Glossary of Industry Terms

A

ABI: Refers to a system available to brokers with the computer capabilities and customs certification to transmit and exchange customs entries and other information, facilitating prompt release of imported cargo.

ACCEPTANCE: An agreement to purchase goods at a stated price and under stated terms.

AD HOC CHARTER: A one-off charter operated at the whim of the airline or charter.

AD VALOREM: Latin, "according to the value."

1.      An ad valorem duty is an import duty based on the value of an article as defined in the Customs law of a particular country, rather than on weight or volume. A percentage of that value is charged, for example 5% ad valorem.

2. A freight rate set at a certain percentage of the value of an article is known as an ad valorem rate. (See Ad Valorem duty)

ADVANCE AGAINST DOCUMENTS: A loan made on the security of the documents covering a shipment.

ADVISING BANK: A bank operating in the exporter's country that handles letters of credit for a foreign bank by notifying the exporter that the credit has been opened in his favor.

ADVISORY CAPACITY: A term indicating that a shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the party represented.

AFFILIATE: A company that controls, or is controlled by another company, or is one of two or more commonly controlled companies.

AFFREIGHTMENT, contract of: An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer, who then becomes liable for payment even though he is later unable to make the shipment.

AGE: The transportation of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under Customs custody.

AGENCY AGREEMENT: In this agreement the steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that agent.

AIR CARGO AGENT: A type of freight forwarder who specializes in air cargo and acts for airlines that pay him a fee (usually 5%). He is registered with the International Air Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder).

AIR FREIGHT FORWARDER: A type of freight forwarder who specializes in air cargo. He usually consolidates the air shipments of various exporters, charging them for actual weight and deriving his profit by paying the airline the lower consolidated rate. He issues his own air waybills to the exporters, is licensed by the CAB (Civil Aeronautics Board) and has the status of an indirect air carrier (See also Air Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight Forwarder.)

AIR WAYBILL: A non-negotiable contract for carriage of air transportation between an air carrier and a shipper, or an air carrier and an air freight forwarder. In the latter case the forwarder, as an indirect air carrier, issues his own house air waybill to the shipper.

AITA: International Air Transport Association.

ALL - RISK CLAUSE: An insurance provision that all loss or damage to goods is insured except that of inherent vice (Self Caused)

"ALL RISK" INSURANCE: A clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging or loss market, nor against war, strikes, riots, and civil commotion (see Marine Insurance).

ALONGSIDE: The side of the ship. Goods to be delivered alongside are to be placed on the dock or lighter within reach of the ship's tackle from which they are loaded aboard the ship.

ANTI-DUMPING DUTY: A tariff imposed to discourage sale of foreign goods in a domestic market at very low prices which might hurt domestic manufacturers.

ARBITRAGE: The practice of exchanging the currency of one country annually with the Central Bureau of Registered Addresses, used in lieu of the entire name and address of a firm receiving or sending cablegrams in order to reduce the number of words required in a cablegram.

ARBITRATION CLAUSE: A standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.

A.T.: American Terms (Marine Insurance) A term used to differentiate between the conditions of American Policies from those of other nations, principally England.

AUTOMATED BROKER INTERFACE: ( See ABI )

AUTOMATED COMMERCIAL SYSTEMS (ACS): The electronic system of the U.S. Customs Service, encompassing a variety of industry sectors, that permits on-line access to information in selected areas.

AUTOMATED MANIFEST SYSTEM (AMS): The electronic system allowing a manifest inventory to be transmitted to the U.S. Customs Service data center by carrier, port authority or service center computers.

B

BAA: British Airports Authority

BACA: Baltic Air Charter Association

B/B: (See Break-Bulk Cargo)

BARTER: The direct exchange of goods and/or services without the use of money as a medium of exchange and without third-party involvement.

BELLY CARGO: Freight accommodation below the main deck.

BERMUDA AGREEMENT: An agreement concluded in 1946 between the U.K. and the U.S., designed to regulate future international air traffic. Most governments accept its principles and follow it inter ail by limiting traffic rights on international routes to one or two carriers.

BERTH: The place beside a pier, quay or wharf where a vessel can be loaded or discharged.

BERTH LINER SERVICE: Regular scheduled steamship line with regular published schedules ( port of call) from and to defined trade areas.

BERTH OR LINER TERMS: An expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be ship owner's account, and usually apply from the end of the ship's tackle in port of loading to the end of ship's tackle in port of discharge.

BILATERAL RIGHTS: Agreements on traffic rights concluded between two governments.

BILL OF LOADING: A document, issued by a carrier to a shipper, that serves a threefold purpose; 1. A receipt for the goods delivered to the carrier for shipment; 2. A definition of the contract of carriage of the goods from the port of shipment to the port of destination listed in the bill of lading (See Affreightment); 3; Evidence of title to the relative goods (See Bill of Lading, Clean; Bill of Lading, Forwarder's; Bill of Lading, On Board; Bill of Lading, Order; Bill of Lading, Received for shipment; Bill of Lading, Straight; Bill of Lading, Through Railway Export).

BILL OF LADING, CLEAN: 1. A bill of lading which bears no superimposed clause or notation which expressly declares a defective condition of the goods an/or the packaging, (Article 18, Uniform Customs and Practice for Documentary Credits). A bill of lading that contains a clause declaring defective goods is called a Foul-Bill of Lading. 2. A bill of lading that is silent as to the place of storage, indicating that the goods have been stowed under deck (See Unclean Bill of Lading).

BILL OF LADING, FORWARDER'S: A bill of lading issued by a forwarder to a shipper as a receipt for merchandise that the forwarder will consolidate with cargo obtained from other exporters and ship to his agent at the port of destination. Forwarder's bill has no standing for banking purposes unless specifically allowed in the letter of credit. Also called house bill of lading.

BILL OF LADING, INLAND: A bill of lading used in transportation goods overland to the exporter's international carrier.

BILL OF LADING, OCEAN: Bill of lading indicating that the exporter consigns a shipment to an international carrier for transport to a specified foreign market.

BILL OF LADING, ON BOARD: A bill of lading acknowledging that the relative goods have been received on board for shipment on a specified vessel.

BILL OF LADING, ORDER: A negotiable bill of lading. There are two types; 1. A bill drawn to the order of a foreign consignee, enabling him to endorse the bill to a third party; 2. A bill drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of the latter bill is to protect the shipper against the buyer's obtaining the merchandise before he has paid or accepted the relative draft ( See also Endorsement, in Blank).

BILL OF LADING, RECEIVED FOR SHIPMENT: A bill of lading acknowledging the receipt of goods by a carrier for shipment on a specified vessel. This type of bill of lading is not acceptable under a letter of credit unless it is specially authorized. English law does not regard these bills as a valid tender under c.i.f. contracts because the c.i.f. seller is obligated to ship the goods, and a Received for Shipment Bill of Lading is not considered proof of shipment.

BILL OF LADING, STRAIGHT: A non-negotiable bill of lading whereby the consignee named in the bill is the owner of the relative goods.

BILL OF LADING, THROUGH: A bill of lading that covers transportation by more than one carrier from the point of issue to the final destination. Example, a bill from New York, via Curacao, to Pampatar, Venezuela.

BILL OF LADING, THROUGH RAILWAY EXPORT: A bill of lading issued by rail carriers serving West coast United States ports, that covers a shipment from the point of origin via port of departure to a Pacific port of destination. Example: A bill from Chicago, via San Francisco, to Manila.

BILL OF SIGHT: A written description of goods given by an importer to a Customs officer in the event shipping documents have not arrived in time and the importer wishes to avoid delayed entry charges. When an importer enters goods on a bill of sight, he usually must make a cash deposit covering the estimated amount of duty. When the shipping documents are received and a correct entry is made, the exact amount of duty is levied.

B/L, BILL OF LADING: A written document issued by a common carrier, acknowledging the receipt of the goods named and setting forth the terms of the contract of carriage. When in order form, it is negotiable.

BLOODSTOCK: Pedigree Livestock. Often race horses or cattle for breeding.

BONDED WAREHOUSE: A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

BOOKING: Arrangements with steamship companies for the acceptance and carriage of freight.

BREAK-BULK CARGO: Cargo which is shipped as a unit ( i.e. palletized cargo, boxed cargo, large machinery, trucks and pre-slung cargo).

BREAK-BULK VESSEL: Designed to handle palletized, pre-slung boxed, and unitized cargo. Holds can be at the open bay or between deck type. Between deck means the hold can be converted from multi levels to open bay. This type of vessel is usually self-sustaining.

BREAKPOINT: Weight at which freight charges change, e.g. 100 kilos.

BROKER: A person or firm that establishes a connection between a buyer and a seller. Brokers operate in many fields: insurance, steamship transport, securities, drafts, and other phases of foreign trade. Not only do brokers bring buyers and sellers together, but they help to negotiate and close contracts of agreements between them.

BRUSSELS NOMENCLATURE Kennedy Round: A standardized system, established in 1950, for classifying commodities for Customs purposes. The EEC common external tariff and tariffs of other major trading nations, except the United States, are based on this nomenclature. The United States tariff schedule (TSUS) contains about 5,000 items as to compared to 2,800 in the Brussels Nomenclature.

B/s: Bags; bales.

b.t.: Berth terms.

BULK CARGO: Loose cargo that is loaded directly into a ship's hold.

BULK CARRIER: There are two types of bulk carrier, the dry-bulk carrier and the liquid-bulk carrier, better known as a tanker. Bulk cargo is a shipment such as oil, grain, or ore which is not packaged, bundled, bottled, or otherwise packed and is loaded without counting or marking.

BULK SOLIDS: Dry cargo shipped in containers, loose, in bulk, without mark or count.

C

CAA: Civil Aviation Authority. Government body responsible for regulating U.K. airlines.

CABOTAGE: Where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.

CAD: The acronym meaning "cash against documents, " a method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.

CARGO: Merchandise/commodities carried by means of transportation.

CARGO RECEIPT: Receipt of cargo for shipment by a consolidator (used in ocean freight).

CARNET: A Customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.

CARRIER(S) CONTAINER(S) SHIPPER(S) CONTAINER(S): The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing or renting shipper-owned containers.

CARRIER, COMMON: A publicly or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid.

CARTEL: An association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or an industry.

 

 

CASH IN ADVANCE (C.I.A.): A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods are built to order, such as specialized machinery.

CASH WITH ORDER (C.W.O.): A method of payment of goods in which cash is paid at the time of order and the transaction becomes binding for both buyer and seller.

C.C.E.F.: Customs Centralized Examination Facility

CERTIFICATE OF ANALYSIS: A certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.

CERTIFICATE OF INSPECTION: A certificate is usually required for industrial equipment and meat products. There are companies in every port city that specialize in issuing certificates of inspection for machinery. The Meat Inspection Division of the U.S. Department of Agriculture issues certificates of inspection for meat products that are recognized throughout the world.

CERTIFICATE OF MANUFACTURE: A document used under a letter of credit, containing an affidavit that goods have been manufactured and are being held for the account and risk of the buyer. In war times, when transportation facilities are disrupted, it is common for letter of credits to be paid against presentation of a certificate of manufacture. This is rare in ordinary times, except in the case of specially manufactured goods.

CERTIFICATE OF ORIGIN: A certified document as to the origin of the goods, used in foreign commerce.

C&F: Quoted price includes cost of goods and freight.

C.F.R.-NAMED PORT - Cost and Freight: All costs of goods and transportation to the named port are included in the price quoted. Buyer pays insurance while aboard ship up to the overseas inland destination.

CFS (CONTAINER FREIGHT STATION): The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo.

CFS/CFS (PIER TO PIER): The term CFS/CFS means cargo delivered by break-bulk to Carrier's CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier's destination port CFS.

CFS/CY (PIER TO HOUSE): The term CFS/CY means cargo delivered break-bulk to Carrier's CFS to be packed by Carrier into containers and accepted by consignee at Carrier's CY and unpacked by the consignee off Carrier's premises, all at consignee's risk and expense.

CFS CHARGE (CONTAINER FREIGHT CHARGE): The term CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS.

CFS RECEIVING SERVICES: The term "CFS Receiving Services" means the service performed at loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following-

1.      Moving empty containers from CY to CFS

2. Drayage of loaded containers from CFS to CY and/or ship's tackle
3. Tallying
4. Issuing dock receipt/shipping order
5. Physical movement of cargo into, out and within CFS
6. Stuffing, sealing and marking containers
7. Storage
8. Ordinary sorting and stacking
9. Preparing carrier's internal container load plan

CHARGEABLE KILO: Rate for goods where volume exceeds six cubic meters to the ton.

CHARTER: Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has usually come to mean any non-scheduled commercial service.

CHARTER PARTY: Renting of an entire vessel or part of its freight space for a particular trip or stipulated period of time.

CHARTER PARTY BILL OF LANDING: A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.

CHASSIS: A wheel assemble including bogies constructed to accept mounting of containers.

C & I: Quoted price includes cost of goods and insurance.

CIA: The acronym meaning "cash in advance," a method of payment for goods whereby buyer pays seller in advance of shipment of goods.

C.I.F. NAMED PORT: Cost, Insurance, Freight. Same as CFR but seller also provides insurance up to named destination.

C.I.F.& E. : Price includes exchange of currency from one country to a foreign money as well as C.I.F.

C.I.P. : Carriage & Insurance Paid to: - Named Place

C.I.T.E.S.: Convention on International Trade of Endangered Species.

C.P.T. : Carriage Paid to (Named Place of Destination)

CLASS RATES: A class of goods or commodities is a large grouping of various items under one general heading. All items in the group make up a class. The freight rates that apply to all items in the class are called rates.

 

 

CLASSIFICATION: A Customs term. The placement of an item under the correct number in the Customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the Customs on a given item.

CLAUSED BILL OF LADING: A bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted.

CLEAN BILL OF LADING: : Document of receipt issued by a carrier when the goods received are in good order.

CLEAN DRAFT: A draft to which no documents have been attached.

cm: Centimeters

CNS: Cargo Network Services, an IATA company. See IATA.

COLLECTIVE PAPER: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

COLLECTOR OF CUSTOMS: : The representative of the Government acting for the government in connection with the foreign traffic to specifically named inland and sea ports.

COMBI: An aircraft with pallet or container capacity on its main deck as well as in its belly holds.

COMBINATION EXPORT MANAGER:: A firm which acts as an export sales agent for one or more manufacturers, all of which are non-competitive with the others. Business is transacted under the names of the manufacturers and revenue is derived from sales commission.

COMBINATION VESSELS: Container/Break-bulk vessel – this type of ship accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining.

COMMERCIAL CODE: A published code designed to reduce the total number of words required in a cablegram.

COMMERCIAL INVOICE: An itemized list of goods shipped, usually included among an exporter's collection papers.

COMMODITY SPECIALIST: An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.

COMMON CARRIER: A firm or individual that transports persons or goods for compensation.

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

CONFIRMED LETTER OF CREDIT: A letter of credit, issued by a foreign bank with validity confirmed by a U.S. bank.

CONSIGNEE: The individual or company to whom a seller or shipper sends merchandise and who, upon presentation of necessary documents, is recognized as merchandise owner for the purpose of declaring and paying Customs duties.

 

 

 

CONSIGNEE MARKS: A symbol placed on packages for export for identification purposes; generally consisting of a triangle, square, circle, diamond, cross with letters and/or numbers as well as port of discharge.

CONSIGNMENT: Is the physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent, selling goods and remitting the new proceeds to the consignor.

CONSIGNOR: A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.

CONSOLIDATED SHIPMENT: An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.

CONSOLIDATOR: An agent which brings together a number of shipments for one destination to qualify for the shipment.

CONSORTIUM: The name for an agreement under which several nations or nationals (usually corporations) of more than one nation, join together for a common purpose. It could be for management or exploitation of a natural resource, as in the case of some international petroleum consortiums.

CONSUL: A Government official residing in a foreign country who is charged with the representation of the interests of his country and its nationals.

CONSULAR DECLARATION: A formal statement describing goods to be shipped, made to the consul of the country of destination. Approval must be obtained prior to shipment.

CONSULAR DOCUMENTS: Special forms signed by the consul of a country to which cargo is destined.

CONSULAR INVOICE: A document required by some foreign countries showing exact information as to consignor, consignee, value and description of a shipment.

CONSULATE: The jurisdiction, term of office, or official premises of a consul.

CONSUMPTION ENTRY: An official form used for declaration of reported goods, also showing the total duty due on such transaction.

CONTAINER: The term container means a single rigid, non-disposable dry cargo, insulated, temperature controlled flatrack, vehicle rack portable liquid tank, or open top container without wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to flatrack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and fastenings able to withstand without permanent distortion, all the stresses that may be applied in normal service use of continuous transportation. All containers must bear manufacturer's specifications.

CONTAINER SHIP: Ocean going ship designed to carry containers both internally and on deck. Some are self sustaining.

CONTAINERIZATION: Concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft.

 

 

CONTAINERS (AIR CARGO): Many types of air cargo containers are offered: the containers are designed in various sizes and irregular shapes to conform to the inside dimensions of a specific aircraft.

CONTAINERS (OCEAN): Designed to be moved inland on its own chassis and can be loaded at the shipper's plant for shipment overseas. Basic types of containers are; dry van, open top, half high, hi cube, flat rock, tank container, refrigerated container, insulated container, tilting container. Average outside dimensions are generally 20,35 and 40 feet in length, 8 feet wide and 8 feet high standard.

CONTINOUS BOND: Annual Customs bond insurance compliance with all regulations and requirements.

CONTRACT RATE: A charge levied by carriers selling capacity forward over a given route to a shipper or forwarder; the client is therefore assured of capacity, which must be paid for regardless of load carried.

COUNTERTRADE: A reciprocal trading arrangement, which includes a variety of transactions involving two or more parties.

COUNTERVAILING DUTIES: Special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.

CREDIT RISK INSURANCE:: A form of insurance which protects the seller against loss due to default on the part of the buyer.

CUSTOMS BONDED WAREHOUSE: A warehouse where imported goods may be stored for a total of three years without the payment of duty or taxes.

CUSTOMS BROKER: A service company that transacts customhouse formalities on behalf of an importer. In the United States, a Customs broker must be licensed by the Treasury Department and pass a government examination covering a broad range of knowledge, including all phases of import regulations, rates of duties, Customs law, etc.

CUSTOMS COURT: The court to which importers might appeal or protest decisions made by Customs officers.

CUSTOMSHOUSE: The government office where duties and or tolls are placed on imports or exports and are paid on vehicles or vessels entered or cleared.

CUSTOMHOUSE BROKER: A person or firm, licensed by the Government engaged in entering and clearing goods through Customs. The duties of a broker include preparing the entry blank and filing it; advising the importer on duties to be paid; advancing duties and other costs, and arranging for delivery to his client, his trucking firm or other carrier.

CUSTOMS TARIFF: A schedule of charges assessed by the federal government on imported and/or exported goods.

CUSTOMS UNION: An agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries.

CWO: The acronym meaning "cash with order," a method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

CY (CONTAINER YARD): The term CY means the location designated by Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by shippers or re-delivered by consignees. No container yard (CY) shall be a shipper's consignee's, NVOCC's, or a forwarder's place of business, unless otherwise provided.

CY/CFS (HOUSE TO PIER): The term CY/CFS means containers packed by shipper of Carrier's premises and delivered by shipper to Carrier's CY, all at shipper's risk and expense and unpacked by Carrier at the destination port CFS.

CY/CY (HOUSE TO HOUSE): The term CY/CY means containers packed by shipper off Carrier's premises and delivered by shipper to Carrier's CY and unpacked by consignee off Carrier's premises, all at the risk and expense of cargo.

D

D/A SIGHT DRAFT: Documents against acceptance sight draft. A method of payment for goods in which documents transferring title are delivered to the buyer as soon as he signs acceptance, stamped on a draft, guaranteeing payment of the draft.

D.A.F.: Delivered at Frontier (Named Place)

D.D.U.: Delivered Duty Unpaid (Named Place of destination)

D.D.P.: Delivered Duty Paid (Named Place of Destination)

D.E.Q.: Delivered Ex Quay (Named Port of Destination)

D.E.S.: Delivered Ex Ship (Named Port of Destination)

DANGEROUS GOODS: Articles or substance capable of posing a significant risk to health, safety or property, and that ordinarily require special attention when being transported.

DAT: Dangerous articles tariff.

DATE DRAFT: A draft that matures in a specified number of days after issuance without regard to date of acceptance.

DCA: Department of Civil Aviation. Commonly used term to denote the government department of any foreign country that is responsible for aviation regulation and granting traffic rights.

DDP: Delivered duty paid. Also known as "free domicile."

DDU: Delivered duty unpaid. Reflects the emergence of "door-to-door" intermodal or courier contracts or carriage where only the destination Customs duty and taxes (if any) are paid by consignee.

DEAD LEG: A sector flown without payload.

DEAD FREIGHT: Freight charges paid by the charter of vessel for the contracted space, which is left partially unoccupied.

DECK CARGO: Cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives.

 

 

DEFERRED REBATE: The return of a portion of the freight charges by a carrier or a conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although, the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade between foreign countries.

DEMURRAGE: Excess time taken for loading or unloading of a vessel not caused by the vessel operator, but due to the acts of a charter or shipper.

DENSITY: Density means pounds per cubic foot. The cubage of loose articles or pieces, or packaged articles of a rectangular, elliptical or square shape on one plane shall be determined by multiplying the greatest straight line dimensions of length, width and depth in inches, including all projections, and dividing the total by 1728 ( to obtain cubic feet). The density is the weight of the article divided by cubic feet thus obtained.

DEQ: Delivered ex quay/duty paid.

D.F.: Dead Freight

DGR: Dangerous Goods Requirement.

DIM WEIGHT (Dimensionalized Weight): Determined by calculating length x width x height and dividing by 166. Charged when actual weight is less than the dim. weight.

DIRECT EXPORTING: Sale by an exporter directly to a buyer located in a foreign country.

DISTRIBUTOR: A foreign agent who sells directly for a manufacturer and maintains an inventory on hand.

DOCK RECEIPT: A receipt given for a shipment received or delivered at a steamship pier. When delivery of a foreign shipment is completed the dock receipt is surrendered to the vessel operator or his agent and serves as a basis for preparation of the Ocean Bill of Lading.

DOCUMENTS AGAINST PAYMENT (D/P): A type of payment for goods in which the documents transferring title to the goods are not given to the buyer until he has paid the value of the draft issued against him.

DOT: Department of Transportation

DRAFT (also Bill of Exchange): An unconditional order in writing from one person (the Drawer) to another (the Drawee), directing the drawee to pay a specified amount to a named drawer on a fixed date.

DRAWBACK: A partial refund of duties paid on importation of goods which are further processed and then re-exported.

DRAWEE: The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer.

DRY LEASE: The rental of a "clean" aircraft without crew, ground staff or supporting equipment.

DST: The acronym meaning "double stack train" service, which is transport by rail between two points of a trainload of containers with two containers, one on top of the other, per chassis.

d.w.: Deadweight (tons of 2,240 lbs.)

d.w.c.: Deadweight for cargo

DUTY: A tax levied by a government on the import, export or use and consumption of goods.

E

E.A.O.N.: Except as otherwise noted.

EDI or EDIFACT: Electronic Data Interchange for Administration, Commerce and Transport, from the UN-backed electronic data interchange standards body, to create electronic versions of common business documents that will work on a global scale. One digital document under consideration, the International Forwarding and Transport Message will do the jobs of six different electronic messages currently in use.

EMPTY LEG: Results from an aircraft primarily chartered outbound having cargo capacity inbound or vice versa. A cheap form of airfreight.

ENDORSEMENT IN BLANK: 1. Commonly used on a bank check, an endorsement in blank is an endorsement to the bearer. It contains only the name of the endorser and specifies no particular payee. 2. Also, a common means of endorsing bills of lading dawn to the order of the shipper. The bills are endorsed "For…" (see Bill of Lading Order).

Ex. B.L.: Exchange bill of lading

ENTRY (Customs): A statement of the kinds, quantities and values of goods imported together with duties due, if any. Declared before a Customs Official.

ENTRY PAPERS: Those documents which must be filed with the Customs Officials describing goods imported, such as consumption entry, Ocean Bill of Lading or carrier release and the appropriate Customs invoice.

EX DOCK (Import Usage only): The seller is obliged to place the specified goods at the specified price on the import dock, clear of all customs and duty requirements. The buyer must do nothing further than pick up the goods within a prescribed time limit.

EXW (Ex Warehouse, Ex Mine, Ex Factory): The seller is obliged to place the specified quantity of goods at the specified place at his mill loaded on trucks, railroad cars or other specified means of transport. The buyer must accept the goods in this manner and make all arrangements for transportation.

EXPORT: To send goods to a foreign country.

EXPORT BROKER: One who brings together the buyer and seller for a fee and then withdraws from the transaction.

EXPORT COMMISSION HOUSE: An organization which, for a commission, acts as a purchasing agent for a foreign buyer.

EXPORT DECLARATION: (Form B.l3, Form B.l4) A formal statement made to the Collector of Customs at a port of exit declaring full particulars about goods being exported.

EXPORT LICENSE: A permit required to engage in the export of certain commodities and quantities to certain destinations. Lists of such goods are located in the IMPORT/EXPORT PERMITS HANDBOOK

EXPORT MERCHANT: A producer or merchant who sells directly to a foreign purchaser without going through an intermediate such as an Export Broker.

EXPORT RATE: A freight rate especially established for application on export traffic and generally lower than the domestic rate.

EXPORT TRADING COMPANY: A corporation or other business unit organized and operated primarily for the purpose of exporting goods and services, or of providing export-related services to other companies.

EXPRESS: Premium-rated service for urgent deliveries.

EXW: Ex works. Same as the former "Ex Works."

F

F.A.S.: Free Alongside Ship (Named port of shipment)

FAK: Freight All Kinds – uniform airline charging scale applying to a number of commodities; as opposed to SCR (Specific Commodity Rate) applying to one commodity only.

FATHOM: (Nautical) Conversion equivalents; 6 feet; 1.83 meters.

F.C.A.: Free Carrier (Named Place)

F.C.L.: Full container load, full car load

F.c.s.: Free of capture and seizure.

f.c.s.r.c.c.: Free of capture, seizure, riots and civil commotion.

F & D: Freight and demurrage.

FEU: Forty foot equivalent

FIATA: International Federation of Freight Forwarders Association

FIFTH FREEDOM FLIGHT: Where cargo is carried by an airline between two countries in neither of which it is based.

F.i.b.: Free in bunkers; free into barge.

FLAG CARRIER: An airline of one national registry whose government gives it partial or total monopoly over international routes.

F.O.B. FREIGHT ALLOWED: The same as F.O.B. Named inland carrier except the buyer pays the freight charges and the seller reduces his invoice by a like amount.

F.O.B. NAMED INLAND CARRIER: Seller must place the goods on the named carrier at the specified inland point and obtain a bill of lading. The buyer pays for the transportation.

 

 

F.O.B. NAMED PORT OF EXPORTATION: Seller is responsible for placing the goods at the named point of exportation at the Seller's expense. Some European buyers use this form when they actually mean F.O.B. Vessel.

F.O.B. VESSEL: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

FOLDED: An article folded in such a manner as to reduce its bulk 33 1/3% from its normal shipping cubage when not folded.

FOREIGN BRANCH OFFICES: A sales (or other) office maintained.

FOREIGN SALES AGENT: An agent residing in a foreign country, who acts as a salesman for a domestic manufacturer.

FOREIGN TRADE ZONE ENTRY: A form declaring goods which are brought duty free into a Foreign Trade Zone for further processing or storage and subsequent exportation.

FOUL BILL OF LADING: A receipt for goods issued by a carrier because a notation that the outward containers of the goods have been damaged.

FREE ALONGSIDE (F.A.S.): (or free alongside steamer) - The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment.

FREE IN AND OUT (F.I.O.): Cost of loading and unloading of a vessel is borne by the charter.

FREE OF CAPTURE AND SEIZURE (F.C.&.S.): An insurance clause providing that loss is not insured if due to capture. Seizure, confiscation and like actions, whether legal or not, or from such acts as piracy, civil war, rebellion and civil strife.

FREE OF PARTICULAR AVERAGE (F.P.A.): A marine insurance clause providing that partial loss or damage is not insured. American conditions (F.P.A.A.C.) - partial loss not insured unless caused by the vessel being sunk, stranded, burned, on fire or in collision. English conditions (F.P.A.E.C.) partial loss not insured unless a result of the vessel being sunk, stranded, burned, on fire or in collision.

FREE OUT (F.O.): Cost of unloading a vessel is borne by the charter.

FREE PORT: A port which is a foreign trade zone, open to all traders on equal terms; more specifically a port where merchandise may be stored duty-free, pending re-export or sale within that country.

FREE TRADE ZONE: An area to which goods may be imported for processing and subsequent export on a duty free basis.

FREIGHT FORWARDER: An individual or company, acting on behalf of a shipper, who arranges all necessary details of shipping and documentation for a manufacturer or exporter, which includes employing services of a carrier or carriers.

G

GANG: Group of stevedores usually 4 to 5 members with supervisor assigned to a hold or promotion of the vessel being loaded or unloaded.

 

 

GATEWAY: Port of entry into a country or region.

GATT: General Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce trade barriers and promote tariff concessions.

GCR: General Cargo Rate. The basic tariff category which was introduced to cover most air cargo now covers only a minority, the remainder being under SCR or class rates.

GENERAL AVERAGE: A deliberate loss of damage to goods in the face of a peril, which sacrifice is made for the preservation of the vessel and other goods. The cost of the loss is shared by the owners of the saved goods.

GENERAL EXPORT LICENSE: Any of various export licenses covering export commodities for which validated export licenses are not required.

GENERAL LICENSE, LIMITED VALUE (GLV): Authorization to export a limited value amount of the goods without specific documentary authorization.

GENERAL ORDER: Government contract warehouse for the storage of cargoes left unclaimed for ten working days after availability. Unclaimed cargoes are auctioned publicly after one year.

GROSS WEIGHT: Entire weight of goods, packing and container, ready for shipment.

G.R.Wt./G.W.: Gross Weight

GSA: General Sales Agent acting on behalf of an airline. Usually Broker or Forwarder.

H

HARMONIZED CODE: An internationally accepted and uniform description system for classifying goods for Customs, statistical and other purposes.

HARMONIZED SYSTEM: A key provision of the recently signed trade bill, effective Jan. 1 1989, that establishes international uniformity for product classifications. Most U.S. Trading partners adopted it a year earlier, and it was drafted in Brussels a decade ago with U.S. representatives' input. In essence, it is a new tariff schedule in that it changes methods of rating some items.

HATCH: The cover of – or opening in-the deck of a vessel, through which cargo is loaded.

HEAVY LIFTS: Freight too heavy to be handled by regular ship's tackle.

HEAVY LIFT VESSEL: Specifically designed to be self sustaining with heavy lift cranes, to handle unusually heavy and/or out-sized cargoes.

HOUSE AIR WAYBILL: An air waybill issued by a freight consolidator. See Air Waybill.

HUB: A central location to which traffic from many cities is directed and from which traffic is fed to other areas.

HUNDREDWEIGHT (cwt.): A short ton hundredweight = 100 pounds. Long ton hundredweight = 112 pounds.

HUSBANDING: Term used by steamship lines, agents, or port captains who are appointed to handle all matters in assisting the master of the vessel while in port to obtain bunkering, fresh water, food and supplies, payroll for the crew, doctors appointments, ship repair, etc.

I

IATA: International Air Transport Association.

ICAO: International Civil Aviation Organization. A specialized agency of the United Nations, with headquarters in Montreal. Its task is to promote general development of civil aviation (e.g. aircraft design and operation, safety procedures, contractual agreements).

ICC: International Chamber of Commerce

I.C.T.F.: Intermodal Container Transfer Facility, an on-dock facility for moving containers from ship to rail or truck.

IFF: Institute of Freight Forwarders.

IGLOO: Container designed to occupy full main deck width of carrying aircraft.

IMMEDIATE TRANSPORTATION ENTRY: A customs form declaring goods for transportation by a bonded carrier from a port of entry to an inland port.

IMPORT LICENSE: A certificate, issued by countries exercising import controls, that permits importation of the articles stated in the license. The issuance of such a permit frequently is connected with the release of foreign exchange needed to pay for the shipment for which the import license has been requested.

IMPORT MERCHANT: A merchant who buys overseas for his own account for the purpose of later resale, handling all details of the import documentation and transportation. Usually the merchant is specialized in one or two commodities.

IMPORT RATE: A rate established specifically for application on import traffic and generally less when so published than a domestic rate.

IMPORT DISTRIBUTER: A merchant who imports merchandise, usually on an exclusive territory arrangement, maintains an inventory and through a sales staff, sells to retailers.

IN-BOND: A Customs program for inland ports that provides for cargo arriving at a seaport to be shipped under a Customs bond to a more conveniently located inland port where the entry documents have been filed. Customs clears the shipment there, which normally is close to the inland port.

INDENT: A requisition for goods, enumerating conditions of the sale. Acceptance of an indent by a seller constitutes his agreement to the conditions of the sale.

INDEPENDENT ACTION: A move by whereby a member of a shipping conference elects to depart from the specific service rates set forth by the conference, giving ten calendar days' notice of such action. The conference member's new schedule of rate, or rates, officially takes effect no later than ten days after receipt of notice by the conference.

INDIRECT EXPORTING: Sale by the exporter to the buyer through a domestically located intermediary.

INDUCEMENT: Some steamship lines publish in their schedules the name of a port and the words by inducement in parentheses. This means the vessel will have cargo available and booked.

INLAND CARRIER: A transportation line which hauls export or import traffic between ports and inland points.

INTERNATIONAL AND TERRITORIAL OPERATIONS: In general, operations outside the territory of the country including operations between domestic points separated by foreign territory or major expanses of international waters.

I.a.p.: Including particular average.

INSPECTION CERTIFICATE: A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment.

INTEGRATED CARRIER: Forwarder which uses own aircraft, whether owned or leased, rather than scheduled airlines.

INTELLECTUAL PROPERTY: Ownership of the legal rights to possess, use or dispose of products created by human ingenuity, including patents, trademarks and copyrights.

INTERLINE: Mutual agreement between airlines to link their route network.

INTERMODAL: Referring to the capacity to go from ship to train to truck, or the like, the adjective generally refers to containerized shipping or the capacity to handle same.

J

J.& W.O.: Jettison and washing overboard.

JETSAM: Goods from a ship's cargo, or parts of its equipment, that have been thrown overboard to lighten the load in time of danger, or to set a stranded ship adrift.

JOINT VENTURE: A form of business partnership involving joint management and the sharing of risks and profits between enterprises sometimes based in different countries.

JUST-IN-TIME (JIT): The principle of production and inventory control in which goods arrive when needed for production or use.

K

K.D.C.L.: Knocked down in carload lots.

KD FLAT: An article taken apart, folded, or telescoped to reduce its bulk at least 66 2/3% below its assembled size.

K.D.L.C.L.: Knocked down in less than carload lots.

KNOCKED DOWN (KD): An article taken apart, folded or telescoped in such a manner as to reduce its bulk at least 33 1/3% below its assembled bulk.

KNOT(Nautical): The unit of speed equivalent to one nautical mile, or 6,080.20 feet per hour or 1.85 kilometers per hour.

L

LAGAN: Cargo or equipment to which an identifying maker or buoy is fastened, thrown over- board in time of danger to lighten a ship's load. Under maritime law if the goods are later found they must be returned to the owner whose marker is attached; the owner must make a salvage payment.

LAY DAYS: The dates between which a chartered vessel is to be available in a port for loading of cargo.

L.C.L.: Less than container load; less than car load.

L & D: Loss and damage

LEGAL WEIGHT: The weight of the goods plus any immediate wrappings which are sold along with the goods; e.g. the weight of a tin can as well as its contents (see net weight).

LESS THAN TRUCKLOAD (LTL): Rates applicable when the quantity of freight is less than the volume or truckload minimum weight.

LETTER OF CREDIT (L/C): A method of payment for goods in which the buyer established his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and proceeds to transfer funds to the seller. The banks insist upon exact compliance with the terms of sale and will not pay if there are any discrepancies.

LIGHTER: An open or covered barge equipped with a crane and towed by a tugboat. Used mostly in harbors of barges alongside.

LIGHTERAGE: The cost of loading or unloading a vessel by means of barges alongside.

LINER: The word "liner" is derived from the term "line traffic" which denotes operation along definite routes on the basis of definite, fixed schedules; a liner thus is a vessel that engages in this kind of transportation, which generally involves the haulage of general cargo as distinct from bulk cargo.

LIQUIDATION: The finalization of a customs entry.

LIVESTOCK: Common farm animals.

Lkg. & Bkg.: Leakage and breakage.

LOAD FACTOR: Capacity sold as against capacity available as a percentage.

LO/LO: The acronym meaning "lift-on, lift-off", denoting the method by which cargo is loaded onto and discharged from an ocean vessel, which in this case is by the use of a crane.

l.t or l.tn.: Long ton (2240 lbs).

Ltge.: Lighterage.

 

 

 

M

MANIFEST: A list of the goods being transported by a carrier.

MANUFACTURER'S EXPORT AGENT: A firm which acts as an export sales agent for several non-competing manufacturers. Business is transacted under the name of the agent firm.

MARINE INSURANCE: - An insurance which will compensate the owner of the goods transported overseas in the event of loss which cannot legally be recovered from the carrier.

MARITIME ADMINISTRATION (MARAD): A U.S. government agency, while not actively involved in vessel operation, administers laws for maintenance of merchant marine for the purposes of defense and commerce.

MARK: As used on containers in foreign trade, a symbol or initials shown together with the port of importation and the final destination, if different. Example: A.G. y Cia., Bogota via Barranquilla. Marks are registered at appropriate Customs houses; they also appear on bills of lading and invoices. In domestic trade, it is common to mark containers with the name and address of the recipient, but this is rarely done in foreign trade.

MARKING: Every article of foreign origin, or its container, imported into the United States shall be permanently marked in a conspicuous place in a manner which would indicate to the ultimate purchaser the English name of the country of origin of the article.

MATE'S RECEIPT: Receipt of cargo by vessel, signed by the mate (similar to dock receipt).

MEASUREMENT TON: The measurement ton (also known as the cargo ton or freight ton) is a space measurement, usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet or 1 cubic meter it occupies.

Min. B/L: Minimum bill of lading

M.M.: Mercantile marine

M/R: Mate's Receipt

mt.: Empty

M/V or M.V.: Motor vessel

MW: Minimum weight factor

N

NATIONAL CARRIER: A flag carrier owned or controlled by the state.

n.e.m.: Not elsewhere mentioned (English)

n.e.s.: Not elsewhere specified

NESTED: Three or more different sizes of an article are placed within each other so that each article will not project above the next lower article by more than 33 1/3% of its height.

NET TERMS: Free of charter's commission.

NET WEIGHT (Actual Net Weight): Weight of the goods along without any immediate wrappings; e.g. the weight of the contents of a tin can without the weight of the can (see legal weight)

NMFC: National Motor Freight Classification

NON-VESSEL OPERATING COMMON CARRIER (NVOCC): A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port.

NO OBJECTION FEE: Sum of money paid by a charter airline normally to a scheduled airline in order that it waives its right of objection to its government, thus allowing a charter to take place. Tantamount to a bribe. The amount is usually a fixed percentage of the gross cost of a charter. Common practice in the Middle East and Africa.

N.O.E.: Not otherwise enumerated

N.O.H.P.: Not otherwise herein provided

N.O.I.: Not more specifically described

N.O.I.B.N.: Not otherwise indicated by a number; Not otherwise indicated by name

NON-SCHEDULED FLIGHT: See scheduled Flight

NON-VESSEL OPERATING COMMON CARRIER (NVOCC): An F.M.C licensed cargo consolidator of small shipments in ocean trade, generally soliciting business functions at the port.

N.O.S.: Not otherwise specified

N.T.: Net tons

 

O

O.D.: Outside diameter

ODS: An acronym commonly used for the term "operating differential subsidy" which is a payment to an American-flag carrier by the federal government to offset the difference in operating costs between U.S. and foreign vessels.

OFF-LINE: Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network.

O/N: Order notify; own name

O/o: Order of

 

 

OPEN ACCOUNT: A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

OPEN POLICY: A cargo insurance policy that is an open contract; i.e., it provides protection for all of an exporter's shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is "open" because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate.

O/R: Owner's risk

O.& R.: Ocean and Rail

O.R.B.: Owner's risk or breakage

O.R. Det: Owner's risk of deterioration

O.R.F.: Owner's risk of freezing

O.R.L.: Owner's risk of leakage

O.R.W.: Owner's risk of becoming wet

O.S.& D.: Over, short and damage

P

P.A.: Particular average

PAIRED: Port of Arrival Immediate Release and Enforcement Determination. A U.S. Customs program that allows entry documentation for an import shipment to be filed at one location, usually an inland city, while the merchandise is cleared by Customs at the port of entry, normally a seaport. May be ineffective with certain types of high-risk cargoes, such as quota-regulated textiles or shipments from drug production regions. Cities where there is a natural flow of cargo are actually "paired" in the program; e.g., Atlanta, an inland city, is linked with Savannah, a seaport. Tested in '87-'88, it became generally available in mid-'88.

PALLET: Load carrying platform to which loose cargo is secured before placing aboard the aircraft.

PALLET EXTENDER: Fashionable metal or cardboard device to increase pallet capacity.

PAPERLESS RELEASE: Under ABI, certain commodities from low-risk countries not designated for examination may be released through an ABI-certified broker without the actual submission of documentation.

PARCEL RECEIPT: Receipt given by a steamship company for a parcel shipment.

PART CHARTER: Where part of an airline's scheduled flight is sold as if it were a charter in its own right (often wrongly used as a synonym for split charter).

PARTICULAR AVERAGE: Partial loss or damage to goods.

PERILS OF THE SEA: Those causes of loss of goods for which the carrier is not legally liable. The elemental risks of ocean transport.

PERISHABLES: Any cargo that loses considerable value if it is delayed in transportation (Usually refers to fresh fruit and vegetables).

PHYTOSANITARY INSPECTION CERTIFICATE: A certificate issued by the U.S. Department of Agriculture indicating that a shipment has been inspected and is free of harmful pests and plant diseases.

PILFERAGE: As used in marine insurance policies, the term denotes petty thievery, the taking of small parts of a shipment, as opposed to the theft of a whole shipment or large unit. Many ordinary marine insurance policies do not cover against pilferage, and when this coverage is desired, it must be added to the policy.

PIVOT WEIGHTS: That weight of ULD above which a higher tariff applies; in effect, an incentive to maximize cargo density.

PLACE: A particular street address or other designation of a factory, store, warehouse, place of business, private residence, construction camp or the like, at a point.

PLACE OF REST: The term "Place of Rest" as used in the Containerized Cargo Rules means that location on the floor, dock, platform or doorway at the CFS to which cargo is first delivered by shipper or agent thereof.

POINT: A particular city, town, village or other community or area which is treated as a unit for the application of rates.

PORT AUTHORITY: A government body (city, country or state) which in international shipping maintains various airports and/or ocean cargo pier facilities, transit sheds, loading equipment warehouses for air cargo, etc. Has the power to levy dockage and wharfage charges, landing fees, etc.

PORT MARKS: An identifying set of letters, numbers and/or geometric symbols followed by the name of the port of destination, which are placed on export shipments. Foreign government requirements may be exceedingly strict in the matter of port marks.

PORT OF DISCHARGE: Port where vessel is off loaded and cargo.

PORT OF ENTRY: A port at which foreign goods are admitted into the receiving country.

PORT OF LOADING: Port where cargo is loaded aboard the vessel lashed and stowed.

POWER OF ATTORNEY: A document that authorizes a customs broker to sign all Customs documents on behalf of an importer.

PREPAID FREIGHT: Generally speaking, freight charges both in ocean and air transport may be either prepaid in the currency of the country of export or they may be billed collect for payment by the consignee in his local currency. However, on shipments to some countries freight charges must be prepaid because of foreign exchange regulations of the country of import and/or rules of steamship companies or airlines.

PRE-SLUNG CARGO: Cargo shipped already in a cargo sling or net. Usually prepared and loaded at pier ready for arrival of vessel and subsequent loading (i.e. coffee in bags, coconut shells, etc.).

PRIMA FACIE: Latin, "on first appearance". When a steamship company issues a clean bill of lading, it acknowledges that the goods were received "in apparent good order and condition" and this is said by the

courts to constitute prima facie evidence of the conditions of the containers; that is, if nothing to the contrary appears, it must be inferred that the cargo was in good condition when received by the carrier.

PRIVATE CODE: A secret code system devised to conceal the contents of a message and to reduce the number of words required in a cablegram.

PROFORMA: When used with the title of a document, the term refers to an informal document presented in advance of the arrival, or preparation of the required document, in order to satisfy a customers requirement.

PRO NUMBER: A number assigned by the carrier to a single shipment, used in all cases where the shipment must be referred to. Usually assigned at once.

PROOF OF DELIVERY: Add-on service in express market, delivered either by phone or courier. Often offered free.

PROTEST: Customs form 19 allows for a fund of an overpayment of duty if filed within 90 days of liquidation.

P.W.: Packed weight

Q

QUOTAS: The quantity of goods which may be imported without restrictions or additional duties or taxes.

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

R

R. & C.: Rail and Canal

R/C: Reconsigned

r. & c.c.: Riots and civil commotion

REBATE: A deduction taken from a set payment or charge. As a rebate is given after payment of the full amount has been made, it differs from a discount which is deducted in advance of the payment. In foreign trade, a full or partial rebate may be given on import duties paid on goods which are later re-exported.

RECIPROCITY: A practice by which governments extend similar concessions to one another.

REFG.: Refrigerating; Refrigeration

Regs.: Registered Tonnage

RETALIATION: Action taken by a country to restrain its imports from another country that has increased a tariff or imposed other measures that adversely affects the first country's exports.

RORO (ROLL ON-ROLL OFF): Direct drive on/drive off wheeled vehicles on specially designed oceangoing vessels.

ROUTE: An established air passage, from point of departure to terminating station.

 

 

ROYALTY: A charge on charter flights levied by some governments before traffic rights are granted. Some times called a "no objection fee". Usually a fixed proportion of a total charter value.

S

SALVAGE: Rescue of goods from loss at sea or by fire; also, goods so saved, or payment made or due for their rescue.

SCHEDULE "B": Refers to "Schedule B" Statistical Classification of Domestic and Foreign Commodities exported from the United States.

SCHEDULED FLIGHT: Any service that operates to a set timetable.

SCR: Specified Commodity Rate. Applied to narrowly specified commodities. Usually granted on relatively large shipments. Theoretically is a limited duration.

SECTOR: Distance between two ground points within a route.

SELF-SUSTAINING: Vessel has its own cranes and equipment mounted on board for loading/unloading. Used in ports where shore cranes and equipment are lacking.

SERVICE: The defined, regular pattern of calls made by a carrier in the pick-up and discharge of cargo.

SERVICE CONTRACT: A contract between a shipper and an ocean carrier of conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period.

SET UP: Articles in their assembled condition.

S. & F.A.: Shipping and forwarding agent.

SHIPMENT: Freight tendered to a carrier by one consignor at one place at one time for delivery to one consignee at one place on one bill of lading.

SHIPPER: Term used to describe exporter. Mostly manufacturing companies.

SHIPPER'S EXPORT DECLARATION A form required by the treasury department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as "Schedule "B" (see above) identification number (similar to the Canadian B.13 form).

SHIPPER'S LOAD, STOWE & COUNT: A clause inserted on an ocean bill of lading by the steamship line when a container is positioned at the shipper's premises for loading. This simply means the Steamship Line didn't load the container, therefore they cannot be held accountable for the contents.

SHIP'S MANIFEST: An instrument in writing containing a list of the shipments comprising the cargo of vessel.

SHIP'S TACKLE: All rigging, etc., utilized on a ship to load or discharge cargo.

SHORT-SHIPPED: Cargo manifested but not loaded.

SINGLE ENTRY CHARTER: A non-scheduled flight carrying the cargo of one shipper.

SIGHT DRAFT: A draft payable upon presentation to the drawee. Compare date draft and time draft.

S.I.T.: Stopped in Transit

SITE: A particular platform or location for loading or unloading at a place.

S.L. & C.: Shipper's Load and Count

S.L. & T.: Shipper's Load and Tally

S/N: Shipping Note

S.O.L.: Ship Owner's Liability

SPLIT CHARTER: Where a number of consignments from different shippers are carried on the same non-scheduled aircraft. Under U.K. regulations a non-scheduled flight chartered by a single forwarder or agent on behalf of a number of shippers is still classified as a single entity although it can consolidate.

S.R.: Shipping Receipt

S.R. & C.C.: Strikes, riots, and civil commotion.

SS: Steamship; steam powered ship (Steam driven turbines)

STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC): A standard numerical code system developed by the United Nations to classify commodities used in international trade.

STEAMSHIP AGENT: A duly appointed and authorized representative in a specified territory acting on behalf of a steamship line or lines and attending to all matters relating to the vessels owned by his principals.

STEAMSHIP CONFERENCE: A group of vessel operators joined together for the purpose of establishing freight rates. A shipper may receive reduced rates if the shipper enters into a contract to ship on vessels of the Conference members only.

STEAMSHIP LINE: Company is usually composed of the following departures: vessel operations, container operations, tariff departure, booking, outbound rates, inward rates and sales. The company can maintain its own in-country U.S. offices to handle regional sales, operations and/or other matters or appoint steamship agents to represent them doing same. Some lines have liner offices in several regions and have appointed agents in others.

STERLING BLOC: The British Commonwealth countries which fixed the price of sterling used in foreign exchange. With a fixed price, sterling was not readily convertible to other currencies. This resulted in trade within the Bloc being favored.

STOWAGE: The lacing of cargo in a vessel in such a manner as to provide the utmost safety and efficiency for the ship and the goods it carries.

STRIKES, RIOTS AND CIVIL COMMOTIONS (S.R.& C.C.): A term referring to an insurance clause excluding insurance of loss caused by labor disturbances, riots and civil commotion or any person engaged in such actions.

SUBSIDY: An economic benefit granted by a government to producers of goods or services, often to strengthen their competitive position.

SUE AND LABOUR CLAUSE: A provision in marine insurance obligating the assured to do those things necessary after a loss to prevent further loss and to act in the best interests of the insurer.

S.W.: Shipper's weights

SWITCH TRANSACTIONS The practice of exporting (or importing) goods through an intermediary country to final destination. This is done when the destination country is short of U.S. Dollars and the Intermediary country has U.S. Dollars available and is willing to exchange for destination country's currency on goods. Switch transactions must be performed within the various laws concerning export licenses.

T

TALLY SHEET: List of cargo, incoming and outgoing, checked by Tally clerk on dock.

TARE WEIGHT: The weight of packing and containers without the goods to be shipped.

TARIFF: A general term for any listing of rates, charges, etc. The tariffs most frequently encountered in foreign trade are: tariffs on the international transportation companies operating on sea, on land, and in the air; tariffs of the international cable, radio, and telephone companies; and the Customs tariffs of the various countries, which list goods that are duty free and those subject to import duty, giving the rate of duty in each case. There are various classes of Customs duties.

T.B.L.: Through bill of lading

TEMPERATURE CONTROLLED CARGO: Any cargo requiring carriage under controlled temperature.

TEU: Twenty foot equivalent.

THIRD FREEDOM RIGHT: Where cargo is carried by an airline, from country in which it is based, to a foreign country.

T.I.B.: Temporary Import Entry.

TIME DRAFT: A draft that matures in a certain number of days, either from acceptance or date of the draft.

TITLE, PASSING: The passing of title to exported goods is determined in large by the selling terms. For example, if an exporter sells goods C.I.F. he may be presumed to pass ownership and tender of documents. However, he may ship on a bill of lading drawn to his own order, to prevent the buyer from gaining possession of the goods until the draft is paid or accepted. In this case he retains a security title to the goods; that is, a title for security purposes only, until the financial arrangement is carried out. Caution: depending on the laws of the buyer's country, you may not be able to force passage of title without payment having been received or the buyer having accepted delivery of the goods or a clear understanding by the buyer being understood and accepted.

TL: Truckload

TON: Freight rates for liner cargo generally are quoted on the basis of a certain rate per ton, depending on the nature of the commodity. This ton, however, may be weight ton or a measurement ton.

TON-DEADWEIGHT: Indicates the carrying capacity of the ship in terms of the weight in tons of the cargo, fuel, provisions and passengers which a vessel can carry.

TON-DISPLACEMENT: The weight of the volume of water which fully loaded ship displaces.

TON-KILOMETER: Measure of airline freight capacity.

TON-REGISTERED: Indicates the cubical contents or burden of a vessel in tons of 100 cubic feet. The space within a vessel in units of 100 cubic feet.

TRACKING: A carrier's system of recording movement intervals of shipments from origin to destination.

TRADE: A term used to define a geographic area or specific route served by carriers.

TRAFFIC CONFERENCES: Rate-fixing machinery operated by IATA.

TRAMP: A tramp is a vessel that does not operate along a definite route on a fixed schedule, but calls at any port where cargo is available.

TRANSSHIPMENT: The transfer of a shipment from one carrier to another in international trade, most frequently from one ship to another. In as much as the unloading and reloading of delicate merchandise is likely to cause damage, transshipments are avoided whenever possible.

TRANSPORTATION AND EXPORTATION ENTRY (T & E Entry): A form declaring goods which are entering the United States (for example from Canada) for the purposes of exportation through a U.S. Port. Carriers and any warehouses must be bonded.

TRANSPORT INDEX: The number expressing the maximum radiation level in a package of ULD.

TRUCKLOAD: Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be at the truckload minimum weight unless weight is higher.

TRUST RECEIPT: Release of merchandise by a bank to a buyer for manufacturing or sales purposes in which the bank retains title to the merchandise.

U

UKACC.: United Kingdom Air Cargo Club

ULD: Unit Load Device. Pallet or Container for freight.

UNCLEAN BILL OF LADING: A bill containing reservations as to the good order and condition of the goods, or the packaging, or both. Examples; "bags torn"; "drum leaking"; "one case damaged"; "rolls chafed".

UNITIZATION: The packing of single or multiple consignments into ULDs or pallets.

UNIVERSAL POSTAL UNION: Organization which negotiates international mail charges.

V

VALUATION CHARGES: Transportation charges assessed shippers who declare a value of goods higher than value of carriers' limits of liability.

Ves.: Vessel

VISA: An invoice properly validated by the Minister of Trade in regard to quota entries.

VOLUME WEIGHT: Used when calculating air freight when the size of the carton is greater that the average weight, calculated by multiplying the length times the width times the height and dividing by 166.

 

W

W.A.: With Average

WAREHOUSE RECEIPT: A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non-negotiable if permitting delivery only to a specified person or firm, but it is negotiable if made out to the order of a person or firm or bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.

WAREHOUSE-TO-WAREHOUSE: A clause in marine insurance policy whereby the underwriter agrees to cover the goods while in transit between the initial point of shipment and the point of destination, with certain limitations, and also subject to the law of insurable interest. When it was first introduced, the warehouse-to-warehouse clause was extremely important, but now its importance is diminished by the marine extension clauses, which override its provisions.

WAR RISK: The possible aggressive actions against a ship and its cargo by belligerent government. This risk can be insured by a marine policy with a risk clause.

WAR RISK INSURANCE: Separate insurance coverage for loss of goods which results from any act of war. This insurance is necessary during peace time due to objects such as floating mines left over from the period of unrest.

WEIGHT:
Gross – The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped.

Net – The weight of the goods themselves without the inclusion of any wrapper.

Tare – The weight of the packing or container.

Weight/Measurement Ton – In many cases, a rate is shown per weight/measurement ton, carrier's option. This means that the rate will be assessed on either a weight ton measurement ton basis, whichever will yield the carrier the greater revenue. For example, the rate may be quoted on the basis of 2,240 pounds or 40 cubic feet or of 1 metric ton or 1 cubic meter.

Weight Ton – There are three types of weight ton: the short ton, weighing 2,000 pounds: the long ton, weighing 2,240 pounds; and the metric ton weighing 2,204.68 pounds. The last is frequently quoted for cargo being exported from Europe.

WEIGHT, LEGAL: Net weight of goods, plus inside packing.

WEIGHT LOAD FACTOR: Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved.

WESTERN HEMISPHERE TRADE CORPORATION: A domestic (U.S.) corporation whose business is done in any country of North, South or Central America or the West Indies and which usually receives certain tax advantages.

WET LEASE: An arrangement for renting an aircraft under which the owner provides crews, ground support equipment, fuel and so on (of dry lease).

w.g.: Weight guaranteed

WHARFAGE: A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock.

W. & I.: Weighing and Inspection

WITH AVERAGE: A marine insurance term meaning that shipment is protected for partial damage whenever the damage exceeds a stated percentage.

WITHOUT RESERVE: A term indicating shipper's agent or representative is empowered to make definitive decisions and adjustments aboard without approval of the group or individual represented. See advisory capacity.

WITH PARTICULAR AVERAGE (W.P.A.): An insurance term meaning that partial loss or damage to goods is insured. Generally must be caused by sea water. May have a minimum percentage of damage before payment. May be extended to cover loss by theft, pilferage, non-delivery, leakage and breakage.

W/M: Weight and/or measurement

W.P.A.: With Particular Average

W/R: Warehouse receipt

X

X HEAVY: Extra heavy

X STRONG: Extra strong

Y

Y/A (YORK-ANTWERP RULES): A code of rules adopted by an international convention in 1980, amending in 1924 and again in 1950, for the purpose of establishing a uniform basis for adjusting general average. Certain nationalities decline to observe certain of the rules adopted. United States shipping interests generally abide by general rule "F" and numbered rules 1 to 15 and 17 to 22, inclusive and specifically set forth in a Bill Of Lading Clause.

YIELD: Revenue, not necessarily profitable, per unit of traffic.