Agent (AGT): The relationship existing between two parties by which one is authorized to transact certain business for the other.
Air waybill (AWB or MAWB): The document made out by or on behalf of the shipper which, when used, evidences the contract between the shipper and carrier(s) for Carriage of goods over routes of the carrier(s).
Actual or real consignee: is the owner or the person or company to deliver cargo to.
Bill of Lading (B/L):A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.
Break Bulk: To unload and distribute a portion or all of the contents of a rail car, container, trailer, or ship.
- Loose, non–containerized mark and count cargo.
- Packaged cargo that is not containerized.
Bonded Warehouse: A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Cargo (CGO): Also referred to as “goods”, means any property carried or to be carried on an aircraft, other than mail or other property carried under terms of an international postal convention, baggage or property of the carrier; provided that baggage moving under an air waybill or a shipment record is cargo.
Carnet: A customs document permitting the holder to send or carry merchandise into certain foreign countries temporarily without paying duties or posting bonds.
Carrier: The transportation carrier issuing the airway bill and creating the shipment record and all other carriers that carry of undertake to carry the cargo under the airway bill or shipment record or to perform any other services related to such air carriage.
Certificate or origin: A document often required by certain countries which establishes the country of origin of specified goods.
Commercial invoice: Shipper’s document describing the goods being shipped and their value which must accompany all international and trans-border shipments.
Commodity: Description of goods being shipped
Consignee (CNEE): The person whose name appears on the air waybill or in the shipment record as the party to who the goods are to be delivered by the carrier.
Or is the freight forwarder clearing the cargo and to make delivery to the owner of cargo
Customs broker: An agent specialized in inbound customs clearance or a freight forwarder who clears cargo on behalf of an actual consignee.
C&F TERMS OF SALE
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.
CBM (CM): Abbreviation for “Cubic Meter.”
Cm: Abbreviation for “centimeter.”
Consignment: (1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
(2) A shipment of goods to a consignee.
Consignor or shipper: A person or company shown on the bill of lading as the shipper.
Container Terminal: An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are picked up, dropped off, maintained and housed.
Container Yard (CY): A materials–handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.
Or a collection and distribution point for FCL containers.
Containerizable Cargo: Cargo that will fit into a container and result in an economical shipment.
Containerization: Stowage of general or special cargoes in a container for transport in the various modes.
Container Load: A load sufficient in size to fill a container either by cubic measurement or by weight.
Contraband: Cargo that is prohibited.
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.
Customs clearance: The accomplishment of the Customs formalities necessary to allow goods to enter the country, to be exported or to be placed under another customer’s procedure.
Customs clearance agent: A customs broker or other agent of the consignee designated to perform customs clearance services for the consignee.
Chargeable weight: is the weight that airline or shipping line confirm.
Collect: Airline charges or shipping ling charges that can be paid when cargo arrive at destination port.
Demurrage: A penalty charge against shippers or consignees for delaying the carrier’s equipment or vessel beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.
Dimension: Dimension is Length x Width x Height. It is use to check the measurement of cargo if it can fit in to a container or aircraft.
Devanning: The unloading of a container or cargo van.
Door–to–Door: Through transportation of a container and its contents from consignor/shipper to actual 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.
Dangerous goods (DG): Articles or substances which are capable of posing a
significant risk to health, safety or to property when transported by air.
Documentation: The required paperwork accompanying a shipment such as airway bill, Export Declaration, Health Certificates etc.
D/O – A document given to the party surrendering the original Bill of Lading, authorizing them to take delivery of the goods.
Duty and Tax: impose amount by Government on good
ETA, C, D, R, S– Estimated Time of Arrival, Completion, Departure, Readiness, or Sailing
– Estimated Time of Availability. That time when a tractor/partner carrier is available for dispatch.
Ex – “From” When used in pricing terms such as “Ex Factory” or “Ex Dock,” it signifies that the price quoted applies only at the point of origin indicated.
Ex-Works:An Incoterm of sale meaning the seller delivers to the buyer at seller’s named premises.
Freight: The amount of money payable for the carriage of goods. Sometimes erroneously used to describe the goods, which are more correctly described as “cargo” in marine transportation.
FCL Abbreviation: for “Full Container Load.”
FEU:Abbreviation for “Forty–Foot Equivalent Units.” Refers to container size standard of 40 feet. Two 20–foot containers or TEU’s equal one FEU.
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.
Free Time:That amount of time that a carrier’s equipment may be used without incurring additional charges.
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.
Forwarder (FWDR): Appointed by the shipper, and as an agent of the airline, to process and arrange export consignments overseas.
Groupage: Consolidation of several LCL consignments into a container for different consignees.
GP: (General Purpose) – A closed steel container for the carriage of all types of general, non-hazardous cargo. 20’ & 40’ available in GP.
GST: (Goods and Service Tax) – worked out as 10% of the CIF value + the duty amount. The CIF value is the cost of goods + marine insurance + freight amount (cost to get cargo to destination port) + duty.
Gross weight: The weight of a shipment, its container and packing material.
Hi-Cube: Is a container which is slightly (bigger) higher than a General Purpose container. Available in both 20’ & 40’.
Harmonized System of Codes (HS code): An international goods classification system for describing cargo in international trade under a single commodity–coding scheme. Developed under the auspices of the Customs Cooperation’s Council (CCC), an international Customs organization in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings.The basic code contains four–digit headings and six–digit subheadings. Many countries add digits for Customs tariff and statistical purposes. Or Number assign to cargo to check for duty
Hatch:The opening in the deck of a vessel; gives access to the cargo hold.
Haz Mat:An industry abbreviation for “Hazardous Material.”
House air waybill (HAWB): Document issued by an international air Freight Forwarder under the terms of their own tariff.
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.
IMDG Code: (International Maritime Dangerous Goods Code) – contains the IMO recommendations for the carriage of dangerous goods by sea. The form needed for export of this sort of cargo is known as an MO41 and is available from a freight forwarder. Paperwork for imported dangerous goods comes from the supplier.
IMO: (International Maritime Organization) – a UN body charges with the duty of making safety and anti-pollution conventions and recommendations concerning sea transport.
Incoterms:The recognized abbreviation for the International Chamber of Commerce Terms of Sale. These terms were last amended, effective July 1, 1990.
Or a list of standard terms stated by the ICC for all foreign trade contracts, which lists the respective responsibilities of the buyer and seller.
Inspection Certificate:A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.
Invoice:An itemized list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc.
Irrevocable Letter of Credit:Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.
Letter of credit (L/C): A letter from a bank, on behalf of a buyer, addressed to the
seller authorizing him or her to draw drafts for a stipulated amount, under specified terms and to provide eventual payment for drafts within a given time.
Laden:Loaded aboard a vessel.
Lading:Refers to the freight shipped; the contents of a shipment.
LASH:A maritime industry abbreviation for “Lighter Aboard Ship.” A specially constructed vessel equipped with an overhead crane for lifting specially designed barges and stowing them into cellular slots in an athwart ship position.
LAYCAN Lay days/ cancelling (date): Range of dates within the hire contract must start.
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.
Less than Truckload:Also known as LTL or LCL.
Lo-lo: “Lift-on, lift-off” Conventional container or cargo ships, in which quay cranes are used to load and unload containers or generalized cargo.
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.
Licenses: Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. – Various types issued for export (general, validated) and import as mandated by government(s).
Loose:Without packing.
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.
Marine Insurance:Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.
Metric Ton (MT):2,204.6 pounds or 1,000 kilograms.
MASTER AIR WAYBILL (MAWB): The carrier’s air bill issued to cover a consolidated shipment tendered by a forwarder or consolidator.
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. OR The actual weight of an article exclusive of the packaging
Notify Party: The party to whom the cargo arrival notice is sent.
NVOCC: Non Vessel-Operating Common Carrier. Owns no vessels (ships), but provides ocean shipping freight-forwarding services. Provides consolidated, negotiated-rate services for ocean and inland water carriers. Often will affiliate with freight forwarders to provide pickup/delivery, other services.
Open Top Container: container fitted with a solid removable roof or with a tarpaulin roof so the container can be loaded or unloaded from the top.
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.
Packing List:Itemized list of commodities with marks/numbers but no cost values indicated.
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.
Pickup:The act of calling for freight by truck at the consignor’s/shipper shipping platform.
POD:Abbreviation for Port of Discharge or Port of Destination.
Proof of Delivery (POD):A document required from the carrier or driver for proper payment. OR a signed sheet by real consignee and agent/freight forwarder that cargo was received.
POL:Abbreviation for Port of Loading.
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:A Latin term meaning “For the sake of form.”
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.). Or a full list of items bought and the amount or an estimated cost prize.
Pre alert: A formal way of awarding a contract or draft copy of Airway bill or Bill of Lading send by shipper for any correction to be made by consignee.
Project cargo: A huge and multiple cargos.
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.
Routing: The route to be followed as originally specified in the AWB or shipment
record.
Reefer:Refrigerated container.
RFQ:Request for quotation.
Real Shipper or actual Shipper: is the supplier or seller.
Ramp:Railroad terminal where containers are received or delivered and trains loaded or discharged. Originally, trailers moved onto the rearmost flatcar via a ramp and driven into position in a technique known as “circus loading.” Most modern rail facilities use lifting equipment to position containers onto the flatcars.
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. Also refers to any specialized vessel designed to carry Ro/Ro cargo.
Roll:To re–book cargo to a later vessel.
Rolling:The side–to–side (athwart ship) motion of a vessel.
Route:The manner in which a shipment moves; i.e., the carriers handling it and the points at which the carriers interchange.
Roll–on/Roll–off vessels: Ships specially designed to carry wheeled containers or trailers using interior ramps.
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.
Seaworthiness:The fitness of a vessel for its intended use.
Stowage:A marine term referring to loading freight into ships’ holds.
Stripping:Removing cargo from a container (see also devanning).
Stuffing:Putting cargo into a container. (Also see destuffing).
Surcharge:An extra or additional charge
Stevedore:Individual or firm that employs longshoremen and who contracts to load or unload the ship.
Shore:A prop or support placed against or beneath anything to prevent sinking or sagging.
Ship:(1) A vessel of considerable size for deep-water navigation. (2) A sailing vessel having three or more square-rigged masts.
Ship Demurrage:A charge for delaying a steamer beyond a stipulated period.
Shipment (SHPT): One or more pieces of goods accepted by the carrier from one shipper at one time and at one address, receipted for in one lot and moving on one airway bill or shipment record to one consignee at one destination address. Or movement of cargo from one point to another.
Shipper (SHPR): The person who originates the shipment of goods. Also known as the “consignor”. Or is the freight forwarder that export cargo from oversea on behalf of the supplier.
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.
Terminal Charge:A charge made for a service performed in a carrier’s terminal area.
Transship:To transfer goods from one transportation line to another or from one ship to another.
Transshipment: The unloading of cargo from one flight and loading onto another for onward carriage.
Transit: An enroute stopping place where cargo remains on board.
Transit Time: time it will take cargo to arrive.
TEU – Twenty-Foot Equivalent Unit – i.e. 1 x 20ft = 1 TEU, 1 x 40ft = 2 TEU.
Third Party Logistics (3PL):A company that provides logistics services to other companies for some or all of their logistics needs. It typically includes warehousing and transportation services. Most 3PL’s also have freight forwarding licenses.
Unit Load:Packages loaded on a pallet, in a crate or any other way that enables them to be handled at one time as a unit.
UNIT LOAD DEVICE (ULD): A container or pallet used to transport cargo on an aircraft.
Valuable Cargo VAL Shipments of high value requiring advance arrangement and specialhandling.
Vent – Container which contains ventilations sites to prevent condensation accumulating on cargo.
Warehouse A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo.
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/shipper, actual shipper, consignee, actual 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. But for sea shipment forwarder through courier to consignee and air shipment it always comes with airline. Abbreviation is WB. Unlike a bill of lading, a waybill is NOT a document of title.
Wharf A structure built on the shore of a harbor extending into deep water so that vessels may lie alongside. See also Dock and Pier.
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.
W.M. (W/M):Abbreviation for “Weight or Measurement;” the basis for assessing freight charges. Also known as “worm.” The rate charged under W/M will be whichever produces the highest revenue between the weight of the shipment and the measure of the shipment. The comparison is based on the number of metric tons the cargo weights compared to the number of cubic meters of space the cargo measures. The prior English method was one long ton compared to forty cubic feet.
TERMS OF SALE:(INCOTERM 2010)
The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods. Following, are the thirteen terms of sale in international trade as Terms of Sale reflected in the recent amendment to the International chamber of Commerce Terms of Trade (INCOTERMS), effective July 1990: exw, fca, fas, fob, cfr, cif, cpt, cip, daf, des, deq, ddu and ddp.
EXW (Ex Works) (…Named Place): A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term thus represents the minimum obligation for the seller.
FCA (Free Carrier) (… Named Place): A Term of Sale which means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.
FAS (Free Alongside Ship) (…Named Port of Shipment): A Term of Sale which means the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
FOB (Free On Board) (…Named Port of Shipment): An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. (Note: The U.S. Government sometimes uses a made–up term “FOB Destination” to require the seller to take responsibility for delivering the goods at destination rather than the correct Incoterm of DDP.)
CFR (Cost and Freight) (…Named Port of Destination):A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
CIF (Cost, Insurance and Freight) (…Named Place of Destination):A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.
CPT (Carriage Paid To) (…Named Place of Destination): A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
CIP (Carriage and Insurance Paid To) (…Named Place of Destination): A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.
DAF (Delivered At Frontier) (…Named Place): A Term of Sale which means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country.
DDU (Delivered Duty Unpaid) (…Named Port of Destination):A Term of Sale where the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.
DDP (Delivered Duty paid) (…Named Port of Destination): “Delivered Duty Paid” means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.