Shipping Glossary
A
AAR
Abbreviation for:
- Against All Risks (insurance clause). -Association of American Railroads.
Abandon
A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.
ABC (Activity Based Costing)
An accounting system that measures the cost and performance of specific activities performed within an organization. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.
Aboard
Referring to cargo being put, or laden, onto a means of conveyance.
Absorption
The assumption that the carrier will cover extraordinary or other special charges without increasing the price to the shipper.
ACS (A.C.S.)
U.S. Customs' master computer system, "Automated Commercial Systems."The electronic system of the US Customs Service, encompassing a variety of industry sectors,that permits on-line access to information in selected areas.
Accessorial
- Accessorial Charges - Charges made for additional, special or supplemental services, normally over and above the line haul services.
- Accessorial Service - Service rendered by a carrier in addition to transportation services. (e.g. sorting, packing, pre-cooling, heating and storage.)
Act of God
An extraordinary force of nature (such as a severe flood or earthquake) that experience, prescience or care cannot reasonably foresee or prevent.
Add-Ons
Additional charges above ocean freight.
Ad Valorem
A term from Latin meaning, "according to value."For example, if a bill of lading shows a value for the cargo being carried, an Ad Valorem charge will be levied. This charge is required because the insurance liability of the carrier increases.This charge may be a levied as a percentage of the value that has been shown.
Advising Bank
Bank where a shipper negotiates documents or where documents are first presented, usually atcountry of origin.Also, often referred to as the negotiating bank.
Agent
- Abbreviation for 'Freight Agent'.
- A person, association or corporation authorized to publish and file rates and provisions for a carrier's account in tariffs published in the agent's name.
- One that acts for, or in the place of, another by authority from him, e.g. a (business) representative, emissary, or official of a government.
Aggregated Shipments
Numerous shipments from different shippers delivered to one consignee, that are consolidated and treated as a single consignment.
Air Freight Forwarder
A non-asset based firm that negotiates low shipping rates with airlines, then takes orders at a higher rate in order to make a profit using the airline's assets to move the product.
Air Waybill
The forwarding agreement or carrying agreement between shipper and air carrier and is issued only in nonnegotiable form.
All In
The total price to move cargo from origin to destination, inclusive of all charges.
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).
All Water
When a shipment is transported from its origin to its destination solely by water transportation.
Alongside
A phrase referring to the side of a ship. Goods 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.
Alternative Rates
Privilege to use the rate producing the lowest charge.
Ambient Temperature
The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.
American Bureau of Shipping
U.S. classification society which certifies seagoing vessels for compliance to standardized rules regarding construction and maintenance.
AMS
The U.S. Customs' "Automated Manifest System."The electronic system allowing a manifest inventory to be transmitted to the US CustomsService data center by carrier, port authority or service center computers.
Anti-Dumping Duty
A tariff imposed to discourage sale of foreign goods, subsidized to sell at low prices detrimental to local manufacturers.
AQI
Agriculture Quarantine Inspection.
Arbitrary
A stated amount over a fixed rate to one point to make a rate to another point.
Arrival Notice
An advice that the carrier or forwarder sends to the consignee advising of goods coming forward for delivery. Pertinent information such as bill of lading number, container number and total charges due from consignee etc, are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier or forwarder to ensure smooth delivery but there is no obligation by the carrier or the forwarder to do so. The responsibility to monitor the transit and present himself to take timely delivery still rests with the consignee.
ASC X12
American Standards Committee X12 responsible for developing EDI standards for the United States.
Assignment
A term commonly used in connection with a bill of lading. It involves the transfer of rights, title and interest in order to assign goods by endorsing the bill of lading.
A.T.A.
American Trucking Association.
Awkward Cargo
Cargo of irregular size that can either be containerized (packed in container) or non-containerized (without equipment associated with) during transportation. It requires prior approval on a case-by-case basis before confirmation of booking.
Axle Load
Maximum load permitted to be carried on each axle of a motor vehicle.
B
B/B
Break-Bulk Cargo
B/L
Abbreviation for "Bill of Lading."
Backhaul
To obtain transport on the home run from B to A after having performed a full transport from A to B.
BAF
Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF.
Bank Guarantee
Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.
Bank’s Letter Guarantee
- A statement issued by an importer's bank guaranteeing the payment of (L/C) drafts to the exporter or to the carrier.
- Other forms of guarantees by banks in favor of a beneficiary.
Barcode
A series of bars and spaces read by a scanning device for translation into a numeric or alphanumeric identification code that represents data in machine-readable or computerized form.
Barge
Conveyance used to carry loose cargo or containers in small volumes.
Barrel (BBL)
A term of measure referring to 42 gallons of liquid at 60o F.
Base Port
Ports from which standard tariff rates apply to those normally serviced directly by members.
Base Rate
A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate.
Basing Points
A point (location) used in construction of through rates between other points.
Bay
Section of vessel in which containers are held.
BCO
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 goods.
Beam
The width of a ship.
Belt Line
A switching railroad operating within a commercial area.
Beneficiary
-Entity to whom money is payable.-The entity for whom a letter of credit is issued.-A firm or person on whom a letter of credit has been drawn. The beneficiary is usually the seller or exporter.
Benchmarking
The process of comparing a firm's performance against the practices of other leading companies - in or outside of an industry - for the purpose of improving performance. Companies also benchmark internally by tracking and comparing past performance.
Berth
Vessel docking area, the place beside a pier, quay or wharf where a vessel can be loaded or unloaded.
Berth Terms
Shipped under rate that includes cost from end of ship's tackle at load port to end of ship's tackle at discharge port.
Bilateral
A contract term meaning both parties agree to provide something for the other.
Bill of Lading (B/L)
The official legal document signed by or for the captain/master, agents, owners of a vessel or the (common) carrier It is a negotiable document confirming the receipt of cargoes, and the contract for the carriage of cargoes between the shipper and the carrier. It is
(1) 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.
(2) A receipt of the goods (in the owner's/carrier's or his/their agent's custody) and
(3) An undertaking to carry and deliver the goods safely to the place directed/agreed, dangers of the sea excepted, against
(4) Surrender of the document where/when provisions in the document stipulate delivery to order of a named person, to order (blank) or to bearer
(5) It evidences the terms of the contract of carriage. -Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.
-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.
-B/L's Status: represents whether the bill of lading has been input, rated, reconciled, printed, or released to the customer.
-B/L's Type: 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.
-Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper's request; different from voided B/L.
-Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.
-Combined B/L: B/L that covers cargo moving over various transports.
-Consolidated B/L: B/L combined or consolidated from two or more B/L's.
-Corrected B/L: B/L requiring any update which results in money or other financially related changes.
-Domestic B/L: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders.
-Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L.
-Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.
-Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
-Government B/L (GBL): A bill of lading issued by the U.S. government.
-House 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.
-Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.
-Memo B/L: Un-freighted B/L with no charges listed.
-Negotiable 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.
-Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L.
-"Onboard" 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.
-Optional Discharge B/L: B/L covering cargo with more than one discharge point option possibility.
-"Order" B/L: See Negotiable B/L. -Original 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. -Received for Shipment B/L: Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard".
-Reconciled B/L: 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.
-Short 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.
-Split B/L: One of two or more B/L's which have been split from a single B/L. -Stale B/L: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void.
-Straight (Consignment) B/L: 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.
-"To Order" B/L: See Negotiable B/L.
-Unique B/L Identifier: 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.
-Voided B/L: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L.
Billed Weight
The weight shown in a waybill and freight bill, i.e, the invoiced weight.
Blind Shipment
A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.
Block Stowage
Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.
Blocked Trains
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.
Bls.
Abbreviation for "Bales."
Board
To gain access to a vessel.
Bolster
A device fitted on a chassis or railcar to hold and secure the container.
Bond Port
Port of initial Customs entry of a vessel to any country. Also known as First Port of Call.
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 Warehouse
A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Bonded Warehouse – Export
A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored. Goods are considered foreign and must go out for export. In some countries, a bonded warehouse is defined as a warehouse with customs official’s onsite. In others, it is a warehouse in which customs inspect cargo prior to authorizing export clearance. Ensure the local definition is established. In some countries, some manufacturers are also granted a license to operate a bonded warehouse in which they can store manufactured products in anticipation of export and hence suspend payment of local taxes (e.g. on cigarettes).
Bonded Warehouse – Import
A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored.
Booking
Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.
Booking Number
A reference number for bookings registered with a carrier. It should be unique without duplication for a three-year period.
Bottom Side Rails
Structural members on the longitudinal sides of the base of the container.
Bottom-Air Delivery
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.
Bow
The front of a vessel.
Box
Common term for an ocean-going freight container.
Boxcar
A closed rail freight car.
Break Bulk
-To unload and distribute a portion or all of the contents of a rail car, container, or trailer. -Cargo which is not containerized due to its weight and/or size e.g. steel pipes, boats etc.
- Loose, non-containerized cargo.
Broken Stowage
-The loss of space caused by irregularity in the shape of packages. -Any void or empty space in a vessel or container not occupied by cargo.
Broker
-A person or firm, other than a motor carrier or agent of a motor carrier that as a principal or agent sells, offers for sale, or holds itself out by solicitation, advertisement or otherwise as selling, providing or arranging for transportation by motor carrier for competition.
-A broker is a middleman that brings together the shipper and carrier; a broker does not take responsibility for the transportation.
-An agent/middleman who for a fee or commission negotiates contract e.g. purchase and sale (such as real estate, commodities or securities) between buyers and sellers without himself taking title to that which is the subject of negotiation and usually without having physical possession of it.
Brokerage
Freight forwarder/broker compensation as specified by ocean tariff or contract.
Bulk Cargo
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.
Bulk Carriers
A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count.
Bulk-Freight Container
A container with a discharge hatch in the front wall; allows bulk commodities to be carried.
Bunker Adjustment Factor (BAF)
Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs.
Bunker Surcharge
Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs. (Also known as Fuel Adjustment Factor or FAF.)
Bunkers
A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers.
Bridge Point
An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading.
Bridge Port
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
C & I
Is a quoted price includes cost of goods and insurance.
C&F Terms of Sale, or INCOTERMS.
Cost and Freight. -Is a quoted price includes cost of goods and freight.Seller quotes price including the cost of goods and all transportation charges to the named pointof destination.In July, 1990 the International Chamber of Commerce replaced C&F with CFR.
CA (Controlled Atmosphere)
An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations are regulated, as well as temperature and humidity.
Cabotage
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 inter-port service.
CAF
- 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.
- Cost, Assurance and Freight.
Carnet
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 international borders.
Captain's Protest
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.
Car float
A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways.
Car Pooling
Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers.
Car Seal
Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.
Cargo
Freight loaded into a ship.
Cargo Bays
Doors in a warehouse where vehicles back up to load/unload cargo.
Cargo Manifest
-A manifest that lists only cargoes, without freight and charges.
-Listing of all cargo on board a vessel is required by the relevant local authorities.
-Same as manifest.
Cargo NOS
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 Preference
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 Government.
Cargo Tonnage
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.)
Carload Rate
A rate applicable to a carload of goods.
Carrier
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 modes.
Carrier's Certificate
A release order used to advise customs of the details of the shipment, its ownership, port of lading, etc. 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. Some Customs form used in lieu of a bill of lading.
Carriers Owned Containers (COC)
The containers used for the transportation of cargoes belonging to the property of the carriers.
Cartage
Usually refers to intra_city hauling on drays or trucks.
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.
Cartment
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)
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.
CBM (CM)
Abbreviation for "Cubic Meter." 1 cubic metre = 35,314 cubic feet
CCA
Connecting Carrier Agreement. An Agreement of freight rates for connections between feeder ports and the ports of call of vessels.
CCRA (Canada Customs and Revenue Agency)
Canadian Government Customs Authority.
CE
Abbreviation for "Consumption Entry." The process of declaring the importation of foreign made goods for use in the United States.
Cells
Container slot where container fits into place on vessel. 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.
Certificate
- A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment.
- The 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. Document certifying the country of origin of goods which is normally issued or signed by the relevant Government Department of the exporting country, or Chamber of Commerce or Embassy.
CES
Is a Customs Examination Station
CFR
- Cost and Freight.
- A pricing term indication that the cost of the goods and freight charges are included in the quoted price. For more information see: » www.iccwbo.org
CFS
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.
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.
- A kind of cargo movement by container. Delivered loose at origin point with vanning by carrier, devanned by carrier at destination, and picked up loose at destination.
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 expense.
Charter Party
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.
Chassis
A wheeled flat-bed constructed to accommodate containers moved over the road. Also termed as “Trailers”.
Chock
A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.
CI
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 destination.
CIF
- Abbreviation for "Cost, Insurance, Freight." (Named Port) Same as C&F or CFR except seller also provides insurance to named destination.
- Cost, Insurance and Freight. A term of trading in which the buyer of the goods pay for the cost of the goods, the cost of transporting the goods from origin to the port of discharge or final destination and the insurance premium for a maritime insurance policy for the value of the order.
- Is a quoted price includes cost of goods, insurance and freight.
CIF&C
Price includes commission as well as CIF.
CIF&E
Abbreviation for "Cost, Insurance, Freight and Exchange."
CIFCI
Abbreviation for "Cost, Insurance, Freight, Collection and Interest."
CIFI&E
Cost, Insurance, Freight, Interest and Exchange.
CKD
Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.
CL
Abbreviation for "Carload" and "Container-load".
Claim
A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.
Classification
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.
Classification Rating
The designation provided in a classification by which a class rate is determined.
Classification Yard
A railroad yard with many tracks used for assembling freight trains.
Clayton Act
An anti trust act of the U.S. Congress making price discrimination unlawful.
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
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 destination.
Clean On Board
A clause inserted in the bill of lading by some shipping/transportation companies, stating that they have not noted or are not familiar with any irregularities or discrepancies in the packing or in the general condition of any part of the goods or its description.
Clearance
The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.
Cleat
A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.
Clip-On
Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.
CLP (Container Load Plan)
A document prepared to show all details of cargoes loaded in a container, e.g. weight (individual and total), measurement, markings, shippers, consignees, the origin and destination of goods, and location of cargo within the container. A Container Load Plan is either prepared by the cargo consolidator or the shipper which ships its cargoes on FCL terms.
CM
Abbreviation for "Cubic Meter" (capital letters).
cm
Abbreviation for "centimeter."
Coastwise
Water transportation along the coast.
COD
Abbreviation for:
- Collect (cash) on Delivery. -Carried on Docket (pricing). -Change of Destination
COFC
Abbreviation for the Railway Service "Container On Flat Car."
COGSA
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.
Collecting
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.
Collection
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 noncompeting manufacturer.
Combination Rate
A rate made up of two or more factors, separately published.
Combined Transport Bill of Lading
Provides a combined transport by at least two different modes of transportation from a place from which the goods are taken to a place designated for delivery.
Commercial Invoice
A document produced by the shipper/seller of goods which contains an accurate description of the merchandise and the country of origin. All items are itemised and with actual price.
Commodity
A specification of goods/product types, e.g. toys, electronics or welding machinery.
Commodity Rate
A rate published to apply to a specific article or articles.
Common Tariff
Tariff published by or for the account of two or more transportation lines as issuing carriers.
Common Carrier
A transportation company which 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 laws of England and the United States.
Company Guarantee
A letter of guarantee from a company indemnifying the carrier of responsibility associated with the release of goods in lieu of a bill of lading.
Concealed Damage
Damage that is not evident from viewing the unopened package.
Conference
-An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates.
-Defined in the 1984 Shipping Act as: ... an association of ocean common carriers permitted, pursuant to an approved or effective agreement, to engage in concerted activity and to utilize a common tariff; but the term does not include a joint service, consortium, pooling, sailing or transshipment arrangement.
-It is basically a group of steamship companies offering equitable freight rates, standardized shipping practices and regularly scheduled services between designated ports. These arrangements are given anti-trust immunity as authorized by the 1984 Shipping Act.
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.
Confirming Bank
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.
Connecting Carrier
A carrier which has a direct physical connection with, or forms a link between two or more carriers.
Consignee
A person or company to whom commodities are shipped.
Consignee Mark
A symbol placed on packages for identification purposes; generally a triangle, square, circle, etc. with letters and/or numbers and port of discharge.
Consignment
(1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
(2) A shipment of goods to a consignee.
Consignor
A person or company shown on the bill of lading as the shipper, or a seller
Consolidated Cargo
Cargo containing shipments of two or more shippers, usually shipped by a firm called a consolidator. The consolidator takes advantage of lower FCL rates, and savings are passed on to shippers.
Consolidation
Cargo containing shipments of two or more shippers or suppliers. Container load shipments may be consolidated for one or more consignees.
Consolidator
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.
Consortium
A group of carriers pooling resources, normally container vessels, in a trade lane to maximize their resources efficiently.
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 unfunded since 1982.
Consul
A government official residing in a foreign country who represents the interests of her or his country and its nationals.
Consular Declaration
A formal statement describing goods to be shipped; filed with and approved by the consul of the country of destination prior to shipment.
Consular Invoice
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.
Consular Visa
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.
Container
-Weatherproof box designed for the shipment of freight, generally used for overseas shipments. The container is separable from the chassis when loaded onto vessels or rail cars.
-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.
Container Depot
Location, other than a container yard, maintained by or on behalf of an ocean carrier at which shippers or consignees may pick up or drop off empty equipment. No loaded containers may be received at CDs and such locations may not be owned or controlled by a shipper or his agent.
Container Booking
Arrangements with a steamship line to transport containerized cargo.
Container Freight Station
See CFS.
Container Manifest
Document showing contents and loading sequence of a container.
Container Number
The unique identification of a container.
Container Pool
An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required.
Container Seal Number
A number embossed on high-security seals for closing up containers which will serve identification purposes.
Container Size
The length of a container i.e. 20', 40' and 45' (feet).
Containership
An ocean vessel specifically designed to carry ocean cargo containers. It is fitted with vertical cells for maximum capacity.
Container Terminal
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 housed.
Container Yard (CY)
Area adjacent to the vessel berth where containers are delivered to and received from the vessel or inland carrier. Commonly referred to as CY.
Containerizable Cargo
Cargo that will fit into a container and result in an economical shipment.
Containerization
Stowage of general or special cargoes in a container for transport in the various modes.
Container Load
A load sufficient in size to fill a container either by cubic measurement or by weight.
Contraband
Cargo that is prohibited.
Contract
A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.
Contract Carrier
Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation.
Controlled Atmosphere
Sophisticated, computer controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.
Corner Posts
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.
Correspondent Bank
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.
Countervailing Duty
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.
Cross Member
Transverse members fitted to the bottom side rails of a container, which support the floor.
C-TPAT
- Customs Trade Partnership Against Terrorism.
-A joint government and trade community initiative in developing, enhancing andmaintaining effective security processes throughout the global supply chain.
Cu.
An abbreviation for "Cubic." A unit of volume measurement.
Cube Out
When a container or vessel has reached its volumetric capacity before its permitted weight limit.
Cubic Foot
1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long.
Customs
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.
Customs Clearance
The process of declaring and clearing cargoes through customs.
Customs Entry
-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.
-Immediate Delivery Entry is used to expedite clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows for the subsequent filing of the consumption entry and duty. Also known as an ID entry.
Custom House
A government office where duties are paid, import documents filed, etc., on foreign shipments.
Custom House Broker
- 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).
- Independent broker certified by the U.S. Bureau of Customs to act for importers and businessmen in the handling of customs formalities and other details of importing and exporting goods.
Customs Invoice
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.
Cut-Off Time
Last possible time when containers/cargoes may be delivered to a terminal for loading to a scheduled ship or designated point.
CY
- Abbreviation for Container Yard.
- The designation for full container receipt/delivery.
- 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 cargo.
D
D&H
Abbreviation for "Dangerous and Hazardous" cargo.
D.B.A.
Abbreviation for "Doing Business As." A legal term for conducting business under a registered name.
Dangerous Goods
The term used by I.M.C.O. for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported.
DDC
Abbreviation for "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 operation. The term is more commonly used in the U.S.A. trade.
DDP
Delivery Duty Paid. In DDP, shipper clears the goods for export and is responsible for making them available to the buyer at the named place of destination, cleared for import, paid duty and tax For more information, see: www.iccwbo.org
DDU
Delivery Duty Unpaid. In DDU, shipper clears the goods for export and is responsible for making them available to the buyer at the named place of destination, not cleared for import.For more information, see: ww.iccwbo.org
Deadhead
One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment.
Dead Freight
Is freight charges paid by the charterer of vessel for the contracted space, which is left partially unoccupied.
Dead Space
Space in a car, truck, vessel, etc., that is not utilized.
Deadweight
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."
Deadweight Cargo
A long ton of cargo that can be stowed in less than 40 cubic feet.
Deconsolidation Point
Place where loose or other non-containerized cargo is ungrouped for delivery.
Dedicated Unit Train
An unit train operated by various railroads for exclusive usage.
Deficit Weight
The weight by which a shipment is less than the minimum weight.
Delivery
(1) The physical and legal transfer of a shipment from consignor to carrier and from carrier/ transport agent to consignee.
(2) The act of putting property into the legal possession of another, whether involving the actual transfer of the physical control of the object from one to the other or being constructively effected in various other ways.
Delivery Order
- An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release.
- A document which is neither a bill of lading or a waybill but contains an undertaking which
(1) is given under or for the purposes of a contract for the carriage by sea of goods to which the document relates, or of goods which include those goods; and
(2) is an undertaking by the carrier to a person identified in the document to deliver those goods to that person which the document relates.
- Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.
Demand Chain
Another name for supply chain, with emphasis on the customer or party controlling demand.
Demurrage
A penalty charge against shippers or consignees for delay in removing carrier's equipment from terminal facilities beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff. - See also Detention and Per Diem.
Density
The weight of cargo per cubic foot or other unit.
Depot, Container
Container freight station or a designated area where empty containers can be picked up or dropped off.
Destination
The place where the carrier or the forwarder actually turns over the cargo or container to consignee or his agent. It may also be termed “Final Destination”.
Detention
Costs incurred when a shipper/consignee or his/her agent removes a container from the carrier's origin/destination CY to the shipper/consignee's place of business, and does not return the loaded/empty container to the CY or to another location designated by the carrier within the permitted free-time as stipulated in the applicable tariff.
Devanning
The removal of cargo from a container. Also known as un-stuffing, unloading or stripping.
Differential Rate
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 instructions.
Displacement
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.
DIT
- Destination Interchange Terminal.
- Facility operated by the ocean carrier or his agent at which containers are interchanged with the delivering motor carrier.
- Delay in Transit
Diversion
A change made in the route of a shipment in transit. (see Reconsignment)
Diversion Charge
Fee for diverting cargo from original intended destination port to a new location.
Divert
The route of a shipment changed in transit from that shown on the original billing. Used interchangeably with recon sign.
Division
Carriers' practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.
Dock
-For ships, a cargo handling area parallel to the shoreline where a vessel normally ties up. -For land transportation, a loading or unloading platform at an industrial location or carrier terminal.
Dock Receipt
A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.
Docket
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.
Dolly
A set of wheels that support the front of a container; used when the automotive unit is disconnected.
Domestic
Within your own country.
D.O.T.
Department of Transportation.
Door-to-Door
Through transportation of a container and its cargoes from consignor's premises to consignee's premises. Also known as House to House. Not necessarily a through rate.
Double-deck Load
A second tier of cargo placed on top of the first tier.
Double Stack Train (DST)
Rail or train capable of carrying two 40' containers, one on top of the other.
Draft
-Marine: The depth to which a vessel's deepest point is under water.
-Rail: A cut of coupled cars.
-Financial: A signed, written order by one party that instructs another party to pay a third
party a specific amount. It can also be called a bill of exchange.
Draft, Bank
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.
Draft, Clean
A draft to which no documents are attached.
Draft, Date
A draft that matures on a fixed date, regardless of the time of acceptance.
Draft, Discounted
A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.
Draft, Sight
A draft payable on demand upon presentation.
Draft, Time
A draft that matures at a fixed or determinable time after presentation or acceptance.
Drawback
A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.
Drawee
The individual or firm that issues a draft and thus stands to receive payment.
Dray
A truck or other equipment designed to haul heavy loads.
Drayage
Inland transportation from vendors to the port of shipment, and from discharge port to the point of stripping the ocean container. Drayage is hence undertaken for CY and CFS cargo. Same as Cartage
Dry-Bulk Container
A container constructed to carry grain, powder and other free-flowing solids in bulk.
Dry Dock
Used to lay up vessels for repair.
DRFS
Abbreviation for "Destination Rail Freight Station." Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.
DSU
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."
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.
Dry Cargo
Cargo that is not liquid and normally does not require temperature control.
Dry-Bulk Container
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
Dunnage
Lumber or other material used to brace materials in carrier's equipment or containers. Material used around cargo to prevent breakage or shifting, normally provided by shipper. Its weight is included in the rating.
Duty Drawback
(1) Payment returned for cargo re-exported or trade show material.
(2) A customs refund on re-exported cargo.
Dwell Time
It is expressed in terms of number of days that a container changed from one status to another, e.g., from inbound load to empty available to outbound load. The shorter the dwell time, the more efficient the container utilization will be.