Shipping Definitions
-
-
AA
Always Afloat (In some ports the ship aground when approaching, or at berth.)
AAR
Abbreviation for:
- Against All Risks (insurance clause).
- Association of American Railroads.
Abaft
A point beyond the midpoint of a ships length, towards the rear or stern.
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
U.S. Customs' "Automated Broker Interface," 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.
- Broadly speaking, any agreement to purchase goods under specified terms.
Accessorial Charges
Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery.
Acquiescence
When a bill of lading is accepted or signed by a shipper or shipper's agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Acquittance
A written receipt in full, in discharge from all claims.
ACS (A.C.S.)
U.S. Customs' master computer system, "Automated Commercial Systems."
Act of God
An act beyond human control, such as lightning, flood or earthquake.
Ad Valorem
A term from Latin meaning, "according to value."
Administrative Law Judge
A representative of a government commission or agency vested with power to administer oaths, examine witnesses, take testimony, and conduct hearings of cases submitted to, or initiated by, that agency. Also called Hearing Examiner.
Admiralty (Adm.)
Refers to marine matters such as an Admiralty Court.
Advance
To move cargo up line to a vessel leaving sooner than the one booked. (See "Roll.")
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' risk.
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 often enclosed and, if desired, a copy of the bill of lading.
Advising Bank
A bank operating in the seller's country, that handles letters of credit in behalf of a foreign bank.
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 (Agt.)
A person authorized to transact business for and in the name of another person or company. Types of agent are:
(1) brokers,
(2) commission merchants,
(3) resident buyers,
(4) sales agents,
5) 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 rate.
Agreed Weight
The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in 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 nonnegotiable form.
All In
The total price to move cargo from origin to destination, inclusive of all charges.
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.
American Bureau of Shippin g
U.S. classification society which certifies seagoing vessels for compliance to standardized rules regarding construction and maintenance.
AMS
The U.S. Customs' "Automated Manifest System."
Anti-Dumping Duty
A tariff imposed to discourage sale of foreign goods, subsidized to sell at low prices detrimental to local manufacturers.
Any Quantity (A.Q.)
Usually refers to a rating that applies to an article regardless of size or quantity.
Apparent Good Order
When freight appears to be free of damage so far as a general survey can determine.
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.
Appraiser's Stores
The warehouse or public stores to which samples of imported goods are taken to be inspected, analyzed, weighed, etc. by examiners or appraisers.
Arbitrary
A stated amount over a fixed rate to one point to make a rate to another point.
Average
See insurance.
Arrival Notice
A notification by carrier of ship's arrival to the consignee, the "Notify Party," and - when applicable - the "Also Notify Party." These parties in interest are listed in blocks 3, 4 and 10, respectively, of the Bill of Lading.
ASC X12
American Standards Committee X12 responsible for developing EDI standards for the United States.
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.
ATDNSHINC
Any time Day or Night Sundays & Holidays Included.
Athwartships
A direction across the width of a vessel.
Avoirdupois Pound
Same as 0.4535924277 kilograms.
AWWL
Always within Institute Warranties Limits (Insurance purpose).
-
BB
Ballast Bonus (Special payment above the Chartering price when the ship has to sail a long way on ballast to reach the loading port.)
BB
Bareboat (Method of chartering of the ship leaving the charterer with almost all the responsibilities of the owner.)
B/L
Abbreviation for "Bill of Lading."
Backhaul
To haul a shipment back over part of a route it has traveled.
BAF
Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF.
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 60o F.
Base Rate
A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate.
BCO
Abbreviation for "Beneficial Cargo Owner." Refers to the importer of record, who physically takes 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 operating within a commercial area.
Beneficiary
- Entity to whom money is payable.
- The entity for whom a letter of credit is issued.
- The seller and the drawer of a draft.
Berth Terms
Shipped under rate that includes cost from end of ship's tackle at load port to end of ship's tackle at discharge port.
Beyond
Used with reference to charges assessed for cargo movement past a line-haul terminating point.
Bilateral
A contract term meaning both parties agree to provide something for the other.
Bill of Exchange
In the United States, commonly known as a "Draft." However, bill of exchange is the correct term.
Bill of Lading (B/L)
A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.
- Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.
- B/L Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier's liabilities and contractual agreements.
- B/L's Status: represents whether the bill of lading has been input, rated, reconciled, printed, or released to the customer.
- B/L's Type: refers to the type of B/L being issued. Some examples are: a Memo (ME), Original (OBL), Nonnegotiable, Corrected (CBL) or Amended (AM) B/L.
- Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper's request; different from voided B/L.
- Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.
- Combined B/L: B/L that covers cargo moving over various transports.
- Consolidated B/L: B/L combined or consolidated from two or more B/L's.
- Corrected B/L: B/L requiring any update which results in money or other financially related changes.
- Domestic B/L: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders.
- Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L.
- Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.
- Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
- Government B/L (GBL): A bill of lading issued by the U.S. government.
- Hitchment B/L: B/L covering parts of a shipment which are loaded at more than one location. Hitchment B/L 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: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.
- Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.
- Long Form B/L: B/L form with all Terms & Conditions written on it. Most B/L's are short form which incorporate the long form clauses by reference.
- Memo B/L: Unfreighted B/L with no charges listed.
- Military B/L: B/L issued by the U.S. military; also known as GBL, or Form DD1252.
- B/L Numbers: U.S. Customs' standardized B/L numbering format to facilitate electronic communications and to make each B/L number unique.
- Negotiable B/L: The B/L is a title document to the goods, issued "to the order of" a party, usually the shipper, whose endorsement is required to effect is negotiation. Thus, a shipper's order (negotiable) B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions. The buyer must submit the original B/L to the carrier in order to take possession of the goods.
- Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L.
- "Onboard" B/L: B/L validated at the time of loading to transport. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types.
- Optional Discharge B/L: B/L covering cargo with more than one discharge point option possibility.
- "Order" B/L: See Negotiable B/L.
- Original B/L: The part of the B/L set that has value, especially when negotiable; rest of set are only informational file copies. Abbreviated as OBL.
- Received for Shipment B/L: Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard".
- Reconciled B/L: 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 B/L: Opposite of Long Form B/L, a B/L without the Terms & Conditions written on it. Also known as a Short Form B/L. The terms are incorporated by reference to the long form B/L.
- Split B/L: One of two or more B/L's which have been split from a single B/L.
- Stale B/L: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void.
- Straight (Consignment) B/L: Indicates the shipper will deliver the goods to the consignee. It does not convey title (non-negotiable). Most often used when the goods have been pre-paid.
- "To Order" B/L: See Negotiable B/L.
- Unique B/L Identifier: U.S. Customs' standardization: four-alpha code unique to each carrier placed in front of nine digit B/L number; APL's unique B/L Identifier is "APLU". Sea-land uses "SEAU". These prefixes are also used as the container identification.
- Voided B/L: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L.
Bill of Lading 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, i.e, the invoiced weight.
Blanket Bond
A bond covering a group of persons, articles or properties.
Blanket Rate
- 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
A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.
Block Stowage
Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.
Blocked Trains
Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction.
Blocking or Bracing
Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting.
Bls.
Abbreviation for "Bales."
Board
To gain access to a vessel.
Board Feet
The basic unit of measurement for lumber. One board foot is equal to a oneinch board, 12 inches wide and one foot long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet.
Bobtail
Movement of a tractor, without trailer, over the highway.
Bogie
A set of wheels built specifically as rear wheels under the container.
Bolster
A device fitted on a chassis or railcar to hold and secure the container.
Bond Port
Port of initial Customs entry of a vessel to any country. Also known as 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
A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Booking
Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.
Booking Number
Reservation number used to secure equipment and act as a control number prior to completion of a B/L.
Bottom Side Rails
Structural members on the longitudinal sides of the base of the container.
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.
Bow
The front of a vessel.
Boxcar
A closed rail freight car.
Break Bulk
- To unload and distribute a portion or all of the contents of a rail car, container, or trailer.
- Loose, non-containerized cargo.
Broken Stowage
- The loss of space caused by irregularity in the shape of packages.
- Any void or empty space in a vessel or container not occupied by cargo.
Broker
A person who arranges for transportation of loads for a percentage of the revenue from the load.
Brokerage
Freight forwarder/broker compensation as specified by ocean tariff or contract.
Bulk Cargo
Not in packages or containers; shipped loose in the hold of a ship without mark and count." Grain, coal and sulfur are usually bulk freight.
Bulk-Freight Container
A container with a discharge hatch in the front wall; allows bulk commodities to be carried.
Bulkhead
- A partition separating one part of a ship, freight car, aircraft or truck from another part.
Bull Rings
Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo.
Bunker Charge
An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.)
Bunkers
A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers.
Bridge Point
An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading.
Bridge Port
A port where cargo is received by the ocean carrier and stuffed into containers but then moved to another coastal port to be waded on a vessel.
-
C&F Terms of Sale, or INCOTERMS.
Obsolete, albeit heavily used, term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.
Cabotage
Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service.
CAF
Abbreviation for "Currency Adjustment Factor." A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.
Carnet
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. Any of various Customs documents required for crossing some international borders.
Captain's Protest
A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company.
Carfloat
A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways.
Car Pooling
Use of individual carrier/rail 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 numbered for record purposes.
Cargo
Freight loaded into a ship.
Cargo Manifest
A manifest that lists all cargo carried on a specific vessel voyage.
Cargo NOS
Cargo Not Otherwise Specified. Usually the rate entry in a tariff that can apply to commodities not covered under a specific item or sub item in the applicable tariff.
Cargo Preference
Cargo reserved by a Nation's laws for transportation only on vessels registered in that Nation. Typically the cargo is moving due to a direct or indirect support or activity of the Government.
Cargo Tonnage
Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)
Carload Rate
A rate applicable to a carload of goods.
Carrier
Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.
Carrier's Certificate
A certificate required by U.S. Customs to release cargo properly to the correct party.
Cartage
Usually refers to intracity hauling on drays or trucks.
Cartment
Customs form permitting inbond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier's possession while draying cargo.
Cash Against Documents (CAD)
Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.
Cash in Advance (CIA)
A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.
Cash With Order (CWO)
A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.
CBM (CM)
Abbreviation for "Cubic Meter."
CE
Abbreviation for "Consumption Entry." The process of declaring the importation of foreignmade goods for use in the United States.
Cells
The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it.
Center of Gravity
The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo.
Certificate
- A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment.
- The document issued by the U.S. Coast Guard certifying an American flag vessel's compliance with applicable laws and regulations.
Certificate of Origin
A certified document showing the origin of goods; used in international commerce.
CFS
Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded ("stuffed") into or unloaded ("stripped") from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.
Charter Party
A written contract between the owner of a vessel and the person desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate and ports involved in the trip.
Chassis
A frame with wheels and container locking devices in order to secure the container for movement.
Chock
A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.
CI
Abbreviation for "Cost and Insurance." A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination.
CIF
Abbreviation for "Cost, Insurance, Freight." (Named Port) Same as C&F or CFR except seller also provides insurance to named destination.
CIF&C
Price includes commission as well as CIF.
CIF&E
Abbreviation for "Cost, Insurance, Freight And Exchange."
CIFCI
Abbreviation for "Cost, Insurance, Freight, Collection And Interest."
CIFI&E
Cost, Insurance, Freight, Interest and Exchange.
CKD
Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.
CL
Abbreviation for "Carload" and "Containerload".
Claim
A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.
Classification
A publication,such as 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 Rating
The designation provided in a classification by which a class rate is determined.
Classification Yard
A railroad yard with many tracks used for assembling freight trains.
Clayton Act
An antitrust act of the U.S. 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 "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "cleaned."
Cleaning in Transit
The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination.
Clearance
The size beyond which cars or loads cannot use Limits bridges, tunnels, 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" (capital letters).
cm
Abbreviation for "centimeter."
Coastwise
Water transportation along the coast.
COD
Abbreviation for:
- Collect (cash) on Delivery.
- Carried on Docket (pricing).
COFC
Abbreviation for the Railway Service "Container On Flat Car."
COGSA
Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier's liability under carrier's bill of lading. U.S. enactment of The Hague Rules.
Collecting
A bank that acts as an agent to the seller's bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise.
Collection
A draft drawn on the 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 noncompeting manufacturer.
Combination Rate
A rate made up of two or more factors, separately published.
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
Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.
Commodity Rate
A rate published to apply to a specific article or articles.
Common Carrier
A transportation company which provides service to the general public at published rates.
Common Law
Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.
Concealed Damage
Damage that is not evident from viewing the unopened package.
Conference
An association of ship owners operating in the same trade route who operate under collective conditions and agree on 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 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.
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 of discharge.
Consignment
(1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
(2) A shipment of goods to a consignee.
Consignor
A person or company shown on the bill of lading as the shipper.
Consolidation
Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees.
Consolidator
A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers.
Construction Differential Subsidy
A program whereby the U.S. government attempted to offset the higher shipbuilding cost in the U.S. by paying up to 50% of the difference between cost of U.S. and nonU.S. construction. The difference went to the U.S. shipyard. It is unfunded since 1982.
Consul
A government official residing in a foreign country who represents the interests of her or his country and its nationals.
Consular Declaration
A formal statement describing goods to be shipped; filed with and approved by the consul 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 the value, quantity and nature of the cargo.
Consular Visa
An official signature or seal affixed to certain documents by the consul of the country of destination.
-
