Glossary of Shipping Terms
Glossary of Shipping Terms
acceptance letter
of credit
A letter of credit that requires presentation of a time draft drawn by
the bearer upon the issuing bank or another bank.
act of God
A violent act of nature such as lightning, flood, earthquake, or
hurricane that man can neither cause nor prevent.
ad valorem duty
A duty calculated on the basis of value. Usually a percentage of
the value.
advised credit
A letter of credit whose terms and conditions have been notified to
the beneficiary by an advising bank on behalf of the issuing bank.
The advising bank does not thereby commit itself to pay or
guarantee the payment of the letter of credit.
advising bank
A correspondent of a bank that issues a letter of credit and, on
behalf of the issuing bank, notifies the beneficiary of the terms of
the credit without engagement on its part to pay or guarantee the
credit.
aft
In, toward, or close to the stern (rear) of a vessel or the rear of an
aircraft or spacecraft.
air cargo
Property of any kind, excluding passenger baggage and mail, that
is transported by aircraft.
air express
Expedited air freight service.
air parcel post
Parcels shipped through the mails to be transported by air.
airway bill
The shipping document used for the transportation of air freight,
which includes: conditions, limitations of liability, shipping
instructions, description of commodity, and applicable
transportation charges. It is similar to a straight non-negotiable bill
of lading and is used for similar purposes.
all-cargo aircraft
Aircraft used for the sole purpose of transporting cargo or mail.
amidships
The area of an ocean vessel midway between the bow (the front)
and the stern (the rear). When the term applies to an airplane, it is
midway between the nose and the tail.
antidumping
duties
Additional duties assessed on imported goods sold to an
importing country at a price that is less than fair value, (fair value
usually defined as the price on the exporting country's domestic
market or to third countries) and are found to cause or threaten
material injury to industry of the importing country.
any quantity
A cargo freight rate that applies to an article without regard to the
weight or quantity shipped.
apron
1. Area of the airport where planes are parked. May be used for
loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used
for loading and unloading of vessels.
B
bank acceptance
A draft drawn on and accepted by a bank
bank guarantee
An indemnity letter in which the bank commits itself to pay a
certain sum if a third party fails to perform or if any other form of
default occurs.
Example: Used when a bank wants a carrier to release a
shipment that it has financed, but the original bills of lading is not
yet available for surrender to the carrier.
bank release
A document issued by a bank that is the consignee of a shipment
authorizing a carrier to deliver a shipment.
banker's draft
A draft payable on demand and drawn by, or on behalf of, a bank
upon itself or upon another bank such as a foreign bank, where it
maintains an account or a relationship.
bank acceptance
A draft or bill of exchange drawn upon and accepted by a bank.
bareboat charter
The charter of a vessel in which the charter party has the right to
use his own master and crew on the vessel and pays all operating
expenses.
barge
A flat-bottomed cargo vessel primarily used on rivers and canals
usually towed or pushed, but it may be self-propelled.
barter
Trade of goods or services without money.
basing rate
A freight rate used for the sole purpose of determining other
freight rates.
beneficiary
An individual or company entitled to draw or demand payment
under the terms of a letter of credit.
berth
Docking space where a ship is anchored.
bill of lading
A document issued by a carrier to a shipper, listing and
acknowledging receipt of goods and specifying terms of delivery.
billed weight
Designated weight shown on the freight bill used to calculate the
freight charges.
blanket rate
A rate of premium for insurance applied across the board where
there is more than one kind of property to be insured.
bond
1. A written agreement to perform or refrain from performing
specified acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due
and usually specifying a rate of interest and its dates of periodic
payment.
bond of indemnity
A bond to indemnify (insure; protect against damage, loss, or
injury) the party to whom the bond is issued.
bonded
Refers to goods which are held, stored, or transported under
circumstances where applicable duty or taxes have not been
definitely determined or paid and admissibility has not been
arranged. Bonds must be posted by those responsible for the
goods during this period (the carriers, warehouses, and/or
importers) to indemnify the government if the goods are released
improperly.
bonded terminal
A terminal approved by Customs for temporary storage of
imported goods until Customs duties are paid or goods released.
Bonds must be posted by the terminal operator to indemnify the
government if the goods are released improperly.
bonded
warehouse (USA)
An approved private warehouse used for the storage of goods
until duties or taxes are paid and the goods are properly released
by Customs. Bonds must be posted by the warehouse proprietor
and by the importer to indemnify the government if the goods are
released improperly.
booking
Arrangements made for a shipment with representatives of a
vessel or airline.
break bulk
1. Description of a ship that transports cargo carried in its hold
that is usually packed in cases, bales, cartons, drums, carboys,
etc. rather than in containers.
2. Unload packaged cargo from a 'break bulk ship' or from a
container and distribute it.
break bulk cargo
Cargo that is shipped in packing units such as cartons, cases,
crates, bales, or drums, but not containerized.
broker
One that acts as an agent for others, as in negotiating contracts,
purchases, or sales in return for a fee or commission.
bulk cargo
Cargo consisting of an unpacked commodity such as grain, oil,
and ore.
bulk carrier
A vessel that carries bulk cargo
bulk freight
Cargo not in packages or containers.
bunker
adjustment factor
An adjustment in shipping charges to offset price fluctuations in
the cost of bunker fuel.
bunker fuel
Fuel used to power a ship
bunker(s)
1. The compartment (hold) of a ship that stores fuel.
2. The fuel for a vessel
C
cargo
Freight carried by ship, an aircraft, or another vehicle.
cargo agent
An agent appointed by an airline or shipping line to solicit and
process international air and ocean freight shipments.
cargo manifest
A list of cargo being transported or warehoused.
cargo tonnage
The weight of a shipment or of ship's total cargo expressed in
tons.
carrier
A legal entity that is in the business of transporting passengers or
goods for hire.
chargeable weight
The weight or volume of a shipment used in determining freight
charges.
charter service
Temporary hiring of an aircraft or vessel for the transportation of
cargo or passengers.
chartered ship
A ship leased for a stated time, voyage, or voyages.
chassis
1. A special trailer or undercarriage on which containers are
moved over the road.
2. The undercarriage of a vehicle.
claused bill of
lading
An added clause on a bill of lading that denotes a deficient
condition of the goods or packaging, or other annotated
conditions, which modifies the printed conditions on the Bill Of
Lading.
clean bill of lading
A bill of lading issued by a carrier for goods delivered in "apparent
good order and condition" that bears no notations or added
clauses that may limit the liability of the carrier.
clearance
1. Compliance with governmental requirements that allow a carrier
to berth in a port to unlade or lade cargo and passengers.
2. Compliance with customs formalities that allow goods to be
imported or to be exported.
closed-end
transaction
A credit transaction with a fixed amount of time for repayment.
combination
aircraft
An aircraft capable of transporting both cargo and passengers on
the same flight.
combined bill of
lading
A bill of lading covering a shipment of goods by more than one
mode of transportation.
commercial
invoice
A document that details the transaction between a seller and a
buyer, which provides their names and addresses, the date of the
sale, a description of the goods sold, the quantity, the unit price,
the terms of sale, and the total money due. If it is an invoice
between a seller and buyer from different countries, it also
indicates the type of currency.
commercial letter
of credit
An a letter or document issued by a bank to provide credit for a
customer that enables him to finance the purchase of goods or to
meet other commitments.
commodity code
The system of identifying a commodity by an assigned number.
connecting carrier
A carrier that has a physical connection with another carrier or
forms a connecting link between two or more carriers.
consignee
The person or firm named in a freight contract to whom goods
have been shipped or turned over for care.
consignor
An entity that ships goods to another. The consignor on a bill of
lading is the shipper.
consolidated
container
A shipping container that contains cargo from various shippers for
delivery to various consignees.
consolidation
The combining of smaller shipments into a single shipment.
consular invoice
An invoice for a shipment of goods that is certified by the counsel
of the country for which the merchandise is destined and which
may require a special form and be subject to special fees.
contract carrier
Excluding common carriers, any person who under contract will
transport passengers or goods for an agreed compensation.
customs
1. A duty or tax imposed on imported and, less commonly,
exported goods.
2. The governmental agency authorized to collect custom
duties/taxes.
3. Procedure for inspecting goods and baggage entering a
country.
D
dangerous goods
Goods that can pose a health or safety risk.
date draft
A draft which matures after a specified number of days from the
date it is issued.
deadweight
1. The maximum weight that a ship can carry so that it settles in
the water to its Plimsoll mark; also measurable by the weight of
the water the vessel displaces when fully loaded less the
displacement when it was unloaded.
2. Cargo of such high density that a long ton (2240 lbs.) can be
stowed in less than 70 cubic feet.
deck cargo
Cargo shipped on the deck of a vessel rather than in its hold.
declared value for
The value of goods declared to the carrier by the shipper for the
carriage
purposes of determining charges and establishing the liability of
the carrier.
declared value for
customs
The value of a shipment according to the customs laws of the
destination country that is required to be declared by the shipper
on the shipping documents or by the importer when he presents
the goods for customs clearance.
deferred air
freight
Less urgent freight that can be delivered on later flights more
convenient for the airline at lower tariffs.
deferred payment
letter of credit
A letter of credit that allows the buyer to take possession of goods
by agreeing to pay the issuing bank or the confirming bank at a
fixed future date.
delivery order
A document from the consignee, shipper, or owner of freight
ordering the release of freight to another party.
demurrage
1. In international transportation, a charge for the failure to remove
cargo from a terminal within the allowed free time. Also, a charge
for failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against
users for use of carriers' equipment beyond the allowed free time.
destination
The place to which a shipment or person is going.
discharging
Unloading cargo from a carrier or contents from a container.
dock
1. Loading or unloading platform at an industrial location or carrier
terminal.
2. A ship's berth or wharf.
dock receipt
A receipt issued by a vessel agent that certifies that goods have
been received.
domestic exports
Exports of goods which were grown, produced, mined, or
manufactured in the country from which exported.
door-to-door
Shipping service from shipper's door to consignee's door.
drayage
The charge made for hauling freight via carts, drays, or trucks.
dry cargo
Cargo of solid, dry material, not liquid or gas. Usually, the term
excludes cargo requiring special temperature controls.
dumping
The sale of goods in a foreign country at less than" fair value" (a
price lower than that at which it is sold within the exporting country
or to third countries), which materially injures, or threatens to
materially injure, that industry in the foreign country.
dunnage
Materials placed around cargo to prevent shifting or damage while
in transit.
duty
Government tax levied on the import or export of goods. The U.S.
Constitution forbids the levying of taxes by the U.S. on exports.
However, most foreign governments do not have this restriction.
E
embargo
Government prohibition of exports or imports with respect to
specific products or specific foreign countries.
en route
Goods, passengers, or vessels in transit.
entrepot
A storage facility (often in an intermediate country) where goods
are kept and distributed.
entrepot trade
The import and export of goods that receive no further processing
but are distributed from the entrepot facility, which is usually
chosen for its location and lack of restrictions on trade.
entry documents
Documents required to complete customs entry so as to secure
the release of imported merchandise.
ETA
Estimated time of arrival.
ETD
Estimated time of departure.
Ex Factory
A sale term where the title to goods passes from the vendor to the
buyer when they leave the vendor's dock, as does the liability for
loss or damage and the expenses of shipment. Is still widely used,
but is being replaced by the Incoterm EXW (Ex Works). See
Incoterms.
excise tax
Internal tax on the manufacture, sale, or consumption of goods,
licenses to pursue certain occupations, and corporate privileges.
expedited
Accelerating the movement of shipments through regular
channels.
export
To send or transport goods abroad.
export declaration
(USA)
The Shipper's Export Declaration is a required customs document
for exportation of goods from the United States, which provides
statistics and facilitates control where applicable.
export duty
A tax imposed by a nation on their exports.
export license
A license issued to exporters by a government to permit them to
export goods to other countries. Such goods may be of strategic
importance, or simply in short supply, or are controlled to comply
with foreign agreements.
exporter
An individual or company that ships goods from one country to
another in the course of trade.
exporter
identification
An identification number assigned to exporters of goods from the
United States, which is required on the Shipper's Export
number (USA)
Declaration for all shipments from the USA..
F
feeder vessel
1. A short-sea vessel that is part of a cargo network that transfers
cargo from smaller ports to major ports where larger vessels dock.
This spares larger vessels the expense and loss of time loading
and unloading at smaller ports.
FEU
Forty foot equivalent units of shipping containers; two 20 ft
containers = 1 FEU.
flag
A reference to the country of registry of a vessel.
force majeure
Superior or overpowering force or unexpected or uncontrollable
event, which cannot be avoided by the exercise of due care and is
included in contracts to excuse parties from performance when
such events occur.
foreign bond
An international bond, usually denominated in the currency of the
country where it is issued.
foreign flag
The national identification of a carrier registered in a foreign
country. A vessel flies the national flag of the country in which it is
registered, which may not be the country of the carrier's owner.
free in and out
(FIO)
A pricing term indicating that the vessel operator is responsible for
the cost of loading and unloading.
free market
A market with unrestricted trading of goods, where the prices of
goods are determined by supply and demand. Internationally, an
unrestricted movement of goods, unhampered by the existence of
tariffs or other trade barriers.
free time
That length of time that a carrier's equipment can be used without
incurring additional charges. (See Storage, Demurrage, or Per
Diem.)
free zone
A designated area at a port or city where goods may be received
and held without the payment of duty.
freight
1. Goods transported by a commercial carrier.
2. Charge for transporting goods.
freight forwarder
A business that acts as an agent on behalf of a shipper. A freight
forwarder frequently prepares necessary documents and makes
all the arrangements to ship the goods.
G
gateway
A location at which freight moving from one territory to another is
interchanged between transportation lines.
GBL
Government Bill of Lading.
general cargo
vessels
A vessel that carries break-bulk cargo such as bags, cartons,
cases, crates and drums, either individually or in unitized or
palletized loads.
go-down (Far
East)
A warehouse where goods are stored and delivered.
GRI
General Rate Increase. An across-the-board tariff increase
implemented by conference members and applied to base rates.
gross tonnage
Applies only to vessel (0.2+0.02 log10V) where V is the volume in
cubic meters of all enclosed spaces on the vessel.
gross weight
Total weight of goods prepared for shipping, including packaging
and freight car or container.
groupage
A consolidation service that ships small freight in one container.
H
Hague Rules, The
A multilateral, maritime treaty adopted in 1921 at The Hague,
Netherlands, which standardizes liability of an international carrier
under the Ocean Bill of Lading and establishes a legal basis for
the bill of lading.
Harbor Fees
Amount charged vessels to use a harbor.
Harmonized Tariff
Schedule of the
United States
(HTSUS)
An international goods-classification system for describing cargo
in international trade under a single commodity-coding scheme.
For more information, go to http://www.usitc.gov/taffairs.htm
hazardous
materials
A substance or material that has been determined to be capable
of posing an unreasonable risk to health, safety, and property
when transported in commerce.
HAZMAT
The Office of Hazardous Materials Safety, which is within the
United States Department of Transportation's Research and
Special Programs Administration and is responsible for
coordinating a national safety program for the transportation of
hazardous materials by air, rail, highway, and water. For more
information, go to http://hazmat.dot.gov/.
heavy lift (HL)
Any article deemed by rules in a vessel's tariff to be beyond a
certain weight. It may be too heavy for the ship's tackle and
require special equipment such as a floating crane.
heavy lift charge
In a maritime tariff, a charge made for lifting heavy articles to load
or unload them.
heavy lift vessel
A vessel with heavy lift cranes and other equipment designated to
be self-sustaining in the handling of heavy cargo.
HTSUS
See Harmonized Tariff Schedule of the United States.
I
IATA
International Air Transport Association
import
To bring or carry in goods from abroad for trade or sale.
import duty (ID)
Custom duty collected on imported goods.
import license
(I/L)
An authorization by a legal authority for the importation of goods
which are subject to restriction.
import
restrictions
Any one of a series of tariff and non-tariff barriers imposed by an
importing nation to control the volume of goods coming into the
country from other countries.
importer
An individual, firm or legal entity that brings goods, or causes
goods to be brought from a foreign country into a customs
territory.
in bond (USA)
A procedure under which goods are transported, stored, or
handled, prior to clearance and release by customs, and the
government's interest is secured by indemnity bonds.
in bond shipment
An import or export shipment that has not been cleared by
Customs and is transported, stored, or handled with security to
the government provided by indemnity bonds.
Incoterms
An abbreviation of International Commercial Terms. Incoterms are
published by the International Chamber of Commerce (ICC). It is a
set of rules for the interpretation of the most commonly used trade
terms in foreign trade in which parties to a contract can agree
upon to avoid misunderstandings, disputes and litigation.
inherent vice
The inherent physical properties of goods which may cause them
to suffer deterioration or damage without outside influence. (For
example: spontaneous combustion, rust etc.)
inland bill of
lading
A bill of lading used in transporting goods overland.
inland carrier
A transportation line which hauls cargo inland by: truck, rail,
barge, inland waterways, or domestic airline flights.
inspection
certificate
A document describing the condition of goods and confirming that
they have been inspected.
intermodal
compatibility
The physical capability of a shipment of goods to be transported
from one form of transportation to another.
intermodal
transport
Coordinated transport of freight using multiple methods of
transportation.
J
jettison
Casting overboard at sea such as jetsam (cargo or equipment
thrown overboard to lighten a ship in distress).
joint rate
A single freight rate on cargo moving by means of two or more
carriers who share the income.
K
knocked down
An article disassembled, unassembled, folded, or telescoped to
reduce its bulk; subject to easy assembly. This is usually done to
reduce the dimensions of the shipping package to save
transportation and storage costs.
L
landbridge
A system of through rates and service offered by a carrier for
cargo shipments from a foreign port by ocean vessel, transiting
another country across land, and then again being loaded aboard
an ocean vessel for delivery to the destination country. The
movement across a country's land from port-to-port is the
"landbridge" portion of the transportation. See also microbridge
and minibridge.
lane metre
A method of measuring the space capacity of roll on/roll off (Ro
Ro) ships whereby each unit of space (linear metre) is
represented by an area of deck 1m in length by 2.5m in width.
lashing
To hold goods in position by the use of wires, ropes, chains, or
straps.
laycan
Abbreviation for laydays canceling periods during which a ship
owner must tender notice that a ship has arrived at the port of
loading and is ready to load cargo.
laytime/laydays
Time given by the ship owner to allow a chartered vessel to load
and discharge cargo.
less than a
container load
(LCL)
A container with cargos from/for different shipper/receivers (i.e.,
contains more than one ships cargo).
less-thantruckload
A shipment which does not completely fill a truck or which weighs
less than the weight required for the application of the truck load
freight rate (which is usually a lower freight rate than applied to
less-than-truckload cargo.)
Letter Of Credit
(L/C)
A commitment, usually by a bank on behalf of a client, to pay a
beneficiary a stated amount of money under specified conditions.
lighter
A barge towed by a tugboat and used mainly in harbors and
inland waterways for the transport of cargo to and from ships.
Some may be self-powered.
lighter aboard
ship (LASH)
Some ships are constructed to carry special barges (lighters).
These barges can go to smaller docks, go into inland waterways,
load cargo at those places, and then carry it back to the ship,
which lifts the barges aboard, with their cargo, and transports
them overseas. Discharge of cargo is accomplished in the same
manner.
lighterage
The loading or unloading of a ship by means of a lighter (barge),
especially when shallow waters prevent an ocean going vessel
from approaching a berth, or if berths are unavailable.
liner in liner out
(LILO)
Full liner terms. Qualification to a freight rate that signifies that it
consists of the ocean carriage and the cost of cargo handling at
the loading and discharging ports (to ship's rail) according to the
custom of a particular set of ports.
Limited Liability
(USA)
Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to whatever value his ship has after an
event such as a sinking or collision.
line haul
The direct movement of freight between two major ports by a
single ship.
line haul vessel
A vessel which is on a regularly defined schedule between ports.
linear metre
Method of measuring volume of cargo on Ro Ro vessels, in which
the measurement is an estimate of the length of the cargo laid
end-to-end. See lane metre.
liner terms
Conditions under which a shipping company will transport goods,
including in the amount payable for freight the cost both for
loading and discharge of the cargo from the vessel.
loading
Placing cargo into a truck, a shipping container, or onto a vessel.
LO/LO
Lift on/Lift off.
longshoreman
A laborer who loads and unloads ships, handles cargo and
containers at shipping terminals, and loads and unloads
containers at shipping terminals.
logistics
Management of transporting goods for export or import.
lower deck
containers
Carrier-owned containers specially designed to fit in the cargo
compartments of a wide-body aircraft. These compartments are
on the lower deck of the aircraft beneath the passenger level.
M
mafi
See roll trailer.
manifest
A document listing and describing the cargo contents of a carrier,
container or warehouse.
maritime
Relating to marine shipping or navigation.
megacarrier
A massive shipping line that primarily services the east/west
trade.
microbridge
A system of through rates and service offered by a carrier for
cargo shipments from any inland U.S. location to a port by sea, to
a foreign port, and finally overland to foreign inland destination.
minibridge
The process of taking inland cargo bound for export to the coast
by rail and loading it directly to a ship.
minimum charge
The lowest amount that will be charged regardless of the amount
of service rendered.
N
NAFTA
North American Free Trade Agreement.
negotiable bill of
lading
A bill of lading whose terms make it transferable by endorsement,
which make the goods that it covers deliverable to bearer, or to
the order of a named party or to the assigns.
nested
Packed one within another; for example, the way paper cups are
stacked as a way of saving space.
net weight
The weight of goods without packaging. The weight of the
contents of a package.
NMB
National Maritime Board.
NRT
Net registered tonnage.
NVOCC
Non-vessel owning common carrier.
O
ocean bill of
lading
A receipt for the cargo and a contract for transportation issued by
an ocean carrier. When issued in negotiable form, it is also an
instrument of title.
on board
Notation on a bill of lading indicating that the goods have been
loaded on board a named ship.
on deck bill of
lading
An ocean bill of lading containing the notation that the goods have
been loaded on the deck of the vessel.
open-end contract
An agreement by which the buyer may purchase an unspecified
amount of goods from a seller over a certain period of time without
changes in the price or the contract terms.
P
packing list
A document listing the merchandise in a particular shipment that
indicates the kind and quantity in each package.
pallet
A platform, with or without sides, on which a number of packages
or pieces may be loaded to facilitate handling. Usually the pallet is
constructed so that it has space underneath it to permit lifting by
mechanical equipment.
palletizing
The loading and securing of a number of sacks, bags, boxes or
drums on a pallet base.
perishable freight
Goods subject to decay or deterioration during shipment.
pickup order
An order to a carrier to pick up freight at a location.
pier-to-pier
Shipment of cargo with carrier responsibility from origin pier to
discharge pier.
piggyback
The transportation of truck trailers and containers on specially
equipped railroad flat-cars.
Port
1. A place used for loading and unloading cargo or passengers of
vessels. It can be within a natural harbor on a coast, a river, or
within sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the collection
of duties and the control of imports and exports.
port charge
A fee for services performed at ports.
port of discharge
The port at which a shipment is off loaded by a transportation line.
port of entry
A place where Customs is stationed to control the arrival of
carriers, goods, and persons from foreign countries.
port of export
A place where Customs is stationed to control departures of
carriers, passengers, and goods to foreign countries.
prepaid charges
1. Charges, including freight, are paid by the shipper.
2. Charges designated as prepaid are paid by the shipper with
other charges to be collected from the receiver.
priority air freight
Reserved air freight or air express service where a shipment has
a priority after mail and the small package services.
Q
quay
A structure attached to land to which a vessel is moored.
R
rail waybill
A document used to control the transportation of a shipment of
goods via rail.
reach stacker
A container-handling truck that can stack containers and reach
behind two rows of containers.
received for
shipment bill of
lading
A bill of lading that confirms the receipt of goods by the carrier for
transportation on a particular vessel, but neither their actual
loading on board the vessel nor their actual shipment.
REDS
Registered Excise Shippers and Dealers.
reefer
Refrigerated container that carries cargo that must be frozen or
chilled.
reefer Container
A controlled temperature shipping container (usually refrigerated
with a self-contained refrigeration unit).
Re-export
The export of imported goods without appreciable added value
reserved freight
space
A service by some airlines and ship lines that allow shippers to
reserve freight space on designated voyages.
restricted letter of
credit
A letter of credit which restricts negotiation to the bank that the
issuing bank has nominated in the credit.
road waybill
Transport document is used to control shipments of goods via
truck. It contains the same information as an inland bill of lading,
with freight and other charges, and routing.
roll on, roll off
(RoRo)
1. Freight ship or ferry that allow vehicles to drive on and off (rollon roll-off).
2. Carriers equipped with large openings at bow and stern and sometimes
also in the side with hydraulically operated ramps providing easy access,
which permits rapid loading and discharge. Fully loaded trucks or trailers
carrying containers are accommodated on the deck.
3. A system of loading and discharging a ship where the
cargo is driven on and off on ramps.
roll trailer
A wheeled trailer (also called mafi) used to load (or unload) cargo
aboard ship, which can remain board throughout the voyage.
Usually it is attached to a tugmaster, with a gooseneck.
S
seafreight
Charges for sea transport only.
shipment
1.The act of shipping of goods.
2.Goods being shipped.
shipped on deck
Goods shipped on the deck of a vessel. The bill of lading covering
goods shipped on deck must be annotated to that effect.
shipper
1. A commercial transporter (consigner and receiver) of goods,
also called a carrier.
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the
receiver or the consignee.
shipping order
Instructions from a shipper to a carrier for the transportation of
goods.
ship's manifest
Captain's statement providing details of the ship, crew, cargo, and
ports of destination.
short form bill of
lading
A bill of lading on which does not list the detailed conditions of
transportation, but instead there is a statement which declares
them to be incorporated by reference and states the place where
they are available.
shortage
A deficiency in quantity shipped, stored, or received.
short shipped
Cargo not loaded and left on key, either by accident or design.
SITC
Standard International Trade Classification.
SO
Seller's option.
SOB
Shipped on board.
specific
commodity rate
A favorable freight rate usually applicable to certain classes of
commodities that ship in large volume shipments.
spot rate
The rate (price per unit) for purchase or sale of a commodity or
foreign exchange for immediate delivery.
SSN
Standard Shipping Note.
stability
The ability of the vessel to maintain equilibrium or resume its
original position after displacement, as by the sea. Also a vessel's
stability taking into account the weight and position of the cargo
within the vessel.
stackmaster
A pontoon with two collapsible ends.
standby letter of
credit
A letter of credit that a bank issues on behalf of its customer to
serve as a guarantee to the beneficiary of the letter of credit that
the bank's customer will perform a specified contract with the
beneficiary. If the customer defaults, the beneficiary can draw
funds against the letter of credit as penalties or as payments.
starboard
Right side of a ship when facing the front or forward end.
steamship (or
steamer)
Vessels powered by steam engines. However, the term is often
used as an anachronism to describe powered vessels in general,
and companies who operate ocean-going cargo vessels are often
called "steamship companies" despite the fact that the use of
steam power for ocean going vessels is obsolete, the modern
standard being diesel engines fueled by oil.
stern
The aftermost part of the ship.
stevedore
1. A person having charge of the loading and unloading of ships in
port.
2. Longshoreman.
storage
The keeping of goods in a warehouse or other repository.
storage
demurrage
A storage charge for property remaining on the dock or terminal
past the permitted "free-time period."
storage in transit
The stopping of freight traffic at a point located between the point
of origin and destination to be stored and re-forwarded at a later
date.
stowage
The arranging and packing of cargo in a vessel for shipment.
stowage order
An order from the ship owner determining how certain classes of
goods (i.e., fragile, valuable, dangerous) are sent to the dock and
how and where they are stowed. The stowage order must
accompany the goods to the dock.
straight bill of
lading
A nonnegotiable bill of lading that designates a consignee who is
to receive the goods and obligates the carrier to deliver the goods
to that consignee only.
stripping
Unloading cargo from a container or truck (also called devanning.)
stuffing
Loading cargo into a container.
supercargo
Person who plans stowage and supervises loading and
discharging of vessels. Also known as a port captain.
surcharge
A charge or tax above the usual or customary charge.
SWL
Safe working load.
T
tank
Carries liquids or powder.
tare
The weight of a container or wrapper apart from the goods they
carry.
tariff
1. A list or system of duties imposed by a government on imported
or exported goods.
2. Duties or a duty imposed by a government on imported or
exported goods.
3. A schedule or prices or fees.
tariff anomaly
When the customs tariff on raw materials or semi-manufactured
goods is higher than the tariff on the finished product.
tariff escalation
When customs tariffs on raw materials are nonexistent or very
low; tariffs on semi-processed goods are moderate; and tariffs on
manufactured goods are relatively high.
tariff schedule
A comprehensive list of goods imported into a country where
custom tariffs are applicable to each product.
tariff war
(Customs) When one nation increases the tariffs on goods
imported or exported from another country and the other country
raises its tariffs in retaliation.
TDC
Total distribution costs.
TDW
Tons deadweight.
Temporary
Importation
(Admission
Temporaire)
A customs procedure under which certain goods can be brought
into a customs territory temporarily, conditionally relieved from the
payment of import duties and taxes; such goods must be imported
for a permitted purpose and must be intended for exportation
within the permitted period.
tender
1. An attendant of a small vessel that serves a larger vessel in a
port for the purpose of supplying provisions and carrying
passengers to and from ship to shore.
2. A formal offer such as an offer of money or services in payment
of an obligation or a bid to contract goods or services at specified
costs.
terminal
An facility that is used by a rail, ship, air, or truck line as a place
for receiving and delivering cargo, loading and unloading,
transferring, temporarily storing, recoupering, and similarly
handling freight, as well as repairing and servicing equipment.
terminal charge
A charge made for services performed at transportation terminals.
TEU
Twenty foot equivalent unit. A measurement of cargo-carrying
capacity on a containership, referring to a common container size
of 20 ft in length.
through bill of
lading
A single bill of lading covering receipt of cargo at a point of origin
for delivery to an ultimate consignee, usually involving multiple
carriers and multiple modes of transport.
through rate
A shipping rate applicable to transportation from point of origin to
destination where multiple carriers and multiple modes of
transport may be involved.
time charter
A contract to hire a ship for a stated period of time.
trailer
A transport vehicle designed to be hauled by a truck or tractor.
transship
(tranship)
1. To transfer goods from one ship to another.
2. To ship to one country and re-export to another.
transit zone
An area in a port of entry in a coastal country that is established
as a storage and distribution center for the convenience of a
neighboring country, which lacks adequate port facilities or access
to the sea.
transmittal letter
In international commerce, a letter from the shipper or its agent to
transmit documents relative to a shipment, which usually includes
a list of the documents enclosed and details covering the
transportation of the shipment.
transport
documents
All types of documents evidencing acceptance, receipt, and
shipment of goods.
tugmaster
A tractor with a hydraulic trailer connection known as a fifth wheel,
which is used to tow cargo on and off the vessels.
turnkey
Construction whereby the contractor assumes total responsibility
from design through completion of the product and release to the
buyer in a stage so complete that the buyer need only to turn the
key to open the door and walk into a facility that is ready to
operate.
turnkey contract
An agreement under which a contractor agrees to complete a
product so that it is ready for use when delivered to the other
contracting party.
U
Unconfirmed
Letter Of Credit
A type of letter of credit bearing the obligation of the issuing bank
only, not of any other bank.
Unit Load
Various cargo carrying devices, or sizes of containers, which carry
several smaller shipping packages, including the banding together
of a number of individual packages on a pallet to create a single
unit.
Unloading
1. Removing cargo from a vessel, truck, airplane, or railroad car.
2. Removing cargo from a container; also called devanning.
Unrestricted
Letter Of Credit
A letter of credit that can be negotiated through any bank of the
beneficiary's choice.
V
VAT
Value Added Tax.
vendor
A company or individual that sells goods or services. A merchant,
a retail dealer; a supplier; one who buys to sell.
volume rate
A freight rate assessed in connection with a specified volume of
freight based upon the premise that it will be substantial in total
over a period of time. It is generally a lower rate than normally
assessed for smaller lots of cargo.
W
war clause
A marine insurance provision excluding the liability of an insurer if
a loss is caused by war or hostile action. Bills of lading and
charter parties may contain a "War Clause" giving the vessel
options to maintain its safety in case of hostilities.
war risk
The risk to a vessel, its cargo, or passengers by aggressive
actions of a hostile nation or group.
war risk insurance
Insurance covering loss or damage caused by war or other hostile
actions. Usually a separate policy from a marine insurance policy
or a special attachment to it.
warehouse receipt
A document issued by a warehouse listing the goods or
commodities deposited in the warehouse. It is a receipt for the
commodities listed and for which the warehouse is the bailee.
Warehouse receipts may be either non-negotiable or negotiable.
warehouse—USA
Customs Bonded
A privately owned and operated warehouse that has posted bond
and has been approved by U. S. Customs where goods remain
until duty has been collected from the importer.
waybill
A document prepared by a transportation line for shipment
showing the point of origin, destination, route, consignor,
consignee, description of shipment and amount charged for the
transportation service and other services connected with the
transport. It is similar in information to a bill of lading.
weight break
The point at which the weight of a shipment is large enough to be
assessed the lower freight rates that are applicable to larger
shipments, as per the carrier's tariff.
wharfage
A charge assessed by a pier or dock owner for handling incoming
or outgoing cargo
acceptance letter
of credit
A letter of credit that requires presentation of a time draft drawn by
the bearer upon the issuing bank or another bank.
act of God
A violent act of nature such as lightning, flood, earthquake, or
hurricane that man can neither cause nor prevent.
ad valorem duty
A duty calculated on the basis of value. Usually a percentage of
the value.
advised credit
A letter of credit whose terms and conditions have been notified to
the beneficiary by an advising bank on behalf of the issuing bank.
The advising bank does not thereby commit itself to pay or
guarantee the payment of the letter of credit.
advising bank
A correspondent of a bank that issues a letter of credit and, on
behalf of the issuing bank, notifies the beneficiary of the terms of
the credit without engagement on its part to pay or guarantee the
credit.
aft
In, toward, or close to the stern (rear) of a vessel or the rear of an
aircraft or spacecraft.
air cargo
Property of any kind, excluding passenger baggage and mail, that
is transported by aircraft.
air express
Expedited air freight service.
air parcel post
Parcels shipped through the mails to be transported by air.
airway bill
The shipping document used for the transportation of air freight,
which includes: conditions, limitations of liability, shipping
instructions, description of commodity, and applicable
transportation charges. It is similar to a straight non-negotiable bill
of lading and is used for similar purposes.
all-cargo aircraft
Aircraft used for the sole purpose of transporting cargo or mail.
amidships
The area of an ocean vessel midway between the bow (the front)
and the stern (the rear). When the term applies to an airplane, it is
midway between the nose and the tail.
antidumping
duties
Additional duties assessed on imported goods sold to an
importing country at a price that is less than fair value, (fair value
usually defined as the price on the exporting country's domestic
market or to third countries) and are found to cause or threaten
material injury to industry of the importing country.
any quantity
A cargo freight rate that applies to an article without regard to the
weight or quantity shipped.
apron
1. Area of the airport where planes are parked. May be used for
loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used
for loading and unloading of vessels.
B
bank acceptance
A draft drawn on and accepted by a bank
bank guarantee
An indemnity letter in which the bank commits itself to pay a
certain sum if a third party fails to perform or if any other form of
default occurs.
Example: Used when a bank wants a carrier to release a
shipment that it has financed, but the original bills of lading is not
yet available for surrender to the carrier.
bank release
A document issued by a bank that is the consignee of a shipment
authorizing a carrier to deliver a shipment.
banker's draft
A draft payable on demand and drawn by, or on behalf of, a bank
upon itself or upon another bank such as a foreign bank, where it
maintains an account or a relationship.
bank acceptance
A draft or bill of exchange drawn upon and accepted by a bank.
bareboat charter
The charter of a vessel in which the charter party has the right to
use his own master and crew on the vessel and pays all operating
expenses.
barge
A flat-bottomed cargo vessel primarily used on rivers and canals
usually towed or pushed, but it may be self-propelled.
barter
Trade of goods or services without money.
basing rate
A freight rate used for the sole purpose of determining other
freight rates.
beneficiary
An individual or company entitled to draw or demand payment
under the terms of a letter of credit.
berth
Docking space where a ship is anchored.
bill of lading
A document issued by a carrier to a shipper, listing and
acknowledging receipt of goods and specifying terms of delivery.
billed weight
Designated weight shown on the freight bill used to calculate the
freight charges.
blanket rate
A rate of premium for insurance applied across the board where
there is more than one kind of property to be insured.
bond
1. A written agreement to perform or refrain from performing
specified acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due
and usually specifying a rate of interest and its dates of periodic
payment.
bond of indemnity
A bond to indemnify (insure; protect against damage, loss, or
injury) the party to whom the bond is issued.
bonded
Refers to goods which are held, stored, or transported under
circumstances where applicable duty or taxes have not been
definitely determined or paid and admissibility has not been
arranged. Bonds must be posted by those responsible for the
goods during this period (the carriers, warehouses, and/or
importers) to indemnify the government if the goods are released
improperly.
bonded terminal
A terminal approved by Customs for temporary storage of
imported goods until Customs duties are paid or goods released.
Bonds must be posted by the terminal operator to indemnify the
government if the goods are released improperly.
bonded
warehouse (USA)
An approved private warehouse used for the storage of goods
until duties or taxes are paid and the goods are properly released
by Customs. Bonds must be posted by the warehouse proprietor
and by the importer to indemnify the government if the goods are
released improperly.
booking
Arrangements made for a shipment with representatives of a
vessel or airline.
break bulk
1. Description of a ship that transports cargo carried in its hold
that is usually packed in cases, bales, cartons, drums, carboys,
etc. rather than in containers.
2. Unload packaged cargo from a 'break bulk ship' or from a
container and distribute it.
break bulk cargo
Cargo that is shipped in packing units such as cartons, cases,
crates, bales, or drums, but not containerized.
broker
One that acts as an agent for others, as in negotiating contracts,
purchases, or sales in return for a fee or commission.
bulk cargo
Cargo consisting of an unpacked commodity such as grain, oil,
and ore.
bulk carrier
A vessel that carries bulk cargo
bulk freight
Cargo not in packages or containers.
bunker
adjustment factor
An adjustment in shipping charges to offset price fluctuations in
the cost of bunker fuel.
bunker fuel
Fuel used to power a ship
bunker(s)
1. The compartment (hold) of a ship that stores fuel.
2. The fuel for a vessel
C
cargo
Freight carried by ship, an aircraft, or another vehicle.
cargo agent
An agent appointed by an airline or shipping line to solicit and
process international air and ocean freight shipments.
cargo manifest
A list of cargo being transported or warehoused.
cargo tonnage
The weight of a shipment or of ship's total cargo expressed in
tons.
carrier
A legal entity that is in the business of transporting passengers or
goods for hire.
chargeable weight
The weight or volume of a shipment used in determining freight
charges.
charter service
Temporary hiring of an aircraft or vessel for the transportation of
cargo or passengers.
chartered ship
A ship leased for a stated time, voyage, or voyages.
chassis
1. A special trailer or undercarriage on which containers are
moved over the road.
2. The undercarriage of a vehicle.
claused bill of
lading
An added clause on a bill of lading that denotes a deficient
condition of the goods or packaging, or other annotated
conditions, which modifies the printed conditions on the Bill Of
Lading.
clean bill of lading
A bill of lading issued by a carrier for goods delivered in "apparent
good order and condition" that bears no notations or added
clauses that may limit the liability of the carrier.
clearance
1. Compliance with governmental requirements that allow a carrier
to berth in a port to unlade or lade cargo and passengers.
2. Compliance with customs formalities that allow goods to be
imported or to be exported.
closed-end
transaction
A credit transaction with a fixed amount of time for repayment.
combination
aircraft
An aircraft capable of transporting both cargo and passengers on
the same flight.
combined bill of
lading
A bill of lading covering a shipment of goods by more than one
mode of transportation.
commercial
invoice
A document that details the transaction between a seller and a
buyer, which provides their names and addresses, the date of the
sale, a description of the goods sold, the quantity, the unit price,
the terms of sale, and the total money due. If it is an invoice
between a seller and buyer from different countries, it also
indicates the type of currency.
commercial letter
of credit
An a letter or document issued by a bank to provide credit for a
customer that enables him to finance the purchase of goods or to
meet other commitments.
commodity code
The system of identifying a commodity by an assigned number.
connecting carrier
A carrier that has a physical connection with another carrier or
forms a connecting link between two or more carriers.
consignee
The person or firm named in a freight contract to whom goods
have been shipped or turned over for care.
consignor
An entity that ships goods to another. The consignor on a bill of
lading is the shipper.
consolidated
container
A shipping container that contains cargo from various shippers for
delivery to various consignees.
consolidation
The combining of smaller shipments into a single shipment.
consular invoice
An invoice for a shipment of goods that is certified by the counsel
of the country for which the merchandise is destined and which
may require a special form and be subject to special fees.
contract carrier
Excluding common carriers, any person who under contract will
transport passengers or goods for an agreed compensation.
customs
1. A duty or tax imposed on imported and, less commonly,
exported goods.
2. The governmental agency authorized to collect custom
duties/taxes.
3. Procedure for inspecting goods and baggage entering a
country.
D
dangerous goods
Goods that can pose a health or safety risk.
date draft
A draft which matures after a specified number of days from the
date it is issued.
deadweight
1. The maximum weight that a ship can carry so that it settles in
the water to its Plimsoll mark; also measurable by the weight of
the water the vessel displaces when fully loaded less the
displacement when it was unloaded.
2. Cargo of such high density that a long ton (2240 lbs.) can be
stowed in less than 70 cubic feet.
deck cargo
Cargo shipped on the deck of a vessel rather than in its hold.
declared value for
The value of goods declared to the carrier by the shipper for the
carriage
purposes of determining charges and establishing the liability of
the carrier.
declared value for
customs
The value of a shipment according to the customs laws of the
destination country that is required to be declared by the shipper
on the shipping documents or by the importer when he presents
the goods for customs clearance.
deferred air
freight
Less urgent freight that can be delivered on later flights more
convenient for the airline at lower tariffs.
deferred payment
letter of credit
A letter of credit that allows the buyer to take possession of goods
by agreeing to pay the issuing bank or the confirming bank at a
fixed future date.
delivery order
A document from the consignee, shipper, or owner of freight
ordering the release of freight to another party.
demurrage
1. In international transportation, a charge for the failure to remove
cargo from a terminal within the allowed free time. Also, a charge
for failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against
users for use of carriers' equipment beyond the allowed free time.
destination
The place to which a shipment or person is going.
discharging
Unloading cargo from a carrier or contents from a container.
dock
1. Loading or unloading platform at an industrial location or carrier
terminal.
2. A ship's berth or wharf.
dock receipt
A receipt issued by a vessel agent that certifies that goods have
been received.
domestic exports
Exports of goods which were grown, produced, mined, or
manufactured in the country from which exported.
door-to-door
Shipping service from shipper's door to consignee's door.
drayage
The charge made for hauling freight via carts, drays, or trucks.
dry cargo
Cargo of solid, dry material, not liquid or gas. Usually, the term
excludes cargo requiring special temperature controls.
dumping
The sale of goods in a foreign country at less than" fair value" (a
price lower than that at which it is sold within the exporting country
or to third countries), which materially injures, or threatens to
materially injure, that industry in the foreign country.
dunnage
Materials placed around cargo to prevent shifting or damage while
in transit.
duty
Government tax levied on the import or export of goods. The U.S.
Constitution forbids the levying of taxes by the U.S. on exports.
However, most foreign governments do not have this restriction.
E
embargo
Government prohibition of exports or imports with respect to
specific products or specific foreign countries.
en route
Goods, passengers, or vessels in transit.
entrepot
A storage facility (often in an intermediate country) where goods
are kept and distributed.
entrepot trade
The import and export of goods that receive no further processing
but are distributed from the entrepot facility, which is usually
chosen for its location and lack of restrictions on trade.
entry documents
Documents required to complete customs entry so as to secure
the release of imported merchandise.
ETA
Estimated time of arrival.
ETD
Estimated time of departure.
Ex Factory
A sale term where the title to goods passes from the vendor to the
buyer when they leave the vendor's dock, as does the liability for
loss or damage and the expenses of shipment. Is still widely used,
but is being replaced by the Incoterm EXW (Ex Works). See
Incoterms.
excise tax
Internal tax on the manufacture, sale, or consumption of goods,
licenses to pursue certain occupations, and corporate privileges.
expedited
Accelerating the movement of shipments through regular
channels.
export
To send or transport goods abroad.
export declaration
(USA)
The Shipper's Export Declaration is a required customs document
for exportation of goods from the United States, which provides
statistics and facilitates control where applicable.
export duty
A tax imposed by a nation on their exports.
export license
A license issued to exporters by a government to permit them to
export goods to other countries. Such goods may be of strategic
importance, or simply in short supply, or are controlled to comply
with foreign agreements.
exporter
An individual or company that ships goods from one country to
another in the course of trade.
exporter
identification
An identification number assigned to exporters of goods from the
United States, which is required on the Shipper's Export
number (USA)
Declaration for all shipments from the USA..
F
feeder vessel
1. A short-sea vessel that is part of a cargo network that transfers
cargo from smaller ports to major ports where larger vessels dock.
This spares larger vessels the expense and loss of time loading
and unloading at smaller ports.
FEU
Forty foot equivalent units of shipping containers; two 20 ft
containers = 1 FEU.
flag
A reference to the country of registry of a vessel.
force majeure
Superior or overpowering force or unexpected or uncontrollable
event, which cannot be avoided by the exercise of due care and is
included in contracts to excuse parties from performance when
such events occur.
foreign bond
An international bond, usually denominated in the currency of the
country where it is issued.
foreign flag
The national identification of a carrier registered in a foreign
country. A vessel flies the national flag of the country in which it is
registered, which may not be the country of the carrier's owner.
free in and out
(FIO)
A pricing term indicating that the vessel operator is responsible for
the cost of loading and unloading.
free market
A market with unrestricted trading of goods, where the prices of
goods are determined by supply and demand. Internationally, an
unrestricted movement of goods, unhampered by the existence of
tariffs or other trade barriers.
free time
That length of time that a carrier's equipment can be used without
incurring additional charges. (See Storage, Demurrage, or Per
Diem.)
free zone
A designated area at a port or city where goods may be received
and held without the payment of duty.
freight
1. Goods transported by a commercial carrier.
2. Charge for transporting goods.
freight forwarder
A business that acts as an agent on behalf of a shipper. A freight
forwarder frequently prepares necessary documents and makes
all the arrangements to ship the goods.
G
gateway
A location at which freight moving from one territory to another is
interchanged between transportation lines.
GBL
Government Bill of Lading.
general cargo
vessels
A vessel that carries break-bulk cargo such as bags, cartons,
cases, crates and drums, either individually or in unitized or
palletized loads.
go-down (Far
East)
A warehouse where goods are stored and delivered.
GRI
General Rate Increase. An across-the-board tariff increase
implemented by conference members and applied to base rates.
gross tonnage
Applies only to vessel (0.2+0.02 log10V) where V is the volume in
cubic meters of all enclosed spaces on the vessel.
gross weight
Total weight of goods prepared for shipping, including packaging
and freight car or container.
groupage
A consolidation service that ships small freight in one container.
H
Hague Rules, The
A multilateral, maritime treaty adopted in 1921 at The Hague,
Netherlands, which standardizes liability of an international carrier
under the Ocean Bill of Lading and establishes a legal basis for
the bill of lading.
Harbor Fees
Amount charged vessels to use a harbor.
Harmonized Tariff
Schedule of the
United States
(HTSUS)
An international goods-classification system for describing cargo
in international trade under a single commodity-coding scheme.
For more information, go to http://www.usitc.gov/taffairs.htm
hazardous
materials
A substance or material that has been determined to be capable
of posing an unreasonable risk to health, safety, and property
when transported in commerce.
HAZMAT
The Office of Hazardous Materials Safety, which is within the
United States Department of Transportation's Research and
Special Programs Administration and is responsible for
coordinating a national safety program for the transportation of
hazardous materials by air, rail, highway, and water. For more
information, go to http://hazmat.dot.gov/.
heavy lift (HL)
Any article deemed by rules in a vessel's tariff to be beyond a
certain weight. It may be too heavy for the ship's tackle and
require special equipment such as a floating crane.
heavy lift charge
In a maritime tariff, a charge made for lifting heavy articles to load
or unload them.
heavy lift vessel
A vessel with heavy lift cranes and other equipment designated to
be self-sustaining in the handling of heavy cargo.
HTSUS
See Harmonized Tariff Schedule of the United States.
I
IATA
International Air Transport Association
import
To bring or carry in goods from abroad for trade or sale.
import duty (ID)
Custom duty collected on imported goods.
import license
(I/L)
An authorization by a legal authority for the importation of goods
which are subject to restriction.
import
restrictions
Any one of a series of tariff and non-tariff barriers imposed by an
importing nation to control the volume of goods coming into the
country from other countries.
importer
An individual, firm or legal entity that brings goods, or causes
goods to be brought from a foreign country into a customs
territory.
in bond (USA)
A procedure under which goods are transported, stored, or
handled, prior to clearance and release by customs, and the
government's interest is secured by indemnity bonds.
in bond shipment
An import or export shipment that has not been cleared by
Customs and is transported, stored, or handled with security to
the government provided by indemnity bonds.
Incoterms
An abbreviation of International Commercial Terms. Incoterms are
published by the International Chamber of Commerce (ICC). It is a
set of rules for the interpretation of the most commonly used trade
terms in foreign trade in which parties to a contract can agree
upon to avoid misunderstandings, disputes and litigation.
inherent vice
The inherent physical properties of goods which may cause them
to suffer deterioration or damage without outside influence. (For
example: spontaneous combustion, rust etc.)
inland bill of
lading
A bill of lading used in transporting goods overland.
inland carrier
A transportation line which hauls cargo inland by: truck, rail,
barge, inland waterways, or domestic airline flights.
inspection
certificate
A document describing the condition of goods and confirming that
they have been inspected.
intermodal
compatibility
The physical capability of a shipment of goods to be transported
from one form of transportation to another.
intermodal
transport
Coordinated transport of freight using multiple methods of
transportation.
J
jettison
Casting overboard at sea such as jetsam (cargo or equipment
thrown overboard to lighten a ship in distress).
joint rate
A single freight rate on cargo moving by means of two or more
carriers who share the income.
K
knocked down
An article disassembled, unassembled, folded, or telescoped to
reduce its bulk; subject to easy assembly. This is usually done to
reduce the dimensions of the shipping package to save
transportation and storage costs.
L
landbridge
A system of through rates and service offered by a carrier for
cargo shipments from a foreign port by ocean vessel, transiting
another country across land, and then again being loaded aboard
an ocean vessel for delivery to the destination country. The
movement across a country's land from port-to-port is the
"landbridge" portion of the transportation. See also microbridge
and minibridge.
lane metre
A method of measuring the space capacity of roll on/roll off (Ro
Ro) ships whereby each unit of space (linear metre) is
represented by an area of deck 1m in length by 2.5m in width.
lashing
To hold goods in position by the use of wires, ropes, chains, or
straps.
laycan
Abbreviation for laydays canceling periods during which a ship
owner must tender notice that a ship has arrived at the port of
loading and is ready to load cargo.
laytime/laydays
Time given by the ship owner to allow a chartered vessel to load
and discharge cargo.
less than a
container load
(LCL)
A container with cargos from/for different shipper/receivers (i.e.,
contains more than one ships cargo).
less-thantruckload
A shipment which does not completely fill a truck or which weighs
less than the weight required for the application of the truck load
freight rate (which is usually a lower freight rate than applied to
less-than-truckload cargo.)
Letter Of Credit
(L/C)
A commitment, usually by a bank on behalf of a client, to pay a
beneficiary a stated amount of money under specified conditions.
lighter
A barge towed by a tugboat and used mainly in harbors and
inland waterways for the transport of cargo to and from ships.
Some may be self-powered.
lighter aboard
ship (LASH)
Some ships are constructed to carry special barges (lighters).
These barges can go to smaller docks, go into inland waterways,
load cargo at those places, and then carry it back to the ship,
which lifts the barges aboard, with their cargo, and transports
them overseas. Discharge of cargo is accomplished in the same
manner.
lighterage
The loading or unloading of a ship by means of a lighter (barge),
especially when shallow waters prevent an ocean going vessel
from approaching a berth, or if berths are unavailable.
liner in liner out
(LILO)
Full liner terms. Qualification to a freight rate that signifies that it
consists of the ocean carriage and the cost of cargo handling at
the loading and discharging ports (to ship's rail) according to the
custom of a particular set of ports.
Limited Liability
(USA)
Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to whatever value his ship has after an
event such as a sinking or collision.
line haul
The direct movement of freight between two major ports by a
single ship.
line haul vessel
A vessel which is on a regularly defined schedule between ports.
linear metre
Method of measuring volume of cargo on Ro Ro vessels, in which
the measurement is an estimate of the length of the cargo laid
end-to-end. See lane metre.
liner terms
Conditions under which a shipping company will transport goods,
including in the amount payable for freight the cost both for
loading and discharge of the cargo from the vessel.
loading
Placing cargo into a truck, a shipping container, or onto a vessel.
LO/LO
Lift on/Lift off.
longshoreman
A laborer who loads and unloads ships, handles cargo and
containers at shipping terminals, and loads and unloads
containers at shipping terminals.
logistics
Management of transporting goods for export or import.
lower deck
containers
Carrier-owned containers specially designed to fit in the cargo
compartments of a wide-body aircraft. These compartments are
on the lower deck of the aircraft beneath the passenger level.
M
mafi
See roll trailer.
manifest
A document listing and describing the cargo contents of a carrier,
container or warehouse.
maritime
Relating to marine shipping or navigation.
megacarrier
A massive shipping line that primarily services the east/west
trade.
microbridge
A system of through rates and service offered by a carrier for
cargo shipments from any inland U.S. location to a port by sea, to
a foreign port, and finally overland to foreign inland destination.
minibridge
The process of taking inland cargo bound for export to the coast
by rail and loading it directly to a ship.
minimum charge
The lowest amount that will be charged regardless of the amount
of service rendered.
N
NAFTA
North American Free Trade Agreement.
negotiable bill of
lading
A bill of lading whose terms make it transferable by endorsement,
which make the goods that it covers deliverable to bearer, or to
the order of a named party or to the assigns.
nested
Packed one within another; for example, the way paper cups are
stacked as a way of saving space.
net weight
The weight of goods without packaging. The weight of the
contents of a package.
NMB
National Maritime Board.
NRT
Net registered tonnage.
NVOCC
Non-vessel owning common carrier.
O
ocean bill of
lading
A receipt for the cargo and a contract for transportation issued by
an ocean carrier. When issued in negotiable form, it is also an
instrument of title.
on board
Notation on a bill of lading indicating that the goods have been
loaded on board a named ship.
on deck bill of
lading
An ocean bill of lading containing the notation that the goods have
been loaded on the deck of the vessel.
open-end contract
An agreement by which the buyer may purchase an unspecified
amount of goods from a seller over a certain period of time without
changes in the price or the contract terms.
P
packing list
A document listing the merchandise in a particular shipment that
indicates the kind and quantity in each package.
pallet
A platform, with or without sides, on which a number of packages
or pieces may be loaded to facilitate handling. Usually the pallet is
constructed so that it has space underneath it to permit lifting by
mechanical equipment.
palletizing
The loading and securing of a number of sacks, bags, boxes or
drums on a pallet base.
perishable freight
Goods subject to decay or deterioration during shipment.
pickup order
An order to a carrier to pick up freight at a location.
pier-to-pier
Shipment of cargo with carrier responsibility from origin pier to
discharge pier.
piggyback
The transportation of truck trailers and containers on specially
equipped railroad flat-cars.
Port
1. A place used for loading and unloading cargo or passengers of
vessels. It can be within a natural harbor on a coast, a river, or
within sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the collection
of duties and the control of imports and exports.
port charge
A fee for services performed at ports.
port of discharge
The port at which a shipment is off loaded by a transportation line.
port of entry
A place where Customs is stationed to control the arrival of
carriers, goods, and persons from foreign countries.
port of export
A place where Customs is stationed to control departures of
carriers, passengers, and goods to foreign countries.
prepaid charges
1. Charges, including freight, are paid by the shipper.
2. Charges designated as prepaid are paid by the shipper with
other charges to be collected from the receiver.
priority air freight
Reserved air freight or air express service where a shipment has
a priority after mail and the small package services.
Q
quay
A structure attached to land to which a vessel is moored.
R
rail waybill
A document used to control the transportation of a shipment of
goods via rail.
reach stacker
A container-handling truck that can stack containers and reach
behind two rows of containers.
received for
shipment bill of
lading
A bill of lading that confirms the receipt of goods by the carrier for
transportation on a particular vessel, but neither their actual
loading on board the vessel nor their actual shipment.
REDS
Registered Excise Shippers and Dealers.
reefer
Refrigerated container that carries cargo that must be frozen or
chilled.
reefer Container
A controlled temperature shipping container (usually refrigerated
with a self-contained refrigeration unit).
Re-export
The export of imported goods without appreciable added value
reserved freight
space
A service by some airlines and ship lines that allow shippers to
reserve freight space on designated voyages.
restricted letter of
credit
A letter of credit which restricts negotiation to the bank that the
issuing bank has nominated in the credit.
road waybill
Transport document is used to control shipments of goods via
truck. It contains the same information as an inland bill of lading,
with freight and other charges, and routing.
roll on, roll off
(RoRo)
1. Freight ship or ferry that allow vehicles to drive on and off (rollon roll-off).
2. Carriers equipped with large openings at bow and stern and sometimes
also in the side with hydraulically operated ramps providing easy access,
which permits rapid loading and discharge. Fully loaded trucks or trailers
carrying containers are accommodated on the deck.
3. A system of loading and discharging a ship where the
cargo is driven on and off on ramps.
roll trailer
A wheeled trailer (also called mafi) used to load (or unload) cargo
aboard ship, which can remain board throughout the voyage.
Usually it is attached to a tugmaster, with a gooseneck.
S
seafreight
Charges for sea transport only.
shipment
1.The act of shipping of goods.
2.Goods being shipped.
shipped on deck
Goods shipped on the deck of a vessel. The bill of lading covering
goods shipped on deck must be annotated to that effect.
shipper
1. A commercial transporter (consigner and receiver) of goods,
also called a carrier.
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the
receiver or the consignee.
shipping order
Instructions from a shipper to a carrier for the transportation of
goods.
ship's manifest
Captain's statement providing details of the ship, crew, cargo, and
ports of destination.
short form bill of
lading
A bill of lading on which does not list the detailed conditions of
transportation, but instead there is a statement which declares
them to be incorporated by reference and states the place where
they are available.
shortage
A deficiency in quantity shipped, stored, or received.
short shipped
Cargo not loaded and left on key, either by accident or design.
SITC
Standard International Trade Classification.
SO
Seller's option.
SOB
Shipped on board.
specific
commodity rate
A favorable freight rate usually applicable to certain classes of
commodities that ship in large volume shipments.
spot rate
The rate (price per unit) for purchase or sale of a commodity or
foreign exchange for immediate delivery.
SSN
Standard Shipping Note.
stability
The ability of the vessel to maintain equilibrium or resume its
original position after displacement, as by the sea. Also a vessel's
stability taking into account the weight and position of the cargo
within the vessel.
stackmaster
A pontoon with two collapsible ends.
standby letter of
credit
A letter of credit that a bank issues on behalf of its customer to
serve as a guarantee to the beneficiary of the letter of credit that
the bank's customer will perform a specified contract with the
beneficiary. If the customer defaults, the beneficiary can draw
funds against the letter of credit as penalties or as payments.
starboard
Right side of a ship when facing the front or forward end.
steamship (or
steamer)
Vessels powered by steam engines. However, the term is often
used as an anachronism to describe powered vessels in general,
and companies who operate ocean-going cargo vessels are often
called "steamship companies" despite the fact that the use of
steam power for ocean going vessels is obsolete, the modern
standard being diesel engines fueled by oil.
stern
The aftermost part of the ship.
stevedore
1. A person having charge of the loading and unloading of ships in
port.
2. Longshoreman.
storage
The keeping of goods in a warehouse or other repository.
storage
demurrage
A storage charge for property remaining on the dock or terminal
past the permitted "free-time period."
storage in transit
The stopping of freight traffic at a point located between the point
of origin and destination to be stored and re-forwarded at a later
date.
stowage
The arranging and packing of cargo in a vessel for shipment.
stowage order
An order from the ship owner determining how certain classes of
goods (i.e., fragile, valuable, dangerous) are sent to the dock and
how and where they are stowed. The stowage order must
accompany the goods to the dock.
straight bill of
lading
A nonnegotiable bill of lading that designates a consignee who is
to receive the goods and obligates the carrier to deliver the goods
to that consignee only.
stripping
Unloading cargo from a container or truck (also called devanning.)
stuffing
Loading cargo into a container.
supercargo
Person who plans stowage and supervises loading and
discharging of vessels. Also known as a port captain.
surcharge
A charge or tax above the usual or customary charge.
SWL
Safe working load.
T
tank
Carries liquids or powder.
tare
The weight of a container or wrapper apart from the goods they
carry.
tariff
1. A list or system of duties imposed by a government on imported
or exported goods.
2. Duties or a duty imposed by a government on imported or
exported goods.
3. A schedule or prices or fees.
tariff anomaly
When the customs tariff on raw materials or semi-manufactured
goods is higher than the tariff on the finished product.
tariff escalation
When customs tariffs on raw materials are nonexistent or very
low; tariffs on semi-processed goods are moderate; and tariffs on
manufactured goods are relatively high.
tariff schedule
A comprehensive list of goods imported into a country where
custom tariffs are applicable to each product.
tariff war
(Customs) When one nation increases the tariffs on goods
imported or exported from another country and the other country
raises its tariffs in retaliation.
TDC
Total distribution costs.
TDW
Tons deadweight.
Temporary
Importation
(Admission
Temporaire)
A customs procedure under which certain goods can be brought
into a customs territory temporarily, conditionally relieved from the
payment of import duties and taxes; such goods must be imported
for a permitted purpose and must be intended for exportation
within the permitted period.
tender
1. An attendant of a small vessel that serves a larger vessel in a
port for the purpose of supplying provisions and carrying
passengers to and from ship to shore.
2. A formal offer such as an offer of money or services in payment
of an obligation or a bid to contract goods or services at specified
costs.
terminal
An facility that is used by a rail, ship, air, or truck line as a place
for receiving and delivering cargo, loading and unloading,
transferring, temporarily storing, recoupering, and similarly
handling freight, as well as repairing and servicing equipment.
terminal charge
A charge made for services performed at transportation terminals.
TEU
Twenty foot equivalent unit. A measurement of cargo-carrying
capacity on a containership, referring to a common container size
of 20 ft in length.
through bill of
lading
A single bill of lading covering receipt of cargo at a point of origin
for delivery to an ultimate consignee, usually involving multiple
carriers and multiple modes of transport.
through rate
A shipping rate applicable to transportation from point of origin to
destination where multiple carriers and multiple modes of
transport may be involved.
time charter
A contract to hire a ship for a stated period of time.
trailer
A transport vehicle designed to be hauled by a truck or tractor.
transship
(tranship)
1. To transfer goods from one ship to another.
2. To ship to one country and re-export to another.
transit zone
An area in a port of entry in a coastal country that is established
as a storage and distribution center for the convenience of a
neighboring country, which lacks adequate port facilities or access
to the sea.
transmittal letter
In international commerce, a letter from the shipper or its agent to
transmit documents relative to a shipment, which usually includes
a list of the documents enclosed and details covering the
transportation of the shipment.
transport
documents
All types of documents evidencing acceptance, receipt, and
shipment of goods.
tugmaster
A tractor with a hydraulic trailer connection known as a fifth wheel,
which is used to tow cargo on and off the vessels.
turnkey
Construction whereby the contractor assumes total responsibility
from design through completion of the product and release to the
buyer in a stage so complete that the buyer need only to turn the
key to open the door and walk into a facility that is ready to
operate.
turnkey contract
An agreement under which a contractor agrees to complete a
product so that it is ready for use when delivered to the other
contracting party.
U
Unconfirmed
Letter Of Credit
A type of letter of credit bearing the obligation of the issuing bank
only, not of any other bank.
Unit Load
Various cargo carrying devices, or sizes of containers, which carry
several smaller shipping packages, including the banding together
of a number of individual packages on a pallet to create a single
unit.
Unloading
1. Removing cargo from a vessel, truck, airplane, or railroad car.
2. Removing cargo from a container; also called devanning.
Unrestricted
Letter Of Credit
A letter of credit that can be negotiated through any bank of the
beneficiary's choice.
V
VAT
Value Added Tax.
vendor
A company or individual that sells goods or services. A merchant,
a retail dealer; a supplier; one who buys to sell.
volume rate
A freight rate assessed in connection with a specified volume of
freight based upon the premise that it will be substantial in total
over a period of time. It is generally a lower rate than normally
assessed for smaller lots of cargo.
W
war clause
A marine insurance provision excluding the liability of an insurer if
a loss is caused by war or hostile action. Bills of lading and
charter parties may contain a "War Clause" giving the vessel
options to maintain its safety in case of hostilities.
war risk
The risk to a vessel, its cargo, or passengers by aggressive
actions of a hostile nation or group.
war risk insurance
Insurance covering loss or damage caused by war or other hostile
actions. Usually a separate policy from a marine insurance policy
or a special attachment to it.
warehouse receipt
A document issued by a warehouse listing the goods or
commodities deposited in the warehouse. It is a receipt for the
commodities listed and for which the warehouse is the bailee.
Warehouse receipts may be either non-negotiable or negotiable.
warehouse—USA
Customs Bonded
A privately owned and operated warehouse that has posted bond
and has been approved by U. S. Customs where goods remain
until duty has been collected from the importer.
waybill
A document prepared by a transportation line for shipment
showing the point of origin, destination, route, consignor,
consignee, description of shipment and amount charged for the
transportation service and other services connected with the
transport. It is similar in information to a bill of lading.
weight break
The point at which the weight of a shipment is large enough to be
assessed the lower freight rates that are applicable to larger
shipments, as per the carrier's tariff.
wharfage
A charge assessed by a pier or dock owner for handling incoming
or outgoing cargo