International Shipping Terminology:

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 International Shipping Terminology:

 International Shipping Terminology

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AAR: Abbreviation for Against All Risks (insurance clause) or Association of American Railroads.

Abaft: A point beyond the midpoint of a ship's length.

Abandon: A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.

Abatement: A discount allowed for damage or overcharge in the payment of a bill.

ABI: Automated Broker Interface, US Custom's computer system by which brokers file importers' entries electronically.

Aboard: Referring to cargo being put, or laden, onto a means of conveyance.

Absorption: One carrier assumes the charges of another without any increase in charges to the shipper.

Acceptance: A time draft (or bill of exchange) that the drawee (payer) has accepted and is unconditionally obligated to pay at maturity.

Account Party/Accountee: The purchasing party, the importer, the buyer in any transaction.

Accessorial charges: Charges that are applied to the base tariff rate or base contract rate (e.g. bunkers, container, destination/delivery).

ACS: Automated Commercial System, the US Customs master computer system.

Act of God: An act beyond human control, such as lightning, flooding or earthquake.

Act of Man: In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss.

Ad Valorem: According to value

Admiralty (Adm.): Refers to marine matters such as Admiralty Court.

Advance: To move cargo up-line to a vessel leaving sooner than the one booked.

Advanced charge: Transportation charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee.

Adventure: Shipment of goods on shipper's own account. A bill of adventure is a document signed by the master of the ship that carries goods at owner's risk.

Advice, Letter of: This document is sent by one party to another to whom a shipment has been sent, on consignment or otherwise. It involves a description of the goods sent, the carrier or other type of transportation being used, the date of departure, and any additional pertinent data. (Bankers use the term letter of advice when notifying interested parties of such actions as the opening of credits, the drawing of drafts and the payment or nonpayment of drafts.)

Advice of Shipment: A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading.

Affreightment, Contract of: An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.

Aft: Movement toward the stern (back end) of a ship.

Agency tariff: A tariff published by an agent on behalf of several carriers.

Agent: A person authorized to transact business for and in the name of another person or company.

Types of agents are: brokers, commission merchants, resident buyers,sales agents, manufacturer's representatives.

Aggregate Shipment: Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.

Agreed valuation: The value of a shipment agreed upon in order to secure a specific freight shipment.

Agreed weight: The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or a certain number.

A.I.D.: Agency for International Development.

Air Waybill:The forwarding agreement or carrying agreement between shipper and air carrier and is issued only in non-negotiable form.

All-In: The total price to move a container from origin to destination, inclusive of all charges.

All Water: Transport exclusively by water.

Alongside: A phrase referring to the side of a ship. Goods delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded.

Alternative Rates: Privilege to use the rate producing the lowest charge.

Ambient Temperature: The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.

Amendment: A written notice of a change in the terms of a letter of credit. The change becomes an integral part of the original letter of credit.

American Bureau of Shipping: US classification society which certifies seagoing vessels for compliance to standardize rules regarding construction and maintenance.

AMS: Automated Manifest System, U.S. Customs computerized system to automate the flow of customs-related information among customs brokers, importers, and carriers.

Any-Quantity (A.Q.): Usually refers to a rating that applies to an article regardless of weight.

Appraisement: Determination of the dutiable value of imported merchandise by a customs official who follows procedures outlined in their country's tariff, such as the U.S. Tariff Act of 1930, as amended.

Arbitrary: A stated amount over a fixed rate to one point to make a rate to another point.

Arrival Notice: A notice from the ocean carrier to the "notify party," indicating the vessel's estimated arrival date; identifying shipment details such as number of packages, weight, and container number; and indicating when free time expires. Often includes a freight invoice.

ASC X12: American Standards Committee X12 responsible for developing EDI standards for the US.

Assignment: A term commonly used in connection with a bill of lading. It involves the transfer of rights, title and interest in order to assign goods by endorsing the bill of lading.

Astern: Behind a vessel; move in a reverse direction.

A.T.A.: American Trucking Association.

ATLAS: ACL's customer service and documentation software.

Athwartships: A direction across the width of a vessel.

Avoirdupois Pound: 0.4535924277 kilograms


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Backhaul: To haul a shipment back over part of a route it has travelled.

BAF: Bunker Adjustment Factor, used to compensate steamship lines for fluctuating fuel costs. Also called FAF, Fuel Adjustment factor.

Balloon Freight: Light, bulky articles.

Bank Guarantee: Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.

Barrel (BBL): A term of measure referring to 42 gallons of liquid at 60F.

Base Rate: A tariff term referring to ocean rate less accessorial charges or base tariff rate.

BCO: Beneficial Cargo Owner, referring to the importer of record, who physically take possession of cargo at destination and does not act as a third party in the movement of such goods.

Beam: The width of a ship.

Belt Line: A switching railroad within a commercial area.

Berth Term: Shipped under rate that does not include cost of loading or unloading.

Bill of Lading (B/L): A document that establishes the terms of a contract between a shipper and a transportation company that moves freight between specified ports for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage and a receipt for goods. There are different types of B/Ls:

Amended B/L: Requires updates that do not change financial status (slightly different from corrected B/L).

Cancelled B/L: Used to cancel a processed B/L usually per shippers request. (different from a voided B/L).

Clean B/L: No recorded irregularities in packing or general condition of all or any part of the shipment.

Combined B/L: Covers cargo moving over various transports.

Consolidated B/L: Combined or consolidated from two or more B/Ls.

Corrected B/L: One that requires an update which results in money or other financially-related changes.

Domestic B/L: Non-negotiable primarily containing routing details; used by truckers and freight forwarders.

Express B/L: Non-negotiable where there are no printed copies of original B/L.

Freight B/L: A contract of carriage between a shipper and forwarder (usually an NVOCC); a non-negotiable document.

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

House B/L: Issued by a freight forwarder or consolidation covering a single shipment, containing the names, addresses and specific description of the goods shipped.

Intermodal/Multimodal/Combined Transport B/L: Covering cargo moving by various modes of transportation.

Long Form B/L: One with terms and conditions on back of document.

Memo B/L: Unfreighted with no charges listed.

Military/GBL/Form DD1252: B/L issued by the US Military.

Numbers: US Customs standardized B/L format to facilitate electronic communications.

Negotiable B/L (To Order B/L): B/L names are legal and by endorsement, the shipper can transfer the title of the goods to the bank representing the buyer or directly to the buyer of the goods.

Non-Negotiable/Straight Consignment B/L: File copy. Used when goods are consigned directly to a named consignee and not negotiable.

On-Board B/L: Validated at the time of loading to transport. Common types: on-board air, boxcar, container, rail, truck, vessel.

Optional Discharge B/L: Covering cargo with more than one discharge point option possibility.

Order B/L: Issued to the order of a party, usually the shipper, whose endorsement is required to affect its negotiation.

Order Notify B/L: Issued usually to the order of the shipper with the additional clause that the consignee is to be notified upon arrival of the merchandise. Such mention of the consignee does not give the consignee title to the merchandise.

Original B/L (OBL): Part of the B/L that has value, especially when negotiable; remaining parts are informational file copies.

Received for Shipment B/L: Validated at the time cargo is received by ocean carrier to commence movement but before being validated as On-board.

Reconciled B/L: Set which has completed a prescribed number of edits between the shippers instructions and the actual shipment received. This produces a very accurate B/L.

Short Term/Short Form B/L: One that does not have written Terms & Conditions on back of document.

Split B/L: One of two or more B/Ls which have been split from a single B/L.

Stale B/L: A late B/L. In banking, one that has passed the time deadline of the L/C and is void.

Through B/L: Blanket documentation when multiple carriers of various transport modes are involved.

Unique B/L Identifier: US Customs standardization consisting of a four-alpha-code unique to each carrier( e.g. ACLs B/L identifier is ACLU) placed in front of nine-digit B/L number. These prefixes are also used as the container identification.

Voided B/L: Those absorbed in the combined process. Different from Canceled B/L.

B/L Port of Discharge: Port where cargo is discharged from means of transport.

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

Bill to Party: Customer designated as party paying for services.

Billed Weight: The weight shown in a waybill and freight bill.

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

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

Blanket Waybill: A waybill covering two or more consignments of freight.

Blind Shipment: Bill of lading wherein the paying customer has contracted with the carrier and the shipper or consignee information is not given.

Block Stowage: Stowing cargo destined for a specific location close together to avoid unnecessary movement.

Blocking/Bracing: Wood or metal supports (dunnage) to keep shipments in place to prevent cargo shifting.

Bls: Abbreviation for bales.

Board: Gain access to a vessel.

Board Feet: Unit of measurement for lumber; one board foot is equal to a one-inch board, 12 wide and 1 long.

Bobtail: Movement of a tractor, without trailer over the highway.

Bogie: A set of wheels built specifically as rear wheels under a container.

Bolster: A device fitted on a chassis or rail car to hold and secure the container.

Bond Port: Port of initial Customs entry of a vessel to any country (First Port of Call).

Bonded Freight: Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions.

Bonded Warehouse: Warehouse approved by the U.S. Treasury Department and under bond or guarantee of compliance with revenue laws. Goods held until duties are paid are normally stored in a bonded warehouse.

Booking: Arrangements with a carrier, often a steamship or airline, for the acceptance and carriage of passengers or freight.

Booking Number: Reservation number used to secure equipment and act as a control number prior to completion of a bill of lading.

Bottom Air Delivery: A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.

Bottom Side Rails: Structural members on the longitudinal sides of the base of the container.

Bow: The front of a vessel.

Box: Common term for an ocean going freight container.

Box Car: A closed rail freight car.

Breakbulk: Palletized packaged goods that are not containerized. To unload and distribute a portion or all of the contents of a rail car, container or trailer.

Broken Stowage: The loss of space cause by irregularity in the shape of packages. Any void or empty space in a container not occupied by cargo.

Broker: A person/organization who arranges for transportation of multiple loads for a percentage of the revenue.

Brokerage: Freight forwarder/broker compensation as specified by ocean tariff.

Bulk Freight: Goods that are shipped loose  not in packages or containers (i.e. grain, coal, sulfur).

Bulk Freight Container: Refers to a container with a discharge hatch in the front wall; allows bulk commodities to be grasped by loading hatches.

Bulkhead: A partition separating one part of a ship, freight car, aircraft or truck from another part. A structure to resist water.

Bull Rings: Cargo-securing devices mounted in a floor of containers that allow lashing and securing of cargo.

Bunker charge: An extra charge added to an ocean carriers freight rates. Also known as FAF (Fuel Adjustment Factor).

Bunkers: A maritime term referring to fuel used aboard the ship. In the past, coal stowage areas aboard a vessel were in bins or bunkers.


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Cabotage: Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wide navigation or trade.

CAF (Currency Adjustment Factor): A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.

Camet: A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds.

Capacity/Weight: Total internal container volume (LxWxD) or weight limitation.

Captains Protest: A document prepared by the captain of a vessel on arriving at port. It shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for the reimbursement to the insurance company.

Carfloat: A barge equipped with tracks on which up to 12 railroad cars are moved in harbors or inland waterways.

Car Pooling: Use of individual carrier equipment through a central agency for the benefit of carriers and shippers.

Car Seal: Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbers for record purposes.

Cargo: Freight loaded into a ship.

Cargo Manifest: A manifest that lists only cargo, not charges.

Cargo NOS: Cargo Not Otherwise Specified, usually the first rate entry in a tariff that can apply to commodities not covered under a specific item or sub-item in the applicable tariff.

Cargo Tonnage: The weight ton varies from country to country  United States : 2,000 or 2,240 pounds; United Kingdom: the English long ton, or gross ton is 2,240 pounds; France and other countries having the metric system, the weight ton is 2,204.62 pounds. The measurement ton is usually 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet), but in some instances a large number of cubic feet is taken as a weight ton. Most ocean freight is billed at weight or measurement tons (W/M).

Carload Rate: A rate applicable to a carload of goods.

Carnet: A Customs document allowing special categories of goods to cross international borders without payment of duties.

Carrier: Any individual or organization who in a contract of carriage, undertakes to perform or procure the performance of carriage by rail, road, sea, air, inland waterway or a combination of such modes.

Carrier Certificate/Release Order: A certificate required by US Customs to certify the firm or individual named in the certificate as the owner or consignee of the cargo.

Cartage: Intra-city hauling on drays or trucks.

Cartment: Customs form permitting in-bond cargo to be moved from one location to another under Customs control, within the same district. Usually in motor carriers possession while draying cargo.

Cell Guides: A fixed racking system for securing all containers stowed above deck. With cell guides, it is virtually impossible to lose a container overboard during rough weather conditions. Every ACL vessel has two permanent 20 cell guide sections and four portable sections which can be converted to 20 or 40 depending on the mix of containers.

Center of Gravity: The point of equilibrium of the combined weight of the containership or stacktrain and its cargo.

Certificate of Inspection: A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.

Certificate of Manufacture: A statement (often notarized) in which a producer of goods certifies that the manufacturing has been completed and the goods are now at the disposal of the buyer.

Certificate of Origin: A certified document used in international commerce that shows the origin of goods.

Certificate of Weight: A certified statement of the weight of a shipment.

Container Freight Station to Container Freight Station (C.F.S.): A type of steamship line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-containerload shipments although small shipments destined to the same consignee are often consolidated into full containers as well as reloading containerload quantities from foreign rail or motor carrier equipment.

Charges, Statement of: A detailed statement of all charges sent to the importer, illustrating how the charges were calculated. The statement of charges deals with charges incurred by the shipper to the importer, outside of the quoted or agreed price.

Chassis: A frame with wheels and container locking devices in order to secure and move containers.

Chock: A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.

Cars Knocked Down (CKD): Automobile parts and sub-assemblies manufactured abroad and transported to a US assembly plant.

Cost and Insurance (C.I.): A price that includes the cost of goods, the marine insurance and all transportation charges with the exception of ocean freight to the named point of destination.

Cost, insurance and freight (C.I.F.): Price determined at point of destination that includes the cost of goods. The marine insurance and all transportation charges are calculated from point of destination.

Claim: A demand made upon a transportation line for payment of a loss sustained through negligence.

Classification: A publication, such as the Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.

Classification Yard: A railroad yard with many tracks used for assembling freight trains.

Clayton Act: An anti-trust act of the US Congress making price discrimination unlawful.

Clean bill of lading: A receipt for goods issued by a carrier with an indication that the goods were received in "good order and condition," without damage or other irregularities.

Clearance Limits: The size beyond which cars or loads cannot use tunnels, bridges, etc.

Cleat: A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.

Clip-on: Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.

CM: Abbreviation for cubic meter.

cm: Abbreviation for centimeter.

Coastwise: Water transportation along the coast.

COGSA: Carriage of Goods by Sea Act. US federal codification passed in 1936 which standardizes carriers liability under carriers bill of lading. US enactment of The Hague Rules.

Collect Freight: Freight payable to the carrier at destination. Most bills of lading specify that collect freight is payable even if the cargo does not arrive at destination.

Collection: A draft drawn on buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance.

Combination Export Mgr.: A firm that acts as an export sales agent for more than one non-competing manufacturer.

Commercial invoice: A complete record of a transaction between exporter and importer with regard to goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment.

Commodity: An article that can be transported.

Commodity Rate: A rate published to apply to a specific article or articles.

Commodity Tariff: A tariff published to show specific rates on specific articles.

Common Carrier: A transportation company that operates under a Certificate of Convenience and Necessity and provides service to the general public at published rates.

Concealed Damage: Damage that is not evident from viewing the unopened package.

Conference: An association of shipping owners/companies operating in the same trade route and under collective conditions, in agreement with all tariff rates.

Confirmed Letter of Credit: A letter of credit issued by a foreign bank whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or foreign bank defaults.

Connecting Carrier: A carrier which has a direct physical connection with, or forms a link between two or more carriers.

Consignee: A person or company to whom commodities are shipped.

Consignee mark: A symbol placed on packages for identification purposes, generally a triangle, square, circle etc., with letters and/or numbers and port discharge.

Consignor: A person or company shown on the bill of lading as the shipper.

Consolidated Cargo: Cargo containing the shipments of two or more shippers, usually coordinated by a consolidator.

Consolidation: The combination of many small shipments into one container.

Consolidator: A person or firm performing a consolidation service for others. Takes advantage of lower full car load (FCL) rates, and the savings are passed on to shippers.

Consular Declaration: A formal statement describing goods to be shipped, filled with and approved by the counsel of the country of destination prior to shipment.

Consular Invoice: A document, certified by a consular official, is required by some countries to describe a shipment. Used by Customs of the foreign country to verify value, quantity and nature of the cargo.

Consular Visa: An official signature or seal affixes to certain documents by the consul of the country of destination.

Consumption Entry (CE): The process of declaring the importation of foreign-made goods into the United States for use in this country.

Container: A truck trailer body that can be detached from the chassis for loading onto 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. A container may be 20, 40, 45,48 or 53 in length, 80 or 86 in width and 86 or 96 in height.

Container Booking: Arrangements with a steamship line to transport containerized cargo.

Container Manifest: Document showing contents and loading sequence of a container.

Containerizable Cargo: Cargo that fits into a container resulting in an economical transport.

Containerization: Stowage of cargo/goods in a container for shipment by a variety of transportation modes.

Container Load: A load sufficient in size to fill a container either by cubic measurement or by weight.

Container Part Load: A shipment that does not utilize the full volume of a container nor the maximum payload by weight. Usually, additional part loads are added to fill the container for transport.

Container Pool: An agreement between transportation companies that allows for the most efficient use and supply of containers.

Container Yard (CY): A materials-handling/storage facility used for completely unitized loads in containers and/or empty containers.

Container Terminal: An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Containers are pick-up, dropped-off, maintained and housed here.

Contraband: Cargo that is prohibited.

Contract Carrier: Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation.

Controlled Atmosphere: Sophisticated, computer-controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.

Corner Posts: Vertical frames components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends.

Cost, Insurance and Freight (CIF): An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.

Countervailing Duty: An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.

Cross Member: Transverse members fitted to the bottom side rails of a container, which support the floor.

Cube Out: A Container reaching its volumetric capacity before its permitted weight limit.

Cubic Foot: A volume of measurement that equals 1,728 cubic inches.

Custom House: A U.S. Treasury Department office where duties, etc., on foreign shipments are handled.

Custom House Broker: A person or firm engaged in entering and clearing goods cross border, licensed by the treasury department of their country when required.

Customs Bonded Warehouse: A warehouse where goods may be stored, authorized and established by Customs.

Customs Broker: A firm that represents importers in all dealings with Customs. Responsible for obtaining and submitting all documents for clearing merchandise through Customs, arranging inland transport, and paying all charges related to these functions.

Customs Invoice: A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate or origin. Required in some countries (usually former British territories) and serves as a seller's commercial invoice.

Customs Tariff: A schedule of charges assessed by a government on imported or exported goods.

Cut-Off Time: The latest time a container may be delivered to a terminal for loading to a scheduled train or ship.

Cwt.: Hundred weight (US:100 lb.; UK: 112 lbs.)


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D&H: Abbreviation for Dangerous and Hazardous cargo.

Dangerous Goods: The term used by I.M.C.O. for hazardous materials.

Deadhead: One leg of a move with either a bobtail tractor alone or a tractor pulling an empty container.

Deadweight Cargo: A long ton of cargo that can be stowed in less than 70 cubic feet.

Deadweight Tonnage (D/W): The number of tons of 2,240 lbs that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces light and the number of tons it displaces when submerged to the load line.

Declared Value for Carriage: The value of the goods, declared by the shipper on a bill of lading for the purpose of determining a freight rate or the limit of the carrier's liability.

Deconsolidation Point: Place where loose or other non-containerized cargo is ungrouped for delivery.

Deficit Weight: Weight by which a shipment is less than the minimum weight.

Delivery: The transfer of property/goods from consignor to carrier, one carrier to another, or carrier to consignee.

Delivery Instructions: Order to pick-up goods at an in-transit (temporary) terminal and deliver to a pier. Usually issued by an exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major US ports.

Demurrage: US/Domestic Transportation: A penalty charge against shippers or consignees for delaying the carriers equipment beyond the allowed free time provision of the tariff at the rail ramp; International Transportation: A storage charge to shipper s which starts accruing after a container is discharged from a vessel. The charge varies according to rules of the appropriate tariff.

Density: The weight of freight per cubic foot or other unit.

Depot, Container: Container freight station or a designated area where empty containers can be picked up or dropped off.

Destination: Area where carrier physically turns over cargo to consignee or agent.

Destination Delivery Charge (DDC): A charge based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. It covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation.

Detention: A penalty charge against shippers or receivers for delaying carrier's equipment beyond allowed time.

Devanning: The removal of freight.

Differential: An amount added or deducted from base rate to make a rate to or from some other point or via another route.

Displacement: The weight, in tons of 2,240 pounds, of th e vessel and its weight contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.

Distributor: A person or firm performing a service of distribution on pool cars or consolidated shipments at destination.

Diversion: A change made in the route of a shipment in transit (also, reconsignment).

Division: Carriers practice of dividing revenue received through rates where joint hauls are involved. This is usually according to agreed formulas.

Dock: For Ships: A cargo handling area parallel to th e shoreline; For Land Transportation: A pier or wharf used as a loading or unloading platform at an industrial site or carrier terminal.

Dock Receipt (D/R): A document issued by an exporter (or freight forwarder on exporter's behalf) which includes shipment description, physical details and shipping information. Used by both shipper and carrier to verify shipment particulars, condition, and delivery to carrier. Signed by receiving clerk on behalf of carrier.

Docket: Present a rate proposal to a conference meeting for adoption as a conference group rate.

Doing Business As (D.B.A.): A legal term for conducting business under a registered name.

Dolly: A set of wheels that support the front of a container and used when the automotive unit is disconnected.

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

D.O.T.: Department of Transportation.

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

Draft, Clean: A draft to which no documents are attached.

Draft, Date: A draft that matures on a fixed date, regardless of the time of acceptance.

Draft, Discounted: A time draft under a letter of credit that has been accepted and purchased by a bank at discount.

Draft, Sight: A draft payable on demand upon presentation.

Draft, Time: A draft that matures at a fixed or determinable time after presentation or acceptance.

Drawback: A partial refund of an import fee.

Drawee: The individual or firm that issues a draft and thus stands to receive payment.

Dray: A truck or other equipment designed to haul heavy loads.

Drayage: Charge made for local hauling by dray or truck.

Dry cargo: Cargo that does not require temperature control.

Dry-Bulk Container: A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.

Dry Freight: Dry cargoes that does not require controlled temperature.

Dumping: Attempt to import merchandise into a country at a price less that the fair market value, usually by subsidy by exporting country.

Duty: A tax imposed by a government on merchandise imported from one country to another. There are several types of duty, including: a) Ad valorem duty ("According to the value."): An assessment based on the actual value of an article. b) Specific duty: An assessment based on the weight or quantity of an article without reference to its monetary value or market price.

Duty Drawback: A refund of duty paid on imported merchandise when it later is exported.


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Edge Protector: An angle piece fitting over the edge of boxes, crates, bundles and other packages to prevent the pressure from metal bands or other types from cutting into the package.

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

EDIFACT:
International data interchange standards sponsored by the United Nations.

Elevating:
A charge for services performed in connection with floating elevators.

Elkins Act:
An act of US Congress (1903) prohibiting rebates, concession, misbilling, etc. and providing specific penalties for such violations.

Embargo:
Order to restrict the hauling of freight.

Empty Repositioning:
The move of empty containers by truck or rail to meet service needs elsewhere.

Empty slot:
An available loading position on a stack car created when a container is not loaded to an available position. Also known as a vacant slot.

Entry Summary:
A document issued by a customs broker on behalf of an importer. Customs Form 7501 specifies all shipment particulars that allow U.S. Customs to assess and collect import duties. Highly standardized to allow computer processing. Includes Harmonized Code number, broker identification number, and auxiliary fees. Broker figures all assessments, then submits form with supporting documents and payment. Customs later either accepts or modifies payment.

Equalization:
A monetary allowance to the customer for picking up or delivering at a point other than the destination shown on the bill of lading. This provision is covered by tariff publication.

Equipment Interchange Receipt (EIR):
See Trailer Interchange Receipt (TIR).

ETA:
Estimated time of availability. That time when a tractor/partner carrier is available for dispatch.

Ethylene:
A gas produced by many fruits and vegetables that accelerates the ripening and aging process.

Exchange Rate:
The price of one currency in terms of another; i.e., the number of units of one currency that may be exchanged for one unit of another currency.

Ex Dec:
Shipper's Export Declaration

Ex - From:
When used in pricing terms such as "Ex-Factory" or "Ex-Dock", it signifies that the price quoted applies only at the point of origin indicated.

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

EXIM Bank (Export Import Bank):
An independent US Government Agency which facilitates exports of US goods by providing loan guarantees and insurance for repayment of bank-provided export credit.

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

Export:
Shipment of goods outside one's own country to a foreign country.

Export Broker:
An individual or firm that joins together buyers and sellers for a fee but does not take part in actual sales transactions.

Export Declaration:
A government document permitting designated goods to be shipped out of the country.

Export License:
A government document which permits the "License" to engage in the export of designated goods to certain destinations.

Export-Management Company:
A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.

Export Rate:
A rate published on traffic moving from an interior point to a port for transshipment to a foreign country.

Export Trading Company:
A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.


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Factor: An agent who will buy receivables at a discount.

FAS:
Free Alongside Ship

FCL:
Full Container Load.

FD:
Free Discharge.

Federal Maritime Commission (F.M.C):
Regulatory shipping agency responsible for rates and practices of ocean carriersshipping to and from the United States.

Feeder Service:
Loaded or empty containers in a regional area are transferred to a "mother ship" for a long-haul ocean voyage.

Feeder Vessel:
A vessel which transfers containers to a "mother ship" for an ocean voyage.

FEU (Forty-Foot Equivalent Units):
Refers to a container size standard of forty feet. Two twenty-foot containers or TEUs equal one FEU.

Fifth Wheel:
The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.

Firkin:
A capacity measurement equal to one-fourth of a barrel.

Fixed Costs:
Costs that do vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

Flat Car:
A rail car without a roof and walls.

Flat Rack/Flat Bed Container:
A container without sides and frame members at the front and rear. Container can be loaded from the sides and top.

Final Destination:
Consignee's facility where shipment ends its movement.

F.O.B.:
Free on Board. Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.

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

F.O.B. Freight Prepaid:
The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland carrier.

F.O.B. Named Point of Exportation:
Seller is responsible for the cost of placing the goods at a named point of exportation.

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

Force Mejeure:
The title of a common clause in contracts, exempting parties for unfulfillment of obligations as the result of conditions beyond their control such as earthquakes, floods or war.

Fore and Aft:
The direction on a vessel parallel to the center line.

Foreign Trade Zone:
A site sanctioned by the U.S. Customs Service in which imported goods are exempted from duties until withdrawn for domestic sale or use. Such zones are used for commercial warehouses or assembly plants.

Foul Bill of Lading:
A receipt for goods issued by a carrier with an indication that the goods were damaged when received.

Four-Way Pallet:
A pallet designed so that the forks of a folk lift truck can be inserted from all four sides.

Free Alongside (FAS):
The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. The buyer arranges ship space and informs the seller when and where the goods are to be placed.

Free Astray:
A lost shipment that is found and sent to its proper destination without additional charge.

Free On Board (FOB-US Domestic Use):
Shipped under a rate that includes costs of a delivery to and loading onto a carrier at a specific point. (FOB-International Use): An International Term of Sale than means the seller fulfills an obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

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

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

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

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

Free Time:
The time allowed shippers or receivers to load or unload cars before demurrage, detention or storage charges accrue.

Free Out (FO):
Cost of unloading a vessel is borne by the charterer.

Free Port:
A restricted area at a seaport for the handling of duty-exempted import goods. Also, Foreign Trade Zone.

Free Sale, Certificate:
The US Government does not issue certificates of free sale. The Food and Drug Administration, Silver Springs, Maryland USA, will issue, upon request, a letter of comment to the US manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency. The letter can take the place of the certificate.

Free Time:
The amount that a carrier s equipment may be used without incurring additional charges.

Free Trade Zone:
A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.

Freight:
Refers to either the cargo carried or the charges assessed for carriage of the cargo.

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

Freight Charge:
The charge assessed for transporting freight.

Freight Claim:
Demand upon a carrier for the payment of overcharge or loss or damage sustained by a shipper or consignee.

Freight Forwarder:
An organization that represents shippers by arranging transport and completing documentation required for international shipping. Freight forwarders also act as cargo consolidators.

Foreign Sales Corporation:
Takes the place of the Domestic International Sales Corporation (DISC). Studies the legal aspects of importing goods produced or assembled in more than one country.


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Gateway: A point at which freight moving from one territory to another is interchanged between transportation lines.

GATT (General Agreement on Tariffs and Trade):
A multilateral treaty to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions.

General Order (G.O.):
A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival, is stored at the risk and expense of the importer.

Generator Set (Gen Set):
A portable generator which can be attached to a refrigerated container to power the refrigeration unit during transit.

Go-Down:
In the Far East, a warehouse where goods are stored and delivered.

Gooseneck:
The front rails of the chassis that raise above its plane and engage in the tunnel of a container.

GRI (General Rate Increase):
Describes an across-the-board tariff rate increase implemented by conference members and applied to base rates.

Gross Ton:
2,240 pounds.

Gross Tonnage:
Applies to vessels, not to cargo. Determined by dividing the vessel's contents by 100 cubic feet. A vessel ton is 100 cubic feet.

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

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

GVW (Gross Vehicle Weight):
The combined total weight of a vehicle and its container, inclusive of prime mover.


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Hague Rules, The: A multilateral maritime treaty adopted 1921 at the Hague, Netherlands. Standardizes liability of an international carrier under the Ocean Bill of Lading. Establishes a legal "floor" for the bill of lading.

Harbor Master:
An officer who attends to the berthing, etc. of ships in a harbor and related duties.

Hard-Top Container:
A closed container fitted with a roof that can be opened or lifted off.

Harmonized System of Codes (HS):
An international goods classification system for describing cargo in international trade under a single commodity coding scheme. Developed under the auspices of the Customs Cooperations Council (CCC), an international Customs organization in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings. It is organized into 99 chapters arranged into 22 sections. Sections encompass an industry; chapters encompass the various materials and products of the industry. The basic code contains 44 headings and 6 digit subheadings. Many countries add digits for Customs tariff and statistical purposes. In the US, duty rates will be 8 digit level; statistical suffixes will be at the 10 digit level. The Harmonized System (HS) is the current US tariff schedule (TSUSA) for imports and is the basis for the 10 digit Schedule B export code.

Hatch:
The opening in the deck of a vessel. It gives access to the cargo hold.

HAZ MAT:
Abbreviation for hazardous material.

Heavy-Lift Charge:
A charge made for lifting articles that are too heavy for a ship's tackle.

High Cube:
Any container which exceeds 8 feet 6 inches (102 inches) in height.

Hitchment:
The marrying of two or more portions of one shipment that originate at different locations, moving under one bill of lading, from one shipper to one consignee. Authority for this service must be granted by tariff publication.

Humping:
The process of connecting a moving rail car with a motionless rail car within a rail classification yard in order to make up a train. The cars move by gravity from an incline or "hump" onto the appropriate track.


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I.A. (Independent Action): The right of a conference member to publish a rate of tariff rule that departs from the Agreement's common rate or rule.

IATA (International Air Transport Association):
The trade and service organization representing international airlines from more than 100 countries.

ICAO (International Civil Aviation Organization):
A United Nations agency organized to ensure orderly worldwide technical development of civil aviation.

ICC:
Abbreviation for Interstate Commerce Commission/ International Chamber of Commerce.

IE (Immediate Exit):
The US Customs IE Customs form is used when goods are brought into the US and are to be immediately re-exported without being transported within the US.

I.F.M. (Inward Freight Manifest):
A complete listing of all cargo entering the country of discharge. Required at all world ports. Failure to provide, errors in preparation, or late submittal causes the vessel operator to be fined. IFM is the primary source of cargo control, against which duty is assessed by the receiving country. Since it is a revenue-producing document, it must be accurate.

I.M.C.O. (International Maritime Consultative Organization):
A United Nations-affiliated organization representing all maritime countries in matters affecting maritime transportation, including the movement of dangerous goods, bulk commodities and maritime regulations. The organization also is involved in deliberations on marine environmental pollution.

I.M.D.G. Code (International Maritime Dangerous Goods Code):
The regulations published by the IMO for transporting hazardous materials internationally.

Immediate Exportation:
An entry that allows foreign merchandise arriving at one port to be exported from the same port without payment of duty.

Immediate Transport (I.T.): Allows foreign merchandise arriving at one port to be transported in bond to another port, where a superseding entry is filed.

Import:
To receive goods from a foreign country.

Import license:
A document issued by a carrier required and issued by some national governments authorizing the importation of goods into their individual countries.

In Bond:
A term applied to the status of merchandise admitted provisionally to a country without payment of duties, either for storage in a bonded warehouse or for transshipment to another point, where duties eventually will be paid.

In Gate:
The transaction or interchange that occurs at the time a container is received by a rail terminal or water port from another carrier.

Incentive Rate:
A lower-than usual tariff rate assessed because a shipper offers a greater volume than specified in the tariff. The incentive rate is assessed for that portion exceeding normal volume.

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

Indemnity Bond:
An agreement to hold a carrier harmless with regard to a liability.

Independent Action:
Setting a rate within a conference tariff that is the different from the rate (s) for the same items established by other Conference members.

Independent Tariff:
Any body of rate tariffs that are not part of an agreement or conference system.

Inducement:
Placing a port on a vessel's itinerary because the volume of cargo offered by that port justifies the cost of routing the vessel.

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

Inspection Certificate:
A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.

Installment Shipments:
Successive shipments are permitted under letters of credit. Usually they must take place within a given period of time.

Insulated Container:
A container insulated on the walls, roof, floor and doors, to reduce the effect of external temperatures on the cargo.

Insulated Tank:
The frame of a container constructed to hold one or more thermally insulated tanks for liquids.

Interchange Points:
A terminal at which freight in the course of transportation is delivered by one transportation line to another.

Intercoastal:
Water service between two coasts. In the US, this usually refers to water service between the Atlantic and Pacific Coasts.

Interline Freight:
Freight moving from origin to destination over the lines of two or more transportation carriers.

Intermediate Points:
A point located en route between two other points.

Intermodal:
Term used to denote movements of cargo and containers interchangeably between transport modes (motor, water and air carriers) where the equipment is compatible within the multiple systems.

Interstate Commerce Commission (ICC):
The US federal body charged with enforcing acts of the US Congress that affect common carriers in interstate control.

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

Inward Foreign Manifest: (IFM):
A complete listing of all cargo entering the country of discharge. Required at all world ports and is the primary source of cargo control, against which duty is assessed by the receiving country.

Inland Point Intermodal (IPI):
Refers to inland points (non-ports) that can be served by carriers on a through bill of lading.

I.S.O.:
International Standards Organization which deals in standards of all sorts, ranging from documentation to equipment packaging and labeling.

Issuing Carrier:
The carrier issuing transportation documents or publishing a tariff.

I.T. (Immediate Transport):
U.S. Customs document prepared by carrier to allow a shipment to proceed from port of entry in United States to Customs clearing at destination. The shipment clears Customs at its final destination.


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Jacket: A wood or fiber cover placed around such containers as cans and bottles.

Jacob's Ladder:
A rope ladder suspended from the side of a vessel and