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Glossary - Terms and Definitions

Acceptance of Goods The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment and on this place the carrier's responsibility for the consignment begins.

Added Value The value attributed to products, and services as the result of a particular process (e.g. production process, storage, transport).

Advanced Charge A charge paid by a carrier to an agent or to another carrier, which the delivering carrier then collects from the consignee. Such charges are usually for agents' forwarding fees and incidental expenses paid out of pocket for account of the shipment by an agent or other carrier.

Advice Note A written piece of information e.g. about the status of the goods.

AFT At, near or towards the stern or rear of a vessel or an aircraft.

Agency Fee Fee payable by a shipowner or ship operator to a port agent.

AI All inclusive.

All In Rate Freight rate which is inclusive of all surcharges and extras.

Allocation The process of assigning activities, costs or facilities e.g. space to a certain organizational units.

Allotment A share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of the booking of cargo for a specific voyage.

Arrival Notice A notice sent by a carrier to a nominated notify party advising of the arrival of a certain shipment.

Assembly The stage of production in which components are put together into an end product appropriate to the process concerned.

Assignment The transfer of certain rights from one party to another.

Authorization The commission to a certain person or body to act on behalf of another person or body. The person or body can be authorized e.g. to issue Bills of Lading or to collect freight.

Auto Container Container equipped for the transportation of vehicles.

Back Haul The return movement of a means of transport which has provided a transport service in one direction.

Back Order A customer’s order or commitment that is unfilled due to insufficient stock.

Backlog The quantity of goods still to be delivered, received, produced, issued, etc., for which the planned or agreed date has expired. The total number of customer orders which have been received but not yet been shipped..

BAF Bunker Adjustment Factor.

Bar Coding A method of encoding data for fast and accurate electronic readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers, used to facilitate timely and accurate input of data to a computer system.

Barge Flat bottomed inland cargo vessel for canals and rivers with or without own propulsion for the purpose of transporting goods.

Berth A location in a port where a vessel can be moored, often indicated by a code or name.

Bill of Lading A document which evidences a contract of carriage by sea.

Bonded The storage of certain goods under charge of customs viz. customs seal until the import duties are paid or until the goods are taken out of the country. Bonded warehouse (place where goods can be placed under bond). Bonded store (place on a vessel where goods are placed behind seal until the time that the vessel leaves the port/country again). Bonded goods (dutiable goods upon which duties have not been paid, i.e. goods in transit or warehoused pending customs clearance).

Booking The offering by a shipper of cargo for transport and the acceptance of the offering by the carrier or his agent.

Booking Reference Number The number assigned to a certain booking by the carrier or his agent.

Box Pallet Pallet with at least three fixed, removable or collapsible vertical sides.

Break Bulk To commence discharge.

Break Bulk Cargo General cargo conventionally stowed as opposed to unitized, containerized and Roll On-Roll Off cargo.

Broker Person who acts as an agent or intermediary in negotiating contracts.

Bulk Cargo Unpacked homogeneous cargo poured loose in a certain space of a vessel or container e.g. oil and grain.

Bulk Carrier Single deck vessel designed to carry homogeneous unpacked dry cargoes such as grain, iron ore and coal.

Bulk Container Shipping container designed for the carriage of free-flowing dry cargoes, which are loaded through hatchways in the roof of the container and discharged through hatchways at one end of the container.

Bunker (Tank) or spaces on board a vessel to store fuel.

Bulkhead Upright partition dividing compartments on board a vessel.

Bunker Adjustment Factor (BAF) Adjustment applied by shipping lines or liner conferences to offset the effect of fluctuations in the cost of bunkers.

Buyer's Market A 'buyer's market' is considered to exist when goods can easily be secured and when the economic forces of business tend to cause goods to be priced at the purchaser's estimate of value.

CAD Cash Against Documents.

CAF Currency Adjustment Factor.

Call The visit of a vessel to a port.

Capacity The ability, in a given time, of a resource measured in quality and quantity. The quantity of goods which can be stored in or loaded into a warehouse, store and/or loaded into a means of transport at a particular time.

Cargo Goods transported or to be transported, all goods carried on a ship, aircraft or transport carrier covered by a B/L.

Cargo Handling All procedures necessary to enable the physical handling of goods.

Cargo Tracer A document sent by the agent to all relevant parties, stating that certain cargo is either missing or over-landed.

Carriage The process of transporting (conveying) cargo, from one point to another.

Cash Against Documents (CAD) Terms of payment: if the buyer of goods pays for the goods against transfer of the documents, entitling him to obtain delivery of the goods from the carrier.

Cash On Delivery (COD) Terms of payment: if the carrier collects a payment from the consignee and remits the amount to the shipper.

Central Warehouse A warehouse which performs central functions for a number of warehouses. (e.g. keeping capacity stock).

Certificate of Classification A certificate, issued by the classification society and stating the class under which a vessel is registered.

Certificate of Delivery A certificate indicating the condition of a vessel upon delivery for a charter including ballast, available bunkers and fresh water.

Certificate of Origin A certificate, showing the country of original production of goods. Frequently used by customs in ascertaining duties under preferential tariff programs or in connection with regulating imports from specific sources.

CFR OR C&F (Cost and Freight) A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

CFS Container Freight Station.

Charge An amount to be paid for carriage of goods based on the applicable rate of such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.

Charge Type A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.

Charter Party A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or to let his vessel for a definite period or trip for which a hire is paid.

Charterer The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.

Chassis A wheeled carriage onto which an ocean container is mounted for inland conveyance

CIF (Cost, Insurance and Freight) A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

CIP Carriage and Insurance Paid To (...named place of destination).

Claim A charge made against a carrier for loss, damage or delay.

Classification Arrangement according to a systematic division of a number of objects into groups, based on some likenesses or some common traits.

Clean Bill of Lading A Bill of Lading which does not contain any qualification about the apparent order and condition of the goods to be transported (it bears no stamped clauses on the front of the B/L).

Clean on Board When goods are loaded on board and the document issued in respect to these goods is clean.

Clearance Terminal Terminal where Customs facilities for the clearance of goods are available.

Cleared Without Examination (CWE) Cleared by customs without inspection.

Client A party with which a company has a commercial relationship concerning the transport of e.g. cargo or concerning certain services of the company concerned, either directly or through an agent.

COC Carrier Owned Container

Co-loading The loading, on the way, of cargo from another shipper, having the same final destination as the cargo loaded earlier.

Combined Transport Intermodal transport where the major part of the journey is by one mode such as rail, inland waterway or sea and any initial and/or final leg carried out by another mode such as road.

Commercial Invoice Represents 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.

Commodity Box Rate A rate classified by commodity and quoted per container.

Commodity Code Code used in the Harmonized System for the classification of goods which are most commonly produced and traded.

Compradore A local advisor or agent employed by a foreign party or company who acts as an intermediary in transactions with local inhabitants.

Conditions Anything called for as requirements before the performance or completion of something else.

Confirmed Letter Of Credit A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults. Confirming Bank The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit. Consignor A person or company shown on the bill of lading as the shipper.

Congestion Accumulation of vessels at a port to the extent that vessels arriving to load or discharge are obliged to wait for a vacant berth.

Consignee A person or company to whom commodities are shipped.

Consignment A separate identifiable number of goods (available to be) transported from one consignor to one consignee via one or more than one modes of transport and specified in one single transport document.

Consignment Instructions Instructions from either the seller/consignor or the buyer/consignee to a freight forwarder, carrier or his agent, or other provider of a service, enabling the movement of goods and associated activities.

Consignment Note A document prepared by the shipper and comprising a transport contract. It contains details of the consignment to be carried to the port of loading and it is signed by the inland carrier as proof of receipt.

Consignment Stock The stock of goods with an external party (customer) which is still the property of the supplier. Payment for these goods is made to the supplier at the moment when they are sold (used) by this party.

Consolidate To group and stuff several shipments together in one container.

Consolidated Container Container stuffed with several shipments (consignments) from different shippers for delivery to one or more consignees.

Consolidation The grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate.

Consolidation Point Location where consolidation of consignments takes place.

Consolidator A firm or company which consolidates cargo.

Consular Invoice An invoice covering shipment of goods certified by a consular official of the destination country, and used normally by customs or officials concerned with foreign exchange availability to ascertain the correctness of commercial invoice values.

Container A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices.

Container Chassis A vehicle specially built for the purpose of transporting a container so that, when container and chassis are assembled, the produced unit serves as a road trailer.

Container Depot Storage area for empty containers.

Container Freight Station (CFS) A facility at which (export) LCL cargo is received from merchants for loading (stuffing) into containers or at which (import) LCL cargo is unloaded (stripped) from containers and delivered to merchants.

Container Lease The contract by which the owner of containers (lessor) gives the use of containers to a lessee for a specified period of time and for fixed payments.

Container Load Plan A list of items loaded in a specific container and where appropriate their sequence of loading.

Container Logistics The controlling and positioning of containers and other equipment.

Container Manifest The document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.

Container Moves The number of actions performed by one container crane during a certain period.

Container Number Identification number of a container consisting of prefix and serial number and check digit.

Container Owner A party who has a container at his disposal and who is entitled to lease or sell the container.

Container Pool A certain stock of containers which is jointly used by several container carriers and/or leasing companies.

Container Service Charges Charges to be paid by cargo interests as per tariff.

Container Stack Two or more containers, one placed above the other forming a vertical column.

Container Terminal Place where loaded and/or empty containers are loaded or discharged into or from a means of transport.

Container Yard (CY) A facility at which FCL traffic and empty containers are received from or delivered to the Merchant by or on behalf of the Carrier.

Containerized Indication that goods have been stowed in a container.

Contraband Goods forbidden by national law to be imported or exported.

Contract An agreement enforceable by law between two or more parties stipulating their rights and obligations which are required by one or both parties to acts or forbearance by the other or both.

Contract Logistics The contracting out of all the warehousing, transport and distribution activities or a part thereof by manufacturing companies.

Contractual Port of Loading A port at which an ocean vessel does not call, but which is equalized with the actual port of call and upon which inland haulage services and inland tariffs are based.

Conveyance Transport of goods from one place to another.

Correspondent Bank A bank that, in its own country, handles the business of a foreign bank.

Cost and Freight "Cost and Freight" means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport. When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the CPT term is more appropriate to use.

Country of Departure Country from which a certain means of transport is scheduled to depart or has departed.

Country of Dispatch Country from which the goods are shipped.

Country of Origin Country in which the goods have been produced or manufactured, according to criteria laid down for the purpose of application of the customs tariff, of quantitative restrictions, or of any other measure related to trade.

Currency A medium of exchange of value, defined by reference to the geographical location.

Currency Adjustment Factor (CAF) Adjustment applied by shipping lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies.

Customer Pick Up Cargo picked up by a customer at a warehouse.

Customs The department of the Civil Service that deals with the levying of duties and taxes on imported goods from foreign countries and the control over the export and import of goods e.g. allowed quota, prohibited goods.

Customs Broker An authorized agent specialized in customs clearance procedures on account of importers/exporters.

Customs Invoice Document required by the customs in an importing country in which an exporter states the invoice or other price (e.g. selling price, price of identical goods), and specifies costs for freight, insurance and packing etc., terms of delivery and payment, for the purpose of determining the customs value in the importing country of goods consigned to that country.

Customs Value The worth of an item or group of items expressed in a monetary amount, within a consignment declared to Customs for duty and statistical reasons.

CWE Cleared Without Examination.

CY Container Yard.

CYC Container Yard Charges - Charges at destination

Damaged Cargo Report Written statement concerning established damages to cargo and/or equipment.

Dangerous Goods Goods are to be considered dangerous if the transport of such goods might cause harm, risk, peril, or other evil to people, environment, equipment or any property whatsoever.

Dangerous Goods Declaration Document issued by a consignor in accordance with applicable conventions or regulations, describing hazardous goods or materials for transport purposes, and stating that the latter have been packed and labeled in accordance with the provisions of the relevant conventions or regulations.

Dangerous Goods Packing Certificate A document as part of the dangerous goods declaration in which the responsible party declares that the cargo has been stowed in accordance with the rules in a clean container in compliance with the IMDG regulations and properly secured.

DDP - Delivered Duty Paid The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. If the parties wish to exclude from the seller's obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: "Delivered duty paid, VAT unpaid (...named place of destination)". This term may be used irrespective of the mode of transport.

DDU Delivered Duty Unpaid (...named place of destination).

Deadweight (DWT) The total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts which a vessel can lift when loaded to her maximum draught as applicable under the circumstances. The deadweight is expressed in tons.

Deck Any extended horizontal structure in a vessel or an aircraft, serving as a floor and structural support, covering, partially or fully, a portion of the vessel or aircraft.

Declaration of Origin Statement as to the origin of the goods, made in connection with their exportation by the manufacturer, producer, supplier, exporter or other competent person on the commercial invoice or any document relating to goods.

Declared Value for Carriage The value of the goods declared to the carrier by the shipper for the purpose of determining charges or of establishing the limit of the carrier's liability for loss, damage or delay. It is also the basis for possible applicable valuation charges.

Delivery The process of delivering the consignment to the consignee at the agreed place.

Delivery Instruction Document issued by a buyer giving instructions regarding the details of the delivery of goods ordered.

Delivery Note A document recording the delivery of products to a consignee (customer).

Delivery Order A document issued by or on behalf of the carrier authorizing the release of import cargo identified thereon and manifested under a single Bill of Lading.

Delivery Party The party to which goods are to be delivered.

Delivery Schedule The required and/or agreed time of delivery of goods or services, purchased for a future period.

Delivery Time The time between order and delivery.

Demand The quantity of goods required by the market to be delivered in a particular period or at a specific date.

Depot The place designated by the carrier where empty containers are kept in stock and received from or delivered to the container operators or merchants.

Dispatch Advice Information send by shippers to the recipient of goods informing that specified goods are sent or ready to be sent advising the detailed contents of the consignment.

Dispatch Days The days gained if the free time included in the rate and allowed for the use of certain equipment is not fully used.

Destination Place for which goods or a vehicle is bound. The final stopping place according to the contract of carriage.

Detention Keeping equipment beyond the time allowed.

Detention Charge Charges levied on usage of equipment exceeding free time period as stipulated in the pertinent inland rules and conditions.

Devanning Stripping, Unpacking.

Dimensions Measurements in length, width and height, regarding cargo.

Direct Delivery The conveyance of goods directly from the vendor to the buyer. Frequently used if a third party acts as intermediary agent between vendor and buyer. Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of immediate transport from the port area (usually occurs when ports lack adequate storage space or when ports are not equipped to handle a specific cargo).

Direct Route The shortest operated route between two points.

Disbursement Sums paid out by a ship's agent at a port and recovered from the carrier.

Discharge The unloading of a vehicle, a vessel or an aircraft.

Discrepancy Difference between the particulars given and the particulars found.

Displacement The weight of the quantity of water displaced by the vessel. The displacement of the vessel on her light draft represents the weight of the vessel ready for use including stores etc.

Disposal of Goods The act of getting rid of goods.

Dispositioning All activities relating to the inland movement of empty and or full containers.

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

Distribution The set of activities which ensure the availability of goods in the desired quality, quantity, place and time for the customer.

Distribution Center A warehouse for the receipt, the storage and the dispersal of goods among customers.

Distribution Channel The route by which a company distributes goods.

Dock Receipt Document issued by a shipping line acknowledging that goods are received for shipment.

Document Anything printed, written, relied upon to record or prove something.

Document Holder Usually fastened to the door on the front of a container.

Document of Title A term to mean that possession of the specified document entitles the holder to control of the goods listed in that document.

Documentary Credit The basis of international trade by means of which payment is made against surrender of the specified documents.

Down Time The period of time when a machine is not available for production due to a functional failure or maintenance.

Draft, Bank An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.

Drawback Repayment of any part of customs or excise duties previously collected on imported goods, when those goods are exported again.

Drayage The hauling of a container between the nearest railway terminal and the stuffing place.

Drop off Charge Charge made by container owner and/or terminal operators for delivery of a leased, or pool container into depot stock. The drop-off charge may be a combination of actual handling and storage charges with surcharges.

Dry Bulk Container Container consisting of a cargo-carrying structure, firmly secured within a framework, for the carriage of dry solids in bulk without packaging.

Dunnage Stowage material, mainly timber or board, used to prevent damage to cargo during carriage.

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

Duty Free Zone An area where goods or cargo can be stored without paying import customs duties awaiting further transport or manufacturing.

Embargo A government order prohibiting the entry or departure of commercial vessels or goods at its ports. The refusal by a carrier, for a limited period, to accept for transport over any route or segment thereof, and to or from any area or point, of a connecting carrier, any commodity, type of class of cargo duly tendered.

Endorsement The transfer of the right to obtain delivery of the goods of the carrier by means of the consignee's signature on the reverse side of a bill of lading. If the name of the new consignee (transferee) is not stated, the endorsement is an open one which means that every holder of the document is entitled to obtain delivery of the goods.

Estimated Delivery Date (EDD) The date and time a package or shipment is expected to be delivered to a given destination.

Estimated Time of Arrival (ETA) The expected date and time of arrival in a certain port.

Estimated Time of Departure (ETD) The expected date and time when a certain port is left.

Ex Works (...named place) "Ex works" means that the seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used.

Excess Stock That portion of stock on hand which is over and above the desired stock level.

Exchange Rate The rate at which one currency can be exchanged for another, usually expressed as the value of the one in terms of the other.

Exemption Clause A clause in a contract, which relieves the carrier's responsibility for certain events.

Expediting The 'rushing' or 'chasing' of production or purchase orders which are needed in less than the normal lead time.

Export The process of carrying or sending goods to another country or countries, especially for purposes of use or sale in the country of destination. The sale of products to clients abroad.

Export Declaration A document required by the U.S. Treasury Department and completed by a shipper indicating the contents, value, and destination of an export shipment.

Export License Document granting permission to export as detailed within a specified time.

Export Packer Company, packing goods for export.

Exporter The party responsible for the export of goods.

Factory Delivery The delivery of goods by a factory whereby the goods are put at the disposal of another (internal) party such as a commercial department.

FAK Freight All Kinds.

Fashion Transport Transport of clothing and/or garments including shoes, belts and handbags in dedicated means of transport.

FCL Full container load.

Feeder A vessel normally used for local or coastal transport (for carriage of cargo and/or containers) to and from ports not scheduled to be called by the main (ocean) vessel, directly connecting these ports to the main (ocean) vessel.

FEU Forty Foot Equivalent Unit.

First In First Out (FIFO) The method whereby the goods which have been longest in stock (first in) are used, delivered (sold) and/or consumed first (first out).

Flag An indication of the country in which a means of transport is registered through a reference to the ensign of this country.

Flat Bed Trailer A wheeled trailer or a semi-trailer with a flat cargo carrying surface or deck and without any sides.

Flat Pack Garments packed in cardboard boxes.

Flat Rack A flat bed with fixed ends suitable for the carriage of cargo of excessive width and plated for carriage of heavy loads. 20' and 40'

Fleet Any group of means of transport acting together or under one control.

Flight Number A combination of two letters, indicating the airline, and three or four digits indicating the number of the voyage.

FMC Federal Maritime Commission (Control of shipping acts USA)

FOB Free On Board (...named port of shipment).

Force Majeure Circumstance which is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to execute the contract.

Fork Lift Truck A three or four wheeled mechanical truck with forks at the front designed for lifting, carrying and stowing cargo.

Forty Foot Equivalent Unit (FEU) Unit of measurement equivalent to one forty feet shipping container.

Forward At, near or towards the bow or front of a vessel or an aircraft.

Forwarder The party arranging the carriage of goods including connected services and/or associated formalities on behalf of a shipper or consignee.

Forwarding Instruction Document issued to a freight forwarder, giving instructions to the forwarder for the forwarding of goods described therein.

Four Way Pallet A pallet of which the frame permits the entry of forks of e.g. a fork lift truck at all four sides.

Fragile Easily breakable. Term denoting that goods should be handled with care.

Free Port An international port or an area within an international port at which, crew, passengers, baggage, cargo, mail and stores may be disembarked or unloaded, may remain and may be trans-shipped, without being subjected to any customs charges or duties. (Examination is possible for instance to meet security or narcotics control requirements.) Source: IMO.

Free Trade Zone (FTZ) An area where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being exempted.

Freight The amount of money due for the carriage of goods and payable either in advance or upon delivery.

Freight All Kinds (FAK) Single freight which is charged irrespective of the commodity.

Freight Collect Freight and charges be paid by the consignee.

Freight Costs Costs incurred by the merchant in moving goods, by whatever means, from one place to another under the terms of the contract of carriage. In addition to transport costs this may include such elements as packing, documentation, loading, unloading and transport insurance.

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

Freight Invoice An itemized list of goods shipped and services rendered stating fees and charges.

Freight Manifest A (cargo) manifest including all freight particulars.

Freight Prepaid Freight and charges to be paid by the consignor.

Freight Ton

Freighter A vessel or an aircraft used for the carriage of cargo.

FTL Full Truck Load, an indication for a truck transporting cargo directly from supplier to receiver.

Full Container Load (FCL) A container stuffed or stripped under risk and for account of the shipper and/or the consignee.

Gateway A point at which cargo is interchanged between carriers or modes of transport.

GCR General Cargo Rate and General Commodity Rate. General Cargo Cargo, consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales, often palletized. General cargo can be shipped either in breakbulk or containerized.

General Cargo Rate (GCR) The rate for the carriage of cargo other than a class rate or specific commodity rate.

Goods Common term indicating movable property, merchandise or wares. All materials which can be used to satisfy demands.

Goods in Transit The goods which have departed from the initial loading point and not yet arrived at the final unloading point.

Goods Receipt Document issued by a port, warehouse, shed, or terminal operator acknowledging receipt of goods specified therein on conditions stated or referred to in the document.

Gooseneck Gooseneck shaped front end of a trailer or chassis.

Gross Tonnage (GRT) The measure of the overall size of a vessel determined in accordance with the provisions of the international convention on measurement of vessels usually expressed in register ton.

Gross Weight Weight (mass) of goods including packing, but excluding the carrier's equipment expressed in whole kilograms.

Gross Weight of Container Total weight of container including cargo (in kilograms).

Groupage The collection of several small consignments and the formation of one large shipment thereof (surface cargo).

Handling Instructions Indication how cargo is to be handled.

Harbor Place of shelter for vessels. Most of the time used as an indication for the geographical location.

Harmonized System (HS) A numeric multi purpose system, developed by the Customs Cooperation Council, for the classification of goods with its six digits it covers about 5000 descriptions of the products or groups of products most commonly produced and traded. It is designed for customs services, but can also be used for statistics, transport purposes, export, import and manufacturing.

Haulage The inland carriage of cargo or containers between named locations/points. H/C-High Cube Identical to the GP, but with 9'6" sides and not the standard 8'6".

Heavy Lift Single commodity exceeding the capacity of normal loading equipment and requiring special equipment and rigging methods for handling.

Heavy Lift Vessel A vessel specially designed and equipped for the carriage of heavy cargo.

Hedging Buying or selling earlier and more than really needed in order to protect the company against price increases or shortages of commodities or components to realize profits when prices fluctuate.

Home Port The port of registration of a vessel.

Hub The central transhipment point in a transport structure, serving a number of consignees and/or consignors by means of spokes. The stretches between hubs mutually are referred to as trunks.

Hull Outer shell of a vessel, made of steel plates or other suitable material to keep water outside the vessel.

IATA International Air Transport Association.

IATA Cargo Agent An agent approved by IATA and registered in the IATA Cargo Agency List. This enables the agent, upon authorization of the IATA carrier, to receive shipments, to execute Air Waybills and to collect charges.

IATA Member An airline which is a member of IATA (aircargo).

ICAO International Civil Aviation Organization.

Identification The unique data, e.g. name, number or code, determining a certain object or person.

Idle Time The amount of ineffective time whereby the available resources are not used e.g. a container in a yard.

Import To receive goods from a foreign country. Import License A document required and issued by some national governments authorizing the importation of goods.

Importer The party responsible for the import of goods. For customs purposes it is the party who makes, or on whose behalf an agent makes, an import declaration. This party may be the party who has possession of the goods or to whom the goods are consigned.

In Transit The status of goods or persons between the outwards customs clearance and inwards customs clearance.

Incoterms Trade terms in coded form as established by the International Chamber of Commerce in 1953, whereafter they have been regularly updated. (Last update 1990). The terms represent a set of international rules for the interpretation of the principal terms of delivery used in trade contracts.

Indirect Route Any route other than the direct route.

Infrastructure System of roads, waterways, airfields, ports and/or telecommunication networks in a certain area.

Inland Clearance Depot (ICD) Inland location where cargo, particularly containerized, may be cleared by customs.

Insulated Container Thermal container without the use of devices for cooling and/or heating.

Insurance A system of protection against loss under which a party agrees to pay a certain sum (premiums) for a guarantee that they will be compensated under certain conditions for loss or damage.

Insurance Certificate Proof of an insurance contract.

Insurance Company The party covering the risks of the issued goods and/or services that are insured.

Intercoastal As opposite to coastal water operations, intercoastal refers to water transport carried out between coasts (e.g. between pacific and atlantic coasts).

Interline Two or more road transport companies joining operations to bring cargo to a certain destination.

Intermediary Aggregates data and facilitates transactions by bringing buyers and sellers together. Internet-based intermediaries create multivendor, multiproduct marketplaces.

Intermodal Transport The movement of goods (containers) in one and the same loading unit or vehicle which uses successively several modes of transport without handling of the goods themselves in changing modes.

International Air Transport Association (IATA) An international organization of airlines, founded in 1945, with the aim of promoting the commercial air traffic. This should be achieved by cooperation between parties concerned and by performance of certain rules, procedures and tariffs, regarding both cargo and passengers, by those parties.

International Carriage Carriage whereby the place of departure and any place of landing are situated in more than one country.

International Civil Aviation Organization (ICAO) An international organization of governments, dealing with search and rescue in distress, weather information, telecommunications and navigational requirements.

Inventory A detailed list of goods located in a certain space or belonging to a specified object. Goods available for satisfying certain demands. Inventories may consist of finished goods ready for sale, they may be parts or intermediate items, they may be work in process, or they may be raw materials.

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

Irrevocable Letter Of Credit Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.

ISO International Organization for Standardization.

Item Separate article or unit.

Itinerary The route of a means of transport, indicated by the names of the ports of call or other locations, often including estimated arrival and departure dates.

Jettison The act of intentionally throwing cargo overboard e.g. with the objective of lightening a vessel, which has run aground, such for the common good of all interests: vessel, crew and remaining cargo.

Just In Time (JIT) The movement of material/goods at the necessary place at the necessary time. The implication is that each operation is closely synchronized with the subsequent ones to make that possible. A method of inventory control that brings stock into the production process, warehouse or to the customer just in time to be used, thus reducing stock piling.

Label A slip of e.g. paper or metal attached to an object to indicate the nature, ownership, destination, contents and/or other particulars of the object.

Land Bridge Overland transport between following and/or preceding sea transport of goods and/or containers.

Last In First Out (LIFO) A method of which the assumption is that the most recently received (last in) is the first to be used or sold (first out).

L/C Letter of Credit.

Lead Time The amount of time between the request of a service and the actual provision of this service. A span of time required to perform an activity. In a logistics context, the time between the initiation of a process and its completion.

Less than Container Load (LCL) A general reference for identifying cargo in any quantity intended for carriage in a container, where the Carrier is responsible for packing and/or unpacking the container. For operational purposes a LCL (Less than full container load) container is considered a container in which multiple consignments or parts thereof are shipped.

Less than Truck Load (LTL) A term used if the quantity or volume of one or more consignment(s) does not fill a standard truck.

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

Liner (Sea Freight)Conference A group of two or more vessel-operating carriers, which provides international liner services for the carriage of cargo on a particular trade route and which has an agreement or arrangement to operate under uniform or common freight rates and any other agreed conditions (e.g. FEFC = Far Eastern Freight Conference).

Load Quantity or nature of what is being carried. This term normally refers to transport by truck.

Load Factor Management The process of maximizing the utilization of the (slot) capacity of vessels and or other means of transport.

Loading The process of bringing cargo into a means of transport or equipment.

Loading Platform A flat surface to facilitate loading usually alongside a warehouse.

Loadmaster A load calculator designed for a vessel approved by a classification bureau for the calculation of the vessels stability.

Location Any named geographical place, recognized by a competent national body, with permanent facilities used for goods movements associated with international trade, and used frequently for these purposes.

Locker A compartment, in a shed or on board of a vessel, used as a safekeeping place to stow valuable goods, which can be secured by means of a lock.

Lorry Motor truck used for transport of goods.

Maiden Trip First voyage of a vessel or aircraft after delivery from new-building to her owner(s).

Manifest Document which lists the specifications of goods loaded in a means of transport or equipment for transportation purposes.

Marine Insurance Policy An insurance policy protecting the insured against loss or damage to his goods occurred during ocean transport.

Means of Transport Type of vehicle used for the transport of goods (e.g. aircraft, barge, truck, vessel or train).

Measurement Ton A ton of one cubic meter water.

Minimum Charge The lowest amount which applies to the transport of a consignment, irrespective of weight or volume.

Mixed Consignment A consignment of different commodities, articles or goods, packed or tied together or contained in separate packages.

Mode of Transport Method of transport used for the conveyance of goods, (e.g. rail, road, sea, air).

Movement The act or process of changing the position of an object and or people.

Multimodal Transport The carriage of goods (containers) by at least two different modes of transport.

Negotiable In terms of documents, 'negotiable' means that e.g. a Bill of Lading is handed over/transferred in the right manner (viz. proper endorsement) to another person either endorsed in blank or endorsed to a person and that person acquires, by this transfer certain rights vis-a-vis the goods e.g. is entitled to take possession of the goods.

Net Tonnage The measure of the useful capacity of a vessel determined in accordance with the provisions of the international convention on tonnage measurement of vessels.

Net Weight The weight of the goods, excluding all packing.

Non Vessel Operating Common Carrier (NVOCC) A party who undertakes to carry goods and issues in his own name a Bill of Lading for such carriage, without having the availability of any own means of transport.

Notify Address Address of the party other than the consignee to be advised of the arrival of the goods.

Notify Party The party to be notified of arrival of goods.

Oncarriage The carriage of goods (containers) by any mode of transport to the place of delivery after discharge from the ocean vessel (main means of transport) at the port (place) of discharge.

Open Sided Container Shipping container with frames with wire-mesh at the sides covered by means of a tarpaulin which can be dropped down to give unrestricted access to the sides of the container for loading or discharging.

Open Top Container A freight container similar in all respects to a general purpose container except that it has no rigid roof but may have a flexible and movable or removable cover, for example one made of canvas or plastic or reinforced plastic material normally supported on movable or removable roof bows.

Operator The party responsible for the day to day operational management of certain premises such as ware-houses, terminals and vessels.

Owner-Operator Trucker who owns and operates his own truck(s).

Packaging Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.

Packing Any container or other covering in which goods are packed.

Packing Instruction Document issued within an enterprise giving instructions on how goods are to be packed.

Packing List Document specifying the contents of each individual package.

Packing Unit A type of package where a standard quantity of products of a specific product type can be packed and that requires no additional packaging for storage and shipment.

Pallet A platform on which goods can be stacked in order to facilitate the movement by a fork lift or sling.

Pallet Rack A skeleton framework, of fixed or adjustable design, to support a number of individual pallet loads.

Payload The revenue-producing load carried by a means of transport.

Pick and Pack Taking goods out of a stock and packing them according to customer conditions.

Pick Order An order to pick certain quantities of goods out of a stock.

Pick Up and Delivery (PUD) A service concerning the collection of cargo from the premises of the consignor and the delivery to the premises of the consignee.

Piggyback The carriage of road vehicles and trailers on railway.

Pilferage Petty stealing of goods from a ship's hold, cargo shed or warehouse.

Place of Delivery The location where a consignment (shipment) is delivered to the consignee viz. the place where the carrier's liability ends for the transport venture.

Place of Receipt The location where a consignment (shipment) is received by the carrier from the shipper viz. the place where the carrier's liability for transport venture commences.

Port Harbor having facilities for vessels to moor and load or discharge. Left side of a vessel when facing towards the front or forward end.

Port of Call Place where a vessel actually drops anchor or moors during a certain voyage.

Port of Discharge The port where the cargo is actually discharged (unloaded) from the sea (ocean) going vessel.

Port of Loading The port where the cargo is actually loaded on board the sea (ocean) going vessel.

Positioning The transport of empty equipment from a depot to shipper's premises or from consignee's premises back to a depot as the empty leg of a carrier haulage transport

Postal Code A national code maintained by the Postal Authorities designed to indicate areas and accumulated addresses to facilitate sorting and the delivery of mail and other goods.

Precarriage The carriage of goods (containers) by any mode of transport from the place of receipt to the port (place) of loading into the ocean vessel (main means of transport).

Private Warehouse A warehouse operated by the owner of the goods stored there.

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

Procurement The activities which ensure the availability of the material and or services in the desired quantity, quality, place and time from the supplier.

Product Life Cycle The period of time between the introduction date and end date of a product in the market.

Project Cargo Quantity of goods connected to the same project and often carried on different moments and from various places.

Proof of Delivery The receipt signed by the consignee upon delivery.

Public Warehouse A warehouse which is available to all companies and persons who wish to make use of the services offered.

Purchase Order A definite order for one or more deliveries by the supplier to the customer of a specific quantity of goods, materials, services or products under agreed terms of delivery and prices.

Quarantine The period during which an arriving vessel, including its equipment, cargo, crew or passengers, suspected to carry or carrying a contagious disease is detained in strict isolation to prevent the spread of such a disease.

Quotas A system of controlling imports, exports or production by specifying a certain limitation.

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

Quotation Expiration Date The date as from which a quotation price is no longer valid.

Quota Restrictions Restraints upon trade which limit the volume of exports into a country.

Ramp An artificial inclined path, road or track along which wheeled vehicles, cargo and trailers may pass for the purpose of changing their elevation and facilitating the loading and unloading operation.

Rate The price of a transport service. Quantity, amount or degree measured or applied.

Receipt A written acknowledgement, that something has been received.

Receiving Carrier The carrier receiving a consignment on behalf of a carrier, agent or shipper for onward transport.

Redelivery Return of a shipment to the party who originally delivered it to the carrier.

Reefer Refrigerated trailer with insulated walls and a self-powered refrigeration unit. Most commonly used for transporting perishables.

Reefer Cargo Cargo requiring temperature control.

Reefer Container A thermal container with refrigerating appliances (mechanical compressor unit, absorption unit etc.) to control the temperature of cargo.

Reforwarding Charge Charges paid or to be paid for subsequent surface or air transport from the airport of destination by a forwarder, but not by a carrier under the Air Waybill.

Re-invoicing The procedure whereby goods shipped directly from a supplier to the customer are invoiced in two stages: at first by the supplier to an intermediary and subsequently by the intermediary to the customer.

Request for Proposals (RFP) Invitation to suppliers to bid on supplying products or services that are difficult to describe for a company or public agency.

Request for Quotation (RFQ) Invitation to suppliers to bid on supplying easily described products or services needed by a company or public agency.

Returns Goods returned to their place of acceptance.

Road Carrier Party undertaking transport by road of goods from one point to another such as indicated in the contract.

Roll Trailer Special trailer for terminal haulage and stowage on board of Roll-on Roll-off vessels.

Roll-on Roll-off System of loading and discharging a vessel whereby the cargo is driven on and off by means of a ramp.

Rotation Sequence in which a vessel calls at the ports on her itinerary.

Round Trip A voyage, a journey etc. to a certain place, port or country and back again.

Route The track along which goods are (to be) transported.

Schedule A timetable including arrival/departure times of ocean- and feeder vessels and also inland transportation. It refers to named ports in a specific voyage (journey) within a certain trade indicating the voyage number(s).

SCR Specific Commodity Rate.

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

SED Shipper's Export Declaration.

Seller's Market A 'seller's market' is considered to exist when goods cannot easily be secured and when the economic forces of business tend to be priced at the vendor's estimate of value. In other words, a state of trade favorable to the seller, with relatively great demand and high prices of something for sale.

Semi Trailer A vehicle without motive power and with one or more axles designed to be drawn by a truck tractor and constructed in such way that a portion of its weight and that of its load rest upon e.g. the fifth wheel of the towing vehicle.

Service Level A measure for the extent to which the customer orders can be executed at delivery conditions normally accepted in the market.

Shelf Life The specified length of time prior to use for which items which are inherently subject to deterioration are deemed to remain fit for use under prescribed conditions.

Ship Broker Acts as intermediary between shipowners or carriers by sea on the one hand and cargo interests on the other. The functions are to act as forwarding agent or custom broker, fixing of charters, and acting as chartering agent.

Shipment A separately identifiable collection of goods to be carried.

Shipper The merchant (person) by whom, in whose name or on whose behalf a contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage.

Shipper's Export Declaration (SED) A United States customs form to be completed for all exports to assist the government in compiling export statistics.

Shipper's Letter of Instruction (SLI) A document containing instructions given by the shipper or the shipper's agent for preparing documents and forwarding (aircargo).

Shipping Container Standard-sized rectangular box used to transport freight by ship, rail and highway. International shipping containers are 20 or 40 feet long, conform to International Standards Organization (ISO) standards.

Shipping Documents Documents required for the carriage of goods.

Shipping Instruction Document advising details of cargo and exporter's requirements of its physical movement.

Shipping Label A label attached to a shipping unit, containing certain data.

Shipping Marks The identification shown on individual packages in order to help in moving it without delay or confusion to its final destination and to enable the checking of cargo against documents.

Shipping Note Document provided by the shipper or his agent to the carrier, multimodal transport operator, terminal or other receiving authority, giving information about export consignments offered for transport, and providing for the necessary receipts and declarations of liability.

Shortage The negative difference between actual available or delivered quantity and the required quantity.

SIC Standard Industrial Classification.

Specific Commodity Rate (SCR) A rate applicable to carriage of specifically designated commodities (aircargo).

Spot Market A market for unplanned purchases not made under contract terms. Transactions usually made on a one-time basis.

Stack An identifiable amount of containers stowed in a orderly way in one specified place on an (ocean) terminal, container freight station, container yard or depot.

Standard Industrial Classification (SIC) A method, used in the United States, to categorize companies into different industrial groupings.

Starboard Right side of a vessel when facing towards the front or forward end.

STC Said To Contain.

Stem The foremost part of a vessel.

Stern The aftermost part of a vessel.

Stock The materials in a supply chain or in a segment of a supply chain, expressed in quantities, locations and or values.

Storage The activity of placing goods into a store or the state of being in store (e.g. a warehouse).

Storage Charge The fee for keeping goods in a warehouse.

Stores Provisions and supplies on board required for running a vessel.

Stowage The placing and securing of cargo or containers on board a vessel or an aircraft or of cargo in a container.

Stuffing The loading of cargo into a container.

Supply Chain A sequence of events in a goods flow which adds to the value of a specific good

Supply Chain Management An attempt to coordinate processes involved in producing, shipping and distributing products, generally with large suppliers. Net markets can extend supply chain management to all trading partners regardless of size because they provide a central hub to integrate information from buyers and sellers.

Surcharge An additional charge added to the usual or customary freight.

Survey An inspection of a certain item or object by a recognized specialist.

Tank Container A tank, surrounded by a framework with the overall dimensions of a container for the transport of liquids or gasses in bulk.

Tanker A vessel designed for the carriage of liquid cargo in bulk.

Tare Weight of Container Mass of an empty container including all fittings and appliances associated with that particular type of container on its normal operating condition.

Tariff The schedule of rates, charges and related transport conditions.

Terminal A location on either end of a transportation line including servicing and handling facilities.

TEU Twenty Foot Equivalent Unit.

Thermal Container A container built with insulating walls, doors, floor and roof by which heat exchange with the environment is minimized thus limiting temperature variations of the cargo.

Third Party Logistics Supply of logistics related operations between traders by an independent organization.

Through Charge The total rate from point of departure to point of destination. It may be a joint rate or a combination of rates.

Terms of Delivery All the conditions agreed upon between trading partners regarding the delivery of goods and the related services.

Terms of Freight All the conditions agreed upon between a carrier and a merchant about the type of freight and charges due to the carrier and whether these are prepaid or are to be collected.

Through Route The total route from point of departure to point of destination.

Ton Unit of weight measurement: 1000 kilograms (metric ton) or 2,240 lbs (long ton).

Tracing The action of retrieving information concerning the whereabouts of cargo, cargo items, consignments or equipment.

Tracking The function of maintaining status information, including current location, of cargo, cargo items, consignments or containers either full or empty.

Trailer A vehicle without motive power, designed for the carriage of cargo and to be towed by a motor vehicle.

Transit Shipment A shipment passing between one port and another, or between a port and a final destination.

Transfer Cargo Cargo arriving at a point by one flight and continuing there-from by another flight.

Transferring Carrier A participating carrier who delivers the consignment to another carrier at a transfer point.

Transit Cargo Cargo between outwards customs clearance and inwards customs clearance. Cargo arriving at a point and departing there-from by the same through flight.

Transport The assisted movement of people and or goods.

Truckload (TL) The quantity of freight required to fill a trailer; usually more than 10,000 pounds.

Twenty Foot Equivalent Unit (TEU) Unit of measurement equivalent to one twenty foot shipping container.

Undercarriage A supporting frame or structure of a wheeled vehicle.

Unit Load A number of individual packages bonded, palletized or strapped together to form a single unit for more efficient handling by mechanical equipment.

Unit Load Device (ULD) Any type of container or pallet, in which a consignment can be transported by air whether or not such a container is considered aircraft equipment. Any type of air freight container, aircraft container, aircraft pallet with a net, or aircraft pallet.

Utilization Rate The quotient of used capacity and available capacity.

Valuation Charge Transport charges for certain goods, based on the value declared for the carriage of such goods.

Valuation A clause in a marine policy that fixes the insured value.

Vessel A floating structure designed for the transport of cargo and/or passengers.

Volume Size or measure of anything in three dimensions. Volume Charge A charge for carriage of goods based on their volume.

Voyage A journey by sea from one port or country to another one or, in case of a round trip, to the same port.

Voyage Number Reference number assigned by the carrier or his agent to the voyage of the vessel.

Waiting Time The period of time between the moment at which one is ready for an activity to start and the moment at which this activity can actually begin. See also queue time.

Waiver Clause Clause in a marine insurance policy stating that no acts of the insurer or insured in recovering, saving or preserving the property insured, shall be considered a dismissal from or acceptance of abandonment.

Warehouse A building specially designed for receipt, storage and handling of goods.

Warehouse Receipt Receipt for products deposited in a warehouse.

Warehousing Those activities of holding and handling goods in a warehouse (store).

Warsaw Convention The Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, 12 October 1929, or that Convention as amended by the Hague Protocol, 1955, stipulating obligations or parties and limitations and/or exonerations of carriers (aircargo).

Waybill Non-negotiable document evidencing the contract for the transport of cargo.

Weight Ton A ton of 1000 kilos.

Wharf A place for berthing vessels to facilitate loading and discharging of cargo.

Wharfage The fee charged for the use of a wharf for mooring, loading or discharging a vessel or for storing goods.

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