Shipping / Transportation Glossary
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Shipping / Transportation Glossary |
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Absorption (or Charges) – Accrued charges, such as cartage and storage. Sometimes assumed by the carrier for some purposes. Accessorial Charge - A charge made by a carrier for other than basic ocean transportation. FMC 514.2 "Accessorial means a particular service or condition other than the basic transportation, which is usually described in a commodity description, TLI, or Tariff Rule, and for which a charge may be added to the basic ocean freight rate." Accessorial Services – Service rendered by a terminal operator or carrier which is subordinate to the principle function or transportation or movement of freight across a terminal (includes weighing, packing, warehousing, etc.). ACS/ABI/AMS – Automated Commercial System/Automated Broker Interface/Automated Manifest System. U.S. Customs programs to automate the flow of customs-related information among customs brokers, importers, and carriers. Acct. - Account ACS - American Consolidation Services Account Party - The purchasing party, the importer, the consignee, the buyer in any transaction. Also known as accountee. Ad Valorem - According to value. Usually applied to a custom’s duty charged upon the value of goods that are dutiable. Advice, Letter of - This document is sent by one businessperson to another to whom he/she has sent a shipment, on consignment or otherwise. It involves a description of the goods sent, the carrier or other means of transportation used, the date of departure, and all other relevant data. (Bankers use the term letter of advice when notifying interested parties of such actions as the opening of credits, the drawing of drafts and the payment or nonpayment of drafts.) Advise of Shipment - A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading. Air Cargo - Any property (freight, mail, express) carried or to be carried in an aircraft. Does not include passenger baggage. Air Cargo Agent - An agent appointed by an airline to solicit and process international airfreight shipments. Air Freight - A service provided for the transport of goods in any volume. Air Waybill - The air waybill (also called air consignment note) is the forwarding agreement or carrying agreement between shipper and air carrier, and is obtained from the airline used to ship goods. Air waybills are issued only in nonnegotiable form. All Cargo Aircraft - An aircraft for the carriage of cargo only, rather than the combination of passengers and cargo. The all-cargo aircraft will carry traffic in bulk or container in the main deck as well as in the lower deck of the aircraft. It may include scheduled and nonscheduled service. All Inclusive/All In - A shipping rate that includes all shipping and accessorial charges. Allocate - To distribute, assign, or allot. All Water (A.W.) - Exclusively by water. Ambiguous - Susceptible to several interpretations. Amendment - A written notice of a change in the terms of a letter of credit. The change becomes an integral part of the original letter of credit. Any-Quantity (A.Q.) - Usually refers to a rating that applies to an article regardless of weight (i.e., in any quantity). Appraisement - Determination of the dutiable value of imported merchandise by a customs official who follows procedures outlined in their country's tariff, such as the U.S. Tariff Act of 1930, as amended. Arbitrary - A stated amount over a fixed rate to one point to make a rate to another point. Arrival Notice - A notice from the ocean carrier to the "notify party," indicating the vessel's estimated arrival date; identifying shipment details such as number of packages, weight, and container number; and indicating when free time expires. Often includes a freight invoice. A.T.A. Carnet (Admission Temporaire-Temporary Admission) - A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without payment of Customs duties and posting of Customs bonds.
B.
Bank Guarantee - Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading. Beam - The greatest width of a ship. Belly Pits or Holds - Compartments located beneath the cabin of an aircraft and used for carriage of cargo, mail and passenger baggage. Bill of Lading (B/L) - A document that establishes the terms of a contract between a shipper and a transportation company that moves freight between specified ports for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage and a receipt for goods. There are different types of B/Ls:
Bill of Sale - Confirms the transfer of ownership of certain goods to another person in return for money paid or loaned. Blue Lantern - An end-use check system administered by DTC in conjunction with the U.S. Customs Service. This program is designed to strengthen export controls and serve as the principal means of verifying the ultimate destination and specific end-use and end-users of U.S.-origin defense exports. It also ensures that the State Department makes informed licensing decisions while effectively enforcing the AECA and ITAR. Board - To gain access to a vessel. Boat - A small vessel, with or without a deck, propelled by oars, paddles, sails or power. Broad definition: A boat can fit on a ship. Bonded Freight - Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions. Bonded Terminal - An airline terminal approved by the U.S. Customs Service for storage of goods until Customs duties are paid or the goods are otherwise released. Bonded Warehouse - Goods that must be held until duties are paid are normally put in a bonded warehouse. Warehouse must be approved by the U.S. Treasury Department and must be under bond or guarantee of compliance with revenue laws. Booking - Arrangements with a carrier, often a steamship or airline, for the acceptance and carriage of passengers or freight. Bottom Side Rails - Structural members on the longitudinal sides of the base of the container. Bow - The front of a vessel. Box - Common term for an ocean going freight container. Breakbulk - The movement by ocean of packaged goods that are not containerized. Broker - A person who arranges for transportation of loads, usually large operations, for a percentage of the revenue from the load. In Canada a broker is an owner-operator. Brokerage License - Authority granted by the Interstate Commerce Commission to engage in the business of arranging for transportation of persons or property in interstate commerce. Bulk Freight - Not in packages or containers; shipped loose in the hold of a ship. Grain, coal and sulfur are usually bulk freight. Bulk Freight Container - Refers to a container with a discharge hatch in the front wall; allows bulk commodities to be grasped by loading hatches. Bunker SurCharge - An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. Bunkers - Fuel Burden of Proof - The duty of proving a particular position in a legal proceeding. Failure to perform this duty calls for judgment against the party on whom the duty is imposed. C.
CAF - Currency adjustment factor - An accessorial charge to compensate for fluctuations in currencies. CAO - Cargo Aircraft Only Capacity/Weight - Total internal container volume (LxWxD) or weight limitation. Cargo - Freight loaded into a ship. Cargo Agent - An agent appointed by an airline to solicit and process international air freight for shipments. Cargo Manifest - A manifest that lists only cargo, not charges. Cargo Selectivity System - A part of U.S. Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper. Cargo Tonnage - The weight ton in the United States is 2,000 or 2,240 pounds and in British countries it is the English long ton, or gross ton, of 2,240 pounds. In France and other countries having the metric system, the weight ton is 2,204.62 pounds. The measurement ton is usually 40 cubic feet, but in some instances a large number of cubic feet is taken as a weight ton. Most ocean freight is taken at weight or measurement (W/M), ship's option. Carrier - Any individual, company or corporation engaged in transporting goods. Carnet - A Customs document allowing special categories of goods to cross international borders without payment of duties. Carrier Certificate and Release Order - Used to advise Customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo. C.B.M. (CM) - Cubic meter Cells - The construction system employed in container vessels; permits below-ship containers to be stowed in a vertical line with each container supporting the one above it. Certificate of Manufacture - A statement (often notarized) in which a producer of goods certifies that the manufacturing has been completed and the goods are now at the disposal of the buyer. Certificate of Origin - A document in which the exporter certifies the place of origin (manufacture) of the merchandise being exported. Required by some countries for tariff purposes certifying the country of origin of specified goods. Certificate of Weight - An authoritative statement of the weight of a shipment. C.& F. - Cost and freight (named point of destination). Under this term, seller quotes a price that includes the cost of transportation of the named destination. C.F. (Cu.Ft.) - Cubic feet. C.F.S./C.F.S. - Container Freight Station to Container Freight Station. A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-containerload shipments. Chargeable Weight - The shipment weight used in determining airfreight charges. The chargeable weight may be the dimensional weight or for container shipments, the gross weight of the shipment less the tare weight of the container. Charges, Statement of - A detailed statement of all charges sent to the importer, to show how the charges were calculated. The statement of charges normally deals with charges incurred by the shipper to the importer that are outside of the quoted or agreed price. Charter Service - The temporary hiring of an aircraft, usually on a trip basis, for the movement of cargo or passengers. Chassis - A trailer constructed to accommodate containers moved over the road. C.I. - 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 destination. C.I.F. - Cost, insurance and freight (named point of destination); a price that includes the cost of goods. The marine insurance and all transportation charges are figured to point of destination. C.I.F.& C. - Price includes commission as well as C.I.F. C.I.F.C.I. - Cost, insurance, freight, collection and interest. C.I.F.& E. - Cost, insurance, freight and exchange. C.I.F.& I. - Cost, insurance, freight and exchange of currency. C.I.F.I.& E. - Cost, insurance, freight, interest and exchange. C.I.F. Named Port - Cost, insurance, freight. Same as C&F except seller also provides insurance to named destination. C.I.P. (Carriage and Insurance Paid To…) - INCO Term used to define the terms of sale between the buyer and seller of goods internationally. 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 risks of loss of or damage to the goods during carriage. The seller contracts for insurance and pays for the insurance premium. The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage. The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport. Claim - A demand made upon a transportation line for payment on account of a loss sustained through its negligence. Class I Railroads - Those railroads with an annual operating revenue of $5,000,000 or more. Class II Railroads - Those railroads with annual operating revenue of less than $5,000,000. Class and Commodity Tariff - A tariff publication including both class and commodity rates. Classification - A publication, such as the 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. 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. Collect Freight - Freight payable to the carrier at destination. Most bills of lading specify that collect freight is payable even if the cargo does not arrive at destination. Combi Aircraft - Aircraft specifically designed to carry unitized cargo loads on the upper deck of the aircraft forward of the passenger compartment. Combination Aircraft - An aircraft
capable of transporting both passengers and cargo on the same flight. Some cargo
is carried on virtually all scheduled passenger flights in the belly pits below
the passenger cabin. Commerce Control List - The CCL includes all items -- commodities, software, and technical data -- subject to BXA export controls and incorporates not only the national security controlled items agreed to by CoCom (the "core" list), but also items controlled for foreign policy (i.e., biological warfare, nuclear proliferation, missile technology, regional stability, and crime control) and short supply. The list is divided into 10 general categories: (1) materials, (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8) marine technology, (9) propulsion systems and transportation equipment, and (10) miscellaneous. Commercial Invoice - 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. Commodity - Article shipped. Commodity Rate - A rate published to apply to a specific article or articles. Commodity Tariff - A tariff published to show specific rates on specific articles. Common Carrier - A transportation company operating under a Certificate of Convenience and Necessity; provides service to the general public at published rates. Common Law - Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the law of England and the United States. Conference - An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates. Consignee - A person named as the receiver of a shipment—one to whom a shipment is consigned. Consignor - One who designates the person to whom goods are to be sent. The consignor is usually the shipper. Consolidated Cargo - Cargo containing shipments of two or more shippers, usually shipped by a firm called a consolidator. The consolidator takes advantage of lower full car load (F.C.L.) rates, and savings are passed on to shippers. Consolidation - The combination of many small shipments into one container. Consul - A government official residing in a foreign country who represents the interests of his/her country and its nationals. 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 shipment Consulate - A consul's office or premises. Container - Anything in which articles are packed. Container Booking - Arrangements with a steamship line to transport containerized cargo. Container Car - A specially designed car for transporting portable freight containers. Container Freight Station (CFS, C.F.S.) - Consolidation depots where parcels of cargo are grouped and loaded into containers. Containerizable Cargo - Cargo that will fit into a container and result in an economical shipment consistent with delivery requirements. Containerization - Stowage of general or special cargos in a container for transport in the various modes. Containerload - A load sufficient in size to fill a container either by cubic measurement or by weight. Container Part Load - A shipment that does not utilize the full volume of a container nor the maximum payload by weight (additional part loads may be added). Container Pool - An agreement between transporters that allows efficient use and supply of containers. Container Terminal - An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Contract - A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value. Cost, Insurance and Freight - 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. Countervailing Duty - An extra charge that a country places on imported goods to counter the subsidies or bounties granted to the exporters of the goods by their home governments. The duty is allowed by the Code on Subsidies and Countervailing Duties negotiated at the Tokyo Round, if the importing country can prove that the subsidy would cause injury to domestic industry. U.S. countervailing duties can only be imposed after the International Trade Commission has determined that the imports are causing or threatening to cause material injury to a U.S. industry. Country of Origin - The country of manufacture, production or growth of any article of foreign origin. For goods entering the U.S., further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin." C.P.T. (Carriage Paid To…named place of destination) - INCO term used to define the terms of sale between the buyer and seller of goods internationally. 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. The CPT term requires the seller to clear the goods for export. This term may be used for any mode of transport including multi-modal transport. Cubic Foot - 1,728 cubic inches. Customs - A government authority designated to regulate the flow of goods to/from a country and to collect duties levied by a country on imports and exports. Customs House - A U.S. Treasury Department office where duties, etc., on foreign shipments are handled. Customhouse Broker - A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through customers for a client (importer). Customs Bonded Warehouse - A warehouse in any country authorized and established by Customs where goods may be stored. Customs Broker - A firm that represents importers in dealings with Customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through Customs, arranging inland transport, and paying all charges related to these functions. Customs Business - Those activities involving transactions with Customs concerning the entry and admissibility of merchandise, its classification, valuation, the payments of duties, taxes or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate or drawback thereof. Customs Invoice - A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate or origin. Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice. Customs Tariff - A schedule of charges assessed by a government on imported or exported goods. CY - Container yard. A materials-handling facility used for completely unitized loads of containers. CY/CY - Container yard to Container yard. A type of steamship line service in which freight is transported from origin container yard to destination container yard.
D.
Dangerous Goods - Articles or substances which are capable of posting a significant risk to health, safety or property when transported by air and which are classified according to the most current editions of the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air and the IATA Dangerous Goods Regulations. DDC - Destination Delivery Charge - An accessorial charge to deliver at destination. DDP (Delivered Duty Paid…named place of destination) - INCO term used to define the terms of sale between the buyer and seller. The seller fulfills his obligation to deliver when the goods have been made available to 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, cleared for importation. Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation. This term should not be used if the seller is unable directly or indirectly to obtain the import license. If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DDU should be used. If the parties wish to exclude from the seller’s obligations some of the costs payable upon importation of the goods (such as value added tax VAT), this should be made clear by adding words to this effect: Delivered Duty Paid, VAT UnPaid (…named place of destination). This term may be used irrespective of the mode of transport. DDU (Delivered Duty Unpaid…named place of destination) - INCO term used to define the terms of sale between the buyer and the seller of goods internationally. The seller fulfills his obligation to deliver when the goods have been made available to the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods therefore (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 his failure to clear the goods for import in time. If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this has to be made clear by adding words to this effect. If the parties wish to include in the seller’s obligations some of the costs payable upon importation of the goods (such as value added tax VAT), this should be made clear by adding words to this effect: Delivered Duty Unpaid, VAT Paid (…named port of destination). This term can be used irrespective of the mode of transport. Deadweight Cargo - A long ton of cargo that can be stowed in less than 70 cubic feet. Declared Value for Carriage - The value of the goods, declared by the shipper on a bill of lading for the purpose of determining a freight rate or the limit of the carrier's liability. Deconsolidation Point - Place where loose or other non-containerized cargo is ungrouped for delivery. Delivery - The act of transferring possession, such as the transfer of property from consignor to carrier, one carrier to another, or carrier to consignee. Delivery Instructions - Order to pick up goods at an intransit (temporary) terminal 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. Delivery Order - Document issued by the customs broker to the ocean carrier as authority to release the cargo to the inland carrier. Demurrage - A charge for storage of incoming merchandise beyond the free time allotted by the shipping company. Also applies to carrier-owned or leased equipment, such as containers and chassis. Deployment - The disposition of vessels in such a way as to maximize customer satisfaction, utilization, efficiency and revenue-generating potential while controlling costs. Destination - The place where carrier actually turns over cargo to consignee or his agent. Destination Control Statement - Exporters are required to place destination control statements on commercial invoices and bills of lading for most export sales. These statements alert foreign recipients of goods and documents that diversion contrary to U.S. law is prohibited. Destination control statements are discussed in the Code of Federal Regulations (15 CFR 786.5 and 786.6). Detention - A penalty charge against shippers or receivers for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. Devanning - The removal of freight. DGD - Dangerous Goods Declaration - Any substance that falls under one of 9 UN hazardous classifications as defined in the IMDGC. Dimensional Weight - Dimensional weight refers to density, i.e. weight per cubic foot. Direct Service - A Direct Service in Airfreight can mean one of two things. Either, it is a request for or a reference to, the cargo being handed directly to the Air Carrier as opposed to the Consolidator or Forwarder. In this context then, a Direct Service is the opposite of a consolidated service. Note that this is frequently called Direct IATA (with IATA being the International body that controls air activity. However, not all Air Carriers are IATA members, so Direct with the Carrier would be a more accurate statement. The second use of the expression Direct Service is in requesting the routing of the cargo using one aircraft only. Whether or not the cargo is entrusted directly to the Carrier or via a Consolidator or Forwarder is not the point. What is important in this usage of the expression is that the cargo flies from origin to destination on a single craft. This would be the opposite of the dogleg service. The caution is that in using the expression in the context of the second definition (i.e. one aircraft) a consolidator may take it to mean the first definition (i.e. directly with the Carrier). The consequence of such a misunderstanding could be severe as the Freight Rates charged by Carriers for ‘direct’ handling of cargoes is often many times greater than the rate offered by the Forwarder. Distributor - A person or firm performing a service of distribution on pool cars or consolidated shipments at destination. Diversion - A change made in the route of a shipment in transit (see Reconsignment). Dock - The water alongside a pier or wharf, and loading or unloading platform at an industrial location or carrier terminal. Dock Receipt (D/R) - A document issued by an exporter (or freight forwarder on exporter's behalf). There is no standard form, but must include shipment description, physical details and shipping information. Used by both shipper and carrier to verify shipment particulars, condition, and delivery to carrier. Signed by receiving clerk on behalf of carrier. Door-to-Door - Through transportation of a container and its contents from consignor to consignee. DOT - Department of Transportation - U.S. cabinet level agency responsible for domestic transportation and US inland portions of international shipments. DOT is also the parent agency of the US Coast Guard. Drawback - A refund or remission, in whole or in part, of a customs duty, internal revenue tax, or fee lawfully assessed or collected which is provided at the time of re-exportation. Dray - A truck or other equipment designed to haul heavy loads. Drayage - Charge made for local hauling by dray or truck. Dry Cargo - Cargo that does not require temperature control. Dry Freight - Dry cargoes not requiring controlled temperature. DTC - (formerly: the Office of Munitions Control, OMC) at State administers licenses for the export of defense articles and services including arms, ammunition, and implements of war. These items are listed in the International Traffic in Arms Regulations (ITAR) and the U.S. Munitions List. DTC is involved in the commodity jurisdiction (CJ) process. The CJ process is used to determine whether a particular item should be transferred to another control list (primarily, whether an item may be subject to the ITAR or considered either dual-use and subject to the Commodity Control List). Duty - A tax imposed by a government on merchandise imported from another country. There are several types of duty, including: Ad valorem duty ("According to the value.") - An assessment based on the actual value of an article. Specific duty - An assessment based on the weight or quantity of an article without reference to its monetary value or market price. Duty Drawback - A refund of duty paid on imported merchandise when it later is exported.
E.
EIN
- Exporter’s identification number Embargo - Order to restrict the hauling of freight. Empty Repo - Empty Repositioning. The move of empty containers by truck or rail to meet service needs elsewhere. Empty Slot - An available loading position on a stack car; created when a container is not loaded to an available position. Also known as a vacant slot. Entry Summary - A document issued by a customs broker on behalf of an importer. Customs Form 7501 specifies all shipment particulars that allow U.S. Customs to assess and collect import duties. Highly standardized to allow computer processing. Includes Harmonized Code number, broker identification number, and auxiliary fees. Broker figures all assessments, then submits form with supporting documents and payment. Customs later either accepts or modifies payment. E.T.A. - Estimated or Expected Time of Arrival. Exchange Bill of Lading - A bill of lading issued in exchange for another bill of lading. Exchange Rate - The price of one currency in terms of another; i.e., the number of units of one currency that may be exchanged for one unit of another currency. Exodus - Operation Exodus is a U.S. Customs Service export enforcement program that was developed in 1981 to help stem the flow of the illegal export of U.S.-sourced arms and technology to the Soviet bloc and other prohibited destinations. Export (Expt.) - Shipment of goods to a foreign country. Export Broker - An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions. Export License - A document secured from a government, authorizing a shipper to export a specific quantity of a particular commodity to a certain country. An export license is often required when a government places restrictions upon exports. Export-Management Company - A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission. Export Rate - A rate published on traffic moving from an interior point to a port for transshipment to a foreign country. Export Trading Company - A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not. Express Consignment Operator or Carrier - An entity operating in any mode or intermodally moving cargo by special express commercial service under closely integrated administrative control. Its services are offered to the public under advertised, reliable timely delivery on a door-to-door basis. EXW (EX WORKS…named place) - INCO term used to define the terms of sale between the buyer and seller of goods internationally. The seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on 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. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used.
F.
FCA (Free Carrier…named place) - INCO term used to define the terms of sale between the buyer and seller of goods internationally. The 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 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 shall take the goods into his charge. When, according to commercial practice, the seller’s assistance is required in making the contract with the carrier, the seller may act at the buyer’s risk and expense. This term may be used for any mode of transport, including multimodal transport. FCL - Full containerload. Federal Maritime Commission - Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States. FEC
- Foreign Exchange Contract or Forward Cover -
This is a Banking facility devised to allow (normally) importers to cost goods
using a fixed exchange rate. F.E.U. - Forty-foot Equivalent Unit container. Final Destination - Consignee's facility where shipment ends its movement at cargo's expense. FIO
- Free In and Out - Ocean Loading/Unloading
term. Flag Carrier - An airline or vessel of one national registry whose government gives it partial or total monopoly over international routes. F.M.C. - Federal Maritime Commission. F.O.B. - Free on Board. Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point. F.O.B. Freight Allowed - The same as F.O.B. named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by a like amount. F.O.B. Freight Prepaid - The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland carrier. F.O.B. 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 F.O.B. vessel. F.O.B. Vessel - Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel. Force Majeure - The title of a common clause in contracts, typically exempting the parties for nonfulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war. Foreign Exchange – exchange can be either:
Foreign-Trade Zone (FTZ)- A site sanctioned by the U.S. Customs Service in which imported goods are exempted from duties until withdrawn for domestic sale or use. Such zones are used for commercial warehouses or assembly plants. Free Alongside - The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. The buyer arranges ship space and informs the seller when and where the goods are to be placed. Also known as Free Alongside Steamer. Free on Board - Shipped under a rate that includes costs of delivery to a carrier and the loading onto the carrier at a specified point. Free Time - The time allowed shippers or receivers to load or unload cars before demurrage, detention or storage charges accrue. Free Trade Zone - A port designated by the government of a country for duty-free entry of any nonprohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties. Freight - Refers to either the cargo carried or the charges assessed for carriage of the cargo. Freight Bill - 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. Freight Charge - The charge assessed for transporting freight. Freight Claim - Demand upon a carrier for the payment of overcharge or loss or damage sustained by a shipper or consignee. Freight Forwarder - A firm that represents shippers by arranging transport and completing documentation required for international shipping. Some freight forwarders also act as cargo consolidators.
G.
GATT (General Agreement on Tariffs and Trade) - A multilateral treaty intended to help reduce trade barriers and promote tariff concessions. General Order (G.O.) - A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer. G.R.I. - General Rate Increase GRI - General Rules of Interpretation Gross Weight - Entire weight of a shipment including containers and
packaging material.
H.
Hague Rules - Ocean B/L terms covering carrier liability established 25 Aug. 1924. Incorporated into US law in 1936 through COGSA (Carriage of goods at sea act). Hague Visby amendments of 1968 are not included in COGSA. Read the fine print on the back of the B/L. Harbor Master - An officer who attends to the berthing of ships in a harbor and related duties. Hard-top Container - A closed container fitted with a roof that can be opened or lifted off. Harmonized Commodity Description & Coding System ("Harmonized Code") - An international classification system that assigns identification numbers to specific products. The coding system ensures that all parties in international trade use a consistent classification for the purposes of documentation, statistical control, and duty assessment. High Cube - Any container which exceeds 8 feet 6 inches (102 inches) in height.
I.
IATA - International Air Transport Association. The trade and service organization representing international airlines from more than 100 countries. ICAO - International Civil Aviation Organization. A United Nations agency organized to ensure orderly worldwide technical development of civil aviation. I.F.M. - Inward freight manifest: A complete listing of all cargo entering the country of discharge. Required at all world ports. Failure to provide, errors in preparation, or late submittal causes the vessel operator to be fined. IFM is the primary source of cargo control, against which duty is assessed by the receiving country. Since it is a revenue-producing document, it must be accurate. Import - To receive goods from a foreign country. Importer - The person primarily liable for the payment of any duties on the merchandise, or an authorized agent acting on his behalf. The importer may be the consignee, the importer of record or the actual owner of the merchandise. Import License - A document issued by a carrier required and issued by some national governments authorizing the importation of goods into their individual countries. IMO - International Maritime Organization. A United Nations-affiliated organization representing all maritime countries in matters affecting maritime transportation, including the movement of dangerous goods. The organization also is involved in deliberations on marine environmental pollution. In Bond - A term applied to the status of merchandise admitted provisionally to a country without payment of duties, either for storage in a bonded warehouse or for transshipment to another point, where duties eventually will be paid. INCO TERMS - Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred. Independent - Setting a tariff for a rate or service that is different from the other conference members' tariff for that item. Inspection
- Pre (or Post) - Shipment Inspection: Insulated Container - A container insulated on the walls, roof, floor and doors, to reduce the effect of external temperatures on the cargo. Insurance - An insurance policy or certificate normally covers the shipments of merchandise from the time they leave the warehouse at the shipping point until they reach the destination point named in the policy or certificate. Insurance Certificate - Assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit. Interchange Points - A terminal at which freight in the course of transportation is delivered by one transportation line to another. Integrated Carrier - An airfreight company that offers a blend of transportation services such as air carriage, freight forwarding, and ground handling. Intermodal - Used to denote movements of cargo or container between motor, rail or water carriers. IPI - Inland Point Intermodal (Microbridge) - Cargo moving from an inland point, under control of the ocean carrier. FMC 514.2 "Intermodal transportation means continuous transportation involving more than one mode of service (e.g., ship rail motor and air), for pickup and/or delivery at a point beyond the area of the port at which the vessel calls." I.T. - Immediate transportation document. U.S. Customs document prepared by carrier to allow a shipment to proceed from port of entry in United States to Customs clearing at destination. ITAR - The International Traffic in Arms Regulations, ITAR, are administered by the State Department to control the export of U.S. defense articles and services. The provisions implemented in the ITAR are governed by the Arms Export Control Act. Direct commercial sales of U.S.-origin defense products, components, technologies, and services are controlled under the ITAR by the State's Office of Defense Trade Controls.
J.
K.
LASH - Lighter aboard Ship - A ship containing equipment to load/unload itself. 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, usually the receipt by the bank of certain documents within a given time. Secondary party accepts responsibility and meets the demands stated in the letter of credit. L.C.L. - Less than containerload. Usually LCL cargo is consolidated with other small lots for shipment by container. L.T.L. - Less than truckload. The quantity of freight less than that required for the application of a truckload rate. Letter of Credit (L/C) - 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 shipping documents, within a given time. LIFO
- Liner In, Free Out - This is a qualification to a
freight rate and should not be confused with, or used as, a term of sale. The
expression Liner In Free Out, means that the port to port freight rate offered
by the Carrier is inclusive of the costs of loading on to the ship but excludes
the costs for the discharge of the goods at the port of arrival. Lighter - An open or covered vessel which transfers cargo between ship and shore, used mainly in harbors and inland waterways. Lighters are generally used for shorter hauls than barges. Lighterage - Carraige of goods within a port area by a barge, Usually between a vessel and a quay but not always Liner Terms - or full liner terms - This is an ocean freight expression. Liner terms are the opposite of Free terms. When you ship liner terms, the carrier is responsible for the loading and unloading of the cargo. If you ship LINER-IN, FREE-OUT, then the carrier is responsible for loading, and the shipper is responsible for unloading. FREE-IN, LINER-OUT means the shipper pays for loading, and the carrier pays for the unloading. Load - The freight in a vehicle or container. Logistics Management - The efficient and cost-effective management of the physical movement of goods from supply points to final sale and the associated transfer and holding of such goods at various intermediate storage points. Lo/Lo (Lift-On/Lift-Off) - Denotes the method by which cargo is loaded onto and discharged from an ocean vessel, which in this case is by the use of a crane. Longshoreman - Individual employed locally in a port to load and unload ships.
M.
Maritime - Business pertaining to commerce or navigation transacted upon the sea or in seaports in matters under jurisdiction by the court of admiralty. Marine Cargo Insurance - Average - A term in marine cargo insurance signifying loss or damage to merchandise. General average - A loss arising out of a voluntary sacrifice made of any part of a shipment or cargo to prevent loss of the whole and for the benefit of all persons concerned. FPA - Free of particular average. A provision in a marine cargo insurance policy that no claim shall be paid for damage to goods in the course of a voyage unless a loss is sustained that totals or exceeds a certain percentage of the value as specified in the policy. The object of such a provision is the avoidance of petty claims. Open policy - A contract between an insurance company and the exporter by which all shipments made by the assured are automatically protected from the time the merchandise leaves the initial shipping point until delivery at destination. Particular average - A partial loss or damage of merchandise caused by a peril insured against, but which is not a general-average loss. WPA - With particular average. Insurance against partial loss regardless of percentage of such loss. Microbridge - FMC 514.2 "Intermodal transportation means continuous transportation involving more than one mode of service (e.g., ship, rail, motor, and air), for pickup and/or delivery at a point beyond the area of the port at which the vessel calls." Minimum Bill of Lading - Ocean bills of lading are known as minimum because they contain a clause that 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 quantity. Mixed Containerload - A containerload of different articles in a single consignment. M.L.B. - Mini landbridge. An intermodal system for transporting containers from/to a foreign country by water to/from a U.S. port city by rail. In regards to APD and APL, applies to transport between Asian and U.S. port cities on the East and Gulf Coasts on through rates and documents.
N.
Net Weight - Actual Weight of the merchandise excluding packing. Neutral Body - Operates within the framework of a rate conference. Established by the member carriers to act as a self-policing force to ferret out malpractices and other tariff violations. The neutral body has authority to scrutinize all documents kept by the carriers and the carriers' personnel. Has right of entry to all areas of the carriers' facilities, including desks, briefcases, etc. Violations found are reported to the membership, and significant penalties are assessed. Repeated offenses are subject to escalating penalties. Revenue from penalties is used to support the cost of the neutral body's activity. NOS/NES - Not otherwise specified/Not elsewhere specified. This term often appears in ocean or airfreight tariffs respectively. If no rate for the specific commodity shipped appears in the tariff, then a general class rate (for example, "printed matter NES") will apply. Such rates usually are higher than rates for specific commodities. NVOCC - Non-vessel operating common carrier. A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full containerloads. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime Commission, and are subject to the same laws and statutes that apply to primary common carriers.
O.
OCP - Overland Common Point - Similar to IPI, but the shipper is responsible for moving the container/cargo from the loading point to the port. On Board - Means that cargo has been loaded on board a combined transport mode of conveyance. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the country. On Carriage - Transportation beyond the port of discharge. This can also be another accessorial charge. Open-top Container - A container fitted with a solid removable roof or with a tarpaulin roof that can be loaded or unloaded from the top. Origin - Location where shipment begins its movement at cargo's expense. OTI - Ocean Transportation Intermediary. A Freight Forwarder or an NVO according to the Shipping Act of 1998. O.B.L. - Original Bill of Lading. A document which requires proper signatures for consummating carriage of contract. Overheight Cargo - Cargo stowed in an open-top container; projects above the uppermost level of the roof struts. Overweight Container Law - Since April 9, 1997 any container or trailer in Intermodal commerce weighing over 29,000 lbs must provide all parties with: actual gross weight, reasonable description of the cargo, identity of the certifying party, the trailer or container no., and the date of certification.
P.
Pallet - A platform (usually two-deck), with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift truck. Per-diem - A charge made by one transportation line against another for the use of its equipment. The charge is based on a fixed rate per day. Perishable Cargo - Cargo subject to decay or deterioration. Phytosanitary Certificates - Phyto means plants. Under international (WTO) treaty, a competent government authority can issue a certificate based on inspection of goods confirming that a plant(s), seeds, or plant products are free of insects and disease which the destination country specifies. Prepaid Freight - Freight paid by the shipper to the carrier when merchandise is tendered for shipment. Not refundable if the merchandise does not arrive at the intended destination. Pickup - The act of calling for freight by truck at the consignor's shipping platform. Pier - The structure to which a vessel is secured for the purpose of loading and unloading cargo. Pilferage - The act of stealing cargo. Point of Origin - The station at which a shipment is received by a carrier from the shipper. Pool - A common supply of containers available to the shippers. Port of Call - Port where a steamer discharges or receives traffic. Port of Discharge - Port where cargo is unloaded from vessel. Port of Entry - Port where cargo actually enters a country where the cargo is not part of its commerce. Port of Loading - Port where cargo is transferred from one vessel to another. Pro-forma Invoice - An invoice, forwarded by the seller of goods prior to shipment, that advises the buyer of the particulars and value of the goods. Usually required by the buyer in order to obtain an import permit or letter of credit. P.S.S. - Peak Season Surcharge (Ocean)
Q.
R.
Reefer - Refrigerated container. Return Pool - Place where equipment is returned. Revenue Ton (Rev. Ton) - A ton on which the shipment is freighted. Restricted Articles - An airline term meaning a hazardous material as defined by Title 49, Code of Federal Regulations (U.S.) and Air Transport Restricted Articles Circular 6D. Restricted articles may be transported domestically, and may be classified as dangerous goods when transported internationally by air. Ro/Ro - Roll-on/Roll-off. A type of vessel that transports wheeled vehicles. Also used to refer to the cargo itself. Rolls - Transfers of equipment from stacktrain to conventional rail service or vice versa. Change of equipment from a designated stacktrain to a later departing stacktrain is called a transfer. Route (Rte.) - The manner in which a shipment moves; i.e., the carriers handling it and the points via which they handle it.
S.
S.D.P. - Store-door pick-up. Picking up a container from a carrier, delivering it to a merchant and returning the empty container; the portion of store-door delivery performed by the carrier's trucker. Service Contract - As provided in the Shipping Act of 1984, a contract between a shipper (or a shipper's associations) and an ocean common carrier (of 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. Ship - A large vessel able to navigate large bodies of water and designed to carry passengers and/or cargo. Broadly speaking, a ship cannot fit on a boat. Ship Demurrage - A charge for delaying a steamer beyond a stipulated period. Shipment - The tender of one lot of cargo at one time from one shipper at one location to one consignee, at one destination, on one bill of lading. Shipping Act of 1916 - The act of 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 Weight - Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers). Shipper's Export Declaration (SED) - A document issued by an exporter (or freight forwarder on exporter's behalf). U.S. Forms 7525-V and 7525-V-Alternate (for intermodal shipments) is required by federal law for any commodity with value over $2,500 or any shipment requiring validated export license. Enables Bureau of the Census to compile trade statistics. Shipper or its agent submits form to carrier, which then submits SEDs for all shipments on vessel voyage or aircraft flight to U.S. Customs. Ships – All ships are broken down into the following categories:
Short
Shipped (or Shut Out) - In Sea freight, this
condition arises when the cargo is not taken on board the vessel. The Cargo is
booked, documents are issued and the cargo is placed in the port, however it
fails to be loaded. Sight, Time Drafts - A document issued by an exporter (or a freight forwarder on exporter's behalf). It is a request for payment from foreign buyer. Instructs buyer's bank to collect payment; when collected it releases shipping documents to buyer. Buyer's bank then remits to seller's bank. Sight drafts are payable on receipt at buyer's bank. Time drafts extend credit; foreign bank releases documents immediately, but collects payment later, for example, 30 days after receipt of draft. S.L.A.C. - Shipper's Load and Count Stacktrain - Intermodal movement during which containers are double stacked on a railcar. STC
- Said To Contain - Steamship Conference - A voluntary collective ratemaking body representing member steamship lines. Steamship Line - A company that owns and/or operates vessels in maritime trade. Stevedore - Individual or firm that employs longshoremen. Store-Door Delivery (STOR/DOR) - Delivery of goods to consignee's place of business or warehouse by motor vehicle. Refers to a complete package of delivery services performed by a carrier from origin to final consumption point, whether that be a retail, wholesale or other final distribution facility. Store-Door Pickup - Picking up a container from a carrier, delivering it to a merchant and returning the empty container; the portion of store-door delivery performed by the carrier's trucker. Stowage - A marine term referring to loading freight into ships; holds. Stripping - The unloading of a container. Stuffing - The loading of a container. Subzone - A special-purpose zone established as part of a zone project for a limited purpose, that cannot be accommodated within an existing foreign trade zone. Surcharge - An extra or additional charge.
T.
Tare Weight - The weight of the container before loading of goods being shipped; the actual weight of the container when empty. Tariff - A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. It sets up a contract of carriage between the shipper, consignee, and carrier. In international trade applications, the term also refers to a tax on imports. Telex
Release - In those countries where Waybill or Express
Release documents are not readily acknowledged as customary to the trade, there
is still the option to operate a ‘waybill’ transaction by the Seller’s surrender
of one or more original Bills of Lading back to the Carrier. The Carrier then
notifies their destination representative that the Buyer need not produce a
further original to obtain release. Although most modern communication is by
Email, or at least by Fax, Carriers generally still refer to this process of
notification as being a "Telex Release". Terminal - An assigned area in which containers are prepared for loading into a vessel or are stacked immediately after discharge from the vessel. Terms of Sale - Terms of sale ensure that buyer and seller agree on the allocation of costs and risks in an international sale. Here are some of the terms in the Incoterms 1990.
TEU - Twenty-foot equivalent unit container. Used to measure a vessel's capacity. THC - Terminal Handling Charge - Another accessorial charge. T.I.B. - Temporary Importation under Bond. When an importer makes entry of articles brought into the United States temporarily and claimed to be exempt from duty under Chaper 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, a bond is posted with Customs which guarantees that these items will be exported within a specified time frame (usually within one year from the date of importation). Failure to export these items makes the importer liable for the payment of liquidated damages for breach of the bond conditions. (See 19 CFR 10.31.). The Temporary Importation under Bond (TIB) is usually twice the amount of duties and other payments the importer would otherwise be required to pay. Merchandise imported under TIB is usually for sales demonstration, testing, or repair. Trace - The act of locating a shipment that has not arrived at destination. Transport - To move traffic from one place to another. Transportation - The movement of traffic from one place to another. Transmittal Letter - A letter from the shipper to its agent that lists the particulars of a shipment, the documents being transmitted, and instructions for the disposition of those documents. Transshipment - Shipment of merchandise to the point of destination in another country on more than one vessel or vehicle. The liability may pass from one carrier to the next, or it may be covered by "through bills of lading" issued by the first carrier.
U.
Unloading - Removal of a shipment from a container to a platform or warehouse.
V.
Valuation Charges - Transportation charges assessed shippers who declare a value of goods higher than the value of the carriers’ limits of liability. Ventilated Container - A container designed with openings in the side and/or end walls to admit outside air when the doors are closed. Volume
Weight -
W.
Waybill (WB) - A document prepared by a transportation line at the point of a shipment; shows the point of origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. A waybill 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. Weight Break - Levels at which the air freight rate per 100 pounds decreases because of substantial increases in the weight of the shipments. Weights and Measures – The following are the common terms used in the industry:
Wharfage - A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. W.M. (W/M) - Weight or measurement, the basis for assessing freight charges. Also known as worm.
X.
Z.
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