which completes delivery by land. Use is limited to a few
major U.S. ports. Also known as shipping delivery order.
(Under vessel chartering terms, the amount to be paid if the ship is
loading/discharging slower/faster than foreseen.)
A penalty charge against shippers or
consignees for delaying the carrier's equipment beyond the allowed free time.
The free time and demurrage charges are set forth in The charter party or
also Detention and Per Diem.
The weight of cargo per cubic foot
or other unit.
Container freight station or a
designated area where empty containers can be picked up or dropped off.
An incentive payment paid to a
carrier to loading and unloading the cargo faster than agreed. Usually
negotiated only in charter parties.
place to which a shipment is consigned.
place where carrier actually turns over cargo to consignee or his agent.
Destination Control Statements:
Various statements that the U.S.
government requires to be displayed on export shipments. The statements specify
the authorized destinations.
A penalty charge against shippers
or consignees for delaying carrier's equipment beyond allowed time. Demurrage
applies to cargo; detention applies to equipment. See Per Diem.
The unloading of a container or
Dangerous Goods Note
DGR: Dangerous Goods
Dimensional Weight or Volume freight:
( Dimensionalized Weight) Determined by calculating length x width x height and
dividing by 166. Charged when actual weight is less than the dim. weight.
paid out by a ship’s agent at a port on behalf of the owner.
goods from a ship.
Damage Free Car. Boxcars equipped
with special bracing material.
An amount added or deducted from
base rate to make a rate to or from some other point or via another route.
Discrepancy Letter of Credit:
When documents presented do not
conform to the requirements of the letter of credit (L/C), it is referred to as
a "discrepancy." Banks will not process L/C's which have discrepancies. They
will refer the situation back to the buyer and/or seller and await further
The weight, in tons of 2,240
pounds, of the vessel and its contents. Calculated by dividing the volume of
water displaced in cubic feet by 35, the average density of sea water.
A change made either in the route
of a shipment in transit (see Reconsignment) or of the entire ship.
Carriers' practice of dividing
revenue received from through rates where joint hauls are involved. This is
usually according to agreed formulae.
Dock Receipt: When
cargo is delivered to a steamship company at the pier, the receiving clerk
issues a dock receipt.
Documents Against Acceptance (D/A):
Instructions given by a shipper to a bank indicating that documents transferring
title goods should be delivered to the buyer (or drawee) only upon the buyer's
acceptance of the attached draft.
DOT: Department of
ships, a cargo handling area parallel to the shoreline where a vessel normally
land transportation, a loading or unloading platform at an industrial location
or carrier terminal.
A form used to acknowledge receipt of cargo
and often serves as basis for preparation of the ocean bill of lading.
Present a rate proposal to a
conference meeting for adoption as a conference group rate.
Documents Against Acceptance (D/A):
Instructions given by a shipper to
a bank indicating that documents transferring title to goods should be delivered
to the buyer only upon the buyer's acceptance of the attached draft.
Documents Against Payment (D/P):
An indication on a draft that the
documents attached are to be released to the drawee only on payment.
A set of wheels that support the
front of a container; used when the automotive unit is disconnected.
Through transportation of a
container and its contents from consignor to consignee. Also known as House to
House. Not necessarily a through rate.
Department of Transportation.
DST: The acronym
meaning "double stack train" service, which is the transport rail between two
points of a trainload of containers with two containers, one on top of the
other, per chassis.
DTI: Department of
Trade and Industry
Dunnage: Materials of
various types, often timber or matting, placed among the cargo for separation,
and hence protection from damage, for ventilation and, in the case of certain
cargoes, to provide a space in which the tynes of a forklift truck may be
Weight of cargo, stores and water, i.e. the difference between lightship and
number of feet that the hull of a ship is beneath the surface of the water.
unconditional order in writing, addressed by one party (drawer) to another party
(drawee), requiring the drawee to pay at a fixed or determinable future date a
specified sum in lawful currency to the order of a specified person.
An order issued by a seller against
a purchaser; directs payment, usually through an intermediary bank. Typical bank
drafts are negotiable instruments and are similar in many ways to checks on
checking accounts in a bank.
A draft to which no documents are
A draft that matures on a fixed
date, regardless of the time of acceptance.
A time draft under a letter of
credit that has been accepted and purchased by a bank at a discount.
A draft payable on demand upon
Draft (or Bill of Exchange):
An unconditional order in writing from one person (the drawer) to another (the
drawee), directing the Drawee to pay a specified amount to a named Drawer at a
fixed or determinable future date.
Draft: Widely used
alternative spelling of draught. Depth to which a ship is immersed in the water.
This depth varies according to the design of the ship and will be greater or
lesser depending not only on the weight of the ship and everything on board, but
also on the density of the water in which the ship is lying.
Drawback: A U.S.
customs law that permits an American exporter to recover duties paid on imported
foreign raw materials or components included in products that are subsequently
exported out of the United States.
Drawee: The individual
or firm on whom a draft is drawn and who owes the stated amount to the drawer.
Dry Lease: The rental
of a "clean" aircraft without crew, ground staff or supporting equipment.
Dry Van: A basic
A draft that matures at a fixed or
determinable time after presentation or acceptance.
A partial refund of an import fee.
Refund usually results because goods are re-exported from the country that
collected the fee.
The individual or firm that issues
a draft and thus stands to receive payment.
Charge made for local hauling by
dray or truck. Same as Cartage.
Abbreviation for "Destination Rail
Freight Station." Same as CFS at destination, except a DRFS is operated by the
rail carrier participating in the shipment.
Delay in Startup Insurance is a
policy to protect the seller of a construction project from penalties if the
project is not completed on time. See "Liquidated Damages."
Cargo that is not liquid and
normally does not require temperature control.
A container constructed to carry
grain, powder and other free-flowing solids in bulk. Used in conjunction with a
tilt chassis or platform.
Dumping: Attempting to import
merchandise into a country at a price less than the fair market value, usually
through subsidy by exporting country.
Eastern Central Motor Carriers
An angle piece fitted over the edge
of boxes, crates, bundles and other packages to prevent the pressure from metal
bands or other types from cutting into the package.
Signifies that the quoted price applies only at the indicated point of origin
(e.g. "price ex factory" means that the quoted price is for the goods available
at the factory gate of the seller).
E.A.O.N.: Except as
EAR: Export after
Commission for Europe
ECI: port Consignment
ECOFIN: Economic and
Financial Affairs Council (EC)
ECPD: Export Cargo
EDI or EDIFACT:
Electronic Data Interchange for Administration, Commerce and Transport, from the
UN-backed electronic data interchange standards body, to create electronic
versions of common business documents that will work on a global scale. One
digital document under consideration, the International Forwarding and Transport
Message will do the jobs of six different electronic messages currently in use.
EFTA: European Free
Empty Leg: Results
from an aircraft primarily chartered outbound having cargo capacity inbound or
vice versa. A cheap form of airfreight to cover fixed return leg costs.
Endorsee: Person to
whom a bill of exchange is transferred by the endorsement of a third party.
Endorsement in Blank:
Commonly used on a bank check, an endorsement in blank is an endorsement to the
bearer. It contains only the name of the endorser and specifies no particular
payee. Also, a common means of endorsing bills of lading dawn to the order of
the shipper. The bills are endorsed "For..." (See Bill of Lading, Order).
Endorser: One who
endorses a bill, and thereby accepts liability for it.
ERP: Economic Recovery
Programme for the cocoa industry in Ghana launched in 1983
ETA: Estimated Time of
ETD: Estimated Time of
ETS: Estimated Time of
EU: European Union
dollars on deposit outside of the United States to include dollars on deposit at
foreign branches of U.S. banks, and dollars on deposit with foreign banks.
Abbreviation for "Electronic Data
Interface." Generic term for transmission of transactional data between computer
systems. EDI is typically via a batched transmission, usually conforming to
International data interchange
standards sponsored by the United Nations. See UN/EDIFACT.
charge for services performed in connection with floating elevators.
assessed for the handling of grain through grain elevators.
An act of Congress (1903)
prohibiting rebates, concession, mis-billing, etc. and providing specific
penalties for such violations.
Order to restrict the hauling of
The sovereign power to take
property for a necessary public use, with reasonable compensation.
Contraction for Empty
Repositioning. The movement of empty containers.
A legal signature usually placed on
the reverse of a draft; signifies transfer of rights from the holder to another
Customs documents required to clear
an import shipment for entry into the general commerce of a country.
A monetary allowance to the
customer for picking up or delivering at a point other than the destination
shown on the bill of lading. This provision is covered by tariff publication.
Equipment Interchange Receipt (EIR):
A document transferring a container
from one carrier to another, or to/from a terminal.
Time of Availability. That time when a tractor/partner carrier is available for
time of arrival.
A gas produced by many fruits and
vegetables that accelerates the ripening and aging processes.
EU: European Union
dollars on deposit outside of the United States to include dollars on deposit at
foreign branches of U.S. banks, and dollars on deposit with foreign banks.
Eastern Weighing and Inspection Bureau.
Contraction for "Shipper's Export
Ex - "From":
When used in pricing terms such as
"Ex Factory" or "Ex Dock," it signifies that the price quoted applies only at
the point of origin indicated.
Notations made when the cargo is
received at the carrier's terminal or loaded aboard a vessel. They show any
irregularities in packaging or actual or suspected damage to the cargo.
Exceptions are then noted on the bill of lading.
Abbreviation for Export-Import Bank
of the United States. An independent U.S. Government Agency which facilitates
exports of U.S. goods by providing loan guarantees and insurance for repayment
of bank-provided export credit.
Issued in connection with documents
such as letters of credit, tariffs etc. to advise that stated provisions will
expire at a certain time.
Shipment of goods to a foreign
A government document declaring
designated goods to be shipped out of the country. To be completed by the
exporter and filed with the U.S. Government.
A government document which permits
the "Licensee" to engage in the export of designated goods to certain
A rate published on traffic moving
from an interior point to a port for transshipment to a foreign country.
Ex. B.L.: Exchange
bill of lading.
Export Broker: The
individual who brings together buyer and seller for a fee, eventually
withdrawing from any transaction.
Export Declaration: A
form to be completed by the exporter or their authorized agent and filed in
triplicate by a carrier with the United State Collector of customs at the point
of exit. It serves a twofold purpose:
it is used by the U.S. Bureau of Census for the compilation of export statistics
on United States foreign trade (for this reason an export declaration is
required for practically all shipments from the United States to foreign
countries and the United States possessions, except for mail shipments of small
value, or for those of a non commercial character);
declaration also serves as an export control document because it must be
presented, together with the export license, to the United States Customs at the
port of export. If the goods may be exported under general export license, this
fact must be stated on the export declaration.
Export License: A
document secured from a government, authorizing an exporter to export a specific
quantity of a particular commodity to a certain country. An export license is
often required if a government has place embargoes or other restrictions upon
exports. See General Export License.
Export Trading Company:
A corporation or other business unit
organized and operated primarily for the purpose of exporting goods and
services, or of providing export related services to other companies.
service for urgent deliveries.
EXW: Ex Works - One of
the thirteen Inco terms.
represents the seller's minimum obligation.
seller fulfils his obligation to deliver when he has made the goods available at
his premises to the buyer.
is not responsible for loading the goods on the vehicle provided by the buyer or
for the clearing of the goods for export, unless otherwise agreed.
buyer bears all the costs and risks in taking the goods from the seller's
premises to the desired destination.
F. &. D.: Freight and
F.C.L.: Full container
load, full car load.
F.C.S: Free of capture
F.C.S.R.C. C: Free of
capture, seizure, riots and civil commotions.
F.I. B: Free in
bunkers; free into barge.
F. O. D: Free of
F.P.A.: Free of
Particular Average (Marine Insurance Term). A term used in marine insurance
policies to indicate that while the underwriter is unwilling to assume liability
for ordinary partial losses due to the peculiar qualities of the particular
article or to its form of package, he is willing to bear partial losses, the
direct result of stranding, sinking, burning, collision, or other named peril
F.P.A.A.C. F.p.a. (A.C.):
Free of Particular Average, American Conditions- (Marine Insurance Term). The
American form of clause commonly used, as distinguished from that used by the
English underwriters. Under the American clause the underwriter does not assume
responsibility for partial losses unless caused by stranding, sinking, burning
or collision with another vessel whereas under the English clause, the
underwriter assumes responsibility for partial losses if the vessel be stranded,
sunk, burnt or in collision even though such an event did not actually cause the
damage suffered by the goods. Conditions (See F.P.A.A.C.).
FAK: Freight All Kinds
- uniform airline charging scale applying to a number of commodities; as opposed
to SCR (Specific Commodity Rate) applying to one commodity only.
FAS (free alongside ship):
Seller is responsible for inland freight costs until goods are located alongside
the vessel/aircraft for loading. Buyer is responsible for loading costs, ocean
/air freight and marine/air insurance.
A factor is an agent who will, at a
discount (usually five to 8% of the gross), buy receivables.
Abbreviation for "Freight All
Kinds." Usually refers to full container loads of mixed shipments.
Misrepresenting freight or weight
on shipping documents.
Abbreviation for "Free Alongside
Conversion equivalents: 6 feet; 1.83 meters.
FBY: Free buyers yard:
As FOT but also includes delivery to buyer’s premises.
FCA: Free Carrier -
One of the thirteen Inco terms and one of three 'F' terms.
is the main term for handing over goods for carriage and can be used
irrespective of the mode of transport.
seller fulfills his obligation to deliver when he has handed over the goods,
cleared for export, into the charge of the carrier named by the buyer at the
named point. If no point has been indicated the seller may choose within the
range stipulated where the carrier should take charge of the goods.
FEU: Forty foot
Federation of Freight Forwarders Associations.
Fifth Freedom Flight:
Where cargo is carried by an airline between two countries in neither of which
it is based.
FILO: Free in, liner
out: Sea freight, which the shipper pays load costs and the carrier pays
FIO: Free in and out:
Freight booked FIO includes the sea freight, but not loading and discharging
FIOS: Free in and out
and stowed: As FIO but includes stowage costs.
FIOT: Free in and out
and trimmed: As above but includes trimming, e.g. the leveling out of bulk
First of Exchange:
First or principal copy of a bill of exchange to be presented and honoured the
other copies then being automatically cancelled.
Federation of International Traders
Flag Carrier: An
airline of one national registry whose government gives it partial or total
monopoly over international routes.
Flat: This is a piece
of equipment equivalent to the bottom of a container without sides. Often used
for stacking parcels of sawn timber and bags of cocoa. Otherwise known as a
pontoon or bolster.
FOB (free on board):
Seller is responsible for inland freight and all other costs until the cargo has
been loaded on the vessel/aircraft. Buyer is responsible for ocean/air freight
and marine/air insurance.
An article folded in such a manner as to
reduce its bulk 33 1/3% from its normal shipping cubage when not folded.
Force Majeure: The
title of a standard clause found in marine contracts exempting the parties for
non-fulfillment of their obligations by reasons of occurrences beyond their
control, such as earthquakes, floods or war.
Foreign Bill: A bill
of exchange drawn on an acceptor overseas.
Foreign Trade Zone Entry:
A form declaring goods, which are brought duty free into a Foreign Trade Zone
for further processing or storage and subsequent exportation.
Foreign Trade Zone: A
free port in the United Stated divorced from Customs authority but under Federal
control. Merchandise, except that which is prohibited, may be stored in the zone
without being subjected to the United States tariff regulation. Also called Free
Forwarder, Freight Forwarder, Foreign Freight Forwarder:
An independent business that dispatches shipments for exporters for a fee. The
firm may ship by land, air, or sea, or it may specialize. Usually it handles all
the services connected with an export shipment; preparation of documents,
booking cargo space, warehouse, pier delivery and export clearance. The firm may
also handle banking and insurance services on behalf of a client. The U.S.
forwarder is licensed by the Federal Maritime Commission for ocean shipments.
FOT: Free on truck:
Includes all loading, discharging and sea freight costs. Also includes costs of
placing goods onto trucks at the quay.
Foul Bill of Landing:
A receipt for goods issued by a carrier with an indication that the goods were
damaged when received.
FRA: Forward Rate
Free Alongside: Quoted
price includes the cost of delivering the goods alongside a designated vessel.
Free discharge: Free
out: Includes loading costs and sea freight only.
Free In (F.I.): Cost
of loading a vessel is borne by the charterer.
Free In and Out (F.I.O.):
Cost of loading and unloading a vessel is borne by the charterer.
Free of Capture and Seizure (F.C.& S.):
An insurance clause providing that loss is not insured if due to capture,
seizure, confiscation and like actions, whether legal or not , or from such acts
as piracy, civil war, rebellion and civil strife.
Free of Particular Average (F.P.A.):
A marine insurance clause providing that partial loss or damage is not insured
American conditions (F.P.A.A.C.). Partial loss is not insured unless caused by
the vessel being sunk, stranded, burned, on fire, or in collision. English
conditions (F.P. A.E.C.). Partial loss not insured unless a result of the vessel
being sunk, stranded, burned, on fire, or in collision.
Free Out (F.O.):
Cost of unloading a vessel is borne by the
Free Port: A port
which is a foreign trade zone, open to all traders on equal terms; more
specifically a port where merchandise may be stored duty-free, pending re-export
or sale within that country.
Free Trade Zone: A
port designated by the government of a country for duty-free entry of any
non-prohibited goods. Merchandise may be stored, displayed, used for
manufacturing, within the zone and re-exported without duties being paid. Duties
are imposed on the merchandise (or items manufactured from the merchandise) only
when the goods pass from the zone into an area of the country subject to the
Freight Account: The
debit note received from the ship owner for freight due on goods shipped.
Freight Collect Forward:
Payable by consignee.
Freight Forwarder: An
individual or company , acting on the behalf of a shipper, who arranges all
necessary details of shipping and documentation for a manufacturer or exporter,
which includes employing the services of a carrier of carriers.
Freight Release: Ship
owner’s authorization to captain to give delivery of goods, freight having been
paid on them.
FTA: Freight Transport
Association or Free Trade Agreements
FTL: Full Trailer Load
Abbreviation for "Full Container
Abbreviation for "Free Discharge."
Food and Drug Administration.
Cargo to/from regional ports are
transferred to/from a central hub port for a long-haul ocean voyage.
A short-sea vessel which transfers
cargo between a central "hub" port and smaller "spoke" ports.
Abbreviation for "Forty-Foot
Equivalent Units." Refers to container size standard of forty feet. Two
twenty-foot containers or TEU's equal one FEU.
The semi-circular steel-coupling
device mounted on a tractor which engages and locks with a chassis semi-trailer.
See Free In and Out.
A capacity measurement equal to
one-fourth of a barrel.
Costs that do not vary with the
level of activity. Some fixed costs continue even if no cargo is carried.
Terminal leases, rent and property taxes are fixed costs.
A rail car without a roof and
Flat Rack/Flat Bed Container:
A container with no sides and frame
members at the front and rear. Container can be loaded from the sides and top.
Federal Maritime Commission. The
U.S. Governmental regulatory body responsible for administering maritime affairs
including the tariff system, Freight Forwarder Licensing, enforcing the
conditions of the Shipping Act and approving conference or other carrier
See Free On Board. See also Terms
of Sale, FOB.
Abbreviation for "Free on Rail."
The title of a common clause in
contracts, exempting the parties for non-fulfillment of their obligations as a
result of conditions beyond their control, such as earthquakes, floods or war.
Fore and Aft:
The direction on a vessel parallel
to the center line.
Foreign Sales Corporation:
Under U.S. tax law, a corporation
created to obtain tax exemption on part of the earnings of U.S. products in
foreign markets. Must be set-up as a foreign corporation with an office
outside the USA.
Foreign Trade Zone:
A free port in a country divorced
from Customs authority but under government control. Merchandise, except that
which is prohibited, may be stored in the zone without being subject to import
A machine used to pick up and move
goods loaded on pallets or skids.
Foul Bill of Lading:
A receipt for goods issued by a
carrier with an indication that the goods were damaged when received. Compare
Clean Bill of Lading.
A pallet designed so that the forks
of a fork lift truck can be inserted from all four sides. See Fork lift.
See "Free of Particular Average."
Free Alongside (FAS):
The seller must deliver the goods
to a pier and place them within reach of the ship's loading equipment. See Terms
An astray shipment (a lost shipment
that is found) sent to its proper destination without additional charge.
Free In and Out (FIO):
Cost of loading and unloading a
vessel is borne by the charterer/shipper.
Free of Particular Average (FPA):
A marine insurance term meaning
that the assurer will not allow payment for partial loss or damage to cargo
shipments except in certain circumstances, such as stranding, sinking, collision
Free on Board (FOB - U.S. Domestic Use):
Shipped under a rate that includes
costs of delivery to and the loading onto a carrier at a specified point.
The same as FOB named inland carrier, except the buyer pays
the transportation charge and the seller reduces the invoice by a like amount.
Freight Prepaid: The
same as FOB named inland carrier, except the seller pays the freight charges of
the inland carrier.
Named Point of Exportation:
Seller is responsible for the cost of placing the goods at a
named point of exportation. Some European buyers use this form when they
actually mean FOB vessel.
Seller is responsible for goods and preparation of export
documentation until actually placed aboard the vessel.
Free on Board (Int'l Use):
See Terms of Sale.
Free Out (FO):
Cost of unloading a vessel is borne
by the charterer.
A restricted area at a seaport for
the handling of duty-exempted import goods. Also called a Foreign Trade Zone.
Free Sale Certificate:
The U.S. government does not issue
certificates of free sale. However, the Food and Drug Administration, Silver
Spring, Maryland, will issue, upon request, a letter of comment to the U.S.
manufacturers whose products are subject to the Federal Food, Drug and Cosmetic
Act or other acts administered by the agency. The letter can take the place of
That amount of time that a
carrier's equipment may be used without incurring additional charges. (See
Storage, Demurrage or Per Diem.)
Free Trade Zone:
A port designated by the government
of a country for duty-free entry of any non-prohibited goods. Merchandise may be
stored, displayed, used for manufacturing, etc., within the zone and re-exported
Refers to either the cargo carried
or the charges assessed for carriage of the cargo.
A document issued by the carrier
based on the bill of lading and other information; used to account for a
shipment operationally, statistically, and financially. An Invoice.
A person whose business is to act
as an agent on behalf of the shipper. A freight forwarder frequently makes the
Industry-related: A point at which
freight moving from one territory to another is interchanged between
Abbreviation for "General Agreement
on Tariffs and Trade." A multilateral treaty to help reduce trade barriers
between the signatory countries and to promote trade through tariff concessions.
The World Trade Organization (WTO) superseded GATT in 1994.
Gang: Group of
stevedores usually 4 to 5 members with supervisor assigned to a hold or portion
of the vessel being loaded or unloaded.
Gateway: Port of entry
into a country or region.
Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce
trade barriers and promote tariff concessions.
GCBS: General Council
of British Shipping
GCR: General Cargo
Rate. The basic tariff category which was introduced to cover most air cargo now
covers only a minority, the remainder being under SCR or class rates.
General Average: When
damage to cargo on board a vessel exceeds carrier's insurance, carrier will
release cargo only with an acceptance agreement to claim only a general
percentage of all the damage sustained.
Any cargo that is not carried in a container or vehicle/machinery that
can be loaded/discharged using its own power, e.g. palletized, bagged, bales,
bundles, crates, etc.
General Export License:
Any of various export licenses covering export commodities for which validated
export licenses are not required. No formal application or written authorization
is needed to ship exports under a general export license.
Government contract warehouse for the storage of cargoes left unclaimed for ten
working days after availability. Unclaimed cargoes are auctioned publicly after
GNP: Gross national
Gooseneck: Devise for
connecting a tug master to a mafi trailer. It is attached to the tug masters
Gross Weight: Entire
weight of goods, packing, and container, ready for shipment.
Groupage: A container
with cargoes from/for different shippers/receivers, i.e. containing more than
one shipper’s cargo. Otherwise known as LCL (Less than a container load)
GRT: Gross registered
GSA: General Sales
Agent acting on behalf of an airline. Usually Broker or Forwarder.
Abbreviation for "Government Bill
Abbreviation for "General
Department Store Merchandise." A classification of commodities that includes
goods generally shipped by mass-merchandise companies. This commodity structure
occurs only in service contracts.
General Order (G.O.):
When U.S. Customs orders shipments
without entries to be kept in their custody in a bonded warehouse.
Generator Set (Gen Set):
A portable generator which can be
attached to a refrigerated container to power the refrigeration unit during
In the Far East, a warehouse where
goods are stored and delivered.
The front rails of the chassis that
raise above the plane of the chassis and engage in the tunnel of a container
leading to the connection to tractor.
Abbreviation for "General Rate
Increase." Used to describe an across-the-board tariff rate increase implemented
by conference members and applied to base rates.
Gross Tonnage (GT):
Applies to vessels, not to cargo,
(0.2+0.02 log10V) where V is the volume in cubic meters of all
enclosed spaces on the vessel.
Entire weight of goods, packaging and freight
car or container, ready for shipment. Generally, 80,000 pounds maximum
container, cargo and tractor for highway transport.
A consolidation service, putting
small shipments into containers for shipment.
Abbreviation for "Gross Vehicle Weight." The combined total weight of a
vehicle and its container, inclusive of prime mover.
A multilateral maritime treaty
adopted in 1921 (at The Hague, Netherlands). Standardizes liability of an
international carrier under the Ocean B/L. Establishes a legal "floor" for B/L.
An officer who attends to the
berthing, etc., of ships in a harbor.
Harmonized Code: An
internationally accepted and uniform description system for classifying goods
for customs, statistical and other purposes.
A key provision of the recently signed trade bill, effective Jan. 1,
1989, that establishes international uniformity for product classifications.
Most U.S. Trading partners adopted it a year earlier, and it was drafted in
Brussels a decade ago with U.S. representatives' input. In essence, it is a new
tariff schedule in that it changes methods of rating some items.
Harmonized System of Codes (HS):
An international goods
classification system for describing cargo in international trade under a single
commodity-coding scheme. Developed under the auspices of the Customs
Co-operations Council (CCC), an international Customs organization in Brussels,
this code is a hierarchically structured product nomenclature containing
approximately 5,000 headings and subheadings. It is organized into 99 chapters
arranged in 22 sections. Sections encompass an industry (e.g., Section XI,
Textiles and Textile Articles); chapters encompass the various materials and
products of the industry (e.g., Chapter 50, Silk; Chapter 55, Manmade Staple
Fibers; Chapter 57, Carpets). The basic code contains four-digit headings and
six-digit subheadings. Many countries add digits for Customs tariff and
statistical purposes. In the United States, duty rates will be the eight-digit
level; statistical suffixes will be at the ten-digit level. The Harmonized
System (HS) is the current U.S. tariff schedule (TSUSA) for imports and is the
basis for the ten-digit Schedule B export code.
Hatch: The cover of -
or opening- in the deck of a vessel, through which cargo is loaded.
Heavy Lift Vessel:
Specifically designed to be self sustaining
with heavy lift cranes, to handle unusually heavy and/or out-sized cargoes.
Heavy Lifts: Freight
too heavy to be handled by regular ship's tackle.
HMC&E: Her Majesty's
Customs and Excise
HMC: Her Majesty's
HMSO: Her Majesty's
House Air Waybill: An
air waybill issued by a freight consolidator. See Air Waybill.
Hub: A central
location to which traffic from many cities is directed and from which traffic is
fed to other areas.
A short ton hundredweight = 100 pounds. Long ton hundredweight = 112 pounds.
Husbanding: Term used
by steamship lines, agents, or port captains who are appointed to handle all
matters in assisting the master of the vessel while in port to obtain bunkering,
fresh water, food and supplies, payroll for the crew, doctors appointments, ship
HVR: Hague-Visby Rules
The opening in the deck of a
vessel; gives access to the cargo hold.
An industry abbreviation for
A charge made for lifting articles
too heavy to be lifted by a ship's normal tackle.
Compression of a flat or standard
bale of cotton to approximately 32 pounds per cubic foot. Usually applies to
cotton exported or shipped coastwise.
The marrying of two or more
portions of one shipment that originate at different locations, moving under one
bill of lading, from one shipper to one consignee. Authority for this service
must be granted by tariff publication. See Bill of Lading.
A barge which loads material dumped
into it by a dredger and discharges the cargo through the bottom.
Cargo loaded into a container by
the shipper under shipper's supervision. When the cargo is exported, it is
unloaded at the foreign pier destination.
The process of connecting a moving rail car with a motionless rail car
within a rail classification yard in order to make up a train. The cars move by
gravity from an incline or "hump" onto the appropriate track.
Abbreviation for "Independent
Action." The right of a conference member to publish a rate of tariff rule that
departs from the Agreement's common rate or rule.
Container Transfer Facility, an on-dock facility for moving containers from ship
to rail or truck.
Container Transfer Facility, an on-dock facility for moving containers from ship
to rail or truck.
Including particular average
Air Transport Association.
Civil Aviation Organization. A specialized agency of the United Nations, with
headquarters in Montreal. Its task is to promote general development of civil
aviation (e.g. aircraft design and operation, safety procedures, contractual
International Chamber of Commerce
Chamber of Commerce."
International Commodities Clearing House
ICD: Inland Clearance
Cargo Handling Co-ordination Association
Chamber of Shipping or Institute of Chartered Shipbrokers
ID: Import Duty
IDR: Import Duty
Report, stipulates the value of an imported good and the amount to be paid as
duty. Nigeria only.
IFF: Institute of
designed to occupy full main deck width of carrying aircraft.
Maritime Dangerous Goods code
A certificate, issued by countries exercising
import controls, that permits importation of the articles stated in the license.
The issuance of such a permit frequently is connected with the release of
foreign exchange needed to pay for the shipment for which the import license has
In-Bond: A customs
program for inland ports that provide for cargo arriving at a seaport to be
shipped under a Customs bond to a more conveniently located inland port where
the entry documents have been filed. Customs clears the shipment there, and the
cargo is trucked to its destination, which normally is close to the inland port.
Inco terms: A
codification of terms used in foreign trade contracts that are maintained by the
International Chamber of Commerce.
Incremental Cost to Export:
The additional costs incurred while manufacturing and preparing a product for
export (e.g., product modifications, special export packaging and export
administration costs.) This does not include the costs to manufacture a standard
domestic product, export crating and transportation to the foreign market.
Independent Action: A
move by whereby a member of a shipping conference elect to depart from the
specific service rates set forth by the conference, giving ten calendar days
notice of such action. The conference member's new schedule of rate, or rates,
officially takes effect no later than ten days after receipt of notice by the
steamship lines publish in their schedules the name of a port and the words by
inducement in parentheses. This means the vessel will call at the port if there
is sufficient amount of profitable cargo available and booked.
Transportation line which hauls export or import traffic between ports and
International Ship owners' Association
A document certifying that merchandise (such as perishable goods) was in goods
condition immediately prior to shipment.
Forwarder which uses own aircraft, whether owned or leased, rather than
Ownership of the legal rights to possess, use or dispose of products created by
human ingenuity, including patents, trademarks and copyrights.
Mutual agreement between airlines to link
their route network.
Referring to the capacity to go from ship to
train to truck, or the like, the adjective generally refers to containerized
shipping or the capacity to handle same.
of a commodity by different modes of transport, i.e. sea, road, rail and air
within a single journey.
IOE: Institute of
IRN: Import Release
Irrevocable Letter of Credit:
A letter of credit with a fixed expiration date that carries the irrevocable
obligation of the issuing bank to pay the exporter when all of the terms and
conditions of the letter of credit have been met.
Standards Organization also referred to as the International Organizational for
Stands for "Immediate Exit." In the
U.S., Customs IE Form is used when goods are brought into the U.S. and are to be
immediately re-exported without being transported within the U.S.
International Maritime Consultative
Organization. A forum in which most major maritime nations participate and
through which recommendations for the carriage of dangerous goods, bulk
commodities, and maritime regulations become internationally acceptable.
International Maritime Dangerous
Goods Code. The regulations published by the IMO for transporting hazardous
An entry that allows foreign
merchandise arriving at one port to be exported from the same port without the
payment of duty.
In-Transit Entry (I.T.):
Allows foreign merchandise arriving
at one port to be transported in bond to another port, where a superseding entry
To receive goods from a foreign
A document required and issued by
some national governments authorizing the importation of goods.
Cargo moving under Customs control
where duty has not yet been paid.
The transaction or interchange that
occurs at the time a container is received by a rail terminal or water port from
In transit, or in passage.
A lower-than-usual tariff rate assessed
because a shipper offers a greater volume than specified in the tariff. The
incentive rate is assessed for that portion exceeding the normal volume.
The recognized abbreviation for the
International Chamber of Commerce Terms of Sale. These terms were last amended,
effective July 1, 1990.
An agreement to hold a carrier
harmless with regard to a liability.
Setting rate within a conference
tariff that is different from the rate(s) for the same items established by
other conference members.
Any body of rate tariffs that are
not part of an agreement or conference system.
Placing a port on a vessel's
itinerary because the volume of cargo offered at that port justifies the cost of
routing the vessel.
An insurance term referring to any
defect or other characteristic of a product that could result in damage to the
product without external cause (for example, instability in a chemical that
could cause it to explode spontaneously). Insurance policies may exclude
inherent vice losses.
A transportation line that hauls
export or import traffic between ports and inland points.
A certificate issued by an
independent agent or firm attesting to the quality and/or quantity of the
merchandise being shipped. Such a certificate is usually required in a letter of
credit for commodity shipments.
Successive shipments are permitted
under letters of credit. Usually they must take place within a given period of
A container insulated on the walls,
roof, floor, and doors, to reduce the effect of external temperatures on the
Insulated Container Tank:
The frame of a container
constructed to hold one or more thermally insulated tanks for liquids.
Insurance with Average-clause:
This type of clause covers
merchandise if the damage amounts to three percent or more of the insured value
of the package or cargo. If the vessel burns, sinks, collides, or sinks, all
losses are fully covered. In marine insurance, the word average describes
partial damage or partial loss.
This type of insurance offers the
shipper the broadest coverage available, covering against all losses that may
occur in transit.
In water transportation, the
deliberate sacrifice of cargo to make the vessel safe for the remaining cargo.
Those sharing in the spared cargo proportionately cover the loss.
Insurance, Particular Average:
A Marine insurance term to refer to
partial loss on an individual shipment from one of the perils insured against,
regardless of the balance of the cargo. Particular average insurance can usually
be obtained, but the loss must be in excess of a certain percentage of the
insured value of the shipment, usually three to five percent, before a claim
will be allowed by the company.
A location where one carrier
delivers freight to another carrier.
Water service between two coasts;
in the U.S., this usually refers to water service between the Atlantic and
Pacific or Gulf Coasts.
Freight moving from origin to
destination over the Freight lines of two or more transportation carriers.
A point located en route between
two other points.
Used to denote movements of cargo
containers interchangeably between transport modes, i.e., motor, water, and air
carriers, and where the equipment is compatible within the multiple systems.
An itemized list of goods shipped
to a buyer, stating quantities, prices, shipping charges, etc.
Inward Foreign Manifest (IFM):
A complete listing of all cargo
entering the country of discharge. Required at all world ports and is the
primary source of cargo control, against which duty is assessed by the receiving
Abbreviation for "Inland Point
Intermodal." Refers to inland points (non-ports) that can be served by carriers
on a through bill of lading.
Irrevocable Letter of Credit:
Letter of credit in which the
specified payment is guaranteed by the bank if all terms and conditions are met
by the drawee and which cannot be revoked without joint agreement of both the
buyer and the seller.
International Standards Organization which
deals in standards of all sorts, ranging from documentation to equipment
packaging and labeling.
Bank that opens a straight or
negotiable letter of credit and assumes the obligation to pay the bank or
beneficiary if the documents presented are in accordance with the terms of the
letter of credit.
The carrier issuing transportation
documents or publishing a tariff.
Abbreviation for "Immediate Transport." The document (prepared by the
carrier) allows shipment to proceed from the port of entry in the U.S. to
Customs clearing at the destination. The shipment clears Customs at its final
destination. Also called an "In-Transit" Entry.
A wood or fiber cover placed around
such containers as cans and bottles.
A rope ladder suspended from the
side of a vessel and used for boarding.
J. &W.O.: Jettison and
JETSAM: Goods from a
ship's cargo, or parts of its equipment, that have been thrown overboard to
lighten the load in time of danger, or to set a stranded ship adrift.
Joint Venture: A form
of business partnership involving joint management and the sharing of risks and
profits between enterprises sometimes based in different countries.
Act of throwing cargo or equipment
(jetsam) overboard when a ship is in danger.
The principle of production and inventory control in which goods arrive when
needed for production or use.
Abbreviation for "Just In Time." In
this method of inventory control, warehousing is minimal or non existent; the
container is the movable warehouse and must arrive "just in time;" not too early
nor too late.
A rate applicable from a point on one transportation line to a point on
another line, made by agreement and published in a single tariff by all
transportation lines over which the rate applies.
Kilo or metric ton. 1,000 Kilos or
1,000 grams or 2.2046 pounds.
A coupling pin centered on the
front underside of a chassis; couples to the tractor.
K.D.C.L.: Knocked down
in carload lots
down in less than carload lots.
KD Flat: An article
taken apart, folded, or telescoped to reduce its bulk at least 66 2/3% below its
Keelage: Toll on
vessels entering a port.
Knock Down (KD): An
article taken apart, folded or telescoped in such a manner as to reduce its bulk
at least 33 1/3% below its assembled bulk.
The unit of speed equivalent to one nautical
mile, or 6,080.20 feet per hour or 1.85 kilometers per hour.
Knocked Down (KD):
Articles which are taken apart to
reduce the cubic footage displaced or to make a better shipping unit and are to
One nautical mile (6,076 feet or
1852 meters) per hour. In the days of sail, speed was measured by tossing
overboard a log which was secured by a line. Knots were tied into the line at
intervals of approximately six feet. The number of knots measured was then
compared against time required to travel the distance of 1000 knots in the line.
A loss discovered before or at the time of delivery of a shipment.
Abbreviation for "Letter of
Loaded aboard a vessel.
L. & D.: Loss and
L.T. or L.Tn.: Long
ton (2240 lbs.).
L/C - Letter of Credit:
A document issued by a bank per instructions by a buyer of goods, authorizing
the seller to draw a specified sum of money under specified terms. Issued as
revocable or irrevocable.
Lagan: Cargo or
equipment to which an identifying marker or buoy is fastened, thrown over-board
in time of danger to lighten a ship's load. Under maritime law if the goods are
later found they must be returned to the owner whose marker is attached; the
owner must make a salvage payment.
Lane metre: A method
of measuring the space capacity of Ro Ro ships whereby each unit of space
(linear metre) is represented by an area of deck 1m in length by 2.5m in width.
Lash Vessel: Designed
to load internally, barges specifically designed for the vessel. The concept is
to quickly float the barges to the vessel (using tugs or ships wenches) load
these barges through the rear of the vessel, then sails. Upon arrival at the
foreign port, the reverse happens; Barges are quickly floated away from the
vessel and another set of waiting barges quickly are loaded. Designed for quick
vessel turn-around. Usually crane-equipped; handles mostly break bulk cargo.
LASH: Lighter aboard
ship: This technique for sea transport of cargoes uses barges floated into
specially designed vessels. One of our competitors, Baco Line employs such
vessels on the Europe/Africa trade. This technique enables low drafted barges to
access shallow ports ie some of those in the Niger delta including Onne and
Lashing: To hold goods
in position by the use of, for example, wires, ropes, chains, or straps.
for lay days cancelling periods during which a ship owner must tender notice
that a ship has arrived at the port of loading and is ready to load cargo.
Laytime / Lay days:
Time given by the ship owner to allow a chartered vessel to load and/or
LCL: Less than a
container load: A container with cargoes from/for different shippers/receivers,
i.e. containing more than one shipper’s cargo.
Legal Weight: The
weight of the goods plus any immediate wrappings, which are sold along with the
goods: e.g., the weight of a tin can as well as its contents. (See Gross
Less than Truck Load (LTL):
Rates applicable when the quantity of freight is less than the volume or
truckload minimum weight.
Letter of Credit - payment by sight draft:
The exporter receives guaranteed payment from the confirming bank in the U.S.
upon presentation of the sight draft and documents required by the letter of
Letter of Credit: A
document issued by a bank at a buyer's request honoring debt obligations to the
seller upon receipt of the document.
LI: Letter of
LIC: Local import
International Financial Futures Exchange
Lighter: An open or
covered barge equipped with a crane and towed by a tugboat. Used mostly in
harbors and inland waterways.
Lighterage: The cost
of loading or unloading a vessel by means of barges alongside.
LILO: Liner in, liner
out or full liner terms: Qualification to a freight rate which signifies that it
consists of the ocean carriage and the cost of cargo handling at the loading and
discharging ports (to ship’s rail) according to the custom of a particular set
Linear metre: Method
of measuring volume of cargo on Ro Ro vessels, in which the measurement is an
estimate of the length of the cargo laid end to end. (See lane metre.)
Liner: The word
"liner" is derived from the term "line traffic" which denotes operation along
definite routes on the basis of definite, fixed schedules; a liner thus is a
vessel that engages in this kind of transportation, which generally involves the
haulage of general cargo as distinct from bulk cargo.
finalization of a customs entry.
Livestock: Common farm
Lkg. & Bkg.: Leakage
Lo/Lo: The acronym
meaning "lift-on,lift-off," denoting the method by which argo is loaded onto and
discharged from an ocean vessel, which in this case is by the use of a crane.
LOA: Length over all:
Load Factor: Capacity
sold as against capacity available, expressed as a percentage.
LTL: Less than
Refers to the freight shipped; the
contents of a shipment.
Movement of cargo by water from one
country through the port of another country, thence, using rail or truck, to an
inland point in that country or to a third country. As example, a through
movement of Asian cargo to Europe across North America.
The total cost of a good to a
buyer, including the cost of transportation.
Certificate issued by consular
officials of some importing countries at the point or place of export when the
subject goods are exported under bond.
A support fixed on the front part
of a chassis (which is retractable); used to support the front end of a chassis
when the tractor has been removed.
A maritime industry abbreviation
for "Lighter Aboard Ship." A specially constructed vessel equipped with an
overhead crane for lifting specially designed barges and stowing them into
cellular slots in an athwart ship position.
Laydays/Cancelling (date): Range of
dates within the hire contract must start.
Abbreviation for "Less than
Container Load." The quantity of freight which is less than that required for
the application of a container load rate. Loose Freight.
Less Than Truckload:
Also known as LTL or LCL.
Letter of Credit (LC):
A document, issued by a bank per
instructions by a buyer of goods, authorizing the seller to draw a specified sum
of money under specified terms, usually the receipt by the bank of certain
documents within a given time. Some of the specific descriptions are:
A new letter of credit issued to another beneficiary on the strength of a
primary credit. The second L/C uses the first L/C as collateral for the bank.
Used in a three-party transaction.
A letter of credit that requires the beneficiary to present only a draft or a
receipt for specified funds before receiving payment.
An L/C guaranteed by both the issuing and
advising banks of payment so long as seller's documents are in order, and the
L/C terms are met. Only applied to irrevocable L/C's. The confirming bank
assumes the credit risk of the issuing bank.
Payment: A letter of credit issued for
the purchase and financing of merchandise, similar to acceptance-type letter of
credit, except that it requires presentation of sight drafts payable on an
An instrument that, once established, cannot be modified or cancelled without
the agreement of all parties concerned.
A revolving letter of credit that prohibits the
amount not used during the specific period from being available afterwards.
A condition within the letter of credit
which restricts its negotiation to a named bank.
An instrument that can be modified or cancelled at any moment without notice to
and agreement of the beneficiary, but customarily includes a clause in the
credit to the effect that any draft negotiated by a bank prior to the receipt of
a notice of revocation or amendment will be honored by the issuing bank. Rarely
used since there is no protection for the seller.
An irrevocable letter issued for a specific
amount; renews itself for the same amount over a given period.
A letter of credit that contains a
limited engagement clause which states that the issuing bank promises to pay the
beneficiary upon presentation of the required documents at its counters or the
counters of the named bank.
A letter of credit that allows the beneficiary to transfer in whole or in part
to another beneficiary any amount which, in aggregate, of such transfers does
not exceed the amount of the credit. Used by middlemen.
A letter of credit forwarded to the
beneficiary by the advising bank without engagement on the part of the
Letter of Indemnity:
In order to obtain the clean bill
of lading, the shipper signs a letter of indemnity to the carrier on the basis
of which may be obtained the clean bill of lading, although the dock or mate's
receipt showed that the shipment was damaged or in bad condition.
governments require certain commodities to be licensed prior to exportation or
importation. Clauses attesting to compliance are often required on the B/L.
types issued for export (general, validated) and import as mandated by
A legal claim upon goods for the
satisfaction of some debt or duty.
A vessel discharges part of its
cargo at anchor into a lighter to reduce the vessel's draft so it can then get
alongside a pier.
An open or covered barge towed by a
tugboat and used mainly in harbors and inland waterways to carry cargo to/from
alongside a vessel.
Refers to carriage of goods by
lighter and the charge assessed therefrom.
A vessel sailing between specified
ports on a regular basis.
Transportation from one city to
another as differentiated from local switching service.
The amount in degrees that a vessel
tilts from the vertical.
1.06 liquid U.S. quarts or 33.9
The penalty a seller must pay if the
construction project does not meet contractual standards or deadlines.
An organization maintained for the
surveying and classing of ships so that insurance underwriters and others may
know the quality and condition of the vessels offered for insurance or
The ratio of loaded miles to empty miles.
Cargo delivered to/from the carrier
where origin/destination of the cargo is in the local area.
Individual employed in a port to
load and unload ships.
A trailer or semi-trailer with no sides and with the floor of the
unit close to the ground.
M/R: Mate's Receipt
M/T: Metric Ton (2204
M/V or M.V.: Motor
A carrier giving a customer illegal
preference to attract cargo. This can take the form of a money refund (rebate);
using lower figures than actual for the assessment of freight charges (undercubing);
misdeclaration of the commodity shipped to allow the assessment of a lower
tariff rate; waiving published tariff charges for demurrage, CFS handling or
equalization; providing specialized equipment to a shipper to the detriment of
other shippers, etc.
A writ issued by a court; requires
that specific things be done.
Mafi: A generic term
for a wheeled trailer used for carrying cargo, also properly known as a roll
trailer. It may remain on board throughout ocean passage or be used as a ‘slave’
trailer to transport cargo to and from the vessel once on quay.
Manifest: A list of
the goods being transported by a carrier.
Marine Insurance: An
insurance, which will compensate the owner of goods transported overseas in the
event of loss, which cannot be legally recovered from the carrier.
Maritime Administration (MARAD):
A US government agency, while not actively involved in vessel operation,
administers laws for maintenance of merchant marine for the purposes of defense
Mark: As used on
containers in foreign trade, a symbol or initials shown together with the port
of importation and the final destination, if different. Example: A.G. y Cia.,
Bogota via Barranquilla. Marks are registered at appropriate customs houses;
they also appear on bills of lading and invoices. In domestic trade, it is
common to mark containers with the name and address of the recipient, but this
is rarely done in foreign trade.
Every article of foreign origin, or its
container, imported into the United States shall be permanently marked in a
conspicuous place in a manner which would indicate to the ultimate purchaser the
English name of the country of origin of the article.
Receipt of cargo by the vessel, signed by the mate (similar to dock receipt).
Measurement Ton: The
measurement ton (also known as the cargo ton or freight ton) is a space
measurement, usually 40 cubic feet or one cubic meter. The cargo is assessed a
certain rate for every 40 cubic feet or 1 cubic meter it occupies.
Mega carrier: One of
the predatory massive shipping lines that compete on the largely saturated
MFN (Most Favored Nation):
Designation for countries, which receive preferential tariff rates. This is no
longer the best tariff structure available.
Min. B/L: Minimum bill
MW: Minimum weight
Document that lists in detail all
the bills of lading issued by a carrier or its agent or master for a specific
voyage. A detailed summary of the total cargo of a vessel. Used principally for
Broadly, insurance covering loss or
damage of goods at sea. Marine insurance typically compensates the owner of
merchandise for losses sustained from fire, shipwreck, etc., but excludes losses
that can be recovered from the carrier.
Business pertaining to commerce or
navigation transacted upon the sea or in seaports in such matters as the court
of admiralty has jurisdiction.
Letters, numbers, and other symbols
placed on cargo packages to facilitate identification. Also known as marks.
A pointed metal spike, used to
separate strands of rope in splicing.
U.S. Customs' automated program
under AMS. It allows for electronic reporting of inbound (foreign) cargoes in
An archaic practice. An
acknowledgement of cargo receipt signed by a mate of the vessel. The possessor
of the mate's receipt is entitled to the bill of lading, in exchange for that
1,000 board feet. One MBM equals
Abbreviation for "Master Container
Freight Station." See CFS.
Freight on which transportation
charges are calculated on the basis of volume measurement.
40 cubic feet.
Mechanically Ventilated Container:
A container fitted with a means of
forced air ventilation.
Memorandum Bill of Lading:
An in-house bill of lading. A
Memorandum Freight Bill:
See Multiple Containerload
39.37 inches (approximately).
2,204.6 pounds or 1,000 kilograms.
A cargo movement in which the water
carrier provides a through service between an inland point and the port of
load/discharge. The carrier is responsible for cargo and costs from origin on to
destination. Also known as IPI or Through Service.
A unit equal to 5,280 feet on land.
A nautical mile is 6076.115.
Mini Land bridge:
An intermodal system for
transporting containers by ocean and then by rail or motor to a port previously
served as an allwater move (e.g., Hong Kong to New York over Seattle).
Minimum Bill of Lading:
A clause in a Bill of lading which
specifies the least charge that the carrier will make for issuing a lading. The
charge may be a definite sum or the current charge per ton for any specified
The lowest charge that can be
assessed to transport a shipment.
Mixed Container Load:
A container load of different
articles in a single consignment.
Abbreviation for "Mini Landbridge."
Middlewest Motor Freight Bureau.
A blend of gases tailored to
replace the normal atmosphere within a container.
Abbreviation for "Metric Ton."
Synonymous for all practical
purposes with "Intermodal."
A container frame fitted to accommodate two or more separate tanks
Distance of one minute of longitude
at the equator, approximately 6,076.115. The metric equivalent is 1852.
National Committee on International
Abbreviation for "Not Elsewhere
N.E.M.: Not elsewhere
N.E.S.: Not elsewhere
N.O.E.: Not otherwise
otherwise herein provided
N.O.I.: Not more
otherwise indicated by number; not otherwise indicated by name.
N.O.S.: Not otherwise
N.T.: Net tons
National Carrier: A
flag carrier owned or controlled by the state.
Nested Solid: Three of
more different sizes of an article are placed within each other so that each
article will not project above the next lower article by more than 1/4 inch.
Nested: Three or more
different sizes of an article are placed within each other so that each article
will not project above the next lower article by more than 33 1/3% of its
Net Terms: Free of
Net Weight: (Actual
Net Weight) Weight of goods alone without any immediate wrappings; e.g., the
weight of the contents of a tin can without the weight of the can.
A document of title (such as a
draft, promissory note, check, or bill of lading) transferable from one person
to another in good faith for a consideration. Non-negotiable bills of lading are
known as "straight consignment." Negotiable bills are known as "order b/l's."
Abbreviation for "Not Elsewhere
Articles packed so that one rests
partially or entirely within another, thereby reducing the cubic-foot
Net Tare Weight:
The weight of an empty
cargo-carrying piece of equipment plus any fixtures permanently attached.
Net Tonnage (NT):
(0.2+0.02 log10(Vc)) Vc
(4d/3D)2, for passenger ships the following formula is added: 1.25
(GT+10000)/10000 (N1+(N2/10)), where Vc is the volume of cargo holds, D is the
distance between ship's bottom and the uppermost deck, d is the draught N1 is
the number of cabin passengers, and N2 is the number of deck passengers.) "Ton"
is figured as an 100 cubic foot ton.
Weight of the goods alone without any immediate wrappings,
e.g., the weight of the contents of a tin can without the weight of the can.
An organization established by the
members of an ocean conference acts as a self-policing force with broad
authority to investigate tariff violations, including authority to scrutinize
all documents kept by the carriers and their personnel. Violations are reported
to the membership and significant penalties are assessed.
NMB: National Maritime
NMFC: National Motor
No Objection Certificate:
Document provided by scheduled or national airlines of many countries declaring
no objection to a proposed charter flight operated by another airline. Often
demanded by government authorities before they grant permission for a charter
flight to take place.
No Objection Fee: Sum
of money paid by a charter airline normally to a scheduled airline in order that
it waives its right of objection to its government, thus allowing a charter to
take place. Tantamount to a bribe. The amount is usually a fixed percentage of
the gross cost of a charter. Common practice in the Middle East and Africa.
See scheduled flight.
Non-Tariff Barriers (NTB):
Economic, political, administrative or legal impediments to trade other than
duties, taxes and import quotas
Non-Vessel Operation Common Carrier (NVOCC):
An F.M.C. registered cargo consolidator of small shipments in ocean trade,
generally soliciting business and arranging for or performing containerization
functions at the port. These carriers issue their own bill of lading referred to
as a house bill of lading.
NPC: National Ports
Council / Nigerian Ports Charge (Carriers surcharge given extra costs imposed by
NRT: Net registered
NVOCC: Non vessel
owning common carrier
National Motor Freight
Abbreviation for "Not Otherwise
Abbreviation for "Not Otherwise
Indexed By Name."
Nomenclature of the Customs Cooperation
The Customs tariff used by most countries
worldwide. It was formerly known as the Brussels Tariff Nomenclature and is the
basis of the commodity coding system known as the Harmonized System.
Required by some countries for
protection against the dumping of certain types of merchandise or products.
Non-Vessel Operating Common Carrier (NVOCC):
A cargo consolidator in ocean
trades who will buy space from a carrier and subsell it to smaller shippers.
The NVOCC issues bills of lading, publishes tariffs and otherwise conducts
itself as an ocean common carrier, except that it will not provide the actual
ocean or intermodal service.
Notice of Readiness. (When the ship
is ready to load.)
Abbreviation for "Not Otherwise
Front of a container or trailer -
opposite the tail.
Cargo which has been booked but does
not arrive in time to be loaded before the vessel sails. See also "Windy
North Pacific Coast Freight Bureau.
Ocean Bill of Lading (Ocean B/L):
A contract for transportation
between a shipper and a carrier. It also evidences receipt of the cargo by the
carrier. A bill of lading shows ownership of the cargo and, if made negotiable,
can be bought, sold or traded while the goods are in-transit.
See "Overland Common Points."
Abbreviation for "Operating
Differential Subsidy." An amount of money the U.S. government paid
U.S. shipping companies that qualify for this subsidy. The intent was to
help offset the higher subsidy. The intent was to help offset the higher
cost of operating a U.S.-flag vessel. The ODS program is administered by
the U.S. Maritime Administration and is being phased out.
O. & R.: Ocean and
O.D.: Outside diameter
O.R. Det.: Owner's
risk of deterioration
O.r.b.: Owner's risk
O.R.F.: Owner's risk
of fire or freezing
O.R.L.: Owner's risk
O.R.W.: Owner's risk
of becoming wet
O.S. & D.: Over, short
O/N: Order notify; own
O/o: Order of
O/R: Owner's risk
Oil bulk ore: A vessel capable of carrying both dry
and liquid bulk cargoes.
Ocean Bill of Lading:
A receipt for cargo in transit, and a contract between the exporter and an ocean
carrier for transportation and delivery of goods to a specified party at a
specified foreign destination. Issued after the vessel has sailed and the cargo
has been entered in the ship's manifest.
ODS: An acronym
commonly used for the term "operating differential subsidy," which is a payment
to an American-flag carrier by the federal government to offset the difference
in operating costs between US and foreign vessels.
OECD: Organisation for
Economic Co-operation & Development
OEEC: Organisation for
European Economic Co-operation
Off-Line: Describes an
airline that sells in a market to which it does not operate. An Off-Line carrier
will use another operator to link with its network.
OFT: Office of Fair
OOG - Out of gauge/profile:
When cargo loaded is not within the dimensions of an ISO pontoon/stack master on
which it is placed and protrudes from the sides or is too high.
Open Account: A
high-risk trade arrangement in which goods are shipped to a foreign buyer
without guarantee of payment.
Open Policy: A cargo
insurance policy that is an open contract; i.e., it provides protection for all
an exporter's shipments afloat or in transit within a specified geographical
trade area for an unlimited period of time, until the policy is cancelled by the
insured or by the insurance company. It is "open" because the goods that are
shipped are also detailed at that time. This usually is shown in a document
called a marine insurance certificate.
Open top container:
Container with a removable fabric roof which enables heavy/bulk cargo to be
loaded into the container by crane/elevator.
Original Equipment Manufacturers (OEM accounts):
Customers who incorporate the exporter's product into their own merchandise for
resale under their own brand names.
discharged but not on the manifest, generally by accident
Organization of Economic
Cooperation and Development, headquartered in Paris with membership consisting
of the world's developed nations.
A notation on a bill of lading that
cargo has been loaded on board a vessel. Used to satisfy the requirements of a
letter of credit, in the absence of an express requirement to the contrary.
A notation on a bill of lading that
the cargo has been stowed on the open deck of the ship.
A trade arrangement in which goods
are shipped to a foreign buyer without guarantee of payment.
Open Insurance Policy:
A marine insurance policy that
applies to all shipments made by an exporter over a period of time rather than
to one shipment only.
Open Top Container:
A container fitted with a solid
removable roof, or with a tarpaulin roof so the container can be loaded or
unloaded from the top.
A comparison of a carrier's operating expense
with its net sales. The most general measure of operating
Overseas Private Investment
The highest level of cube
utilization that can be achieved when loading cargo into a container.
A bill of lading term to provide
surrender of the original bill of lading before freight is released; usually
associated with a shipment covered under a letter of credit.
Abbreviation for "Origin Rail
Freight Station." Same as CFS at origin except an ORFS is operated by the rail
carrier participating in the shipment.
Location where shipment begins its
Original Bill of Lading (OBL):
A document which requires proper
signatures for consummating carriage of contract. Must be marked as "original"
by the issuing carrier.
Abbreviation for "Over, Short or
Damaged" Usually discovered at cargo unloading.
Transaction or interchange that
occurs at the time a container leaves a rail or water terminal.
To charge more than the proper
amount according to the published rates.
Over height Cargo:
Cargo more than eight feet high
which thus cannot fit into a standard container.
Overland Common Point (OCP):
A term stated on the bills of
lading offering lower shipping rates to importers east of the Rockies, provided
merchandise from the Far East comes in through the West Coast ports. OCP rates
were established by U.S. West Coast steamship companies in conjunction with
western railroads so that cargo originating or destined for the American Midwest
and East would be competitive with all-water rates via the U.S. Atlantic and
Gulf ports. Applies to eastern Canada.
Owner Code (SCAC):
Standard Carrier Abbreviation Code identifying an individual common
carrier. A three letter carrier code followed by a suffix identifies the
carrier's equipment. A suffix of "U" is a container and "C" is a chassis.
Abbreviation for "Protection and
Indemnity," an insurance term.
Itemized list of commodities with
marks/numbers but no cost values indicated.
P.W.: Packed weight
P/L: Partial loss
Paired: Port of
Arrival Immediate Release and Enforcement Determination. A U.S. Customs program
that allows entry documentation for an import shipment to be filed at one
location, usually an inland city, while the merchandise is cleared by Customs at
the port of entry, normally a seaport. May be ineffective with certain types of
high-risk cargoes, such as quota-regulated textiles or shipments from
drug-production regions. Cities where there is a natural flow of cargo are
actually "paired" in the program; e.g., Atlanta, an inland city, is linked with
Savannah, a seaport. Tested in '87-'88, it became generally available in mid-
Fashionable metal or cardboard device to increase pallet capacity.
Pallet: Load carrying
platform to which loose cargo is secured before placing aboard the aircraft.
Under ABI, certain commodities from low-risk countries not designated for
examination may be released through an ABI-certified broker without the actual
submission of documentation.
Part Charter: Where
part of an airline's scheduled flight is sold as if it were a charter in its own
right (Often wrongly used as a synonym for split charter).
Part Load Charter:
Where a part of an aircraft's load is discharged at one destination and a part
of it at another. This is distinct from a split charter where a number of
consignments are carried to the same destination. Inbound, part loads are
treated as single entity charters under the regulations of most countries.
Partial loss or damage to goods.
An arrangement whereby a steamship
company, under rules and regulations established in the freight tariff of a
given trade, accepts small packages at rates below the minimum bill of lading,
and issues a parcel receipt instead of a bill of lading.
Under letters of credit, one or
more shipments are allowed by the phrase "partial shipments permitted."
See Insurance, Particular Average.
Abbreviation for "Please Authorize
Delivery Against Guarantee." A request from the consignee to the shipper to
allow the carrier or agent to release cargo against a guarantee, either bank or
personal. Made when the consignee is unable to produce original bills of lading.
A U.S. Customs program wherein at
least two designated Customs ports will enter cargo that arrives at either port
without the necessity of an in-bound document.
A platform with or without sides,
on which a number of packages or pieces may be loaded to facilitate handling by
a lift truck.
A technical rail ramp, used for
equalization of points not actually served.
A published rate that is never
assessed because no freight moves under it.
A party named in an instrument as
the beneficiary of the funds. Under letters of credit, the payee is either the
drawer of the draft or a bank.
A party responsible for the payment
as evidenced by the given instrument. Under letters of credit, the payer is the
party on whom the draft is drawn, usually the drawee bank.
PBC: Produce Buying
Company Limited, Ghana. Buys cocoa beans from farmers at village level and sells
direct to the government at guaranteed prices.
PE: Period entry
Perils of the Sea:
Most losses covered by a marine insurance policy come within the comprehensive
expression "perils of the sea," which refers to damage caused by heavy weather,
strandings, strikings on rocks or on bottom, collision with other vessels,
contacts with floating objects, etc.
Perishables: Any cargo
that loses considerable value if it is delayed in transportation (Usually refers
to fresh fruit and vegetables).
Pilferage: As used in
marine insurance policies, the term denotes petty thievery, the taking of small
parts of a shipment, as opposed to the theft of a whole shipment or large unit.
Many ordinary marine insurance policies do not cover against pilferage, and when
this coverage is desired, it must be added to the policy.
Pivot Weight: That
weight of a ULD above, which a higher tariff applies; in effect, an incentive to
maximize cargo density.
Place of Rest: The
term "Place of Rest" as used in the Containerized Cargo Rules means that
location on the floor, dock, platform or doorway at the CFS to which cargo is
first delivered by shipper or agent thereof.
A particular street address or other designation of a factory, store,
warehouse, place of business, private residence, construction camp or the like,
at a point.
Point: A particular
city, town, village or other community or area, which is treated as a unit for
the application of rates.
Pontoon: This is a
piece of equipment equivalent to the bottom of a container without sides. Often
used for stacking parcels of sawn timber and bags of cocoa. Otherwise known as a
flat or bolster
Port Authority: A
government body (city, county or state), which in international shipping
maintains various airports and/or ocean cargo pier facilities, transit sheds,
loading equipment warehouses for air cargo, etc. Has the power to levy dockage
and wharfage charges, landing fees, etc.
Port Captain: The
person who plans stowage and supervises loading and discharging of vessels. Also
know as a Supercargo.
Port Marks: An
identifying set of letters numbers and/or geometric symbols followed by the name
of the port of destination, which are placed on export shipments. Foreign
government requirements may be exceedingly strict in the matter of port marks.
Port of Discharge:
Port where vessel is off loaded and cargo discharges.
Port of Entry: A port
at which foreign goods are re-admitted into the receiving country.
Port of Loading: Port
where cargo is loaded aboard the vessel lashed and stowed.
having facilities for ships to moor, load and discharge.
left hand side of a ship when facing forwards.
Power of Attorney: A
document that authorizes a customs broker to sign all customs documents on
behalf of an importer.
Preliminary advice that a letter of credit has been established in the form of a
brief authenticated wire message. It is not an operative instrument and is
usually followed by the actual letter of credit.
Generally speaking, freight charges both in ocean and air transport may be
either prepaid in the currency of the country of export or they may be billed
collect for payment by the consignee in his local currency. However, on
shipments to some countries freight charges must be prepaid because of foreign
exchange regulations of the country of import and/or rules of steamship
companies or airlines.
Pre-Slung Cargo: Cargo
shipped already in a cargo sling or net. Usually prepared and loaded at pier
ready for arrival of vessel and subsequent loading (i.e. coffee in bags, coconut
Price Quotation/Proforma Invoice:
An invoice prepared by the seller in advance of shipment that documents the cost
of goods sold, freight, insurance, and other related charges. It is often used
by the buyer to secure a letter of credit, an import license or a foreign
Prima Facie: Latin,
"on first appearance." A term frequently encountered in foreign trade. When a
steamship company issues a clean bill of lading, it acknowledges that the goods
were received "in apparent good order and condition" and this is said by the
courts to constitute prima facie evidence of the conditions of the containers;
that is, if nothing to the contrary appears, it must be inferred that the cargo
was in good condition when received by the carrier.
added to freight and usually returned as a deferred rebate.
Prime Entry: Statement
of goods based on details included in the bill of lading.
Pro Number: A number
assigned by the carrier to a single shipment, used in all cases where the
shipment must be referred. Usually assigned at once.
Proforma: When used
with the title of a document, the term refers to an informal document presented
in advance of the arrival, or preparation of the required document, in order to
satisfy a customs requirement.
Proof of Delivery:
Add-on service in express market, delivered either by phone or courier. Often
Protest: Customs form
19 allows for a refund of an overpayment of duty if filed within 90 days of
A charge, based on a fixed daily
Perils of the Sea:
Those causes of loss for which the
carrier is not legally liable. The elemental risks of ocean transport.
Phytosanitary Inspection Certificate:
A certificate issued by the U.S.
Department of Agriculture to satisfy import regulations of foreign countries;
indicates that a U.S. shipment has been inspected and found free from harmful
pests and plant diseases.
The act of calling for freight by
truck at the consignor's shipping platform.
The structure perpendicular to the
shoreline to which a vessel is secured for the purpose of loading and unloading
A shipment loaded into a container
at the pier or terminal, thence to the consignee's facility.
Containers loaded at port of
loading and discharged at port of destination.
A mobile container-handling crane
used to load/unload containers to/from railcars.
A transportation arrangement in
which truck trailers with their loads are moved by train to a destination. Also
known as Rail Pigs.
Place of Delivery:
Place where cargo leaves the care
and custody of carrier.
Place of Receipt:
Location where cargo enters the
care and custody of carrier.
A series of horizontal lines,
corresponding to the seasons of the year and fresh or saltwater, painted on the
outside of a ship marking the level which must remain above the surface of the
water for the vessel's stability.
of Delivery. A document required from the carrier or driver for proper payment.
Point of Origin:
The place at which a shipment is
received by a carrier from the shipper.
Oil, and Lubricants.
Pomerene Act, Also known as (U.S.) Federal
Bill of Lading Act of 1916.:
U.S. federal law enacting
conditions by which a B/L may be issued. Penalties for issuing B/L's containing
false data include monetary fines and/or imprisonment.
with piers or docks.
side of a ship when facing forward.
in a ship's side for handling freight.
Port of Call:
Port where a ship discharges or
Port of Entry:
Port where cargo is unloaded and
enters a country.
Port of Exit:
Place where cargo is loaded and
leaves a country.
Lifts temporary quarantine of a
vessel; granted pratique by Health Officer.
A process employed in the shipment
of citrus fruits and other perishable commodities. The fruit is packed and
placed in a cold room from which the heat is gradually extracted. The boxes of
fruit are packed in containers that have been thoroughly cooled and transported
through to destination without opening the doors.
Freight charges paid by the
consignor (shipper) prior to the release of the bills of lading by the carrier.
A Latin term meaning "For the sake
Pro Forma Invoice:
An invoice provided by a supplier
prior to the shipment of merchandise, informing the buyer of the kinds and
quantities of goods to be sent, their value, and specifications (weight, size,
A Latin term meaning "In
Single tariff item, established to
move multiple commodities needed for a specified project, usually construction.
A name usually given to a State body having control or
regulation of public utilities.
Person authorized by transportation
lines to publish tariffs or rates, rules, and regulations for their account.
Procedure where carrier tests the
temperature of the internal flesh of refrigerated commodities to assure that the
temperature at time of shipment conforms to prescribed temperature ranges.
A short semi-trailer used jointly with a dolly and another
semi-trailer to create a twin trailer.
A restraint placed on an operation
to protect the public against a health hazard. A ship may be quarantined so that
it cannot leave a protected point. During the quarantine period, the Q flag is
A wedge-shaped piece of timber used
to secure barrels against movement.
The quantity of goods that may be
imported without restriction during a set period of time.
An offer to sell goods at a stated
price and under stated terms.
A structure attached to land to which a vessel is
moored. See also Pier and Dock.
R. & C.: Rail and
R. & c.c.: Riots and
R.c.c. & s.: Riots,
civil commotions and strikes
A slang term for an open-top
trailer or container with a tarpaulin cover.
The amount of money an ocean carrier pays to
the railroad for overland carriage.
The time that the container was
discharged (grounded) from the train.
Railroad terminal where containers
are received or delivered and trains loaded or discharged. Originally, trailers
moved onto the rearmost flatcar via a ramp and driven into position in a
technique known as "circus loading." Most modern rail facilities use lifting
equipment to position containers onto the flatcars.
A movement where the load initiates
at an origin rail ramp and terminates at a consignee's door.
A special container handling truck that can stack
containers and reach behind two rows of containers.
Rebate: A deduction
taken from a set payment or charge. As a rebate is given after payment of the
full amount has been made, it differs from a discount, which is deducted in
advance of the payment. In foreign trade, a full or partial rebate may be given
on import duties paid on goods, which are later re-exported.
practice by which governments extend similar concessions to one another.
Red Clause Letter of Credit:
A letter of credit that allows the exporter to receive a percentage of the face
value of the letter of credit in advance of shipment. This enables the exporter
to purchase inventory and pay other costs associated with producing and
preparing the export order.
Excise Shippers and Dealers
container that is fitted with a refrigerated unit for the carriage of cargoes
that have to be frozen or chilled.
taken by a country to restrain its imports from another country that has
increased a tariff or imposed other measures that adversely affects the firsts
RN: Removal Note
Roll trailer: A
generic term for a wheeled trailer used for carrying cargo, also known as a mafi.
It may remain on board throughout ocean passage or be used as a ‘slave’ trailer
to transport cargo to and from the vessel once on quay. It has an under layer
with a steel chassis and equipped with solid rubber tyres. It is attached to a
tug master with a gooseneck.
RORO (ROLL ON-ROLL OFF):
Direct drive on/drive off wheeled vehicles on specially designed ocean-going
Route: an established
air passage, from point of departure to terminating station.
a charge on charter flights levied by some governments before traffic rights are
granted. Sometimes called a "no objection fee." Usually a fixed proportion of a
total charter value.
A movement of equipment from an origin rail ramp to a destination rail ramp
A formula of the specific factors
or elements that control the making of a rate. A rate can be based on any number
of factors (i.e., weight, measure, equipment type, package, box, etc.).
Under ICC and common law, the
requirement that a rate not be higher than is necessary to reimburse the carrier
for the actual cost of transporting the traffic and allow a fair profit.
An illegal form of discounting or
refunding that has the net effect of lowering the tariff price. See also
Changing the consignee or
destination on a bill of lading while shipment is still in transit. Diversion
has substantially the same meaning.
A right claim against the guarantors
of a loan or draft or bill of exchange.
A label required on shipments of
A group of points to which rates
are made the same as or in relation to rates to other points in group.
Request for quotation.
To transfer containers from one
ship to another when both vessels are controlled by the same network (carrier)
Funds sent by one person to another
Articles handled only under certain
Revenue Ton (RT):
A ton on which the shipment is
freighted. If cargo is rated as weight or measure (W/M), whichever produces the
highest revenue will be considered the revenue ton. Weights are based on
metric tons and measures are based on cubic meters. RT=1 MT or 1 CBM.
An inland point provided by an
allwater carrier's through bill of lading in the U.S. by first discharging the
container in an East Coast port.
A shortening of the term, "Roll
On/Roll Off." A method of ocean cargo service using a vessel with ramps which
allows wheeled vehicles to be loaded and discharged without cranes.
To re-book cargo to a later vessel.
The side-to-side (athwart ship)
motion of a vessel.
The manner in which a shipment
moves; i.e., the carriers handling it and the points at which the carriers
Complementary equipment for
terminal and over the road handling containers.
Abbreviation for "Released Value Not Exceeding." Usually used to
limit the value of goods transported. The limitation refers to carrier liability
when paying a claim for lost or damaged goods.
An embargo imposed by a Government against another
See Owner Code.
The Statistical Classification of
Domestic and Foreign Commodities Exported from the United States.
Ocean vessels constructed with
heavy-duty submersible hydraulic lift or elevator system at the stern of the
vessel. The Sea-Bee system facilitates forward transfer and positioning of
barges. Sea-Bee barges are larger than LASH barges. The Sea-Bee system is no
Document indicating the goods were
loaded onboard when a document of title (b/L) is not needed. Typically
used when a company is shipping goods to itself.
The fitness of a vessel for its
S. & F.A.: Shipping
and forwarding agent.
S.I.T.: Stopped in
S.L. & C.: Shipper's
Load and Count
S.L. & T.: Shipper's
Load and Tally
S.O.L.: Ship Owner's
S.R. & C.C.: Strikes,
riots, and civil commotions.
S.R: Shipping Receipt
S.tn.: Short ton
S/N: Shipping Note
Single Administrative Document
Salvage: Rescue of
goods from loss at sea or by fire; also, goods so saved, or payment made or due
for their rescue.
Sanitary and Health Certificate:
A statement signed by a health organization official certifying the degree of
purity, cleanliness, or spoilage of goods, and the health of live animals.
Schedule B: Refers to
"Schedule B, Statistical Classification of Domestic and Foreign Commodities
Exported from the United States." Being replaced under the Harmonized System.
Scheduled Flight: Any
service that operates to a set timetable.
Commodity Rate. Applied to narrowly specified commodities. Usually granted on
relatively large shipments. Theoretically is of limited time duration.
Sea Freight: Charges
for transporting cargo by sea. This does not cover any haulage or loading /
discharging costs, sea transport only.
between two ground points within a route.
Vessel has its own cranes and equipment mounted on board for loading/unloading.
Used in ports where shore cranes and equipment are lacking.
Service Contract: A
contract between a shipper and an ocean carrier of conference, in which the
shipper makes a commitment to provide a minimum quantity of cargo over a fixed
Service: The defined,
regular pattern of calls made by a carrier in the pick-up and discharge of
Set Up: Articles in
their assembled condition.
tendered to a carrier by one consignor at one piece at one time for delivery to
one consignee at one place on one bill of lading.
Shipper: Term used to
describe exporter. Mostly manufacturing companies.
Shipper's Export Declaration:
A form required by the Treasury Department and completed by a shipper showing
the value, weight, consignee, destination, etc., of export shipments as well as
Schedule B identification number.
Ship's Manifest: An
instrument in writing containing a list of the shipments comprising the cargo of
Ship's Tackle: All
rigging, etc., utilized on a ship to load or discharge cargo.
Short landed: Cargo
manifested for port but not discharged, either by accident or design.
manifested but not loaded.
A draft payable upon presentation to the drawee. Compare date draft and
Single Entry Charter:
A non-scheduled flight carrying the cargo of one shipper.
International Trade Classification
Site: A particular
platform or location for loading or unloading at a place.
SO: Seller's option
SOB: Shipped on board
Split Charter: Where a
number of consignments from different shippers are carried on the same
non-scheduled aircraft. Under U.K. regulations a non-scheduled flight chartered
by a single forwarder or agent on behalf of a number of shippers is still
classified as a split charter. Under U.S. regulations, a forwarder chartered
flight is classified as a single entity although it can consolidate.
steam-powered ship (Steam driven turbines)
SSN: Standard Shipping
Stability: It is of
paramount importance that a vessel is stable in all respects at all times. When
cargo is loaded/discharged the stability is monitored by the navigating
officer/Port Captain usually by computer, which takes into account the weight
and position of the cargo within the vessel.
Stack master: A
pontoon with two collapsible ends.
Standard International Trade Classification (SITC):
A standard numerical code system developed by the United Nations to classify
commodities used in international trade.
Starboard: Right side
of a ship when facing the front or forward end.
Steamship Agent: A
duly appointed and authorized representative in a specified territory acting in
behalf of a steamship line or lines and attending to all matters relating to the
vessels owned by his principals.
Company is usually composed of the following departments; vessel operations,
container operations, tariff department, booking, outbound rates, inward rates
and sales. the company can maintain its own in country U.S. offices to handle
regional sales, operations and/or other matters or appoint steamship agents to
represent them doing same. Some lines have liner offices in several regions and
have appointed agents in others.
Stern: The aftermost
part of the ship.
Stevedore: Port manual
worker involved with the physical loading and discharging of vessels.
Stowage Order: Before
certain classes of goods, such as valuables, fragile or dangerous, are sent to
the docks for shipment, a special stowage order must be obtained from the ship
owner. It is the ship owner’s authority to the ship-worker to accept the goods
and stow them where indicated. It must accompany the goods to the docks.
Stowage: The lacing of
cargo in a vessel in such a manner as to provide the utmost safety and
efficiency for the ship and the goods it carries.
Stowaway: A person who
illegally hides on a vessel to get free passage to another country (usually from
a poor country to a more affluent one).
Strikes, Riots, and Civil Commotions:
An insurance clause referring to loss or damage directly caused by strikers,
locked-out workmen, persons participation in labor disturbances, and riots of
various kinds. The ordinary marine insurance policy does not cover this risk;
coverage against it can be added only by endorsement.
Subsidy: An economic
benefit granted by a government to producers of goods or services, often to
strengthen their competitive position.
Sue & Labor Clause: A
provision in marine insurance obligating the assured to do things necessary
after a loss to prevent further loss and to act in the best interests of the
Supercargo: The person
who plans stowage and supervises loading and discharging of vessels. Also know
as a Port Captain.
Surety Bond: A bond
insuring against loss or damage or for the completion of obligations.
Surety Company: An
SWIFT: Society for
Worldwide Inter-bank Financial Telecommunications
SWL: Safe Working load
U.S. Commerce Department document,
"Shipper's Export Declaration."
A string of vessels which makes a particular voyage and
serves a particular market.
As provided in the Shipping Act of
1984, a contract between a shipper (or a shippers association) and an ocean
common carrier (or conference) in which the shipper makes a commitment to
provide a certain minimum quantity of cargo or freight revenue over a fixed time
period, and the ocean common carrier or conference commits to a certain rate or
rate schedule as well as a defined service level (such as assured space, transit
time, port rotation or similar service features). The contract may also
specify provisions in the event of nonperformance on the part of either party.
Saturday and Holidays Excluded.
Saturday and Holidays Included.
An individual or company selling
equipment and supplies for ships.
A charge for delaying a steamer
beyond a stipulated period.
Measure time onboard ship. One bell
sounds for each half hour. One bell means 12:30, two bells mean 1:00, three
bells mean 1:30, and so on until 4:00 (eight bells). At 4:30 the cycle begins
again with one bell.
A statement listing the particulars
of all shipments loaded for a specified voyage.
All rigging, cranes, etc., utilized
on a ship to load or unload cargo.
The tender of one lot of cargo at
one time from one shipper to one consignee on one bill of lading.
The person or company who is
usually the supplier or owner of commodities shipped. Also called Consignor.
A non-profit entity that represents
the interests of a number of shippers. The main focus of shippers associations
is to pool the cargo volumes of members to leverage the most favorable service
contract rate levels.
Shipper's Export Declaration (SED,"Ex Dec"):
A joint Bureau of the Census'
International Trade Administration form used for compiling U.S. exports. It is
completed by a shipper and shows the value, weight, destination, etc., of export
shipments as well as Schedule B commodity code.
Shipper's communication(s) to its
agent and/or directly to the international water-carrier. Instructions may be
varied, e.g., specific details/clauses to be printed on the B/L, directions for
cargo pickup and delivery.
Shipper's Letter of Instructions for issuing
an Air Waybill:
The document required by the carrier or
freight forwarders to obtain (besides the data needed) authorization to issue
and sign the air waybill in the name of the shipper.
Shipper's Load & Count (SL&C):
Shipments loaded and sealed by
shippers and not checked or verified by the carriers.
Shipping Act of 1916:
The act of the U.S. Congress (1916)
that created the U.S. Shipping Board to develop water transportation, operate
the merchant ships owned by the government, and regulate the water carriers
engaged in commerce under the flag of the United States. As of June 18, 1984,
applies only to domestic offshore ocean transport.
Shipping Act of 1984:
Effective June 18, 1984, describes
the law covering water transportation in the U.S. foreign trade.
Shipping Act of 1998:
Amends the Act of 1984 to provide
for confidential service contracts and other items.
Shipper's instructions to carrier
for forwarding goods; usually the triplicate copy of the bill of lading.
All vessels designed to carry bulk cargo such as
grain, fertilizers, ore, and oil.
Passenger and Cargo Ships:
Ships with a capacity for 13 or more passengers.
Break bulk vessels both refrigerated and unrefrigerated, containerships, partial
containerships, roll on/roll off vessels, and barge carriers.
Ships designed to carry barges; some are fitted to
act as full containerships and can carry a varying number of barges and
containers at the same time. At present this class includes two types of vessels
LASH and Sea-Bee.
Break bulk freighters, car carriers, cattle
carriers, pallet carriers and timber carriers.
Ships equipped with permanent container cells, with
little or no space for other types of cargo.
containerships where one or more but not all compartments are fitted with
permanent container cells. Remaining compartments are used for other types of
Ships specially designed to carry wheeled containers
or trailers using interior ramps.
Ships fitted with tanks to carry liquid
cargo such as: crude petroleum and petroleum products; chemicals, Liquefied
gasses(LNG and LPG), wine, molasses, and similar product tankers.
A prop or support placed against or
beneath anything to prevent sinking or sagging.
Short Ton (ST):
Polyethylene or similar substance
heat-treated and shrunk into an envelope around several units, thereby securing
them as a single pack for presentation or to secure units on a pallet.
A lift truck fitted with lifting
attachments operating to one side for handling containers.
A container fitted with a rear door
and a minimum of one side door.
A draft payable upon presentation
to the drawee.
Battens, or a series of parallel
runners, fitted beneath boxes or packages to raise them clear of the floor to
permit easy access of forklift blades or other handling equipment.
load and count. All three clauses are used as needed on the bill of lading
to exclude the carrier from liability when the cargo is loaded by the shipper.
Loaded containers moving within the
railroad system that are not clearly identified on any internally generated
A wire or rope contrivance placed
around cargo and used to load or discharge it to/from a vessel.
A vessel's berth between two piers.
Abbreviation for "Subject to
Particular Average." See also Particular Average.
An articulated five-platform
railcar. Used where height and weight restrictions limit the use of stack cars.
It holds five 40-foot containers or combinations of 40- and 20-foot containers.
Placing a container where required
to be loaded or unloaded.
A piece of equipment designed to
lift containers by their corner castings.
The force that holds a vessel
upright or returns it to upright if keeled over. Weight in the lower hold
increases stability. A vessel is stiff if it has high stability, tender if it
has low stability.
An articulated five-platform rail
car that allows containers to be double stacked. A typical stack car holds ten
40-foot equivalent units (FEU's).
A rail service whereby rail cars
carry containers stacked two high on specially operated unit trains. Each train
includes up to 35 articulated multi-platform cars. Each car is comprised of 5
well-type platforms upon which containers can be stacked. No chassis accompany
Standard Industrial Classification (SIC):
A standard numerical code used by
the U.S. Government to classify products and services.
Standard International Trade Classification (SITC):
A standard numeric code developed
by the United Nations to classify commodities used in international trade, based
on a hierarchy.
The right side of a ship when
facing the bow.
Statute Of Limitation:
A law limiting the time in which
claims or suits may be instituted.
Abbreviation for "Standard
Transportation Commodity Code."
A group of vessel operators joined
together for the purpose of establishing freight rates.
An indemnity issued to the carrier
by a bank; protects the carrier against any possible losses or damages arising
from release of the merchandise to the receiving party. This instrument is
usually issued when the bill of lading is lost or is not available.
The end of a vessel. Opposite of
Individual or firm that employs
longshoremen and who contracts to load or unload the ship.
Store-Door Pick-up Delivery:
A complete package of pick up or
delivery services performed by a carrier from origin to final consumption point.
A marine term referring to loading
freight into ships' holds.
Said to contain.
Mobile truck equipment with the
capacity for lifting a container within its own framework.
Straight Bill of Lading:
A non-negotiable bill of lading
which states a specific identity to whom the goods should be delivered. See Bill
Removing cargo from a container (devanning).
Putting cargo into a container.
Said to weigh.
To put in place of another; i.e.,
when an insurance company pays a claim it is placed in the same position as the
payee with regard to any rights against others.
Surface Transportation Board (STB):
The U.S. federal body charged with
enforcing acts of the U.S. Congress that affect common carriers in interstate
commerce. STB replaced the Interstate Commerce Commission (ICC) in 1997.
A wharf licensed and attended by
A logistical management system
which integrates the sequence of activities from delivery of raw materials to
the manufacturer through to delivery of the finished product to the customer
into measurable components. "Just in Time" is a typical value-added example of
supply chain management.
An extra or additional charge.
An additional extra tax.
Abbreviation for "Transportation and
Exportation." Customs form used to control cargo movement from port of entry to
port of exit, meaning that the cargo is moving from one country, through the
United States, to another country.
Rear of a container or
trailer-opposite the front or nose.
In railcar or container shipments,
the weight of the empty railcar or empty container.
A publication setting forth the
charges, rates and rules of transportation companies.
Through bill of lading
List of cargo, incoming and outgoing, checked by Tally clerk on dock.
Tank container: A
container suitable for carrying liquids or powder.
Tare Weight: The
weight of the container and/or packing materials only - excluding the weight of
the goods inside the container.
Tare: The actual
weight of the container only, without the goods.
Tariff: A general term
for any listing of rates, charges, etc. the tariffs most frequently encountered
in foreign trade are: tariffs of the international transportation companies
operating on sea, on land, and in the air; tariffs of the international cable,
radio, and telephone companies; and the customs tariffs of the various
countries, which list goods that are duty free and those subject to import duty,
giving the rate of duty in each case. There are various classes of customs
TDW: Tons deadweight
Temperature Controlled Cargo:
Any cargo requiring carriage under controlled temperature.
Terminal: A receiving
point ie a freight station or a container yard.
Twenty foot equivalent.
Third Freedom Right:
Where cargo is carried by an airline, from the country in which it is based, to
a foreign country.
Time charter: The
hiring of a ship from a ship owner for a period of time.
Time Draft: A draft
that matures in a certain number of days, either from acceptance or date of the
Title, Passing: The
passing of title to exported goods is determined in large measure by the selling
terms. For example, if an exporter sells goods c.i.f he may be presumed to pass
ownership and tender of documents. However, he may ship on a bill of lading
drawn to his own order, to prevent the buyer from gaining possession of the
goods until the draft is paid or accepted. In this case he retains a security
title to the goods; that is, a title for security purposes only, until the
financial arrangement is carried out. Caution: depending on the laws of the
buyer's country, you may not be able to force passage of title without payment
having been received or the buyer having accepted delivery of the goods or a
clear understanding by the buyer being understood and accepted.
Ton: Freight rates for
liner cargo generally are quoted on the basis of a certain rate per ton,
depending on the nature of the commodity. This ton, however, may be weight ton
or a measurement ton.
Indicates the carrying capacity of the ship
in terms of the weight in tons of the cargo, fuel, provisions and passengers,
which a vessel can carry.
weight of the volume of water, which the fully loaded ship displaces.
of airline freight capacity.
Indicates the cubical contents or burden of a vessel in tons of 100 cubic feet.
The space within a vessel in units of 100 cubic feet.
trailers and cassettes are secured with webbing. One end is attached to the
ceiling, the other to the underlayer
Used for sending messages to
outside companies. Messages are transmitted via Western Union, ITT and RCA.
Being replaced by fax and Internet.
A device to record temperature in a
container while cargo is en route.
The offer of goods for
transportation or the offer to place cars or containers for loading or
Time and date for payment of a
An assigned area in which
containers are prepared for loading into a vessel, train, truck, or airplane or
are stacked immediately after discharge from the vessel, train, truck, or
A charge made for a service
performed in a carrier's terminal area.
Terms of Sale:
The point at which sellers have
fulfilled their obligations so the goods in a legal sense could be said to have
been delivered to the buyer. They are shorthand expressions that set out the
rights and obligations of each party when it comes to transporting the goods.
Following, are the thirteen terms of sale in international trade as Terms of
Sale reflected in the recent amendment to the International chamber of Commerce
Terms of Trade (INCOTERMS), effective July 1990: exw, fca, fas, fob, cfr, cif,
cpt, cip, daf, des, deq, ddu and ddp.
(Ex Works) (...Named Place): A Term of
Sale which means that the seller fulfills the obligation to deliver when he or
she has made the goods available at his/her premises (i.e., works, factory,
warehouse, etc.) to the buyer. In particular, the seller is not responsible for
loading the goods in the vehicle provided by the buyer or for clearing the goods
for export, unless otherwise agreed. The buyer bears all costs and risks
involved in taking the goods from the seller's premises to the desired
destination. This term thus represents the minimum obligation for the seller.
(Free Carrier) (... Named Place): A Term
of Sale which means the seller fulfills their obligation when he or she has
handed over the goods, cleared for export, into the charge of the carrier named
by the buyer at the named place or point. If no precise point is indicated by
the buyer, the seller may choose, within the place or range stipulated, where
the carrier should take the goods into their charge.
(Free Alongside Ship) (...Named Port of Shipment):
A Term of Sale which means the seller fulfills his obligation to deliver when
the goods have been placed alongside the vessel on the quay or in lighters at
the named port of shipment. This means that the buyer has to bear all costs and
risks of loss of or damage to the goods from that moment.
(Free On Board) (...Named Port of Shipment):
An International Term of Sale that means the seller fulfills his or her
obligation to deliver when the goods have passed over the ship's rail at the
named port of shipment. This means that the buyer has to bear all costs and
risks to loss of or damage to the goods from that point. The FOB term requires
the seller to clear the goods for export.
(Cost and Freight) (...Named Port of Destination):
A Term of Sale where the seller pays the costs and freight necessary to bring
the goods to the named port of destination, Terms of Sale but the risk of loss
of or damage to the goods, as (continued) well as any additional costs due to
events occurring after the time the goods have been delivered on board the
vessel, is transferred from the seller to the buyer when the goods pass the
ship's rail in the port of shipment. The CFR term requires the seller to clear
the goods for export.
(Cost, Insurance and Freight) (...Named Place of Destination):
A Term of Sale where the seller has the same obligations as under the CFR
but also has to procure marine insurance against the buyer's risk of loss or
damage to the goods during the carriage. The seller contracts for insurance and
pays the insurance premium. The CIF term requires the seller to clear the goods
(Carriage Paid To) (...Named Place of Destination):
A Term of Sale which means the seller pays the freight for the carriage of the
goods to the named destination. The risk of loss of or damage to the goods, as
well as any additional costs due to events occurring after the time the goods
have been delivered to the carrier, is transferred from the seller to the buyer
when the goods have been delivered into the custody of the carrier. If
subsequent carriers are used for the carriage to the agreed upon destination,
the risk passes when the goods have been delivered to the first carrier. The CPT
term requires the seller to clear the goods for export.
(Carriage and Insurance Paid To) (...Named Place of Destination):
A Term of Sale which means the seller has the same obligations as under
CPT, but with the addition that the seller has to procure cargo insurance
against the buyer's risk of loss of or damage to the goods during the carriage.
The seller contracts for insurance and pays the insurance premium. The buyer
should note that under the CIP term the seller is required to obtain insurance
only on minimum coverage. The CIP term requires the seller to clear the goods
(Delivered At Frontier) (...Named Place):
A Term of Sale which means the sellers fulfill their obligation to deliver when
the goods have been made available, cleared for export, at the named point and
placed at the frontier, but before the customs Terms of Sale border of the
adjoining country. (continued)
(Delivered Duty Unpaid) (...Named Port of Destination):
A Term of Sale where the seller fulfills his obligation to deliver when the
goods have been made available at the named place in the country of importation.
The seller has to bear the costs and risks involved in bringing the goods
thereto (excluding duties, taxes and other official charges payable upon
importation) as well as the costs and risks of carrying out customs formalities.
The buyer has to pay any additional costs and to bear any risks caused by
failure to clear the goods for in time.
(Delivered Duty paid) (...Named Port of Destination):
"Delivered Duty Paid" means that the seller fulfills his obligation to deliver
when the goods have been made available at the named place in the country of
importation. The seller has to bear the risks and costs, including duties, taxes
and other charges of delivering the goods thereto, clear for importation. While
the EXW term represents the minimum obligation for the seller, DDP represents
(Delivered Ex Ship) (...Named Port of Destination):
A Term of Sale where the seller fulfills his/her obligation to deliver when the
goods have been made available to the buyer on board the ship, uncleared for
import at the named port of destination. The seller has to bear all the costs
and risks involved in bringing the goods to the named port destination.
(Delivered Ex Quay, [Duty Paid]) (...Named Port of Destination):
A Term of Sale which means the DDU term has been fulfilled when the goods have
been available to the buyer on the quay (wharf) at the named port of
destination, cleared for importation. The seller has to bear all risks and costs
including duties, taxes and other charges of delivering the goods thereto.
To Be Nominated. (When the
name of a ship is still unknown.)
Abbreviation for "Twenty
foot Equivalent Unit."
100 cubic feet.
The total rate from the point of
origin to final destination.
The charge for moving a container
through a container yard off or onto a ship.
A contract for leasing between the
ship owners and the lessee. It would state, e.g., the duration of the lease in
years or voyages.
A draft that matures either a
certain number of days after acceptance or a certain number of days after the
date of the draft.
International par la Route." Road transport operating agreement among European
governments and the United States for the international movement of cargo by
road. Display of the TIR carnet allows sealed container loads to cross national
frontiers without inspection.
Abbreviation for "Trailer
Abbreviation for "Trailer on Flat
Car." The movement of a highway trailer on a railroad flatcar. Also known as
unit used in comparing freight earnings or expenses. The amount earned from the
cost of hauling a ton of freight one mile.
movement of a ton of freight one mile.
Generally refers to freight
A type of air circulation in a
container. In top air units, air is drawn from the bottom of the container,
filtered through the evaporator for cooling and then forced through the ducted
passages along the top of the container. This type of airflow requires a special
The charge made for towing a
Unit of highway motive power used
to pull one or more trailers/containers.
A time or a date draft that has
been accepted by the buyer (the drawee) for payment at maturity.
Persons and property carried by transport
The truck unit into which freight
is loaded as in tractor trailer combination. See Container.
An ocean carrier company operating
vessels not on regular runs or schedules. They call at any port where
cargo may be available.
To move cargo from one place to
Transportation & Exit (T&E):
Allows foreign merchandise arriving
at one port to be transported in bond through the U.S. to be exported from
another port, without paying duty.
To transfer goods from one
transportation line to another, or from one ship to another.
Place where cargo is transferred to
Tracking: A carrier's
system of recording movement intervals of shipments from origin to destination.
Trade: A term used to
define a geographic area or specific route served by carriers.
Rate-fixing machinery operated by IATA.
Tramp: A tramp is a
vessel that does not operate along a definite route on a fixed schedule, but
calls at any port where cargo is available.
Transferable Letter of Credit:
A letter of credit that allows all or a portion of the proceeds to be
transferred from the original beneficiary to one or more additional
Transport Index: The
number expressing the maximum radiation level in a package of ULD.
The transfer of a shipment from one carrier to another in international
trade, most frequently from one ship to another. In as much as the unloading and
reloading of delicate merchandise is likely to cause damage, transshipments are
avoided whenever possible.
rates apply where the tariff shows a truckload minimum weight. Charges will be
at the truckload minimum weight unless weight is higher.
Trust Receipt: Release
of merchandise by a bank to a buyer for manufacturing or sales purposes in which
the bank retains title to the merchandise.
TTC: Tariff trade code
Release of merchandise by a bank to
a buyer while the bank retains title to the merchandise. The goods are usually
obtained for manufacturing or sales purposes. The buyer is obligated to maintain
the goods (or the proceeds from their sales) distinct from the remainder of the
assets and to hold them ready for repossession by the bank.
In water transportation, the time
it takes between the arrival of a vessel and its departure.
Tug master: A tractor
- often a four-wheel drive - with a hydraulic trailer connection known as a
‘fifth wheel’ used to tow cargo on and off the vessels.
TURN: Trader unique
Turnbuckle: A screw
threaded device for tightening rods and chains and wire lashings
Capital construction projects in which the supplier (contractor) designs and
builds the physical plant, trains the local personnel on how to manage and
operate the facility and presents the buyer with a self-sustaining project (all
the buyer has to do is "turn the Key").
Twist lock: Device for
locking a container to the deck or to another container above or below. The
locking bar is fitted to the corner casting of the container and twisted with a
Tynes: Another term
for the forks of a forklift truck.
A set of four twistable bayonet
type shear keys used as part of a spreader to pick up a container or as part of
a chassis to secure the containers.
A pallet so designed that the forks of a fork lift truck can be
inserted from two sides only.
Abbreviation for the "Uniform
Customs and Practice for Documentary Credits," published by the International
Chamber of Commerce. This is the most frequently used standard for making
payments in international trade; e.g., paying on a Letter of Credit. It is most
frequently referred to by its shorthand title: UCP No. 500. This revised
publication reflects recent changes in the transportation and banking
industries, such as electronic transfer of funds.
Abbreviation for "Uniform Freight
The space not filled with liquid in
a drum or tank.
U/D: Under deck
UDEAC: Central African
Customs and Economic Union
UDEAO: Union Douance
et Economique d'Afrique Occidentale
UN: United Nations
UNCITRAL: The United
Nations Commission on International Trade Law
UNCTAD: The United
Nations Conference on Trade & Development
United Nations EDI for
Administration, Commerce and Transport. EDI Standards are developed and
supported by the UN for electronic message (data) interchange on an
Freight that has not been called
for or picked up by the consignee or owner.
To charge less than the proper
Uniform Customs and Practices for Documentary
Rules for letters of credit drawn up by
the Commission on Banking Technique and Practices of the International Chamber
of Commerce in consultation with the banking associations of many countries. See
Terms of Payment.
Packages loaded on a pallet, in a
crate or any other way that enables them to be handled at one time as a unit.
A train of a specified number of
railcars, perhaps 100, which remain as a unit for a designated destination or
until a change in routing is made.
consolidation of a quantity of individual items into one large shipping unit for
one or more large items of cargo onto a single piece of equipment, such as a
Removal of a shipment from a
U.S. Consular Invoice:
A document required on merchandise
imported into the United States.
Validated Export License:
A document issued by the U.S.
government; authorizes the export of commodities for which written authorization
is required by law.
Authentication of B/L and when B/L
Transportation charges assessed shippers who declare a value of goods higher
than value of carrier's' limits of liability.
A term for stowing cargo in a
Costs that vary directly with the
level of activity within a short time. Examples include costs of moving cargo
inland on trains or trucks, stevedoring in some ports, and short-term equipment
leases. For business analysis, all costs are either defined as variable or
fixed. For a business to break even, all fixed costs must be covered. To make a
profit, all variable and fixed costs must be recovered plus some extra amount.
VAT (Value-Added Tax):
A sales or consumption tax which the end user pays. Typically, this is a
"hidden"; tax, added to the list price of the goods in question.
Visa: An invoice
properly validated by the Minister of Trade in regard to quota entries.
Used when calculating airfreight when the
size of the carton is greater than the average weight, calculated by multiplying
the length times the width times the height and dividing by 166.
A container designed with openings
in the side and/or end walls to permit the ingress of outside air when the doors
Vessel Supplies for Immediate Exportation (VSIE):
Allows equipment and supplies
arriving at one port to be loaded on a vessel, aircraft, etc., for its exclusive
use and to be exported from the same port.
The international carrier is
obligated to make declarations of the ship's crew and contents at both the port
of departure and arrival. The vessel manifest lists various details about each
shipment by B/L number. Obviously, the B/L serves as the core source from which
the manifest is created.
Namely. Used in tariffs to specify commodities.
Insurance coverage for loss of
goods resulting from any act of war.
A place for the reception,
delivery, consolidation, distribution, and storage of goods/cargo.
Document that identifies goods
imported when placed in a bonded warehouse. The duty is not imposed on the
products while in the warehouse but will be collected when they are withdrawn
for delivery or consumption.
Warehouse Withdrawal for Transportation
Immediate Exportation (WDEX):
Allows merchandise that has been
withdrawn from a bonded warehouse at one U.S. port to be exported from the same
port exported without paying duty.
Warehouse Withdrawal for Transportation (WDT):
Allows merchandise that has been
withdrawn from a bonded warehouse at one port to be transported in bond to
another port, where a superseding entry will be filed.
W. & I.: Weighing and
W.A.: With Average
W.R.: War Risk
W/M: Weight and/or
W/R: Warehouse receipt
War Risk Insurance:
Insurance issued by marine underwriters against war-like operations specifically
described in the policy. In former times, war risk insurance was taken out only
in times of war, but currently many exporter cover most of their shipments with
war risk insurance as a protection against losses from derelict torpedoes and
floating mines placed during former wars, and also as a safeguard against
unforeseen warlike developments. In the United states, war risk insurance is
written in a separate policy from the ordinary marine insurance; it is desirable
to take out both policies with the same underwriter in order to avoid the ill
effects of a possible dispute between underwriters as to the cause (marine peril
or war peril) of a given loss.
War Risk: The possible
aggressive actions against a ship and its cargo by a belligerent government.
This risk can be insured by a marine policy with a risk clause.
Warehouse Receipt: A
receipt of commodities deposited in a warehouse, identifying the commodities
deposited. It is non-negotiable if permitting delivery only to a specified
person or firm, but it is negotiable if made out to the order of a person or
firm or to a bearer. Endorsement (without endorsement if made out to bearer) and
delivery of a negotiable warehouse receipt serves to transfer the property
covered by the receipt serves to transfer the property covered by the receipt.
Warehouse receipts are common documents in international banking.
A clause in marine insurance policy whereby
the underwriter agrees to cover the goods while in transit between the initial
point of shipment and the point of destination, with certain limitations, and
also subject to the law of insurable interest. When it was first introduced, the
warehouse-to-warehouse clause was extremely important, but now its importance is
diminished by the marine extension clauses, which override its provisions.
A document prepared by a
transportation line at the point of a shipment; shows the point of the origin,
destination, route, consignor, consignee, description of shipment and amount
charged for the transportation service. It is forwarded with the shipment or
sent by mail to the agent at the transfer point or waybill destination.
Abbreviation is WB. Unlike a bill of lading, a waybill is NOT
a document of title.
Web Lashing: Webbing
made of artificial fibre, which is tightened and locked with a winch.
Weight Load Factor:
Payload achieved as against available, expressed as a percentage. Cargo is
frequently limited by volume rather than weight; load factors of 100% are rarely
Weight, Legal: Net
weight of goods, plus inside packing.
- The weight of the goods including packing, wrappers, or containers, internal
and external. The total weight as shipped.
- The weight of the goods themselves without the inclusion of any wrapper.
- The weight of the packaging or container.
Ton - In many cases, a rate is shown per
weight/measurement ton, carrier's option. This means that the rate will be
assessed on either a weight ton or measurement ton basis, whichever will yield
the carrier the greater revenue. As example, the rate may be quoted on the basis
of 2,240 pounds or 40 cubic feet or of 1 metric ton or 1 cubic meter.
Ton - There are three types of weight
ton; the short ton, weighing 2,000 pounds; the long ton, weighing 2,240 pounds;
and the metric ton weight 2,204.68 pounds. The last is frequently quoted for
cargo being exported from Europe.
Wharfage: A charge
assessed by a pier or dock owner against the cargo or a steamship company for
use of the pier or dock.
A marine insurance term meaning that shipment
is protected for partial damage whenever the damage exceeds a stated percentage.
With Particular Average (W.P.A.):
An insurance term meaning that partial loss
or damage of goods is insured. Generally must be caused by sea water. Many have
a minimum percentage of damage before payment. May be extended to cover loss by
theft, pilferage, delivery, leakage, and breakage.
Without Reserve: A
term indicating shipper's agent or representative is empowered to make
definitive decisions and adjustments abroad without approval of the group or
individual represented. See advisory capacity.
International bank for reconstruction and development
Warehouse Withdrawal for Transportation
Allows merchandise that has been
withdrawn from a bonded warehouse at one port to be transported in bond through
the U.S. to be exported from another port, without paying duty.
The storing of goods/cargo.
A cargo on which the transportation
charge is assessed on the basis of weight.
Also known as stack car. A
drop-frame Rail flat car.
Weights and Measures
40 cubic ft or one cubic meter.
Net ton, or short ton
Gross ton/long ton
Metric ton/kilo ton
35.314 cubic ft.
Charge assessed by a pier or dock
owner against freight handled over the pier or dock or against a steamship
company using the pier or dock.
Whether In Berth or Not.
A freight booking made by a skipper
or freight forwarder to serve space but not actually having a specific cargo at
the time the booking is made. Carriers often overbook a vessel by 10
to 20 percent in recognition that "windy booking" cargo will not actually ship.
A phrase preceding the signature of
a drawer or endorser of a negotiable instrument; signifies that the instrument
is passed onto subsequent holders without any liability to the endorser in the
event of nonpayment or non-delivery.
Abbreviation for "Weight or
Measurement;" the basis for assessing freight charges. Also known as "worm." The
rate charged under W/M will be whichever produces the highest revenue between
the weight of the shipment and the measure of the shipment.
Abbreviation for "With Particular
Western Truck Lines.
Weather Working Days.
X Heavy: Extra Heavy
X Strong: Extra strong
XX Heavy: Double extra
XX Strong: Double
Rules - A code of rules adopted by an international convention in 1890, amended
in 1924 and again in 1950, for the purpose of establishing a uniform basis for
adjusting general average. Certain nationalities decline to observe certain of
the rules adopted. United States shipping interests generally abide by general
rule "F" and numbered rules 1 to 15 and 17 to 22, inclusive and specifically set
this forth in a Bill Of Lading Clause.
Yield: Revenue, not
necessarily profitable, per unit of traffic.
A classification, storage or switching area.
York-Antwerp Rules of 1974:
Established the standard basis for
adjusting general average and stated the rules for adjusting claims.
Time based on Greenwich