Exports & Imports
Check List for Exporters

Check List for Importers

Helpful Information for New Exporters and Importers


Guidelines for Applying For Registrations and Licenses


Procedures for Opening of Drawback Account


Points to Remember while sending a Shipment for Export

 

Incoterms

Conversions

Glossary Of Terms
 
     
 
 
 
 

Glossary of Terms

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BB

Ballast Bonus (Special payment above the Chartering price when the ship has to sail a long way on ballast to reach the loading port.)

B/L

Abbreviation for "Bill of Lading."

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.

Barrel

A term of measure referring to 42 gallons of liquid at 60o F.

Beam

The width of a ship.

Beneficiary

- Entity to whom money is payable.
- The entity for whom a letter of credit is issued.
- The seller and the drawer of a draft.

Bill of Exchange

In the United States, commonly known as a "Draft." However, bill of exchange is the correct term.

Bill of Lading A document that establishes the terms of a contract between a shipper and transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.

- 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.

- Hitchment B/L: B/L covering parts of a shipment which are loaded at more than one location. Hitchment B/L usually consists of two parts, hitchment and hitchment memo. The hitchment portion usually covers the majority of a divided shipment and carries the entire revenue.

- 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.

- Long Form B/L: B/L form with all Terms & Conditions written on it. Most B/L's are short form which incorporate the long form clauses by reference.

- Memo B/L: Unfreighted B/L with no charges listed.

- Military B/L: B/L issued by the U.S. military; also known as GBL, or Form DD1252.

- B/L Numbers: U.S. Customs' standardised B/L numbering format to facilitate electronic communications and to make each B/L number unique.

- Negotiable B/L: 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' standardisation: 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.

Bill of Lading Port of Discharge

Port where cargo is discharged from means of transport.

Bill of Sale

Confirms the transfer of ownership of certain goods to another person in return for money paid or loaned.

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.

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.

Bulk Freight

Not in packages or containers; shipped loose in the hold of a ship without mark and count. Eg. Grain, coal are usually bulk freight.

Bulk Freight Container

A container with a discharge hatch in the front wall; allows bulk commodities to be carried.

Bill to Party

Customer designated as party paying for services.

Billed Weight

The weight shown in a waybill and freight bill, i.e, the invoiced weight.

Blanket Bond

A bond covering a group of persons, articles or properties.

Blanket Rate

- A rate applicable to or from a group of points.
- A special rate applicable to several different articles in a single shipment.

 

Blank Waybill

A waybill covering two or more consignments of freight.

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 authorised by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Booking

Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation on-board.

Booking Number

Reservation number used to secure equipment and act as a control number prior to completion of a B/L.

Bow

The front of a vessel.

Break Bulk

- To unload and distribute a portion or all of the contents of a rail car, container, or trailer.
- Loose, non-containerised cargo.

Broker

A person who arranges shipments for a percentage of the revenue from that shipment.

Bunker Charge

An extra charge sometimes added to freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.)

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 loaded on a vessel.

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.

C&F Terms of Sale, or INCOTERMS.

Obsolete, albeit heavily used, term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.

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 interport service.
CAF (Currency Adjustment Factor) 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.
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 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 Manifest A manifest that lists all cargo carried on a specific vessel voyage.
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.)
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 certificate required by U.S. Customs to release cargo properly to the correct party.
Cartage Usually refers to intra.city hauling on drays or trucks.
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."
CE Abbreviation for "Consumption Entry." The process of declaring the importation of foreign.made goods for use in the United States.
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.
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 containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.
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.
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 "Containerload".
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.
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."
Clearance The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.
Clip-On Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.
CM Abbreviation for "Cubic Meter" (capital letters).
cm Abbreviation for "centimeter."
COD Abbreviation for:
- Collect (cash) on Delivery.
- Carried on Docket (pricing).
Commodity Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.
Commodity Rate A rate published to apply to a specific article or articles.
Conference An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates.
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.
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.
Consignor A person or company shown on the bill of lading as the shipper.
Consolidation Cargo containing shipments of two or more shippers or suppliers. Containerload 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.
Container Equipment designed for the repeated use in transporting freight. Usuallt accepted as meaning either a 20foot or 40 foot container.
Container Manifest Document showing contents and loading sequence 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 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 Load A load sufficient in size to fill a container either by cubic measurement or by weight.
Contract A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.
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.
Cubic Foot 1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long.
Customhouse A government office where duties are paid, import documents filed, etc., on foreign shipments.
Customs Bonded Warehouse A warehouse authorized by Customs to receive duty-free merchandise.
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.
Cut-Off Time The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship.
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.

Delivery Instructions

Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order.

Demurrage

 

A penalty charge against shippers or consignees for delaying the carrier's equipment beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.
- See also Detention and Per Diem.

 

Destination

- The place to which a shipment is consigned.
- The place where carrier actually turns over cargo to consignee or his agent.

Detention

A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. See Per Diem.

Devanning

The unloading of a container or cargo van.

Door-to-Door

 

Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.

Draft

- The number of feet that the hull of a ship is beneath the surface of the water.
- An unconditional order in writing, addressed by one party (drawer) to another party (drawee), requiring the drawee to pay at a fixed or determinable future date a specified sum in lawful currency to the order of a specified person.

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.

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.

EDI

Abbreviation for "Electronic Data Interface." Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards.

EDIFACT

International data interchange standards sponsored by the United Nations. See UN/EDIFACT.

Embargo

Order to restrict the movement of freight.

Endorsement

A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party.

Entry

Customs documents required to clear an import shipment for entry into the general commerce of a country.

Equipment Interchange Receipt (EIR)

A document transferring a container from one carrier to another, or to/from a terminal.

Exception

Notations made when the cargo is received at the carrier's terminal or loaded aboard a vessel. They show any irregularities in packaging or actual or suspected damage to the cargo. Exceptions are then noted on the bill of lading.

Exchange Rate

The price of one currency, expressed in terms of another currency.

Expiry Date

Issued in connection with documents such as letters of credit, tariffs etc. to advise that stated provisions will expire at a certain time.

Export

Shipment of goods to a foreign country.

Export Declaration

A government document declaring designated goods to be shipped out of the country. To be completed by the exporter and filed with the U.S. Government.

Export Rate

A rate published on traffic moving from an interior point to a port for trans-shipment to a foreign country.

Ex Works (EXW)

Delivery of goods as far as Seller's premises.

Factor

A factor is an agent who will, at a discount (usually five to 8% of the gross), buy

FAS

Abbreviation for "Free Alongside Ship."

FCL

Abbreviation for "Full Container Load."

FD

Abbreviation for "Free Discharge."

Feeder Service

Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

Feeder Vessel

A short-sea vessel which transfers cargo between a central "hub" port and smaller "spoke" ports.

Fixed Costs

Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

Flat Rack/Flat Bed Container

A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

FOB

See Free On Board. See also Terms of Sale, FOB.

Force Majeure

 

The title of a common clause in contracts, exempting the parties for non-fulfilment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.

Free on Board (FOB)

Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.

- FOB Freight Allowed: The same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by a like amount.

- FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the freight charges of the inland carrier.

- FOB Named Point of Exportation: Seller is responsible for the cost of placing the goods at a named point of exportation. Some European buyers use this form when they actually mean FOB vessel.

- FOB Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

Freight Bill

A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially. An Invoice.

Freight Forwarder

A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.

Gooseneck

The front rails of the chassis that raise above the plane of the chassis and engage in the tunnel of a container leading to the connection to tractor.

Gross Weight

Entire weight of goods, packaging and freight car or container, ready for shipment. Generally, 80,000 pounds maximum container, cargo and tractor for highway transport.

Groupage

A consolidation service, putting small shipments into containers for shipment.

Hague Rules, The A multilateral maritime treaty adopted in 1921 (at The Hague, Netherlands). Standardizes liability of an international carrier under the Ocean B/L. Establishes a legal "floor" for B/L. See COGSA
Harbour Master An officer who attends to the berthing, etc., of ships in a harbour.
Harmonized System of Codes (HS) An international goods classification system for describing cargo in international trade under a single commodity-coding scheme. Developed under the auspices of the Customs Cooperations Council (CCC), an international Customs organization in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings. It is organized into 99 chapters arranged in 22 sections. Sections encompass an industry (e.g., Section XI, Textiles and Textile Articles); chapters encompass the various materials and products of the industry (e.g., Chapter 50, Silk; Chapter 55, Manmade Staple Fibers; Chapter 57, Carpets). The basic code contains four-digit headings and six-digit subheadings. Many countries add digits for Customs tariff and statistical purposes. In the United States, duty rates will be the eight-digit level; statistical suffixes will be at the ten-digit level. The Harmonized System (HS) is the current U.S. tariff schedule (TSUSA) for imports and is the basis for the ten-digit Schedule B export code.
Hatch The opening in the deck of a vessel; gives access to the cargo hold.
HAZ MAT An industry abbreviation for "Hazardous Material."
Heavy Lift Charge A charge made for lifting articles too heavy to be lifted by a ship's normal tackle.
Hitchment The marrying of two or more portions of one shipment that originate at different locations, moving under one bill of lading, from one shipper to one consignee. Authority for this service must be granted by tariff publication. See Bill of Lading.
Hopper Barge A barge which loads material dumped into it by a dredger and discharges the cargo through the bottom.
House to House See Door to Door
House to Pier Cargo loaded into a container by the shipper under shipper's supervision. When the cargo is exported, it is unloaded at the foreign pier destination.
I.M.C.O.

International Maritime Consultative Organisation. A forum in which most major maritime nations participate and through which recommendations for the carriage of dangerous goods, bulk commodities.

I.M.D.G. Code

International Maritime Dangerous Goods Code. The regulations published by the IMO for transporting hazardous materials internationally.

Import

To receive goods from a foreign country.

In Bond

Cargo moving under Customs control where duty has not yet been paid.

INCOTERMS

The recognised abbreviation for the International Chamber of Commerce Terms of Sale. These terms were last amended, effective July 1, 1990.

Inland Carrier A transportation line that hauls export or import traffic between ports and inland points.
Invoice

An itemised list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc.

I.S.O. International Standards Organisation which deals in standards of all sorts, ranging from documentation to equipment packaging and labelling.
Kilogram

1,000 grams or 2.2046 pounds.

Known Loss

A loss discovered before or at the time of delivery of a shipment.

L/C

Abbreviation for "Letter of Credit."

Laden

Loaded aboard a vessel.

Lading

Refers to the freight shipped; the contents of a shipment.

LCL

Abbreviation for "Less than Container Load." The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.

Letter of Credit (LC)

A document, issued by a bank per instructions by a buyer of goods, authorising the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Letter of Credit (LC)

Letter of Indemnity

In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition.

Liner

A vessel sailing between specified ports on a regular basis.

Lloyds' Registry

An organisation maintained for the surveying and classing of ships so that insurance underwriters and others may know the quality and condition of the vessels offered for insurance or employment.

Manifest

Document that lists in detail all the bills of lading issued by a carrier or its agent or master for a specific voyage. A detailed summary of the total cargo of a vessel. Used principally for Customs purposes.

Minimum Charge

The lowest charge that can be assessed to transport a shipment.

Net Tare Weight

The weight of an empty cargo-carrying piece of equipment plus any fixtures permanently attached.

Net Weight

Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can.

Non-Vessel Operating Common Carrier (NVOCC)

A cargo consolidator in ocean trades who will buy space from a carrier and sub.sell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.

Ocean Bill of Lading (Ocean B/L)

A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.

Open Top Container

A container fitted with a solid removable roof, or with a tarpaulin roof so the container can be loaded or unloaded from the top.

Origin

Location where shipment begins its movement.

Original Bill of Lading (OBL)

A document which requires proper signatures for consummating carriage of contract. Must be marked as "original" by the issuing carrier.

Out Gate

Transaction or interchange that occurs at the time a container leaves a rail or water terminal.

Pallet

A platform with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift truck.

Partial Shipments

Under letters of credit, one or more shipments are allowed by the phrase "partial shipments permitted."

Payee

A party named in an instrument as the beneficiary of the funds. Under letters of credit, the payee is either the drawer of the draft or a bank.

Payer

A party responsible for the payment as evidenced by the given instrument. Under letters of credit, the payer is the party on whom the draft is drawn, usually the drawee bank.

Per Diem

A charge, based on a fixed daily rate.

Pier-to-Pier (Quay to Quay)

Containers loaded at port of loading and discharged at port of destination.

Place of Delivery

Place where cargo leaves the care and custody of carrier.

Place of Receipt

Location where cargo enters the care and custody of carrier.

POD

Abbreviation for:
- Port of Discharge.
- Port of Destination.
- Proof of Delivery. A document required from the carrier or driver for proper payment.

Point of Origin

The place at which a shipment is received by a carrier from the shipper.

POL

Abbreviation for Port of Loading

Port of Call

Port where a ship discharges or receives traffic.

Port of Entry

Port where cargo is unloaded and enters a country.

Port of Exit

Place where cargo is loaded and leaves a country.

Prepaid (Ppd.)

Freight charges paid by the consignor (shipper) prior to the release of the bills of lading by the carrier.

Pro Forma Invoice

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and specifications (weight, size, etc.).

Quotation

An offer to sell goods at a stated price and under stated terms.

Quay

A structure attached to land to which a vessel is moored. See also Pier and Dock.

Reefer

Refrigerated container.

Remittance

Funds sent by one person to another as payment.

Release of Documents

Conditions for the release of documents

"Ro/Ro"

A shortening of the term, "Roll On/Roll Off." A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes.

Sanction

An embargo imposed by a Government against another country.

Sea WayBill

Document indicating the goods were loaded onboard when a document of title (b/L) is not needed. Typically used when a company is shipping goods to itself.

S.E.D.

U.S. Commerce Department document, "Shipper's Export Declaration."

Service Contract

As provided in the Shipping Act of 1984, a contract between a shipper (or a shippers association) and an ocean common carrier (or conference) in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier or conference commits to a certain rate or rate schedule as well as a defined service level (such as assured space, transit time, port rotation or similar service features). The contract may also specify provisions in the event of nonperformance on the part of either party.

Ship Demurrage

A charge for delaying a vessel beyond a stipulated period.

Ship Manifest

A statement listing the particulars of all shipments loaded for a specified voyage.

Shipper

The person or company who is usually the supplier or owner of commodities shipped. Also called Consignor.

Shipper's Instructions

Shipper's communication(s) to its agent and/or directly to the international water-carrier. Instructions may be varied, e.g., specific details/clauses to be printed on the B/L, directions for cargo pickup and delivery.

Shipper's Load and Count

Shipments loaded and sealed by shippers and not checked or verified by the carriers.

Shipping Order

Shipper's instructions to carrier for forwarding goods; usually the triplicate copy of the bill of lading.

Ships - Bulk Carriers: All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

- Combination Passenger and Cargo Ships: Ships with a capacity for 13 or more passengers.

- Freighters: Breakbulk vessels both refrigerated and unrefrigerated, containerships, partial containerships, roll.on/roll.off vessels, and barge carriers.

- Barge Carriers: Ships designed to carry barges; some are fitted to act as full containerships and can carry a varying number of barges and containers at the same time. At present this class includes two types of vessels LASH and Sea-Bee.

- General Cargo Carriers: Breakbulk freighters, car carriers, cattle carriers, pallet carriers and timber carriers.

- Full Containerships: Ships equipped with permanent container cells, with little or no space for other types of cargo.

- Partial Containerships: Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.

- Roll-on/Roll-off vessels: Ships specially designed to carry wheeled containers or trailers using interior ramps.

- Tankers: Ships fitted with tanks to carry liquid cargo such as: crude petroleum and petroleum products; chemicals, Liquefied gasses(LNG and LPG), wine, molasses, and similar product tankers.

Side Loader

A lift truck fitted with lifting attachments operating to one side for handling containers.

Side-Door Container

A container fitted with a rear door and a minimum of one side door.

Sling

A wire or rope contrivance placed around cargo and used to load or discharge it to/from a vessel.

Stability

The force that holds a vessel upright or returns it to upright if keeled over. Weight in the lower hold increases stability. A vessel is stiff if it has high stability, tender if it has low stability.

Standard International Trade Classification (SITC)

A standard numeric code developed by the United Nations to classify commodities used in international trade, based on a hierarchy.

Starboard

The right side of a ship when facing the bow.

STCC

Abbreviation for "Standard Transportation Commodity Code."

Conference

A group of vessel operators joined together for the purpose of establishing freight rates.

Stern

The end of a vessel. Opposite of bow.

Stevedore

Individual or firm that employs longshoremen and who contracts to load or unload the ship.

Stowage

A marine term referring to loading freight into ships' holds.

STC

" Said to contain. "

Stripping

Removing cargo from a container (devanning).

Stuffing

Putting cargo into a container.

STW "Said to Weigh"
Subrogate

To put in place of another; i.e., when an insurance company pays a claim it is placed in the same position as the payee with regard to any rights against others.

Supply Chain

A logistical management system which integrates the sequence of activities from delivery of raw materials to the manufacturer through to delivery of the finished product to the customer into measurable components. "Just in Time" is a typical value-added example of supply chain management.

Surcharge

An extra or additional charge.

Surtax

An additional extra tax.

Tare Weight

In railcar or container shipments, the weight of the empty railcar or empty container.

Tariff

A publication setting forth the charges, rates and rules of transportation companies.

Terminal

An assigned area in which containers are prepared for loading into a vessel, train, truck, or airplane or are stacked immediately after discharge from the vessel, train, truck, or airplane.

TEU

Abbreviation for "Twenty foot Equivalent Unit."

TIR

"Transport International par la Route." Road transport operating agreement among European governments and the United States for the international movement of cargo by road. Display of the TIR carnet allows sealed containerloads to cross national frontiers without inspection.

Transship

To transfer goods from one transportation line to another, or from one ship to another.

Unitization

- The consolidation of a quantity of individual items into one large shipping unit for easier handling.
- Loading one or more large items of cargo onto a single piece of equipment, such as a pallet.

Vanning

A term for stowing cargo in a container.

Vessel Manifest

The international carrier is obligated to make declarations of the ship's crew and contents at both the port of departure and arrival. The vessel manifest lists various details about each shipment by B/L number. Obviously, the B/L serves as the core source from which the manifest is created.

War Risk

Insurance coverage for loss of goods resulting from any act of war.

Warehousing

The storing of goods/cargo.

Waybill (WB) A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. It is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination.

Abbreviation is WB. Unlike a bill of lading, a waybill is NOT a document of title.

Wharfage (Whfge.)

Charge assessed by a pier or dock owner against freight handled over the pier or dock or against a steamship company using the pier or dock.

 

 

 

 

 

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