Shipping Glossary

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A Glossary

Shipping Terms

A service in addition to usual liner service, normally with an added cost. Such kind of
services include packing, loading, storage, etc.
AccrualAn accounting concept. It is a gradual increase by addition over a period of time and
is a way of recognising that an expense (or revenue) and the related liability (or asset)
can increase over time and not as signalled by an explicit cash transaction.
AcquiescenceWhen a bill of lading is accepted or signed by a shipper or shipper’s agent without
protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Ad ValoremAccording to value.
Ad Valorem
A customs duty which is a percentage made upon the value of goods.
Ad Valorem
Bill of lading freight charged on goods of very high value at so much percent on the
declared value of the goods
Advice of
A notice sent to a local or foreign buyer advising that shipment has gone forward and
containing details of packing, routing, etc. A copy of the invoice is usually enclosed
and sometimes, if desired, a copy of the bill of lading
Advising bankA notice sent to a local or foreign buyer advising that shipment has gone forward and
containing details of packing, routing, etc. A copy of the invoice is usually enclosed
and sometimes, if desired, a copy of the bill of lading.
Aff reightTo hire, as a ship, to transport freight.
Aff reightment,
Contract of
An agreement by a steamship line to provide cargo space on a vessel at a specifi ed
time and for a specifi ed price to accommodate an exporter or importer.
Agent (Agt.)A person authorized to transact business for and in the name of another person or
Air Freight
A type of freight forwarder who specializes in air cargo. Refer to Freight Forwarder or
Air waybillThe air waybill (also called air consignment note) is the forwarding agreement or
carrying agreement between shipper and air carrier and is obtained from the airline
All commodity
A freight rate applying, with certain restrictions, to any and all commodities.
All inclusive
rate (AI)
Freight rate that is inclusive of all charges.
AllowanceA sum granted as a reimbursement or repayment; a deduction from the gross weight
or value of goods.
Also Notify
A second notify party to whom carrier sends its arrival notice advising of goods
coming forward for delivery
Also known as estoppel, it is the authority of an agent which is deemed to apply in
law, perhaps by inference from the principal’s present or previous conduct.
Apparent Good
When freight appears to be free of damage so far as a general survey can determine.
ArbitraryA stated amount over a fi xed rate to one point to make a rate to another point
ArbitrationA procedure under which a neutral third party hears both the union’s and the
employer’s side in a dispute and issues an award that is binding upon both; also, the
nal step of a grievance process.
Arrival noticeAdvice that carrier sends to consignee advising of goods coming forward for
delivery. Pertinent information such as BL number, container number and total
charges due from consignee, etc are included and sent to consignee prior to vessel
arrival. This is done gratuitously by carrier to ensure smooth delivery but there is no
obligation by carrier to do so and the responsibility to monitor transit and present
himself to take timely delivery still rest with the consignee.
Awkward cargoCargo of irregular size that either be containerised (packed in container) or
uncontainerised (without equipment associated with) in the transport. They require
prior approval on case by case basis before confi rmation of booking.

B Glossary

Shipping Terms

B/L MasterA document provided by the shipper after handing over the cargo to the carrier, tells
the carrier how the B/L should be raised. Also known as B/L instruction or shipping
BankGuarantee issued by a bank to a carrier to release cargo in lieu of original bill of
Charter Party
A charter party under which the shipowner provides vessel only and the charterer
provides crew and cargo, normally for a period of years. Also known as demise
Basic freightOcean freight excludes all charges.
Bdl.Bundle. A kind of customary packaging unit.
Berth termShipped under rate that does not include cost of loading or unloading carrier.
Bill of lading
Offi cial legal document representing ownership of cargo; negotiable document to
receive cargo; contract for cargo between shipper and carrier
Bill of lading
See check “Revenue Ton”
Black powder
An IMCO standard information requirement for explosive dangerous goods.
Blanket waybillA waybill covering two or more consignments of freight.
Blocked trainRailcars grouped in a train by destination so that segments (blocks) can be
uncoupled and routed to diff erent destinations as the train moves through various
junctions. Eliminates the need to break up a train and sort individual railcars at each
Blocking or
Wood or metal supports to keep shipments in place in or on railcars.
Bls.Bales. A kind of customary packing unit.
BobtailMovement of a tractor, without trailer, over the highway
Bona fi deIn good faith.
BondShipments moving under a country Customs bonds.
Bond portPort of initial entry of a vessel to any country per custom’s regulations. Also known as
First Port of Call.
Logistics Park
It Improves logistics between free trade zones and ports when free trade zones are
isolated from the ports.
Within a bonded logistics park, there are bonded warehousing, allotment and
distribution, information processing, import and export trade, customs check and
Import, export and distribution of the cargo do not undergo Customs check
procedures of both the ports and the free trade zones. The customs process in
bonded logistics parks signifi cantly achieves the advantages of the country’s
preferential policies for both the FTZ and ports.
Bonded freightFreight moving under a bond to U.S. Customs or to the Internal Revenue Service, and
to be delivered only under stated conditions.
A certifi cate fi led with a carrier, relieving it from liability to which it would otherwise be
A warehouse bonded by customs authorities for storage of bonded goods prior to
cargo being cleared.
A facility or consolidation centre that is authorized by customs to store goods, usually
separately on dutiable & non-dutiable goods, pending customs inspection and
clearance. The goods in it are secured under customs custody. The payment of
duties and taxes are only payable once the goods are removed.
Authorized operators of bonded warehouse are often required to provide custom
BookingArrangements with a carrier, often a steamship or airline, for the acceptance and
carriage of passengers or freight.
A reference number for booking registered. It should be unique without duplication in
three years period.
Booking statusThe status of booking in process from time of registration to the fi nal stage of fi rm
acceptance or rejection. It is composed of following status:
(a) Cancelled: rejected or voided due to no show;
(b) Confi rmed: acknowledged with fi rm acceptance;
(c) Confi rmed subject to space availability: acknowledged acceptance of booking
subject to confi rmation in agreed time frame;
(d) Pending: acknowledged receipt of booking yet subject to approval for
Bottom air
A condition whereby temperature controlled air is introduced into the container at
floor level.
BoxCommon term for an ocean going freight container.
BoxcarA closed freight car.
Goods shipped loose in the vessel’s hold and not in a container.
British Thermal
Unit (BTU)
The amount of heat required to produce a temperature change of one degree
Fahrenheit in one pound of water.
The loss of space caused by irregularity in the shape of packages; any void or empty
space in a container not occupied by cargo.
Broker(a) A person who arranges for transportation of loads, usually large operations, for a
percentage of the revenue from the load; (b) In Canada, an owner-operator.
BrokerageFee paid to freight forwarder by the carrier for services performed
Authority granted by the Federal Maritime Commission to engage in the business of
arranging for transportation of persons or property in interstate commerce.
Bulk carriersA vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is
loaded without marks & number or count.
Bulk freightNot in packages or containers; shipped loose in the hold of a ship. Grain, coal and
sulfur are usually bulk freight.
Refers to a container with a discharge batch in the front wall; allows bulk
commodities to be grasped by loading hatches
Bull ringsCargo-securing devices mounted in the fl oor of containers; allow lashing and
securing of cargo.
surcharge (BAF,
Bunker Adjustment factor (BAF), or Bunker Surcharge (BSC) are surcharges assessed
by carrier to freight rates to refl ect current cost of bunker.
BunkersHeavy oil used as fuel for ocean vessel.
BxPlease see Box.

C Glossary

Shipping Terms

C-TPAT/CTPATCustoms Trade Partnership Against Terrorism.
US legislative body enforcing internal physical security conciousness&
awareness within carriers.
C.B.M. (C.M.)Cubic meter. A measure of cargo volume
C.F. (Cu. Ft.)Cubic feet.
C.F.S.See Container Freight Station.
C.ICost and insurance. A price that includes the cost of the goods, the marine
insurance and all transportation charges except the ocean freight to the
named point of destination.
C.K.D.Abbreviation for Cars Knocked Down. Automobile parts and subassemblies
manufactured abroad and transported to destinated assembly plant. A
classifi cation of Third party International shippers. See Knocked Down.
C.M.(a) Cubic Meter (capital letters).
(b) Correction Memo
C.O.D.Collect (cash) on Delivery; Carried on Docket (pricing); Change of Destination.
C.O.F.C.Container on a railway fl atcar
C.O.G.S.A.Carriage of Goods by Sea Act
(Chlorofl urocarbons)
Chemical compounds containing mixtures of carbon, chlorine and fl uorine
molecules. Because of their stability, lack of fl ammability and ability to absorb
and give up heat readily, CFC’s have in the past been popular refrigerants.
However, CFC’s have been
CFRA kind of cargo movement by container. Delivered loose at origin point with
vanning by carrier, devanned by carrier at destination, and picked up loose at
CFS/CYA kind of cargo movement by container. Loose cargo received at origin point,
loaded in a container by carrier, then delivered intact at destination.
“Cost and Freight” means that the seller delivers when the goods pass the
ships’s rail in the port of shipment.
CIPCarriage and Insurance paid to…”means that the seller delivers the goods to
the carrier nominated by him, but the seller must in addition pay the cost of
carriage necessary to bring the goods to the named destination. This means
that the buyer bears all risks and any additional costs occurring after the
goods have been so delivered. However, in CIP the seller also has to procure
insurance against the buyer’s risk of loss of or damage to the goods during the
CPTOne of 13 INCOTERMS “Carriage paid to …” means that the seller delivers the
goods to the carrier nominated by him bsut the seller must in addition pay the
cost of carriage necessary to bring the goods to the named destination. This
means that the buyer bears risks and any costs occurring after the goods have
been so delivered.
CSCContainer Service Charge.
European THC on Transatlantic Trade
CSIContainer Security Initiative. US Government legislation designed to improve
security against terrioists.
CYContainer Yard. Point at which carrier hands over to or receive laden containers
from merchant haulier. Commonly where mode of transport changes e.g. a sea
port, feeder terminal, barge terminal or rail ramp.
CY/CFSCargo loaded in a full container by a shipper at origin, delivered to pier facility
at destination, and then devanned by carrier for loose pick up.
CY/CYCargo loaded by shipper in a full container at origin and delivered to carrier’s
terminal at destination for pick up intact by consignee.
Total internal container volume (LxWxD) or weight limitation.
Captain’s protestUse of individual carrier equipment through a central agency for the benefi t of
carriers and shippers.
Cargo manifestA manifest that lists only cargo, without freight and charges.
Cargo natureThe classifi cation of cargo for special stowage arrangement.
Carload rateA rate applicable to a carload of goods.
CarnetAny of various customs documents required for crossing some international
CarrierAny individual, company or corporation engaged in transporting goods.
Carrier’s lienRight of carrier to retain property as security for charges.
CartageUsually refers to intracity hauling on drays or trucks
Cellular vesselA vessel designed with internal ribbing to permit the support of stacked
Certifi cate of originDocument certifying the country of origin of goods which is normally issued or
signed by a Chamber of Commerce or Embassy
Charter party (C/P)A written contract between the owner of a vessel and the person desiring to
employ the vessel (charterer); sets forth the terms of the arrangement such as
freight rate and ports involved in the trip.
Chartered shipA ship under lease by its owners to others.
ChartererThe person to whom is given the use of the whole of the carrying capacity of a
ship for the transportation of goods or passenger for a specifi ed time.
ChassisA wheeled fl at bed or a trailer constructed to accommodate containers moved
over the road.
ChillingIn strawberries, exposure to temperatures low enough to induce the
production of food reserves needed to support vigorous vegetative growth.
Chilling injuryInjury caused by low but non-freezing temperatures.
ChockA piece of wood or other material placed at the side of cargo to prevent it from
rolling or moving sideways.
Clean bill of ladingA bill of lading which states that the goods have been shipped in apparent
good order and condition without any qualifi cation or remarks.
Clearance limitsThe size beyond which cars or loads cannot use bridges, tunnels, etc.
Cleared withoutCleared by Customs without inspection.
Clip-onRefrigeration equipment attachable to an insulated container that does not
have its own refrigeration unit.
Closing dateLast day on which export cargo can be accepted for a nominated sailing.
cm(a) Centimeter.
(b) Correction Memo. A kind of internal document which registers amendment
to bill of lading and/or manifest after bill of lading is issued to shipper.
Collapsible containerContainer with hinged or removable parts; its volume can be reduced when
transported empty
Collecting bankA bank that acts as an agent to the seller’s bank (the presenting bank). The
collecting bank assumes no responsibility for either the documents or the
Combined transportCarriage by more than one mode of transport against one contract of carriage.
Combined transport
document (CTD)
The Combined Transport Operator’s (CTO) bill of lading.
Combined transport
operator (CTO)
A carrier who contracts as a principal to perform a combined transport
Commercial invoiceRepresents a complete record of the transaction between exporter and
importer with regard to the goods sold. Also reports the content of the
shipment and serves as the basis for all other documents about the shipment
CommodityArticle shipped.
Commodity rateRates of freight applied individually to articles which move regularly and in
large quantities.
Common carrierA transportation company operating under a Certifi cate of Convenience and
Necessity; provides service to the general public at published rates.
Common tarifA tariff published by or for two or more transportation lines.
CompressorMechanical device used to compress and pump refrigerant within a
refrigeration unit. The compressor converts high-temperature, low pressure
refrigerant into high-temperature, high-pressure refrigerant
Concealed damageDamage that is not evident from viewing the unopened package.
CondenserHeat exchanging device which gives up waste heat from the circulating
refrigerant into an external medium from which the heat can be dissipated.
Condensers convert high-temperature, high-pressure refrigerant into low_x0002_temperature, high-pressure refrigerant. Air-cooled condensers give up heat
into the atmosphere outside the container. Water-cooled condensers give up
heat into circulating water supplied from an d returned to external sources.
Condenser fans in an air-cooled condenser improve the heat transfer by
circulating external air over the condenser coils and fi ns.
ConferenceAn association of ship owners operating in the same trade route who operate
under collective conditions and agree on tariff rates.
Conference rateFreight rates arrived at by a conference of carriers, generally water carriers.
Confi rmed letter of
A letter of credit, issued by a foreign bank, whose validity has been confi rmed
by a domestic bank. An exporter with a confi rmed letter of credit is assured of
payment even if the foreign buyer or the foreign bank defaults.
Confi rming bankThe bank that adds its confi rmation to another bank’s (the issuing bank’s) letter
of credit and promises to pay the benefi ciary upon presentation of documents
in compliance with the letter of credit.
Connecting carrierA carrier that has a direct physical connection with another or that forms a link
between two or more carriers.
ConsigneeThe merchant named by the consignor (usually a seller) in the transportation
documents (such as bill of lading) as the party to whose order a consignment
will be delivered at the port of destination. The consignee is considered to be
the owner of the consignment for the purpose of fi ling the customs
declaration, and for paying duties and taxes. Formal ownership (title) of the
consignment, however, can be transferred from consignor through
endorsement, or until the consignee pays for them in full under consignor’s
straight consignment to the consignee.
ConsignorAlso spelled as consigner. The merchant who delivers a consignment to a
carrier for transporting it to a consignee (usually the buyer) named in the
transportation documents. Consignor has the ownership (title) of the goods
unless title is transferred through endorsement, or until the consignee pays for
them in full under consignor’s straight consignment to the consignee.
Consolidated cargoCargo containing of shipments of two or more shippers, usually shipped by a
firm called a consolidator. The consolidator takes advantage of lower F.C.L.
rates, and savings are passed on to shippers.
ConsolidatorA person or fi rm performing a consolidation service for others.
ConsortiumGroup of carriers pooling resources in a trade lane to maximize their resources
effi ciently.
ContaineA vehicle designed to transport cargo of many types in continuous
transportation. It is also referred to an unit of packaging which is smaller in
sense in which articles are packed.
Container freight
station (CFS, C.F.S.)
Consolidation depots where parcels of cargo are grouped and loaded into
Container gross
Please refer to Gross Weight.
Container load plan
A document prepared to show all details of cargo loaded in a container, eg.
weight (individual and total), measurement, markings, shippers, consignees,
the origin & destination of goods, and location of cargo within the container.
Container numberThe unique identifi cation of a container.
Container part loadA shipment that does not utilize the full volume of a container nor the
maximum payload by weight; additional part loads may be added.
Container seal
The number of high security seal.
Container service
See THC.
Container sizeThe length of a container i.e. 20”, 40” and 45” (feet)
Container statusThe status of a container in term of location, custody and cargo status for
cargo tracking use.
Container typeThe purpose of a container of which the code is to be adhered to ISO standard.
Containerizable cargoCargo that will fi t into a container and result in an economical shipment
consistent with delivery requirements.
ContainerizationStowage of general or special cargoes in a container for transport in the
various modes.
ContainerloadA load suffi cient in size to fi ll a container either by cubic measurement or by
ContainershipAn ocean vessel specifi cally designed to carry ocean cargo containers. It is
fitted with vertical cells for maximum capacity
Contract carrierAny person not a common carrier who, under special and individual contracts
or agreements, transports passengers or property for compensation.
atmosphere (CA)
An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations
are regulated, as well as temperature and humidity.
Copy B/LDuplicate of original bill of lading and is non-negotiable.
Corner castingsFittings on top and bottom of container corner posts; designed for handling
and securing a container.
Corner posts (door
Vertical frame components fi tted at the corners of the container, integral to the
corner fi ttings and connecting the roof and fl oor structures.
Correction memoA kind of internal document which registers amendment to bill of lading
and/or manifest after bill of lading is issued to shipper.
CorrectorSee Correction Memo.
Cost matrixCost matrix is showing cost at a very basic level between two shipment points.
Cost, insurance and
freight (C.I.F.)
One of 13 INCOTERMS.
“Cost, Insurance and Freight” means that the seller delivers when the goods
pass the ship’s rail in the port of shipment.
Credit agreementAgreement between carrier and shipper for release of cargo with promise to
pay ocean freight within specifi c time.
Cu.Cubic. A unit of volume measurement.
Cubic foot1,728 cubic inches.
Custom  houseA country Treasury Department offi ce where duties, etc., on foreign shipments
are handled.
Customer’s own
Customer collects from/deliver to CFS/CY
Customhouse brokerAlso known as Custom Broker. A person or fi rm, licensed to engage in entering
and clearing goods through customs and/or the government offi ce (Custom
of a broker include preparing the entry blank and fi ling it; advising the importer
on duties to be paid; advancing duties and other costs; and, arranging for
delivery to his client, his trucking fi rm, or other carrier.
Customs bonded
See bonded warehouse.
Customs invoiceA form requiring all data in a commercial invoice along with a certifi cate of
value and/or a certifi cate of origin. Required in a few countries (usually former
British territories) and usually serves as a seller’s commercial invoice.
Cut-off timeLastest possible time cargo may be delivered to vessel or designated point
CwtHundredweight (U.S.A., 100 pounds; United Kingdom, 112 pounds).

D Glossary

Shipping Terms

D & HDangerous and Hazardous. Also see Dangerous Goods.
D.W.Dead Weight. The number of tons a ship can transport of cargo, stores and bunker fuel. Also see Deadweight Tonnage.
“Delivered at Frontier” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of tranport not unloaded, cleared for export but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country.
DDCDestination Delivery Charges. A charge assessed by the carrier for handling positioning of a full container.
“Delivery duty paid” means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of tranport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including where applicable, any “duty”(which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.
“Delivery duty unpaid”means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any “duty” (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. Such “duty” has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time.
“Delivered Ex Quay”means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay(wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.
“Delivered Ex Ship”means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of dstination before discharging. If the parties wish the seller to bear the costs and risks of discharging the goods, then the DEQ term should be used.
DFGDFG refers to Dynamic Flow Guidelines, which is used to control the onland stock level of each region taking into account of the traffic pattern and local vanning/devaniing dwell time. The shortest the dwell time, the lowest the DFG and the more efficient the equipment utilization will be.
DOTDepartment of Transport. Government Department with responsibility for shipping and transport.
DSTDouble Stack Train. Rail or train capable of carrying two 40′ containers, one on top of the other.
Dangerous CargoPlease refer to Dangerous Goods.
Dangerous GoodsThe term used by I.M.C.O. for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported.
Dead SpaceSpace in a car, truck, vessel, etc., that is not utilized.
Deadweight Tonnage (D/W)The number of total weight tons that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces “light” and the number of tons it displaces when submerged to the “load line.”
Dedicated Unit TrainAn unit train operated by various railroads for exclusive usage.
Delivery OrderA document authorizing delivery to a nominated party of goods in the care of a third party. Can be issued by a carrier on surrender of a bill of lading and then used by merchant to transfer title by endorsement.
Demurrage (Dem.)Charge raised for detaining FCL container/trailer at a terminal/CY for longer period than provided in a tariff. Also known as Wharf Storage in Australia.
DeploymentDisposing vessels to maximize customer satisfaction, utilization, efficiency and revenue-generating potential.
Depot, ContainerContainer freight station or a designated area where empty containers can be picked up or dropped off.
DestinationThe place where carrier actually turns over cargo to consignee or his agent.
DetentionCharges raised for detaining container/trailer at customer’s premises for longer period than provided in Tariff.
Detention ChargeSee Detention.
DevanningThe removal of cargo from a container. Also known as unstuffing, unloading or stripping.
Differential RateAn amount added or deducted from base rate to make a rate to or from some other point or via another route.
DistributionThe process of storing, transporting goods between the end of the production line and the final customer. It involves set of activities which demands the goods are delivered in desired quality, quantity, place & time.
DiversionA change made in the route of a shipment in transit. Also see Reconsignment.
DivertThe route of a shipment changed in transit from that shown on the original billing. Used interchangeably with reconsign.
Dock(a) The water alongside a pier or wharf.
(b) Loading or unloading platform at an industrial location or carrier terminal.
Dock ReceiptA form used to acknowledge receipt of cargo at a steamship pier. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the vessel operator or the operator’s agent and serves as basis for preparation of the ocean bill of lading.
DockageCharge for use of a dock.
Documentary CreditThe basis of international trade by means of which payment is made against surrender of specified documents.
Door-to-DoorThrough transportation of a container and its contents from consignor’s premises to consignee’s premises.
Double-Deck LoadA second tier of cargo placed on top of the first tier.
DrayA truck or other equipment designed to haul heavy loads.
DrayageCharge made for local hauling by dray or truck.
Dry CargoCargo that does not require temperature control.
Dry DockAn enclosed basin into which a ship is taken for underwater cleaning and repairing. It is fitted with watertight entrance gates which when closed permit the dock to be pumped dry.
Dry-Bulk ContainerA container constructed to carry grain, powder and other free flowing solids in bulk.
Dunnage (Dge.)Lumber or other material used to brace material in carrier’s equipment.
Duty Free ZoneSee Free Trade Zone
Dwell TimeIt is expressed in term of no. of day that a container changed from one status to
another e.g. from under inbound load (UIL) to empty available (MTA) to under outbound load (UOL). The shortest the dwell time, the more efficient of the container utilization will be.

E Glossary

Shipping Terms

ECUEuropean Currency Units.
A financial unit used for EC accounting.
ETAEstimated time of arrival.
ETDEstimated time of departure.
“Ex works” means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc) not cleared for export and not loaded on any collecting vehicle.
En routeAlong the route of movement.
Entry DeclarationSee Quarantine Declaration.
EthyleneA natural plant hormone gas (C2H4)produced in small quantities by plant tissue. Its effects on harvested fruits can be desirable (de-greening and ripening) or undesirable (abbreviated storage, softening). Ethylene effects are cumulative throughout the post harvest life of fruit, and the magnitude of ethylene effects depend upon temperature, exposure time, and ethylene concentration.
EvaporationA change of state from a liquid to a vapour
EvaporatorHeat-exchanging device which absorbs waste heat from a cargo and transfers the heat to a circulating refrigerant. Evaporators convert low-temperature, low-pressure refrigerant into high-temperature, low-pressure refrigerant. Evaporator fans improve heat transfer by circulating air within the container over the evaporator coils and fins.
Ex WorkAn INCOTERMS term of sale applicable to all modes of transport.
Expiry DateThe final date on which the draft and documents must be presented to the negotiating, accepting, paying or issuing bank to effect payment.
ExportShipment of goods to a foreign country.
Export DeclarationA government document permitting designated goods to be shipped out of the country.
Express B/LA special facility granted by carrier under guarantees from shipper/consignee to release cargo to named consignee without presenting original B/L.
Also called “Sea Waybill”

F Glossary

Shipping Terms

F.A.K.Freight All Kind. System whereby freight is charged per container, irrespective of nature of goods, and not according to a Tariff. (Please also refer to All Commodity Rate)
F.C.L.Full Containerload.
Arrangement whereby shipper utilizes all the space in a container which he packs himself.
F.E.U.Forty-foot Equivalent Unit. (40” or 2 Teus) FEU.
F.I.O.Free In and Out.
F.O.B.Stands for Free On Board which is a mercantile expression used in sale contracts denoting that goods have to be delivered by the shippers on board the vessel at a particular place, free of charges.
“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment.
“Free Carrier” means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading.
FDAFood and Drug Administration
FEFCFar Eastern Freight Conference.
FEUForty-foot Equivalent Unit (40” or 2 Teus) F.E.U.
FFFreight Forwarder.
FMCThe Federal Maritime Commission (FMC) – US Government independent regulatory agency responsible for the regulation of ocean borne transportation in the foreign commerce of the U.S. For further details please refer to the FMC web site
“Free on board”means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damange to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for or inland waterway transport. If the parties do not intend to deliver the goods across the ships’s rail, the FCA terms should be used.
Feeder ServiceSea transportation as performed by feeder operator.
Feeder VesselVessel employed in normally short sea routes to fetch or carry goods and containers to and from ocean going vessels.
Final Destination (FND)End of carrier’s liability where carrier delivers the cargo to consignee.
Flash PointThe temperature reaching which for certain inflamable cargo will trigger spontaneous ignition. It is an IMCO standard information requirement for dangerous goods.
ForwarderHe is neither a consignor nor a carrier.
Known also as Freight Forwarder, Foreign Freight Forwarder. It’s an individual or business that dispatches shipments by land, air, or sea, or it may specialize for exporters and for a fee. Usually it handles all the services in the collection, consolidation, shipping and distribution of goods connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client.
The U.S. forwarder is licensed by the Federal Maritime Commission for ocean shipments.
Free Trade ZoneSometimes called “customs free zones” or “duty free zones”. It is a generic term referring to special commercial and industrial areas. At which by special customs procedures it allows the importation of non-prohibited foreign goods (including raw materials, components, and finished goods) without the requirement that duties be paid immediately. If the merchandise is later exported, duty free treatment is given to re-exports.
The zones are usually located in or near ports of entry. Merchandise brought into these zones may be stored, assembled, processed or used in manufacture prior to re-export or entry into the national customs territory.
When manufacturing activity occurs in free trade zones, it usually involves a combination of foreign and domestic merchandise, and usually requires special governmental authority.
Freight(a) The price paid to the carrier for the transportation of goods or merchandise by sea from one place to another.
(b)Freight is also used to denote goods which are in the process of being transported from one place to another.
Freight TonSee Revenue Ton.
Fresh Air Exchange (FAE)The fresh air exchange system on a reefer removes harmful gases from reefers carrying sensitive perishable commodities. The fresh air vent is located on the reefer machinery end of the container. The fresh air vent is adjustable to accommodate a variety of cargo and chilled load operating conditions. The fresh air vent should be tightly closed when carrying frozen cargo.
FumigationTreatment with a pesticide active ingredient that is a gas under treatment conditions.

G Glossary

Shipping Terms

G.R.I.General Rate Increase
GATTGeneral Agreement on Tariff and Trade.
An international multilateral agreement embodying a code of practice for fair trading in international commerce.
GatewayPort at which container is discharged from ocean vessel to start the inland or intermodal part of its journey. In TAT, it usually refers to Montreal (for cargo going to the US Midwest).
General AverageGeneral average is an unwritten, non-statutory, international maritime law which is universally recognized and applied. It is founded on the principle that vessel and goods are parties to the same venture and share exposure to the same perils, which may require sacrifice or the incurring of extraordinary expense on the part of one for the benefit of the whole venture.
General OrderIssued by U.S. Customs as notice of intention to seize goods.
Generator SetSee Genset.
Genset (Generator Set)A portable power generator, which converts fuel into electrical power by mechanical means, and from which a reefer draws power. A clip-on generator set is mounted to the front of the refrigeration unit.
An underslung generator set is mounted to the chassis upon which the reefer is mounted for handling and transport.
The underslung generator set can be either side-mounted or center-mounted on the chassis.
GooseneckThe front rails of the chassis that raise above the plane of the chassis and engage in the tunnel of a container.
Gross TonnageApplies to vessels, not to cargo. Determined by dividing by 100 the contents, in cubic feet, of the vessel’s closed-in spaces. A vessel ton is 100 cubic feet.
Gross WeightEntire weight of goods, packaging and container,ready for shipment.
GroupageA consolidation service, putting small shipments into containers for shipment.

H Glossary

Shipping Terms

Hague Rules1924 International Convention on Carriage of Goods by Sea.
These rules govern liability for loss or damage to goods carried by sea under a bill of lading.
Hague-Visby Rules1968 Revision of Hague Rules.
Hamburg RulesIn March 1978 an international conference in Hamburg adopted a new set of rules (The Hamburg Rules),which radically alter the liability which shipowners have to bear for loss or damage to goods in the courts of those nations where the rules apply.
Harmonized Commodity Description and Coding SystemA multi-purpose international goods-classification for manufacturers. Transporters, exporters, importers, customs officials, statisticians, and others in classifying goods moving in international trade under a single commodity code. 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 describing the articles moving in international trade. 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 Fibres; Chapter 57, Carpets).] The basic code contains four-digit headings and six-digit subheadings. (The U.S. will add digits for tariff and statistical purposes. In the U.S. duty rates will be the 8-digit level; statistical suffixes will be at the 10-digit level. The Harmonized System (HS) is scheduled to supplant the current U.S. tariff schedule (TSUSA) in January 1988.)
HatchThe opening in the deck of a vessel; gives access to the cargo hold.
HaulagePlease refer to drayage.
HaulierThe participating carrier responsible for drayage.
Heavy LiftArticles too heavy to be lifted by a ship’s tackle.
Heavy-Lift ChargeA charge made for lifting articles too heavy to be lifted by a ship’s tackle.
High CubeAny container which exceeds 8 feet 6 inches (102 inches) in height, usually 9 feet 6 inches.
House B/LBill of lading issued by NVOCC (Non-vessel Owning / Operating Common Carrier), either be Forwarders, or Consolidators when they issue B/L instead of FCR (Freight Cargo Receipt), or slot charters, for carriage of goods on vessel which s/he neither owns nor operates. House B/L is commonly not acceptable in the L/C negotiation unless otherwise authorized in the letter of credit (L/C).
House-to-House (H/H)See CY/CY.
House-to-Pier (H/P)See CY/CFS.
HubA facility in the infrastructure where transport-related services (collection & distribution) and commercial activities are performed, and it focuses on logistics-centre management, facilities management, maintenance and supply chain.
HullThe body of a vessel exclusive of masts, yards, sails, rigging, machinery and equipment.
Hull UnderwriterThe person with whom the ship’s hull, machinery apparel, and tackle is insured.

I Glossary

Shipping Terms

I.C.C.Interstate Commerce Commission
The U. S. governmental body to regulate interstate trade
International Chamber of Commerce
A Paris-based international forum that aims to facilitate trade.
Institute Cargo Clauses The institute of London Underwriters standard clauses for cargo insurance.
I.M.C.O.International Maritime Consultative Organization. A forum in which most major maritime nations participate and through which recommendations for the carriage of dangerous goods, bulk commodities and maritime regulations become internationally acceptable.
I.P.I.Inland Points Intermodal. Inland carriage by another mode of transportation after discharge.
IATA Cargo AgentIt is also a type of freight forwarder who specializes in air cargo. They are registered with the International Air Transport Association (IATA). They act for airlines which pay them a fee (usually 5%). It is very typical that an IATA Cargo Agent also performs the function of an Air Freight Forwarder in reserve booking for air freight, issue air waybill.
IFPIntrim Fuel Participation.
Similar to BAF, a surcharge based on the cost of bunker.
IMDG CodeInternational Maritime Dangerous Goods Code
The IMO recommendations for the carriage of dangerous goods by sea.
ISPSInternational Shipping & Port Security.
International anti-terrorist legislation organised by IMO.
ImportShipment of goods from a foreign country.
Import LicenseA document required and issued by some national governments authorizing the importation of goods into their individual countries.
Import PermitUsually required for items that might affect the public health, morals, animal life, vegetation, etc. Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies). In some countries an import permit is the same as an import license.
In TransitIn transit, or in passage.
InboundInward bound
Direction of vessel or cargo going to port of discharge or final destination.
Inbound EditingA documentation function normally performed before vessel arriving at discharging end to add, amend local charges and information where applicable.
IncotermsIncoterms are a set of uniform rules codifying the interpretation of trade terms defining the rights and obligation of both buyer and seller in an international transaction, thereby enabling anotherwise complex basis for a sale contract to be accomplished in three letters.Incoterms are drafted by the Internaitional Chamber of Commerce.
Inland Clearance DepotA CFS with Customs Clearance Facilities.
Insulated ContainerA container insulated on the walls, roof, floor and doors, to reduce the effect of external temperatures on the cargo.
Insulated Tank ContainerThe frame of a container constructed to hold one or more thermally insulated tanks for liquids.
InsuranceAn insurance policy or certificate normally covers the shipments of merchandise from the time they leave the warehouse at the shipping point until they reach the destination point named in the policy or certificate.
Insurance CertificateWhere the seller provides ocean marine insurance, it is necessary to furnish insurance certificates, usually in duplicate. The certificates are negotiable documents and must be endorsed before submitting them to the bank. The seller can arrange to obtain an open cargo policy that the freight forwarder maintains.
Insurance With Average-ClauseThis type of clause covers merchandise if the damage amounts to 3 percent or more of the insured value of the package or cargo. If the vessel burns, sinks, collides, or gets sunk, all losses are fully covered. In marine insurance the word average describes partial damage or partial loss.
Insurance, All-RiskThis type of insurance offers the shipper the broadest coverage available, covering against all losses that may occur in transit.
Insurance, General-AverageSee General Average.
Insurance, Particular-AverageA Marine insurance term to refer to partial loss on an individual shipment from one of the perils insured against, regardless of the balance of the cargo (in this way it differs from general-average insurance). Particular-average insurance can usually be obtained, but the loss must be in excess of a certain percentage of the insured value of the shipment, usually 3 to 5 percent, before a claim will be allowed by the company.
InterchangeTransfer of a container from one party to another.
Interchange PointsA terminal at which freight in the course of transportation is delivered by one transportation line to another.
IntercoastalWater service between two coasts; usually refers to water service between point on the Atlantic and Pacific Coasts.
IntermodalUsed to denote movements of cargo or container between motor, rail or water carriers.
Intermodal TransportMoving ocean freight containers by various transportation modes. The fact that the containers are of the same size and have common handling characteristics permits them to be transferred from truck to railroad to air carrier to ocean carrier.
Internet Applications – Shipment DetaiCargoSmart provides shipment summaries, shipment details, and standard reports. Users view shipment summaries sorted by shipment status, routes, or locations. Users can also look up shipment details by booking, bill of lading, invoice, and reference numbers (purchase order, invoice, etc). Details include reference numbers, status, parties, routing, general cargo, reefer, and dangerous goods information. Standard reports include active booking and bills of lading information.
lInterstateBetween states.
Interstate TrafficGenerally speaking, traffic crossing state lines.
IntrastateWithin a state.
Intrastate TrafficTraffic moving between points within one state and not leaving the state in the course of transportation.
Issuing BankThe bank that has issued or opened a letter of credit. Also known as Opening Bank.

K Glossary

Shipping Terms

KnotA unit of speed. The term “knot” means velocity in nautical miles per hour
whether of a vessel or current. One nautical mile is roughly equivalent to 1.15 statute miles or 1.85 kilometers.

L Glossary

Shipping Terms

L.C.L.Less than Container Load. Cargo in quantity less than required for the application for the application of a container load rate.
LCL – NVOMore often known as “Consolidator”. Their business focuses on providing services related to consolidate parts or smaller consignments, LCL (Less than Container Load) cargoes into larger unit. They derive profit by paying the vessel operating carrier the lower consolidated rate.
Letter of Credit(a) Back-to-Back: A secondary letter of credit issued to a beneficiary on the strength of a primary credit;
(b) Clean: A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment;
(c) Confirmed: A revolving letter of credit that permits any amount not utilized during any of the specified periods to be carried over and added to the amounts available in subsequent periods;
(d) Deferred Payment: A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis;
(e) Irrevocable: An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned; (f) Non-cumulative: A revolving letter of credit that prohibits the amount not used during the specific period to be available in the subsequent periods;
(g) Restricted: A condition within the letter of credit which restricts its negotiation to a named bank;
(h) Revocable: An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank;
(i) Revolving: An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period;
(j) Straight: A letter of credit that contains a limited engagement clause addressed to the beneficiary; state that the issuing bank promises to pay upon presentation of the required documents at its counters or the counters of the named bank;
(k) Transferable: A letter of credit that allows the beneficiary to transfer in whole or in part any amount of the credit to one or more third parties provided that the aggregate of such transfers does not exceed the amount of the credit.
(l) Unconfirmed: A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.
Letter of IndemnityGuarantee from shipper or consignee to indemnity carrier for costs and/or loss, if any, in order to obtain favorable action by carrier, e.g. sometimes, it is used to allow consignee to take delivery of goods without surrendering B/L which has been delayed
LienA legal claim upon goods for the satisfaction of some debt or duty.
Lift-On/Lift-Off (LO-LO)A container ship onto which and from which containersare lifted by crane.
LighterAn open or covered barge towed by a tugboat and used mainly in harbors and inland waterways.
LighterageRefers to the carriage of goods by lighter and the charge assessed therefore.
Line-haulTransportation from one city to another as differentiated from local switching service.
LinerVessel plying a regular trade/defined route against a published sailing schedule.
Liner TermsThey define the condition / responsibility of cost under which a carrier has had at port of loading to port of discharge. As such they also determine the freight / charges payable for loading & discharging the cargo from the vessel in their quotation, according to the customs of the port and it is not internationally codified.
Carrier cost responsibility under respective Liner Terms:
Liner In Liner Out ( CY to CY ) – Carrier bears the costs for loading at loading port, sea voyage up to cargo discharged at discharging port.
Liner In Hook Out ( CY to Hook) – Carrier bears the costs for loading at loading port, sea voyage up to cargo alongside cargo hook at discharging port.
Hook In Liner Out ( Hook to CY) – Carrier bears the costs for cargo alongside cargo hook at loading port, sea voyage up to cargo discharged at discharging port.
Liner In Free Out (CY to Free Out, LIFO) – Carrier bears the costs for loading at loading port, sea voyage and exclude costs for cargo at discharging port.
Free In Liner Out (Free in to CY, FILO) – Carrier bears the costs for sea voyage and costs for cargo discharged at discharging port.
Hook to Hook – Carrier bears the costs for sea voyage and costs for cargo alongside at loading port & at discharging port.
Hook to Free Out – Carrier bears the costs for cargo alongside cargo hook at loading port, sea voyage and exclude cost at discharging port.
Free In to Hook – Carrier bears the costs for sea voyage and costs for cargo alongside cargo hook at discharging port.
Free In Free Out (FIFO) – Carrier bears the costs for sea voyage and exclude costs at loading port & discharging port.
Liter1.06 liquid quarts.
Lloyds’ RegistryAn organization 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.
Lo/LoLift On, Lift Off.
Surcharge for handing equipment over to merchant haulier in UK.
Load FactorPercent of loaded containers against total capacity of vessel or allocation.
LoadwireSpecial service as provided normally to consignee to advise them shipment information certain days after vessel sailing and usually well in advance before vessel arriving discharging end.
Locking BarDevice that secures container doors at top and bottom.
LogisticsThe management of moving or stationary inventory.
Long Ton2,240 pounds. (l.t.,
LongshoremanIndividual employed locally in a port to load and unload ships.
LooseWithout packing.
Low-BedA trailer or semi-trailer with no sides and with the floor of the unit close to the ground.

M Glossary

Shipping Terms

M.L.B.See Mini Landbridge.
M/VMotor Vessel
MQCMinimum Quantity Commitment.
Volume of cargo that a customer commits to ship over the duration of their contract (in TEU)
MT(a) Metric Ton or Cubic meter
(b) Empty container
(c) Multimodal Transport.
MalpracticeA carrier giving a customer special preference to attract cargo. This can take the form of a money refund (rebate); using lower figures that actual for the assessment of freight charges (undercubing); misdeclaration of the commodity shipped to allow the assessment of a lower tariff rate; waiving published tariff charges for demurrage, CFS handling or equalization; providing specialized equipment disproportionately to a shipper to the detriment of other shippers, etc.
ManifestDocument that lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargo of a vessel. Used principally for customs purposes. It is also called summary of Bills of lading.
Manifest, TravelingA manifest of all cargoes aboard a conveyance, vessel, truck or rail, that lists cargoes to be discharged at each port of call. The manifest must be aboard at the vessel’s first port of call. Corrections must be made at the first port regardless of the destination of the cargo. Manifest is certified by customs and travels with the vessel through the remainder of its ports of call in the same country.
MaritimeBusiness pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty has jurisdiction over.
Marks & Nos.Marks & Numbers placed on packages for export for identification purposes; generally a triangle, square, circle, diamond, or cross with letters and/or numbers and port discharge.
Master Bill of LadingsThe B/L issue by Vessel Owning / Operating Common Carrier (VOCC) to the Non-vessel Owning / Operating Common Carrier (NVOCC). It contras with House B/L which an NVOCC issues to its shippers for carriage of goods on vessel which the NVOCC neither owns nor operates, or just is slot charterer.
Master Lease Leasing CostMaster lease leasing cost includes container rental, depot lieft on/lift off charge, on/off hire drayage, Drop off charge and Offhire repair cost. Due to off-hire quota limitaion, the average on-hire period is around 73 days for 20′ gp/40’gp and 102 days for 40’hq. On average basis, the leasing cost is US$500/20’gp, US$700/40’gp and US$800/40’hq.
Mate’s ReceiptA receipt signed by a mate of the vessel, acknowledging receipt of cargo by the vessel. The individual in possession of the mate’s receipt is entitled to the bill of lading, which in due course is issued in exchange for that receipt.
Maximum PayloadMaximum cargo that can be loaded into a container either by weight or volume.
Maximum RateThe highest freight rate permitted by a regulatory body to apply between points.
Measurement Ton1 cubic meter.
One of the alternative bases of Freight Tariff.
Memo B/LAn internal B/L created for certain purposes, e.g. memo B/L created to replace original B/L used in case of spliting B/L at request of consignee.
MicrobridgeA landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. The carrier is responsible for cargo and costs from origin to destination. Also known as I.P.I. and Through Service.
MileageDistance in miles.
Mini Landbridge (MLB)An intermodal system for transporting containers from/to a foreign country by water to/from a U.S. ocean port other than the arrival port by rail at through rates and documents.
Mini-BridgeCargo moving from/to an inland destination on one bill of lading from/to a foreign port through two U.S. ports.
Minimum ChargeThe lowest charge that can be assessed to transport a shipment.
Modified Atmosphere (MA)An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations are different from those in air but are not precisely regulated.
Multimodal TransportSee Combined Transport.
A preferred term by UNCTAD for Combined Transport.

N Glossary

Shipping Terms

N.O.I.B.N.Not otherwise indexed by name.
N.O.S.Not otherwise specified.
N.V.O.C.C.See Non-Vessel Operating common Carrier.
NVOCCSee Non-vessel Owning/Operating Common Carrier or N.V.O.C.C.
Negotiable B/LOriginal bill of lading endorsed by shipper that is used for negotiating with banks.
Negotiating BankA bank named in the credit; examines the documents and certifies to the issuing bank that the terms are complied with.
Net TonnageA vessel’s gross tonnage minus deductions of space occupied by accommodations for crew, by machinery, for navigation, by the engine room and fuel. A vessel’s net tonnage expresses the space available for passengers and cargo.
Net WeightWeight 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. Also called actual net Weight.
Neutral BodyOperates within the framework of a rate conference. Established by the member carriers to act as a self-policing force to ferret out malpractices and other tariff violations. The neutral body has authority to scrutinize all documents kept by the carriers and the carriers’ personnel. Has right of entry to all areas of the carriers’s facilities, including desks, briefcases, etc. Violations found are reported to the membership and significant penalties are assessed. Repeated offences are subject to escalating penalties. Revenue from penalties are used to support the cost of the neutral body’s activity.
Non-negotiable B/LCopy of original bill of lading which cannot be negotiated with bank.
Non-vessel Owning / Operating Common Carrier (N.V.O.C.C.)(a) A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. (b) A carrier issuing Bs/L for carriage of goods on vessel which he neither owns nor operates.
Non-Vessel Operating Common Carrier (NVOCC) – In the United States, it is a term for a cargo consolidator of shipments who is licensed by FMC in ocean trade, generally arranging for or performing consolidation and containerization functions. In trade lanes that do not include the U.S.A., NVOCC operate under different rules and governmental licensing may not be a requirement.

O Glossary

Shipping Terms

O.C.P. rateOverland Common Point rates which are generally lower than local tariff rates, were established by U.S. West Coast steamship companies in conjunction with railroads serving the western U.S. so that cargo originating or destined to the American Midwest and East would be competitive with all-water rates via the U.S. Atlantic and Gulf ports. O.C.P. rates are also applicable to eastern Canada.
OBLSee Original Bill of lading or O.B.L.
Ocean Bill of Lading (Ocean B/L)Document indicating that the exporter will consign a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland B/L, the ocean B/L also serves as a collection document. if it is a Straight B/L the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a negotiable B/L is used, the buyer must first pay for the goods, post a bond or meet other conditions agreeable to the seller.
Ocean FreightSee Freight.
Ocean RouteThe all water transportation portion of a route.
On BoardMeans that cargo has been loaded on board a combined transport mode of conveyance. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the contrary.
On Board B/LA B/L in which a carrier acknowledges that goods have been placed on board a certain vessel.
On DeckA special stowage instruction to confine the cargo stowage must be on deck rather than under deck.
One-Way leaseLease that covers the outbound voyage only, after which the container is returned to the lessor at or near destination.
Open-Top ContainerA container fitted with a solid removable roof or with a tarpaulin roof that can be loaded or unloaded from the top.
OriginLocation where shipment begins its movement at cargo’s expense.
Original Bill of Lading (O.B.L.)A document which requires proper signatures for consummating carriage of contract.
OutboundOutward bound.
Direction of vessel or cargo going out from port of loading or point/place of receipt.
OverageAn excess of quantity billed.
Overheight CargoCargo stowed in an open-top container; projects above the uppermost level of the roof struts.
Overland Common Point (O.C.P.)A term stated on the bills of lading offering lower shipping rates to importers east of the Rockies provided merchandise from the Far East comes in through the West Coast ports.
OverwidthA container with goods protruding beyond the sides of the container/flat rack onto which they are packed.

P Glossary

Shipping Terms

P.& I.Protection and Indemnity, an insurance term.
P.O.D.Port of Discharge where cargo is discharged from vessel. In case of transshipment is needed, there can be a number of POD during the course of shipment until it reaches the final POD.
P.O.L.Port of Loading where loading to vessel takes place
P.O.R.Point or Place of Receipt.
Starting point of carrier’s liability where cargo is received from shipper and under carrier’s custody for transportation to final destination.
P/Aa) Particular average; b) Private account.
PLRMUPower Line Remote Monitoring Unit.
PSAPort of Singapore Authority
PTI (Pre-trip Inspection)A procedure of checking the ability of a reefer to maintain temperature control. The inspection normally focuses on the operation of the refrigeration and heating equipment, as well as the physical condition of the refrigeration plant and the insulated container shell. Such inspections are normally performed prior to each loading of a reefer.
PWSCPrincipals Working Sub committee.
A gathering of lines’ senior managers to discuss industry wide issues.
PalletA platform (usually two-deck), with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift truck.
Panama Canal ActA federal law regarding railroads and the ownership of water carriers with whom they compete.
Partial ShipmentsUnder letters of credit, one or more shipments are allowed by the phrase”partial shipments permitted.” In bulk shipments a tolerance of 3 percent is allowed.
Participating Carrier (Tariff)A transportation line that is a party, under concurrence, to a tariff issued by another transportation line or by a tariff’s publishing agent.
PartlowManufacturer of a mechanical temperature recorder – see recorder. Developed in the 1930’s by Howard Partlow for the reefer trucking business in the USA. Now the Partlow Corp.
Partlow chartPaper disc used in conjunction with a Partlow recorder to record temperature. Reefers record return air temperature. Max. recording period 31 days before chart needs replacing.
Payable ElsewhereSpecial service to shipper or consignee to receive freight and charges at location and from designated party as specified by shipper or consignee i.e. freight and charges are not received at loading end (for Prepaid shipment) and discharging end (for Collect shipment).
PayloadThe revenue-producing part of the cargo.
Per DiemA charge made by one transportation line against another for the use of its equipment. The charge is based on a fixed rate per day.
Perils of the SeaThose causes of loss for which the carrier is not legally liable. The elemental risks of ocean transport.
Perishable CargoCargo subject to decay or deterioration.
PierThe structure to which a vessel is secured for the purpose of loading and unloading cargo.
Pier-to-House (P/H)See CFS/CY.
Pier-to-Pier (P/P)See CFS/CFS.
PiggybackThe transportation of highway trailers or demountable trailer bodies on specially equipped railcars.
PilferageThe act of stealing cargo.
PilotA person whose office or occupation is to steer ships, particularly along a coast or into and out of a harbor.
Place of DeliverySee Final Destination.
Place of ReceiptLocation where cargo enters the care and custody of carrier.
Pool (Container)A common supply of containers available to the shippers.
Port(a) Harbor with piers or docks;
(b) Left side of a ship when facing the bow;
(c) Opening in a ship’s side for handling freight.
Port Service ChargeSee THC.
Port of CallPort where a steamer discharges or receives traffic.
Port of DischargePort where cargo is unloaded from vessel.
Port of EntryPort where cargo actually enters a country where the cargo is not part of its commerce.
Port of Loading (POL)Port where cargo is loaded to vessel.
Port of arrivalLocation where imported merchandise is off loaded from the importing aircraft or vessel.
Power PackAn electricity power source for multiple reefer boxes. It serves as standby or prime power for intermodal applications including rail, port, ship, and barge.
Power of AttorneyAuthority given by the first party to the second party to act for the first party. For example, when carriers give power of attorney to an agent to publish tariffs for those carriers.
Pratique Certificate(a) Permission or license granted by the port medical authorities to a vessel upon arrival from a foreign port after quarantine inspection, to communicate with shore.
(b) A certificate issued in British ports by the medical officer of health upon declaration made by the captain or the ship’s doctor on arrival quarantine station that no member of the crew or passenger is suffering from any contagious disease. Also called certificate of health. Without this document the vessel cannot report at the customs house.
Pre-coolingA process employed in the shipment of citrus fruits and other perishable commodities. The fruit is packed and placed in a cold room from which the heat is gradually extracted. The boxes of fruit are packed in containers that have been thoroughly cooled and transported through to destination without opening the doors.
Prepaid (Ppd.)One of the payment status where freight and charges are required to be paid by shipper before original bill of lading is released to them except for shipment under Sea Waybill (or Express BL) as no original bill of lading is required or for shipment under credit arrangement.
Pro RataIn proportion.
Protest(a) A legal means of proving presentation and default of a negotiable instrument, as well as providing notice to interested parties that the instrument was not paid.
(b)A declaration made by the master of a vessel before a notary public in the United States and Great Britain or a tribunal of commerce on the European Continent, or before the consul of the country from which the vessel hails if in a foreign port, on arrival in port, when, through stress of weather, it has not been practicable to adopt ordinary precaution in the matter of ventilation for perishable cargoes; when the condition of the cargo or any part thereof at the time of shipment is such as to lead to the belief that damage or some further damage has occurred during the voyage; when any serious breach of a charter party by the charterer in a foreign port happens; when a vessel experiences bad weather while at sea and when the master has reason to believe that the cargo is damaged or part of the deck load lost overboard. Copies of the protest are frequently demanded underwriter in the event of a claim. Protest are received as evidence in tribunal on the Continent but they cannot be made use of as evidence in courts of law in the United Kingdom in favor of the party making the protest except by the consent of both parties concerned.
Pull-downThe process whereby the refrigeration unit lowers the temperature of the interior of a reefer to the set-point level.

Q Glossary

Shipping Terms

QuarantineThe period during which a vessel is detained in isolation until free from any contagious disease among the passengers or crew. The word is now applied to the sanitary regulations which are the modern substitute for quarantine. During the quarantine period, the Q flag is hoisted.
Quarantine buoyOne of the yellow buoys at the entrance of a harbour indicating the place where vessel must anchor for the exercise of quarantine regulations.
Quarantine declarationA document signed by the captain and the ship’s doctor before the port health officer when a ship arrives at the quarantine station. It gives the name of the ship, tonnage, number of crew, first port of voyage and date of sailing, intermediate ports called at , number of passenger for the port at which the vessel is arriving, number of transit passengers, cases of infectious diseases during voyage, deaths, nature of cargo, name of agents.The port health officer then proceeds with the medical inspection of passengers and crew. Also called entry declaration.
Quarantine duesA charge against all vessels entering a harbor to provide for the maintenance of medical control service. Also called quarantine fees.
Quarantine flagA yellow flag used as a sanitary signal. It is displayed by all vessels entering a harbor; also when a contagious or infectious disease exists on board or when the vessel has been placed in quarantine.
Quarantine harborA place where vessels in quarantine are stationed when arriving from contaiminated ports.
Quarantine signalSignals flown by vessel required to show their state of health. By day “Q” of the international code signifies “Ship is healthy-free pratique requested”. Flag “Q” over first substitutes signifies that the ship has had cases of infectious diseases or that there has been unusual mortality among rats on board. Flag “Q” over “L” signifies “Ship is infected”. By night a vessel entering harbor exhibits a red light over a white light more than 6 feet apart which signifies that the ship is awaiting free pratique.
Quarantine stationA medical control center located in an isolated spot ashore where patients with contagious diseases from vessel in quarantine are taken. It is also used for passengers and crews of vessel arriving from suspected ports while fumigation or any other disinfection is carried out on board ship.
Quay rentCost levied by a terminal for laden container sotrage. Can either be billed to the carrier as its cusotmer or direct to the shpper.
QuotaThe quantity of goods that may be imported without restriction or additional duties or taxes.

R Glossary

Shipping Terms

Rail Onboard B/LThis is unique practice in NAT having the similar function as onboard vessel B/L. In the event of multimodal B/L is prepared, shipper can request a clause on the B/L to satisfy their commercial transaction as LADEN ONBOARD RAIL MMDDYY. The date on the B/L is on which containers are loaded onboard rail flat car. However, the word RAIL is not necessary.
RailheadRail termianl where containers are either loaded or discahrged from train. (A railhead is a CY)
RampRail terminal where containers are either loaded or disharged from a train (A rail Ramp is a CY)
Receipt for shipment B/LA term used in contradistinction to shipped bill of lading, which is the standard document. Some bankers object to to such bill of lading on the ground that the security they offer is imperfect. This kind of bill of lading is normally issued to acknowledge receipt of shipment before cargo loading or before official original bill of lading is issued. Nowadays, not many shippers ask for this kind of bill of lading.
Reconsignment (R/C)Changing the consignee or destination on a bill of lading while shipment is still in transit. Diversion has substantially same meaning.
ReeferIn the industry, it is the generic name for a temperature controlled container. The containers, which are insulated, are specially designed to allow temperature controlled air circulated within the container. A refrigeration plant is built into the rear of the container. For reefers, power for this plant needs to be provided from an external source. Related topics:
– See also Genset.
– See also PTI.
RefrigerantA compound capable of absorbing large quantities of heat before it changes from a liquid to a gas.
Registrar Accreditation Board (RAB)A board that evaluates the competency and reliability of registrars (organizations that assess and register companies to the appropriate ISO 9000 series standards). The Registrar Accreditation Board, formed in 1989, is governed by a board of directors from industry, academia, and quality management consulting firms.
Relative Humidity(%) The ratio of the actual amount of water vapour in the air to the maximum it can hold at a given temperature , multiplied by 100.
RelayTo transfer goods from one ship to another of the same ownership.
Release noteReceipt signed by customer acknowledging delivery of goods.
RespirationThe process by which nutrients are metabolized to provide energy needed for cellular activity.
Return airAir warmed by the container cargo delivered to the evaporator. The temperature of return air often controls the operation of the refrigeration unit.
Revenue ton (R/T)The greater weight or measurement of goods where 1 ton is either 1000 kilos or 1 cubic metre (for metric system). Also known as bill of lading ton or freight ton. It is used to calculate freight charge.
Roll-On/Roll-Off (Ro/Ro)A feature designed in a specially constructed vessel in both the loading and discharging ports.
Route (Rte.)The manner in which a shipment moves, i.e., the carriers handling it and the points via which they handle it.
RyanManufacturer of a mechanical temperature recorder.

S Glossary

Shipping Terms

S.D.D.See Store-Door Delivery.
S.D.P.See Store-Door Pick-Up.
SCMSee Supply Chain Management
SEDStandard Export Declaration.
Legal document that shippers or freight forwarder have to complete prior to exxport from USA.
SIShipping Instruction.
See B/L Master.
SSNStandard Shipping Note.
Paperwork completed by a UK shipper which accompanies the container on its journey to the port of exit. This is so that receiving authorities liket the carrier & port receive clear and precise information on how the goods should be handled.
STCSaid to Contain. A standard clause used to protect carrier for cargo stuffed by shipper or its agents.
Salvage lossA loss which it is presumed would, but for certain services rendered, have become a total loss. The charges incurred are “salvage charges”. The property salved is the “salvage”. When referring to goods a salvage loss is one resulting from shipwreck or from a situation where, by the peril of the sea, the vessel is prevented from proceeding on her voayge and the cargo, or the part that is saved is obliged to be sold at a place short of the port of destination. The term is used in marine insurance when at a point short of destination, it can be shown that it would cost more to forward damaged goods to their destination than the goods would realized on the spot. The underwriters usually pay the difference between the total insured value and the net proceeds of the goods, such a settlement being known as a “salvage loss”.
Sea waybillSee refer “Express B/L”
Seal (Container)Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.
Seal recordA record of the number, condition and marks of identification on seals made at various times and places, referring to the movement of the container between origin and destination.
Service contractAs 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 chandlerAn individual or company selling equipment and supplies for ships.
Ship ownerOne of the persons in whom is vested the title of property of a ship or ships.
Shipped bill of ladingA bill of lading issued only after the goods have actually been shipped on board the vessel, as distinguished from the received for shipment bill of lading. Also see on board bill of lading.
Shipped on boardEndorsement on a bill of lading confirming loading of goods on vessel.
ShipperThe person for whom the owners of a ship agree to carry goods to a specified destination and at a specified price. The merchant who can be consignor, exporter, or seller (who may be the same or different parties) named in the shipping documents as the party responsible for initiating a shipment, and who may also bear the freight cost.’
The conditions under which the transportation is effected are stipulated in the bill of lading.
Shipper owned containerThe container used for cargo shipment is owned by shipper.
Shipper’s Export DeclarationA custom house form filled by the shipper of goods. to foreign countries. Also called shipper’s manifest.It mentions the marks, numbers, quantity, description an value of the goods at time and place of export. There is a different definition in USA as “The shipper’s export declaration (SEDs) forms 7525-V and 7525-V-Alternate (Intermodal) and the shipper’s export declaration for In-Transit Goods, Form 7513, are JOINT-BUREAU OF THE CENSUS- INTERNATIONAL TRADE ADMINISTRATION DOCUMENTS used for compiling the offical U.S. export statistics and administering the requirements of the Export Administrative Act.
Shipper’s Load & CountShipments loaded and sealed by shippers and not checked or verified by the carriers.
Shipping orderUsually for same set of Shipping Order, there are a number of copies with same form and contents but with different name such as the 1st copy is called Shipping Order and remainders are called Shipping Order Copy or Dock Receipt for different purposes such as space control, surveyor and sworn measurer, documentation .After EDI is so popular nowadays and used by both shipper and Customs, hardcopy Shipping Order is no longer widely used now.
Shipping permitIssued by a shipping or carrier company; authorizes the receiving clerk at pier, dock, warehouse, airport or on board to receive a stipulated amount of goods or materials from a specified firm.
Shipside DeliveryA special cargo handling instruction for cargo to be delivered rightaway at shipside after discharge.
Short Term LeaseShort term lease refers to Master lease (with or without free-day), direct interchange and sublease from TGA/VSAO/Canmar partner as well as Free-use from any other logistic companies.
Short cycling1) improper air circulation in trailer causing unit to operate for brief periods.
2) thermostats set with improper differential causing it to sequence too rapidly from cool to heat or from cool to off position.
Shut-outGoods not carried on intended vessel.
SlotSpace on board a vessel occupied by a container.
SpreaderA piece of equipment designed to lift containers by their corner castings.
StabilityThe force that holds a vessel upright or returns it to upright if keeled over. Weights on the lower hold increase stability. A vessel is stiff if it has high stability, tender if it has low stability.
Stack CarAn articulated five-platform railcar that allows containers to be double stacked. A stack car holds ten 40-foot equivalent units.
Stack TrainSee DST (Double Stack Train).
Standard Industrial Classification (SIC)A standard numerical code used by the U.S. government to classify products and services.
Standard International Trade Classification (SITC)A standard numerical code used by the United Nations to classify commodities used in international trade.
Standard RateA rate established via direct routes from one point to another in relation which the rates via other routes between the same points are made. See also Differential Rate.
StevedoreTerminal operator who is designated to facilitate the operation of loading and discharging vessels and various terminal activities.
StorageA charge made on property stored.
Store-Door Delivery (STOR/DOR)Delivery of goods to consignee’s place of business or warehouse by motor vehicle. Refers to a complete package of delivery services performed by a carrier from origin to final consumption point, whether that be a retail, wholesale or other final distribution facility. Abbreviated in CCMS as SDD.
Store-Door PickUpPicking up an empty container from a carrier, delivering it to a merchant and returning the laden container; the portion of store-door pick up performed by the carrier’s trucker.
StowageA marine term referring to loading freight into ships’ holds.
Straddle CarrierMobile truck equipment with the capacity for lifting a container within its own framework.
Straight Bill of LadingA term for a non negotiable bill of lading. In the U.S. the Pomerene Act governs its operation.
StrippingThe unloading of a container.
StuffingThe loading of a container.
Supply Chain ManagementThe delivery of enhanced customer and economic value through synchronized management of the flow of physical goods, services and associated information from sourcing through consumption. The management of the process and activities to provide the flow of products, services and information to customers.
See also Supply Chain Glossary.
Supply airCooled or warmed air leaving the evaporator delivered to the interior of the container. Supply air is sometimes called delivery-air.
SurchargeAn extra or additional charge.

T Glossary

Shipping Terms

T-floorInterior floor in a reefer, so named because of the longitudinal T-shaped rails which support the cargo and form a plenum for air flow beneath the cargo.
T.E.U.Twenty-foot Equivalent Unit. ( 20”) TEU.
T.I.R.Trailer Interchange Receipt. See Equipment Interchange Receipt.
T.O.F.C.Trailer on flatcar; Piggyback. The movement of cargo on a railroad flatcar.
TDRTerminal departure report
TEUTwenty-foot Equivalent Unit (20″) T.E.U.
THCTerminal Handling Charge. A charge assessed by the terminal for handling FCLs at ocean terminals.
TOSTerms of Sale.
Commonly used as an abbreviation for INCOTERMS
TRCTerminal receiving Charge. Charge assessed by the terminal for cargo being delivered for export.
TVRTiem Volume Rate.
Kind of freight contract where the shipper commits to ship a specified volume of TEU over a specific peropd of time.
TailThe rear of a container.
Tank ContainerA specially constructed container for transporting liquids and gases in bulk.
Tare WeightThe weight of packing material or, in carload shipments, the weight of the empty freight car.
Tariff (Trf.)A publication setting forth the charges, rates and rules of transportation companies.
TenderThe offer of goods for transportation or the offer to place cars for loading or unloading.
TerminalAn assigned area in which containers are prepared for loading into a vessel or are stacked immediately after discharge from the vessel.
Through RateThe total rate from the point of origin to final destination.
Through Service (Thru Service)A combination of transportation by sea and land (Thru Service) services to/from the West Coast. From West Coast locations, freight is transported by rail and/or truck to central or eastern North America nonwater port cities. Also known as Microbridge Service and I.P.I.
Time CharterA charter party hiring a vessel for a specified period of time or a particular voyage, in which the shipowner provides the vessel and crew while the charterer supplies the cargo. Also known as non-demise charter.
TonnageGenerally refers to freight handled.
TontinesAn unusual type of Long Term Business, where the policy benefit is payable to the last survivor of a specified insured group of persons.
Top air delieveryA system in which supply air from the refrigeration unit evaporator is introduced into the container at the ceiling level. Little used in marine reefers, normal mode of air delivery in reefer trucks.
TowageThe charge made for towing a vessel.
TrampA freighter vessel that does not run in any regular line but takes cargo wherever the shippers desire.
TranshipTo transfer goods from one transportation line to another, or from one ship to another.
Transit CargoGoods onboard which upon their arrival at a certain port are not to be discharged at that port.
Transit PortA port where goods received are merely en route and from which they have to be transferred and dispatched to their ultimate destination by coasters, barge and so on. Also called transshipment port.
Transshipment PortSee Transit port.
Truck Onboard B/LThis is unique practice in NAT having the similar function as onboard vessel B/L. In the event of multimodal B/L is prepared, shipper can request a clause on the B/L to satisfy their commercial transaction as LADEN ONBOARD TRUCK MMDDYY. The date on the B/L is on which containers are picked up by trucker from shipper’s facility. However, the word TRUCK is not necessary.
TurnaroundIn water transportation, the time it takes between the arrival of a vessel and its departure.
Twist LocksA set of four twistable bayonet-type shear keys used as part of a spreader to pick up a container or as part of a chassis to secure the containers.
Two-Way PalletA pallet so designed that the forks of a forklift truck can be inserted from two sides only.

U Glossary

Shipping Terms

U.S.M.Un-manifested Subsequent Movement. Common practice in Asia-Europe Trade that bill of lading shows POD as the end of the shipment while consignee will advise the actual FND before or upon vessel arriving the POD.
UCPUniform Customs and Practice of Documentary Credit.The “bankers Bible” on Documentary Credit Interpretation issued by the I.C.C.
UCP500Revised and updated version operating from January 1, 1994.
UNUnited Nations.
UNCTADUnited Nations Conference on Trade and Development.
UNCTAD MMOUNCTAD Multi Modal Transport Convention.
USDAUnited States Department of Agriculture.
Unit LoadPackages loaded on a pallet in a crate or any other way that enables them to be handled at one time as a unit.
Unit TrainA train of a specified number of railcars, perhaps 100, wherein they remain in a unit for a designated destination or until a change in routing is made.
UnitizationThe 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.

V Glossary

Shipping Terms

VCTSN – Virtual Capacity Time-Space NetworkThe VCTSN is an extension of the TSN which takes into consideration of all up-to-date resource constraints (such as vessel space, terminal throughput). “Virtual” refers to the capability of the module to consider the inflated capacity (constraints) to make allowance for overbooking and no show situations.
VanningA term sometimes used for stowing cargo in a container.
Ventilated ContainerA container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed.
Vessel’s ManifestStatement of a vessel’s cargo (revenue, consignee, marks, etc.).
Voyage DirectionThe sector of a round trip voyage normally denoted by the direction of the sailing.
Voyage NumberThe numeric identification of a round trip sailing of a vessel on a fixed trade lane.

W Glossary

Shipping Terms

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. A waybill is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Abbreviation is WB. Unlike a bill of lading, a waybill is not a document of title.
Weight CargoA cargo on which the transportation charge is assessed on the basis of weight.
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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