Glossary
Shipping and Logistics terms.
Here you can find definitions and terms used in logistics:
1PL or First-party Logistics
Logistics process and operations handled internally by a company.
Basic domestic and international transport handled for a company by an outside provider e.g. a shipping line.
The integration and management of all logistics services of a complex supply chain usually involving several sub-contractors managed by a logistics company on behalf of a customer. Working with a reliable 3PL such us Almar Iberia to execute key processes like transportation management, warehousing or order fulfillment can help businesses reduce costs, improve operational efficiency, and increase customer satisfaction.
Is the outsourcing of logistics operations to a single partner. The partner will be responsible for assessing, designing, building, running and measuring integrated supply chain solutions for the client. This model requires a comprehensive analysis and far-reaching insights into the customer’s business model.
“Among market professionals, is still considered a relatively new and rapidly expanding logistic model. 5PL suppliers not only fulfill 4PL requirements but also offer strategic guidance and support to their clients. Services like management consulting, process analysis, optimization, project management, and IT consulting are key aspects of the comprehensive 5PL logistics approach. Additional services like project management, IT consulting, process analysis and optimization, and management consulting are essential elements of this model. 5PL providers must be integrators with extensive knowledge in digitization, supply chain management, automation, internet of things, big data analytics.”
Accelerated Commercial Release Operations Support System (ACROSS)
An electronic system used by the Canada Border Services Agency (CBSA) to process and release commercial shipments efficiently.
A carrier’s ability to provide transportation services from an origin to a destination.
The amount of money owed by a company to its suppliers or creditors for goods or services received but not yet paid for.
The amount of money owed to a company by its customers or clients for goods or services provided on credit but not yet received.
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.
Accidents of a nature beyond human control such as flood, lightning or hurricane, which are usually quoted as ‘force majeure
Referring to the real or factual time of arrival of a shipment or transport vehicle.
This is a Latin term meaning “according to value”. Import/export duty applied as a percentage of the cargo’s dutiable value. Ocean Freight can also be assessed based on the value of the merchandise.
A list with the designation of the goods transmitted to a customer or consignor (sometimes includes the expected arrival time).
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. Note: (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 non-payment of drafts.)
A notice sent to a local or foreign buyer advising that shipment has gone forward and contains details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading.
A bank operating in the country of the seller which handles Letters of Credit on behalf of a Foreign Bank.
A term indicating that a shipper’s agent or representative is not empowered to make definite decisions or adjustment without the approval of the group or individual represented.
Payment of agent services for servicing a vessel in a port, that is, for an agent performing the usual functions of representing the interests of a shipowner and assistance to the ship’s captain in a port. Sometimes called attendance fee.
A person authorised to transact business for and in the name of another person or company. Types of agents are: brokers, commission merchants, resident buyers, sales agents or manufacturer’s representatives.
A special rate for a shipper if you offer more than 2 class-related shipments at the same time and one place.
A transport company that provides customers with a wide range of services to simplify the transport of goods by air.
This is a pallet or container used to transport air cargo. Air Cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
A non-asset based firm that negotiates low shipping rates with airlines, then takes orders at a higher rate in order to make a profit using the airline’s assets to move the product.
Is a non-negotiable document covering transport of cargo from airport to airport. Note the difference between a Master Air Waybill – A shippers contract of carriage with an airline and a House Air Waybill – issued by a freight forwarder such as Almar Iberia.
The total price to move cargo from its origin to its destination; inclusive of all charges. The charges informed by separate are not included (courier, certificate, etc)
Refers to the side of a ship, used to describe goods delivered to port of embarcation without loading fees (see Incoterms®).
The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.
A written notice of a change in the terms of a letter of credit. The amendment becomes an integral part of the original letter of credit.
American Bureau of Shipping (ABS)
This is one of several classification societies; with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities (i.e. vessels). The American Bureau of Shipping (ABS), first chartered in the State of New York in 1862 to certify ship captains. It is a classification society, with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities. At the end of 2006, ABS was the third largest class society with a classed fleet of over 10,000 commercial vessels and offshore facilities. ABS’ core service is the provision of classification services through the development of standards called ABS Rules. These rules form the basis for assessing the design and construction of new vessels and the integrity of existing vessels and marine structures.
Dumping refers to foreign manufacturers ‘price-dumping’ their products, i.e. selling them at a lower price than their fair market value to be more competitive. Many countries charge anti-dumping duties (AD) to close this pricing gap.
The date on which goods or a means of transport is due to arrive at the delivery site of the transport.
A message that the agent, shipping carrier, or ocean freight forwarder sends to the shipment recipients to notify them about the arrival date of a shipment to its destination location
1. The transfer to another of one’s own legal interests or rights. 2. Especially the transfer of property to be held in trust or to be used for the benefit of creditors. 3. The document by which such an interest or right is transferred.”
A container carrier operating large RORO (Roll-On Roll-off) ships between Europe and North America.
Authorized Economic Operator (AEO)
The AEO is defined as “a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards”. In other words, it is a partnership programme that many Customs administrations are pursuing as a means to both secure and facilitate global trade, by providing incentives/benefits to both Customs and traders that have decided to work in partnership to improve supply chain security
Automated Commercial Environment system (ACE)
The U.S. Customs’ master computer system to replace the Automated Commercial System (ACS).
Automated Commercial System (ACS)
This is the U.S. Customs’ master computer system, which is being replaced by the Automated Commercial Environment system (ACE).
Automated Manifest System (AMS)
This is the U.S. Customs’ computerized system used to automate the flow of customs-related information among customs brokers, importers, and carriers. A part of Custom’s Automated Commercial System (ACS), controls imported merchandise from the time a carrier’s cargo manifest is electronically transmitted to Customs until control is relinquished to another segment of the ACS.
The return trip of a trucker to the original destination with either a partial or full load, usually at a cheaper rate than the headhaul. Healdhaul, the movement of a transport vehicle from its original point of departure to its destination
A guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.
A 1% charge is applied to the freight and all of the surcharges quoted in USD, for both FCL and LCL shipping.
A cargo vehicle in which its autonomous driving mechanism for moving goods may or may not be present. In most cases, inland water vessels use main barges with open tops, but there are not only open but also indoor barges for dry or liquid content. Barges can be joined together and pushed or pulled by tugboats carrying content weighing sixty thousand tons or more. Not very large barges for transporting goods between ship and land are called “lighters”.
A type of currency whose value is considered as “one” in cases where the quote is between two types of currencies
A system by which pricing is carried out, which incurs the cost of transporting goods from one point to another, even in cases where delivery does not occur at the point of basing.
The process of comparing a firm’s performance against the practices of other leading companies – in or outside of an industry – for the purpose of improving performance. Companies also benchmark internally by tracking and comparing past performance.
Referring 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.
1. The entity to whom money is payable. 2. The entity to whom a Letter of Credit is issued. 3. The seller and the drawer of a draft.”
1. A signed, written order by one company that instructs another company to pay a third party a specific amount. 2. An unconditional written order addressed by one person to another and signed by the person placing it. It requires the person, to whom it is addressed, to pay on demand or at a fixed or determinable future time, a certain sum of money to the order of a specified person or to bearer. The drawee is not liable on it until he has accepted it. 3. Usually used in foreign transactions”
Legal document signed by or for the captain/master, agents, owners of a vessel or the (common) carrier. It is written evidence of the contract of carriage by sea and/or by land. It is 1. A receipt of the goods (in the owner’s/carrier’s or his/their agent’s custody) and 2. An undertaking to carry and deliver the goods safely to the place directed/agreed, dangers of the sea excepted, against 3. Surrender of the document where/when provisions in the document stipulate delivery to order of a named person, to order (blank) or to bearer 4. It evidences the terms of the contract of carriage.
A piece of cardboard, thin wood, or similar material that is inserted between the layers of containers to wait and hold a single stack.
A blank sailing or ‘void sailing’ is a voyage that has been canceled by the carrier. This means one or all scheduled ports are skipped.
Blind Shipment / Blind shipping
When a third party is involved in shipping a product from a seller, their information can be concealed. This means the buyer only sees the seller details but is ‘blind’ as to who actually shipped their goods.
1. A fee (also known as a ‘Drop Fee’) charged by a trucker to deliver an FCL container to a warehouse, and then pick up the same container once it’s been unloaded. ‘Bobtail’ refers to a truck without a trailer. 2. A common American term, meaning the movement of a tractor, without trailer over the highway. “
This is equivalent to the duty/tax amount that would be payable if the shipment was imported into the country. For shipments going into bond forwarder is required to set up a collateral equivalent to the amount of the bond. Bond fee is a % of the BIF. Bond is then cancelled once goods are withdrawn from bond and exported or when client is ready to pay duty.
The goods in storage are transported in customs regime under customs control or until payment of import duties or some other fees, or to avoid payment of duties or fees until a later date.
Imported goods are stored in the so-called customs warehouse, which is a gateway where the goods can be stored for some time without payment for storage and duties.
Bonded Warehouse / Bonded warehousing
A secure warehouse under customs supervision to store goods for which customs duties needs to paid (known as bonded goods).
1. Act of recording arrangements for the movement/transportation of goods by vessel or other conveyance. 2. To express in advance a desire for something in order to reserve it e.g. transportation of goods. 3. Also known as a booking request.
A kind of number that is assigned to a particular place of booking by the carrier or carrier agent.
Goods that don’t fit into standard shipping containers and need to be transported separately, such as large machines or vehicles.
Goods that are shipped as a single unit or package (for example: cargo on pallets, piece goods, bulky equipment, trucks), but not in the container.
An inland location where the cargo is received by the ocean carrier and then moved to a coastal port for loading.
A port where the cargo is received by the ocean carrier and stuffed into containers and then moved to another coastal port for loading onto a larger vessel.
1. The loss of space caused by irregularity in the shape of packages. 2. Any void or empty space in a container not occupied by cargo.”
An individual or firm that acts as an intermediary, often between a buyer and seller, usually for a commission.
(Logistics) Raw materials, component parts or finished goods maintained in inventory specifically in anticipation of unforeseen shortages of materials or component parts or unusual demand for finished goods.
Goods that are shipped ‘loose’, such as oil, coal or grain. Bulk cargo can be classed as free flowing, liquid, or dry, and is deposited or poured into the hull of a vessel, truck / tanker or train without requiring packaging or containers.
Refers to a container with two or three portholes on the top and discharge hatches in the doors; allows the container transport of free-flowing bulk commodities such as grain, iron ore and coal.
1. Upright partition dividing compartments on board a vessel. The functions of bulkheads are: To increase the safety of a vessel by dividing it into compartments; To separate the engine room from the cargo holds. To increase the transverse strength of a vessel; To reduce the risk of spreading fire to other compartments. 2. A vertically mounted board to provide front wall protection against shifting cargo and commonly seen on platform trailers (road cargo). 3, A steel wall partition attached inside a container that protects and separates a flexitank from the door 3. A partition in a container, providing a plenum chamber and/or air passage for either return or supply air. It may be an integral part of the appliance or a separate construction.”
Cargo-securing devices mounted in a floor of containers that allow lashing and securing of cargo.
Bunker Adjustment Factor (BAF)
A fee charged by sea freight carriers, per container, to buffer against fluctuations in fuel prices. Freight rates usually include BAF. Also known as Bunker Contribution or BUC, and also Fuel Adjustment Factor, or FAF.
An extra charge added to an ocean carrier’s freight rates. Also known as FAF (Fuel Adjustment Factor).
Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs.
A maritime term referring to fuel used aboard the ship. Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks.
A special process in which planning, implementation and verification of the flow of goods, services and other similar information is provided.
Commerce in goods, services, or information that Business-to-Consumer (B2C)takes place between business enterprises. Contrast to the exchange of goods, services, or information between businesses and private individuals (business-to-consumer or B2C).
Commerce in goods, services, or information that takes place between business enterprises and private individuals.
(1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor.
In logistics, capacity usually refer to the availability of hireable freight shipping assets (containers, trucks, etc).
Certificates resulting from certified climate protection projects (Offsetting). One Carbon Credit = Compensation of 1 ton of CO2e.
Insurance is vital to protect cargo between pickup to final delivery from loss, damage or delays. Don’t hesitate to contact us at info@almariberia.com to help quote your cargo.
The date that cargo is expected to be ready for pickup at a warehouse, container yard or terminal.
A document allowing special categories of goods to cross international borders without paying duties. This document is issued by customs.
Carriage and Insurance Paid To Incoterm® (CIP)
The same as CPT, but insurance is added for the seller’s account on an agreed part of the route. For more information see: ICCWBO
Carriage Paid To Incoterm® (CPT)
The seller completes export formalities and arranges delivery to the carrier contracted by the seller at a designated destination. As a rule, such a place is a terminal where an ocean carrier (shipping line) can accept cargo for further transportation. Risk transfers from seller to buyer when the goods are handed over to the first carrier. However, the buyer is only responsible for additional costs after the goods arrive at the final destination. Insurance is not specified in this term. For more information see: ICCWBO
A person who, under a contract of carriage, performs or mediates in the delivery of goods using a vehicle.
The company that transports the cargo. There are two classifications of carrier, VOCC (Vessel Operating Common Carrier) and NVOCC (Non-Vessel Operating Common Carrier). A VOCC typically owns ships (more commonly known as ‘ocean carriers’) whereas a NVOCC refers to freight forwarders that have partnerships with VOCCs.
A freight carrier‘s right to hold on to cargo until they have received payment for transporting the goods.
(1) Movement of goods locally (short distances). (2) Сharge for pick-up and delivery of goods.
A group of countries producing the same product and having concluded an agreement between themselves to control the supply volume and price level of this product.
Customs form permitting in-bond cargo to be moved from one location to another under Customs control, within the same Customs district.
Settlement form, in which the exporter receives payment after submission of shipping documents to the bank or the importer receives documents for the goods after payment.
A method of payment for goods, in which something is sold on a cash with order basis, payment must be sent along with the order, before the goods are sent out, and the transaction becomes binding on both buyer and seller.
A tool to calculate cargo volume. The CBM Calculation formula is width (in meters) x length (in meters) x height (in meters)
Centralized Examination Station (CES)
If U.S. customs holds back a shipment for inspection, it’s kept in a CES. Costs associated with an inspection fall entirely on the importer, including transport to the CES, the CES fee and storage costs
Certificate of Insurance (COI)
Issued by an insurance company or broker. The document confirms the existence of an insurance policy and summarizes the main aspects and conditions of the policy
Сertificate submitted by an exporter to those countries requiring it, listing goods to be imported and stating their place of origin. Used for customs and foreign exchange purposes.
A network of agencies and other intermediaries that link the manufacturer and the end-user.
A type of truck trailer/truck undercarriage (usually in 20′ or 40′ container size) used in road transportation of ocean containers.
The flat fee associated with requiring a chassis for container transportation. The full fee is charged to FCL shipments, and a by-volume percentage of the fee to each LCL shipper.
The fee charged when a trucker has to travel to collect a chassis, and bring it to where the container is stored.
A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
A third party who consolidates the cargo of LCL shipments into a shared container in a CFS.
Abbreviation for CO2 equivalent. A metric measure to express all greenhouse gases in the equivalent of CO2. This is done to make the different greenhouse gasses comparable based on their global warming potential (i.e., CO2 is only talking about carbon dioxide while CO2e includes all other greenhouse gases).
A temperature-controlled supply chain, where production, storage and distribution are all refrigerated.
Collect Freight / Freight Collect
The freight and charges to be paid by the consignee at the port of destination.
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Transportation of goods by at least two different modes of transport; widely used in container shipping. When using it, transportation can be carried out by sea and further by rail and/or road according to one document. Combined Transport is also referred to in the U.S. as “Intermodal Transport” and in other parts of the world as “Multimodal Transport”
A list of product groups and categories used to determine if a U.S. export license is required.
A document specifying the quantity and value of goods, as well as supplier and buyer details, essential for customs declarations.
A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Freight that might have been damaged during transit, but, the damage/loss/shortage was not notated on the Proof of Delivery.
Also known as ‘container sweat’ or ‘container rain’ condensation (water droplets) forming in airtight containers due to temperature fluctuations can be a real problem to vulnerable cargo.
An ocean carrier who is a member of an association known as a “conference.” The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
This surcharge is dependent on unusual events, e.g. strikes, bad winter, major port fires.
Sometimes referred to as the buyer or recipient, the consignee is legally responsible for ownership of the goods upon delivery to destination.
A natural or legal person who delivered the goods for carriage and is indicated as the sender in the carriage document.
In shipping, consolidation refers to adding several LCL shipments into a single container at a CFS.
This is a fee for bringing together and packing several smaller shipments into the same container., applicable to ocean freight LCL and air freight.
A bill of lading issued by a consolidating freight forwarder to a shipper.
A steel box especially designed to ship cargo in, across various modes of transportation including sea freight, truck and rail. Containers are standardized by size; 20 foot, 40 foot, 40 foot High Cube (HC) – which is a foot taller – and 45 foot High Cube
Registration of all formalities and operations necessary to obtain permission to unload the container from the vessel and to load it on board the vessel
A storage area, other than a container yard, where shippers and consignees may pick up or drop off empty containers
The charge made for the packing or unpacking of cargo into or from ocean freight containers.
Container Freight Station (CFS)
A warehouse that consolidates and deconsolidates cargo. A CFS takes LCL shipments to consolidate them into a shared container. Upon arrival at the destination port, there’s another CFS ready to do the same process in reverse (deconsolidation). The fee charged to do this is called a CFS Fee.
Container Freight Station Cut-Off (CFS Cut-off)
The date prior to a sailing by which a container must be checked-in (‘gated-in’) by at the CFS.
Container Freight Station Fee (CFS Fee)
The fee charged to consolidate and deconsolidate cargo in a CFS, based on volume of goods.
Also known as ‘container sweat’, condensation (water droplets) forming in airtight containers due to temperature fluctuations can be a real problem to vulnerable cargo.
An area intended for storing goods in containers, usually delivered by road, rail, and sea, where containers are picked up, dropped off, maintained and housed.
An oceangoing vessel designed specifically to easily handle the loading, stowage, and off-loading of ocean freight containers.
A place for handling/storage of materials used for fully unified cargo in containers and/or empty containers.
A coastal facility / depot for ocean container storage, and from where all containers are loaded onto cargo vessels.
The date prior to a sailing (usually 2 days before) by which a container must be checked-in (‘gated-in’) by at the container yard.
The practice or technique of using a boxlike device in which a number of packages are stored, protected, and handled as a single unit in transit.
A type of customs bond that covers all your imported goods for a full year, but doesn’t cover customs clearance fees.
An agreement between the shipowner and the charterer on the hiring of a ship (all or part of its premises) for the carriage of goods. In this case, a consignor undertakes to pay the established fee (freight) for transportation, and a carrier – to deliver the goods to the port of destination.
A written contract between the carrier and the shipper for the transport of cargo, specifying the obligations of each party. Contracts of carriage may be a Bill of Lading, Air Waybill, Sea Waybill or Charter Party.
The seller organizes land delivery, completes export formalities, and pays freight charges up to the port of destination. The risk passes from seller to buyer when the seller delivers the goods onboard the vessel. Insurance is not specified in this term. The CFR Incoterms® rule only applies to goods transported by sea or inland waterway. For more information see: ICCWBO
Cost, Insurance and Freight Incoterm® (CIF)
The same as CFR, but insurance is added for the seller’s account on an agreed part of the route. The CIF Incoterms® rule only applies to goods transported by sea or inland waterway. For more information see: ICCWBO
An umbrella term for several sorts of trade in which the seller is required to accept goods or other instruments or trade, in partial or whole payment for its products
Special duties imposed on imports to offset the benefits of subsidies to producers or exporters in the exporting country
Country where goods are manufactured or produced. For trade, this is determined by the Rules of Origin.
Cross Dock / X-Dock / Cross-Docking
The movement of cargo from one transport unit directly onto another, with minimal or no warehousing. In practice, crossdocking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. Cross-docking is a practice in logistics of unloading materials from a manufacturer or mode of transportation directly to the customer or another mode of transportation, with little or no storage in between.
When a shipping container has been filled by volume but has not reached its maximum weight limit.
The carrying capacity of a container according to measurement in cubic feet, cubic centimeters or cubic meters.
Measurement most commonly used in the shipment of less than container loads (LCL) to determine the space and associated price of that shipment. 1 cubic metre = 35,314 cubic feet.
Currency Adjustment Factor (CAF)
The CAF is a surcharge applied to cover possible variations in the exchange rate. It is quoted as a percentage of the freight and all of the surcharges that are in a foreign currency.
A government agency providing the procedure for moving goods and vehicles, things, and other items across the customs border, levying customs payments.
Customs and Border Protection (CBP)
Otherwise known as U.S. border control or U.S. customs, CBP regulates trade and travel into the U.S.
Customs Assigned Importer Number (CAIN)
A number used for foreign import into the U.S. when importers don’t have an EIN.
A document, similar to insurance, that must be purchased to import high-value shipments into the U.S. In the event that import fees, taxes and duties on shipped goods aren’t paid by the importer, CBP can collect from the intermediary broker, and the broker can pursue legal means to collect from the importer. A customs bond, also known as an import bond, is mandatory for import of goods over $2,500 into the U.S.
A legal entity that has received a license to perform intermediary functions in the field of customs clearance of goods at the expense and on behalf of the represented person.
A document used in customs clearance that declares the type, amount, and value of goods entering or leaving a country.
An inspection of goods by the CBP. In the U.S., a customs exam is an X-ray, Tail Gate or Intensive Exam. Shipments are chosen for a customs exam based on information from the AMS and ISF.
A fee charged for undergoing the customs exam, which is the importer’s responsibility to pay if their goods are flagged for further inspection. The fee differs based upon what type of customs exam is performed.
Last possible time when containers/cargoes may be delivered to a ship or designated point.
D&D costs (Demurrage and Detention)
Demurrage and Detention are charges applied when the container is held beyond the agreed free time period
Substances which can pose a significant risk to health and therefore, require special handling and documentation depending on substance classification, mode and regulatory regime. Rule and guidance for DG shipments by air are produced by ICAO (International Civil Aviation Organization) and IATA (International Air Transport Association), for maritime shipments these regulations are produced by the IMO (International Maritime Organization). The most widely applied regulatory scheme is that for the transportation of dangerous goods. The United Nations Economic and Social Council issues the UN Recommendations on the Transport of Dangerous Goods, which form the basis for most regional, national, and international regulatory schemes.
Days Payable Outstanding (DPO)
Efficiency ratio that measures the average number of days a company takes to pay its suppliers.
Calculation used by a company to estimate their average collection period
A type of coverage, where the carrier’s financial liability matches the declared value of the cargo whilst they are in possession of the shipment. A carrier will pay out only in the event of negligence on their part. Declared Value Coverage is distinct from Cargo Insurance, which is much broader spectrum and covers all eventualities.
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.
The opposite of consolidation; deconsolidation is the process of sorting the contents of a container into the separate LCL shipments at a CFS.
An arrangement whereby a carrier reimburses a percentage of the total freight cost to shippers who transfer their goods for a specific period (usually six months) to the carrier. This refund is paid at the end of the period
Deliver Duty Paid Incoterm® (DDP)
The same as DAP, but the seller is responsible for import Customs formalities and payment of duties and taxes. For more information see: ICCWBO
Delivered at place Incoterm®(DAP)
The seller assumes the freight cost and risks up to the delivery point. The buyer is responsible for import Customs formalities, payment of duties and taxes and unloading charges at the delivery location.
Delivered at Place Unloaded Incoterm® (DPU)
The same as DAP, but the seller is responsible for unloading the goods at the delivery point. For more information see: ICCWBO
Depending on the type of cargo, it is determined for how long the payment for delivery will be contracted.
A special document that the carrier receives so that he can pick up the goods.
A document given to the trucker containing all the pickup and delivery information.
“The time the filled containers spend inside the terminal. Demurrage penalty fees/charges are used to prevent containers from being stored at the port for a long time. This fee is applicable when the customer holds carrier equipment in the terminal for longer than the agreed amount of free time. It can be incurred for both exports (early drop-off) and imports (late pick-up). Export: Demurrage days are counted from gate-in (full) to container loading minus free days. Import: Demurrage days are counted from container discharge to gate-out (full) minus free days.”
A characteristic of physical indicators that measures the weight of a cargo per unit volume or pounds per cubic foot.
“The time the containers spend outside the terminal. This fee is applicable to all containers that remain in the customer’s possession longer than the agreed free time. In imports, measured between picking them up at the port when they’re full and returning them to the port or a depot when they’re empty . For an importer, this is usually the time to unpack and for a exporter, the time to load the cargo. In exports, measured between picking them up empty at the terminal when they’re empty and returning them to the port or a depot when they’re full. Not applicable for shipper owned containers.”
A service fee (usually a percentage of the duties) charged when importers themselves don’t directly pay the necessary customs duties and taxes, but rely on a third party to do so.
Instructions that the bank gives to the person who is involved in the shipment. They contain information that documents that transfer the right to own a particular product should be delivered to the buyer only after the buyer accepts the attached project
In international trade – an arrangement in which someone can collect imported goods only after paying them at the bank and confirming payment.
Shipping term denoting shipping services from the shipper’s door to the consignee’s door.
A double blind shipment is when the shipper doesn’t know the delivery destination and the consignee doesn’t know shipment origin. It protects the anonymity of both parties.
Inland transportation from vendors to the port of shipment, and from discharge port to the point of stripping the ocean container. Drayage is hence undertaken for CY and CFS cargo.
A ‘drop’ is a type of delivery where the trucker leaves a container at the warehouse, without unloading it, and then returns to pick it up once it’s empty. It’s a good option when unloading will take a long time (or when it can’t be unloaded straight away), to avoid a Trucking Wait Fee.
Similar to a ‘Drop’, but in this case the trucker picks up a different, empty container as they leave and don’t need to return. It’s a cheaper option than a Drop.
The fee charged by a trucker (also known as a ‘Bobtail Fee’) for a ‘drop’ delivery, since an extra trip is required by the trucker to pick up the empty container.
Shipping drums are tough, waterproof cylindrical containers used for bulk liquids and granular materials, including hazardous liquids. They are metal, plastic, or corrugated fiberboard and come in standard sizes.
A no-frills standard shipping container made of steel or aluminum. 90% of goods shipped by sea are transported with dry containers.
When a trucker can’t pick up or deliver a shipment, they have to try again later. In this scenario, the trucker charges a Dry Run Fee to compensate for the extra trip.
Any shipping that doesn’t need to be temperature controlled or transported on a flatbed trailer.
Material used around cargo to prevent breakage or shifting, normally provided by shipper. Its weight is included in the rating.
A tax levied by governments on the import, export or consumption of goods. Usually tax is based on the value of goods (ad valorem) although can be based on weights, quantities, etc. They are separate from VAT, sales tax, excise tax and other customs fees.
1. Payment returned for cargo re-exported or trade show material. 2. A customs refund on re-exported cargo. “
Economic Operator Registration and Identification (EORI)
A EORI number is how the EU legally identifies businesses. It’s mandatory for import or export into the European Union.
Electronic Data Interchange (EDI)
Communications between two businesses via a structured set of messages to exchange documents like purchase orders and invoices.
Emergency Bunker Surcharge (EBS)
A surcharge charged by ocean carriers when fuel prices rise very high, to cover their losses.
Employer Identification Number (EIN)
An EIN, also known as a Federal Tax Identification Number, is how the U.S. legally identifies businesses.
The document that must be filed with Customs to obtain the release of imported goods and to allow the collection of duties and statistics. Also called a Customs Entry Form or Entry.
Carriers use to facilitate their transportation services. Include containers, trucks, chassis, vessels, and airplanes, among others.
Equipment Interchange Receipt (EIR)
A document used to receive or deliver a full or empty container/chassis at any terminal or inland container pool/depot.
The seller takes the cost and risk responsibility to make the cargo available for pick up, including export documentation, packaging and labeling. The buyer receives the cargo directly from the seller’s premises, which can be a factory, store, warehouse, etc., and thereafter arranges shipment, Customs, insurance and other related services. For more information see: ICCWBO
A type of tax / duty that is charged on importing certain goods, such as alcohol and tobacco.
Excise Movement and Control System (EMCS)
A computerised system that controls the movement of excise goods on which excise duties still need to be paid.
Expedited Shipment / Expedited Freight
The faster than normal delivery of a product from its origin to its destination.
An agreement under which one party (freight forwarder) undertakes, at the expense of the other party (customer), to send or receive goods belonging to the customer, perform other related activities, and the customer to hand over for shipment, receive goods and pay forwarder services.
A person acting as an intermediary between a seller and a buyer for a fee received during any transaction.
Export Control Classification Number (ECCN)
A number used to classify U.S. exports in the CCL, used to determine if an export license is needed.
Document required of the exporter by the export authority of the country the goods are being exported from specifying the shipment, including type, number, and value.
A document prepared by a government authority granting the right to export certain materials at a specified quantity to a specified country. License requirements vary by country and ship-to.
The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
Federal Maritime Commission (FMC)
The U.S. agency responsible for regulating ocean transport and commercial shipping.
A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.
Transportation conveyance utilised to relay cargo from the mother vessel to ultimate destination or from first receipt port to mother vessel.
Feeder Ports are smaller ports as compared to base ports, where mother vessels cannot berth, but smaller vessels can.
Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.
A short-sea vessel which transfers cargo between a central hub port and smaller “spoke” ports.
A warehouse that stores goods on the goods’ owner’s property while the goods are under a bona fide public warehouse manager’s custody. The owner uses the public warehouse receipts as collateral for a loan.
FIFO means products are to be used in chronological order; the ‘oldest’ products must be the first to be used, consumed, delivered or sold. This is particularly important with perishable items.
A valuation method to obtain the lowest possible import value, which helps lower Customs tariffs. Declaring the value cost to Customs as the cost paid by the first buyer directly to the manufacturer (the ‘first sale’) for example.
Fixed Quantity Inventory Model
A setup wherein a company orders the same (fixed) quantity each time it places an order for an item.
A type of robust inflatable bag used for bulk liquids that fits into a standard container, effectively transforming it into a type of tanker. Commonly used to transport olive oil, wine, etc. in bulk.
A storage method where a product is presented to picking operations at one end of a rack and replenished from the opposite end.
Food and Drug Administration (FDA)
The U.S. Department of Health and Human Services Agency, one of the federal executive departments, that inspects certain regulated items in U.S. Customs.
A state of emergency or condition that permits a company to depart from the strict terms of contract because of an event or effect that cannot be reasonably anticipated or controlled, i.e: beyond human control (French superior or irresistible force). Compare: ACT OF GOD, INEVITABLE ACCIDENT, VIS MAJOR.
Secure economic locations, in or near a Port of Entry (but outside of CBP control) where goods are not (yet) taxed. Foreign goods will only be taxed when they exit the Free Trade Zone and enter the country
Forty Foot Equivalent Unit (FEU/FFE)
An FEU is a standard unit of measurement used in freight shipping, which refers to the volume in a 40-foot container. Two 20-foot containers (TEUs) equal one FEU.
Forwarder’s Cargo Receipt (FCR)
A document issued by a freight forwarder to the shipper that serves as certification of the receipt of cargo
Free Alongside Ship Incoterm® (FAS)
The seller completes export formalities, pays origin terminal charges, and places the goods alongside the vessel at a specified port of departure. The FAS Incoterms® rule only applies to goods transported by sea or inland waterway. For more information see: ICCWBO
The seller is responsible for export formalities and delivery of goods to the carrier at the named place of delivery. The risk transfers to the buyer when delivery has been completed at the agreed named place of delivery (depending on, seller’s premises or reaches a named place after loading on the carrier vehicle)
Free on Board or Freight on Board Incoterm® (FOB)
The seller completes export formalities, pays origin terminal costs, and moves the cargo to the port of loading. Under FOB, the risk and responsibilities are officially transferred to the buyer when the cargo is loaded onboard the vessel. The FOB Incoterms® rule only applies to goods transported by sea or inland waterway. For more information see: ICCWBO
The time allowed for loading/ unloading containers/ equipment before demurrage or detention charges apply. Free time determines the number of days a supplier can use the container for free — anything beyond this time incurs a fee.
An agreement between countries to help the import and export of goods between them and so boost trade for all parties.
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.
The freight companies that physically transport “carry” the freight on behalf of shippers.
A type of cargo has been given certain characteristics that dictate how much it costs to transport them.
Freight forwarding / Freight Forwarder
An enterprise that provides services to facilitate the transport of shipments. Services can include documentation preparation, space and equipment reservation, warehousing, consolidation, delivery, clearance, banking and insurance services, and agency services. The forwarder may facilitate transport by land, air, rail, ocean, multimodal, or may specialize in one transport mode. Also called Forwarder or Foreign Freight Forwarder. At Almar Iberia, we specialize in providing these services. Contact us for more information at info@almariberia.com
Freight Prepaid / Prepaid Freight
The freight and charges to be paid by the consignor at the port of loading
A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
An ocean shipping mode, in which the entire container is intended for one supplier and occupies a full container (regardless of size). A full container will thus offer a better price per unit shipped than will a LCL.
If consolidated into a container, the surcharge applied to the disinfection of the container.
A document that serves as confirmation that any wooden packing materials (ie, pallets) used in a cargo shipment have been fumigated.
Gate-in is a term used to describe when a container enters the terminal. The shipper/freight forwarder must have made a booking with the shipping line before the container is allowed to enter the area.
Gate-out is the term used to describe when a container leaves the terminal after the container has been released by the shipping line and by Customs.
General Average is defined in the York-Antwerp rules as: There is a General Average act when, and only when, any extraordinary sacrifice expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. When a cargo ship encounte a serious accident at sea, e.g. a grounding, the vessel owners may ha to incur additional costs to salvage the ship and its cargo, and may resort to declaring General Average. General Average requires that all parties with an interest in saving ship, the cargo, etc. share proportionately the cost of saving the common adventure . This means that cargo owners would be responsible a proportion of the costs equal to the proportion of the value of the cargo to the common adventure.
A status given to goods that are held in Customs because of an issue with clearance (such as missing documents). After 15 days, goods under GO will be moved to a GO bonded warehouse, and those costly associated transport and storage fees fall on the importer.
The amount by which ocean carriers increase their base rates across specific lines, generally as a result of increased demand.
A common motor carrier that carries general commodities or all commodities (except special commodities).
Generator sets which supply power to refrigerated containers when no external source is available. It is used to regulate the temperature in a reefer container. It can use its own power or plugs provided on the pier/vessel.
A term associated with more than one definition: 1. Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper. 2. Common term indicating movable property, merchandise, or wares. 3. All materials which are used to satisfy demands.
The evaluation and modification of an organization’s entire supply chain from design, planning, purchasing, sourcing, production, shipping and returns to minimize the environmental impact of the supply chain, often resulting in cost savings
GHG include Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O) and Fluorinated Gases (HFC, PFC, NF3 and SF6).
Gross Register Tonnage / Gross Registered Tons (GRT)
A ship’s total internal volume expressed in “register tons”, each of which is equal to 100 cubic feet (2.83 m3). Gross register tonnage uses the total permanently enclosed capacity of the vessel as its basis for volume, it is not a measure of the ship’s weight or displacement and should not be confused with terms such as deadweight tonnage or displacement. Typically, this is used for dockage fees, canal transit fees, and similar purposes where it is appropriate to charge based on the size of the entire vessel.
A Groupage shipment is when a single shipping container is shared by different suppliers, each of their shipments grouped together. Groupage in warehousing can mean consolidation; which is more of an organizational process.
A set of rules designed to resolve the problem of ship owners excluding themselves from all liabilities related to loss or damage of cargo under their control. Carrier must demonstrate “reasonable care” in the handling of cargo.
Specialised container equipped with hanger beams for the purpose of stowing garments on hangers.
A cargo description, which is a contradiction of terms. A chemical is a substance and whether it is harmless or not, depends on the context in which the substance appears or is used. Some carriers does not accept harmless chemicals as a valid cargo description on the shipping documents
Harmonized Commodity Description and Coding System (HS) / HTS Codes
Codes used by Customs to classify goods. HS () is a standard code used worldwide, and HTS (Harmonized Tariff Schedule) is a more detailed version of a HS used by the U.S.
Harmonized Tariff Schedule (HTS) of the U.S.
The Harmonized Tariff Schedule of the United States (HTS) sets out the tariff rates and statistical categories for all merchandise imported into the United States. The HTS is based on the international Harmonized System, which is the global system of nomenclature applied to most world trade in goods.
Harmonized Tariff System (HTS)
An organized listing of goods and their duty rates which is primarily used by Customs as the basis for classifying imported products and therefore, establishing the applicable duties and taxes. The HS is administrated by the World Customs Organization (WCO) and is updated every five years. It serves as the foundation for the import and export classification systems used in the United States and by many trading partners.
The local transport of goods also used interchangeably with cartage/ drayage. More common in Europe as a way of describing road transportation.
Hazardous / Dangerous Cargo / Dangerous Goods
A type of cargo that includes substances capable of posing unreasonable risk to the personnel, vessel and marine environment. Such goods are classified under the IMDG code which gives detailed information about the risk and nature of the individual substances as well as guidance on special handling.
It’s easiest to explain a backhaul by using Point A and Point B. When a freight load is picked up at Point A and delivered to Point B, it is known as a headhaul. When freight is picked up at Point B and is taken back to Point A on the return trip, it is known as a backhaul. Backhaul freight can be a win-win for the carrier and the shipper because the carrier avoids having an empty trailer on its return trip, and the shipper may receive discounted rates because of that fact.
Headpads are used in freight when liquids solidify in tanks (common for fatty or oily goods with a low melting point) and need to liquified to make unloading possible.
Charge for cargo which is too heavy to be lifted by standard cranes or ship’s tackle.
High Cube Container (HC, Hi-Cube, HQ)
A type of container which is 1 foot taller than the standard container size. HC containers are usually 40-foot or 45-foot lengths.
High Cube Non-Functioning reefer container (HNOR)
Equipment type used when a reefer is supplied in the place of a DRY/HIGH container.
House Bill of Lading (HBL) / House Airway Bill (HAWB)
A HBL/HAWB is issued by a Freight Forwarder like Almar Iberia. This allows the freight forwarder to procure and essentially resell the transport whilst holding cargo until payment by the customer via the MBL/ MAWB. The HBL/HAWB should always be issued on a back to back basis with a MBL/MAWB
Can be defined as a declaration by the carrier to the Customs about all Containers and their content loaded on a particular vessel. It is also referred to as the Import General Manifest or IGM.
The party that takes responsibility for customs documents, requirements, and duties.
Importer Security Filing (ISF)
Officially the Importer Security Filing (ISF) for U.S. bound cargo; the importer or their agent must supply the Customs & Border Protection (CBP) with the ISF filing containing 10 data elements (importer: Manufacturers Name & Address, Seller/Owner Name & Address, Ship To, Stuffing location, Consolidator, Importer of record, Consignee numbers, Country of Origin, HTS Code) + 2 (Carrier: Vessel stow plan, Container status messages) 24 hours prior to vessel loading in a foreign port. Sometimes known as a ’10+2′
Goods and services which one country’s residents purchase and transport from another country into their own country.
“The Incoterms® rules is shorthand for “International Commercial Terms” as defined by the International Chamber of Commerce (ICC). Are a globally-recognised set of standards, used worldwide in international and domestic contracts for the delivery of goods. They are 11 rules and help traders avoid costly misunderstandings by clarifying the tasks, responsabilities, costs and risks involved in the delivery of goods from sellers to buyers. The Incoterms® rules are recognised by UNCITRAL as the global standard for the interpretation of the most common terms in foreign trade. Incoterms® 2020 have come into effect on 1 January 2020. For more information see ICCWBO: https://iccwbo.org/resources-for-business/incoterms-rules/ Contact us at info@almariberia.com if you need assistance in selecting the most appropriate Incoterms® for a seamless and efficient trade. process is crucial.”
A quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.
An exclusion in an insurance policy, that accounts for a defect or ‘inherent characteristic’ of a product (E.g. metal will rust in humid conditions, so a claim cannot be made if the metal was not adequately protected by the shipper) Responsibility for correct packaging always lies with the shipper.
Transportation company that hauls import or export cargo between ports and inland points.
The transportation costs incurred in transporting goods from a seaport of loading to an inland container freight station, and vice versa.
A fee charged by the trucker if they have to enter the delivery location past the front door or loading dock, e.g. to install hardware.
A document issued by an inspection authority, indicating that goods have been inspected according to certain regulatory, customer or industry standards.
An insulation liner covers all the internal surfaces inside a shipping container. It reflects heat to significantly reduce the temperature within a container, avoiding large thermal fluctuations that can affect temperature-sensitive goods like wine.
A system of measures aimed at full or partial compensation of losses from certain risks (consequences of natural disasters and accidents, loss of wealth and disability, etc.) by transferring their consequences from one party (insured) to another (insurer) for a certain fee. Don’t hesitate to contact us at info@almariberia.com to help quote your cargo.
A document is specially issued in addition to the insurance policy for customer information as a sign that the contractor has implemented all types of insurance provided for by the terms of the contract
Intermediate Bulk container (IBC)
An IBC (also known as IBC tote, IBC tank, or pallet tank) is a type of industrial tank used in mass transport of bulk liquids, pastes, solids or semi-solids.
This method combines various transportation modes and helps to rationalize shipping by lowering costs, decreasing fuel use, and increasing reliability. This can be any combination of rail transport, road transport, sea shipping or air freight. Encasing of shipments means no direct handling of goods is needed to transfer from one transport mode to another.
International Air Transport Association (IATA)
Trade association serving airlines, passengers and shippers, defines key rules for transport of cargo, maintains a global list of airport codes.
International Federation of Freight Forwarders Associations (FIATA)
Trade association representing freight forwarders worldwide to promote industry interests, uniform documentation and terms for forwarding activities.
International Maritime Control Organisation (IMCO) Classification
Classification for hazardous cargo
International Maritime Organization (IMO)
Is a specialised agency of the United Nations responsible for regulating maritime transport. The purposes of the Organization, as summarized by Article 1(a) of the Convention, are “to provide machinery for cooperation among Governments in the field of governmental regulation and practices relating to technical matters of all kinds affecting shipping engaged in international trade; to encourage and facilitate the general adoption of the highest practicable standards in matters concerning maritime safety, efficiency of navigation and prevention and control of marine pollution from ships”. The Organization is also empowered to deal with administrative and legal matters related to these purposes. IMO’s first task was to adopt a new version of the International Convention for the Safety of Life at Sea (SOLAS), the most important of all treaties dealing with maritime safety. For more information see: https://www.imo.org/
International Ship and Port Facility Security Code (ISPS code)
The International Ship and Port Facility Code adopted by an IMO Diplomatic Conference in December 2002. Measure is designed to strengthen maritime security. (ISPS Code – Chapter XI-2 of SOLAS).
A document certifying the actual delivery of goods and/or the provision of services and their value.
A highly protective, stainless steel tank built to the ISO standard (International Organisation for Standardisation). ISO tanks carry all types of bulk liquids, including hazardous liquids.
The carrier who issues the bill of lading and with whom the contract of carriage is concluded.
A single tariff is charged for the transportation of goods over a route by two or more carriers.
In this method of inventory control system, warehousing is minimal or non-existent; the container is the moveable warehouse and must arrive “just in time,” i.e. not too early and not too late.
A cylindrical container, usually made of steel, frequently used to store and transport pressurized beer. In the U.S., kegs come in various different sizes, commonly a full size keg (1/2 barrel keg) = 15.5 gallons, a Pony Keg (1/4 barrel keg) = 7.75 gallons, a Sixtel (1/6 barrel keg) = 5.23 gallons.
Key Performance Indicators (KPIs)
(KPI) Critical measurable metrics that highlight the performance of your supply chain.
A shipper must be defined as a ‘Known Shipper’ by the TSA to be able to transport cargo by passenger plane from the U.S. Known Shippers benefit from cheaper freight rates, less delays and more route options.
Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code
Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also MLB.
The total cost of a shipment delivered to a named location, specifically the cost of goods plus all associated shipping costs.
Storage at an ocean terminal is free, for a set time. When the Last Free Day passes, fees such as demurrage start being charged.
Inventory concept to describe that the last received goods are the goods dispatched first.
Less than Container Load (LCL)
Common term for an amount of goods to be shipped and which do not fill an entire container. Ocean rates for LCL are commonly higher on a per-unit basis than for a FCL. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs. It is considered the most economical way to deliver small quantities of goods.
Consists of goods of different consignees, which are consolidated in warehouses. It is advantageous to order LTL when transporting small consignments, as the customer pays only for the place that is necessary for his cargo.
1. Letter of agreement issued by a bank stating a foreign purchaser has established a line of credit in a seller’s favour, and confirming that payment for goods will be made upon presentation of certain documents which are in agreement with terms on the letter of credit. 2. A letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on him or his credit up to a certain sum. 3. A letter addressed by a banker to a person, to whom credit is given, authorising him to draw on the issuing bank or on a bank in his country up to a certain sum and guaranteeing to accept the drafts if duly made, also called commercial letter of credit, confirmed credit or confirmed letter of credit. Letters of credit may take various forms, represent various undertakings for various purposes and be subject to different conditions.
A document which the shipper indemnifies the shipping company against the implications of claims that may arise from the issue of a clean Bill of Lading when the goods were not loaded in accordance with the description in the Bill of Lading. There are two different letters of indemnity: letters of indemnity for quantitative clauses and letters of indemnity for non-quantitative clauses. When the Bill of Lading forms the basis of a documentary credit, the bank demands a clean Bill of Lading. This is a Bill of Lading without reservations by the captain. If for one reason or another, the goods were not loaded as prescribed, the captain may want to put reservations on the Bill of Lading. By doing so, the Bill of Lading is no longer clean and the bank will not give documentary credit. In order to remedy this, it is custom to put the reservations not on the Bill of Lading, but on the mates receipt and to draw up a letter of indemnity which the shipper indemnifies the captain (the shipping company) against the potential implications thereof.
Marine portion of a vessel’s route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).
Liquified Natural Gas Carrier (LNG Carrier)
A freight shipping rate of the loading goods into the ship in the logistics terms that includes in the freight rate, whereas unloading is not.
Physical placement of cargo within a container, truck or on a vessel/ aircraft or other means of transport.
The management of freight and information throughout the total supply chain from the original raw material source to the ultimate consumer of the finished product, encompasing factories, assembly and packing plants, warehouses, distribution centres and retail outlets.
Entire listing of all cargo on board a vessel as required by the relevant local authorities e.g. customs. Same as cargo manifest.
The identifying details on or of a package or the actual markings that appear on the packages.
Master Bill of Landing (MBL) / Master Airway Bill (MAWB)
A contract of carriage between the carrier/airline and customer issued by the shipping Line/Airline to the NVOCC Operator, Freight Forwarder, or customer. The shipper will only receive a MBL/MAWB if he is working directly with a carrier/airline. The MBL/MAWB is a document of title.
Material Safety Data Sheet (MSDS)
A document prepared by a supplier/shipper of hazardous materials that details safety information and procedures for handling or using the product or material. MSDS sheets typically contain a listing of hazardous ingredients, handling procedures, first aid procedures and precautions.
Merchandise Processing Fee (MPF)
A fee for customs clearance and border protection related to most imported goods, whether formal or informal entry. A fee charged by U.S. Customs on most U.S. imports.
Service of coordinating 3rd party logistics services (Merchant Haulage arrangements) on behalf of the customer. This service is applied based upon the customer’s request for the carrier to coordinate inland haulage on a merchant haulage Bill of Lading. The customer holds the contract with the haulage provider.The carrier can refuse to offer this service.
A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company.
Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also Land Bridge
Shipment consisting of items described in and rated under two or more rate items within a tariff
The relative use that companies make of transportation modes; the statistics include ton-miles, passenger-miles, and revenue.
Something that can be negotiated, transferred or assigned from one person to another in return for equivalent value by being delivered either with endorsement (as of an instrument to order) or without endorsement (as of an instrument to bearer) so that the title passes to the transferee who is not prejudiced in his rights by any defect or flaw in the title of prior parties nor by personal defenses available to prior parties among themselves provided in both cases that the transferee is a bona fide holder without notice. “Negotiable” used analogously for “transferable”. See Original Bill of Lading (OBL).
Negotiated Rate Arrangement (NRA)
A document from the FMC that makes sure ocean freight rates are accepted before cargo loading.
Bank where a shipper negotiates documents or where documents are first presented, usually at country of origin. Also, often referred to as the advising bank.
Three or more different sizes of the same item or commodity which must be enclosed, each smaller piece within the next larger piece, or three or more of the items must be placed one within the other so that the top item does not project above the lower item by more than 1/3 of its height. Nested Solid: Three or more of items must be placed on or inside the other, so that the external side surfaces of the top item is in contact with the internal side surfaces of the item below, and the top item does not project above the next lower item by more than 1/2 inch.
“A leading indicator of future growth and is measured via a very simple but highly relevant question: “Based on your experience with Almar Iberia, how likely are you to recommend Almar Iberia to a business associate or colleague? Customers are invited to score us on the above-mentioned question on a scale ranging from 0 to 10. Those who give us a score 9-10 are considered to be our Promoters. They are loyal to Almar Iberia and will continue to hire our services and refer others to us, fueling growth. Passives (score 7-8) are satisfied but unenthusiastic Almar Iberia-customers who are vulnerable to competitive offerings. Detractors (score 0-6) are unhappy customers who can hamper growth through negative word-of-mouth. Subtracting the percentage of Detractors from the percentage of Promoters gives the Net Promoter Score. The NPS can range from -100 (every customer is a Detractor) to +100 (every customer is a Promoter).”
Non Operating reefer/refrigerated container (NOR)
A reefer (refrigerated container) that deactivates its refrigeration unit is referred to as a Non Operating Reefer, and can basically be used as a normal container (although slightly smaller due to its thick walls).
Non-Asset-Based Third Party Providers
Third party providers who generally do not own assets, such as transportation and/or warehouse equipment.
A document not made out “to order”, but being a receipt and evidence of the contract of carriage, but which is not a document of title.
Non-Vessel Operating Common Carrier (NVOCC)
An individual or company that arranges transportation, but does not own or operate any freight vessels.
Noridsk Speditörsförbunds Allmänna Bestämmelser 2000 (NSAB)
A set of rules development by the Nordic Association of Freight Forwarders, including the freight forwarders liability under various transport law conventions, such as SIM, CMR, the Hague-Visby Rules and the Warsaw Convention. The Norid Association of Freight Forwarders is a coaltion of unions in Denmark, Finland, Norway and Sweden and is in turn a part of FIATA, the international Freight forwarder organisation
Company/person who appears on the bill of lading or waybill to be notified when the cargo arrives at destination. Could be different from the consignee, but is often the actual receiver of the goods. A notify party has no particular rights (beyond the notification) under the bill of lading or waybill.
Ocean freight refers to the ‘pure’ cost, prior to any surcharges. It is the transport service, generally from ‘port to port’. For FCL shipping, the cost is usually calculated based on the type of container.
Service of providing inland import transportation to our customer’s premises from the port of discharge. This offers the customer flexibility of door to door transportation.This service is applicable when the carrier provides inland transportation to the desired inland location, based on the request of the customer.
The proportion of time that a transit system adheres to its published schedule times within stated tolerances.
Rates established for each individual carrier. These rates are listed in a tariff list but may differ according to carrier
A term used in place of “flag of convenience” or “flag of necessity” to denote registry in a country that offers favorable tax, regulatory, and other incentives to ship owners from other nations.
Open Top Container (OT Container)
A container with an open roof and designed to carry cargo that is too large to be loaded through standard container doors, such as machinery.
Process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier
Fees that cover the services provided before a shipment departs. Who pays this charge depends on the incoterms agreed upon.
Relocating a part of the manufacturing process to another country in order to avoid high duties or other undesirable restrictions.
Original bill of lading B/L. Printed document, normally triplicate. See also Negotiable Bill of Lading.
Describes break bulk cargo, which is not suitable for stuffing into a standard container due to the cargo dimensions and which requires the use of special equipment like flat racks, platforms- or open-top containers. This surcharge is applied to cargo that is larger than the dimensions of a container in width and/or height. It is mainly applied to open-top or flat rack containers.
1. Cargo volume count more than originally shipped. 2. Cargo taken beyond original port of discharge.
A situation where there are too many ships generally or in a particular trade for the level of available cargoes.
The OWS is charged by shipping companies to transport heavy containers. It applies to 20ft containers and each shipping company sets the rate at their own discretion
A document necessary for Customs. It needs to specify product details such as quantity, weight, dimension and carton count. Failure to correctly fill in the PL can result in a customs inspection.
A flat, heavy load, usually wooden, transport structure made in standard sizes and adhering to standard specifications. Eases movement by forklifts. In Europe there are 120cm x 80cm euro pallets, while in China, Japan and Australia the standard pallets are 110cm x 110cm,and in the United States the most popular is 120cm x 100cm
A fee charged (per pallet) if a trucker doesn’t bring pallets with them to a cargo pickup, to compensate for ‘keeping’ them.
A machine that wraps a pallet’s contents in stretch-wrap to ensure safe shipment.
Also known as the 80-20 rule, postulates that 20% of the effort leads to 80% of results
Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.
Partner Government Agency (PGA)
A U.S. government agency that oversees the entry of certain regulated goods into the U.S. There are several PGAs, the FDA is one of them.
Shippers and providers who enter into agreements designed to benefit both parties.
A surcharge that carriers may add during high season, like before certain holidays like CNY (Chinese New Year)
Also know as a Detention fee, a Per Diem is a daily fee charged by a carrier for keeping the container in the port past the ‘Last Free Day’. This fee is usually costly, as it’s meant to deter importers from keeping much-needed containers out of circulation.
An extra fee charged only at the Port of L.A / Long Beach during peak hours (3 AM-6 PM), to reduce traffic congestion.
Is applied by shipping companies to cover costs caused by congestion and times of ship inactivity. The surcharge may also be applied where congestion is caused by labour disputes.
Inspection of foreign ships in national ports in order to verify compliance of a ship with the requirements of international law.
A legal document used in shipping to grant a customs broker the authority to process Customs clearance on your behalf.
Service of providing inland export transportation from our customer’s premises to the port of loading. This offers the customer the flexibility of door to door transportation. This service is applicable when the carrier provides inland transportation from the desired inland location, based on the request of the customer.
A pre-pull is when a trucker picks up a container from the port and stores it at a trucker’s yard. It helps avoid demurrage fees when a container can’t immediately be delivered. A pre-pull fee falls under an ‘origin or destination charge’.
A duty that is cheaper than a normal duty rate. Preferential duties are given when products originate from a country that has an FTA.
An informal preliminary document (usually invoice) sent to buyers describing a shipment of goods in advance of their delivery.
Documents or information supplied by the carrier that specify who signed for the shipment, when it arrived, and any other essential shipping information.
A written agreement between a seller and a buyer on the supply (purchase) of goods or services at an agreed price and at an agreed time.
The process of checking product quality for compliance with standard requirements.
The major shipping point in a local area; carriers consider all points in the local area to be the rate basis point.
A carrier service that permits a shipper to change the destination and/or consignee after the shipment has reached its originally billed destination and to still pay the through rate from origin to final destination.
Also known as a Notice of Readiness (NOR – not to be confused with Non Operating Reefer) a readiness form is a document used by the captain of the ship to notify that his ship is ready to load and/or unload the goods.
In logistics, this refers to a shippers ability to track an order as it travels along its delivery journey.
Sometimes known as ‘Reefer trucks’, these vehicles are refrigerated and can transport temperature-sensitive goods.
A unit of interior capacity of ships. 1 Register Ton = 100 cubic feet or 2,832 cubic metres. Also known as vessel ton.
A related party transaction is important to U.S. Customs. When the buyer and seller share a ‘personal’ connection, such as being a family members, sharing business partners, employees, share holders, or directors, they are classed as a ‘related party’.
A restow is a move where a container is off loaded from on board the ship and put back onto the ship either at the same stow position or a different stow position. This could be due to incorrect stowage of a container or a change of destination was requested at a later stage
Used for carrying cars and light trucks. Vehicles are driven on and driven off, as opposed to being loaded with cranes or other external equipment.
Cargo that is chosen to ‘roll over’ to the next shipment. This happens when a vessel runs out of space, which sometimes happens due to overbooking or when documentation or cargo is not presented on time.
Rolling Cargo / Roll-on/Roll-off (RoRo)
Cargo which is on wheels, such as truck or trailers, and which can be driven or towed on to a ship. RoRo ships typically come with ramps or slips that allow workers to drive wheeled cargo on and off them.
The legal rules to determine the country of origin of goods. It’s not always easy to work out origin, especially if a product has been manufactured from many elements, so these rules are necessary.
The International Convention for the Safety of Life at Sea (SOLAS) is part of the International Maritime Organisation (IMO). All ships registered by signatory states must adhere to safety standards in construction, equipment and operation.
The Sea Waybill is a simple, non-negotiable transport document that can be used as an alternative to the Bill of Lading. Unlike the Bill of Lading, the Sea Waybill is not a document of title. But it does act as the evidence of a contract of carriage and as a transport goods receipt. With the SWB, no original document is needed for cargo release.
The importer or their agent is required to electronically submit information relating to the shipment. This term is used in the U.S.
An authorized person (individual or firm) performing certain actions on behalf of another person (principal) on his behalf and in his interests.
Shipper’s Letter Of Instruction (SLI)
A note from the exporter to the freight forwarder with instructions on how a shipment is being sent and where it is going. It is mandatory in exporting goods from the U.S.
A document from the carrier that confirms that space for the cargo is booked onboard the vessel. An SO states the location of the empty container for pickup, and usually has sailing information including vessel number and departure time.
A document that breaks down the individual legs of a shipment and the surcharges each will incur, as per your freight quote.
In addition to a customs invoice, some countries require a special customs invoice designed to facilitate the clearance of goods and the assessment of customs duties in that country.
A fee charged by a trucker for a delivery under special circumstances, e.g. outside operating hours or to location not normally serviced.
Special Equipment Surcharge (SEP)
The SEP is incorporated into standard dry container freight rates in order to secure special equipment freight (usually open top and flat rack).
This refers to when the cargo of a single air shipment is split between two or more flights, which may happen in larger shipments.
A charter for a specific vessel to move a single cargo between indicated loading port(s) and discharge port(s) in the near future.
Stop Off Fee / Additional stop
A fee charged by the trucker if a road shipment is split between two or more delivery addresses.
An umbrella term for the fees that may incur due to cargo storage, such as during a Customs exam, Pre-Pull etc.
The placing of goods in the cargo areas of ships with the aim of leveling it or stuffing under-deck voids. It is usually used when loading bulk and break bulk cargo.
The process of loading a container. De-stuffing, devanning or deconsolidating are all terms that refer to unloading.
The process of monitoring and controlling the production, storage, and distribution of goods from manufacturer to final client.
Sustainable Aviation Fuel (SAF)
Can be both, biofuel or synthetic fuel. Currently only biofuel is a commercially viable option.
Umbrella term for fuels sourced from a non-fossil feedstock including both, biofuel and synthetic fuel.
Can be both, biofuel or synthetic fuel. Currently only biofuel is a commercially viable option.
Also called ‘eFuel’ or ‘Power-to-liquid (PtL)’. Sustainable fuel produced synthetically from green electricity and gas.
A type of customs inspection, where a CBP officer will break open a container and look inside, and then decide whether to proceed with an Intensive Exam or let the container pass.
Tank-to-Wheel /Tank-to-Wake (TtW)
Also called ‘Energy use emissions’. All direct emissions from fossil fuel combustion during vehicle operation (i.e., emissions resulting from the combustion of the fuel).
List of published rates, rules and regulations applicable to the transportation of goods in specified trade lanes or between two areas.
An electronic message transmitted from an agent or shipping line at the port of loading (POL) to the agent at the port of discharge (POD). This message signifies that the shipper has surrendered the original Bill of Lading (OBL).
Terminal Handling Service-Destination (DHC)
This service covers the cost of the handling of a container at the destination port or terminal. This service is applicable to all shipments.
Terminal Handling Service-Origin (OHC)
This service covers the cost of handling a container at the origin port or terminal. This service is applicable to all shipments.
TI-HI, also Ti-High, Tie-High, or Ti by Hi
It refers to the number of boxes/cartons stored on a layer, or tier, (the TI) and the number of layers high that these will be stacked on the pallet (the HI). 1. It can also be used in reference to the stacking pattern used to load a pallet in order to generate a relatively stable stack. These measurements will usually be asked for following the Cube (cubic feet) of a Master Carton.
The shipper, by way of endorsement and passing of the document, allows a transfer of the rights to take delivery of the goods in the document e.g. a bill of lading.
A freight transportation output measure that reflects the shipment’s weight and the distance the carrier hauls it; a multiplication of tons hauled and distance traveled.
The volumetric characteristic of the vessel, expressed in cubic meters, shows how much cargo can be accepted for transportation.
A request on a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery. Common usage of this term has been simplified to mean any request for status of a shipment.
Trailer on Flat Car Rail (TOFC)
Trailer on Flat Car Rail Service in which a container is loaded on a rail car with chassis, bogies or wheels.
The total delivery time of the container (cargo), calculated from the moment of loading onto the vessel until the moment of unloading at the port of destination.
The process of unloading cargo to move it from one mode of transport to another, or from one container to another. Usually transloading happens between ocean and road transport; by unloading an ocean container and reloading it into a truck. Transfer of containers from one vessel to another vessel. Synonymous with Transshipments.
List of the particulars of the shipment and a record of the documents being transmitted, together with instructions for the disposition of documents.
A fee covers haulage from the exporter’s premises to the port/warehouse.
Transport Management System (TMS)
Part of supply chain management, TMS is specifically concerned with streamlining transport processes.
Moving cargo from one vessel or another vehicle to another vehicle at the same transport point.
Surcharge applies for waiting more hours than agreed for loading or unloading. This is a prorated hourly charge.
Twenty-foot Equivalent Unit (TEU)
A TEU is a standard unit of measurement used in freight shipping, which refers to the volume in a 20-foot container. Two 20-foot containers (TEUs) equal one Forty-foot Equivalent Unit (FEU)
UN Dangerous Goods Number (UNDG)
The four-digit number assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods to classify a substance or a particular groups of substances. Note: The prefix ‘UN’ must always be used in conjunction with these numbers.
The same as UNDG. An identification number referring to hazardous cargoes as classified by the I.M.O.
United Nations Centre for Trade Facilitation and Electronic Business. The worldwide facilitation of international transactions through the simplification and harmonisation of procedures and information flows.
United Nations Electronic Data Interchange for Administration, Commerce and Transport. Comprise a set of internationally agreed standards, directories, and guidelines for the electronic interchange of structured data, between independent computerized information systems.
United Nations Code for Trade and Transport Locations, a geographic coding scheme developed and maintained by the UNECE. Assigns codes to lcoations uses in trade and transport.
Uniform Customs and Practice (UCP)
An internationally recognized codification of rules unifying banking practice regarding documentary credits (L/C’s) and should be referenced within L/C’s. The UCP was co-developed with the International Chamber of Commerce (ICC).
Packages loaded on a pallet, in a crate or any other way that enables them to be handled at one time as a unit.
An easily moveable airport transport structure (either a pallet or a container) that moves cargo around on the runway.
United Nations Commission on International Trade Law (UNCITRAL)
“Established by a United Nations General Assembly Resolution in 1966. The aim of UNCITRAL is to harmonise and unify international trade law. It was instrumental in the preparation of the Hamburg Rules, 1978, and prepared the United Nations Convention on the Liability of Operators of Transport Terminals in International Trade, 1991. In addition, UNCITRAL has been active in the area of international commercial arbitration and has prepared the UNCITRAL Model Law on International Commercial Arbitration, 1985, the UNCITRAL Model Law on International Commercial Conciliation, 2002, the UNCITRAL Arbitration Rules, the UNCITRAL Conciliation Rules, and the UNCITRAL Notes on Organising Arbitral Proceedings.”
Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and hoistable unloaders are sometimes referred to as “vacuvators.”).
UPC (Universal Product Code) version A is used to encode an 11 digit number. The first digit is the system number and the rest are data characters. Both 2 and 5 digit supplementals are also supported.
UPCE is a zero suppressed version of the UPCA barcode. This version allows 11 digits to be encoded. The first digit must be zero. Both 2 and 5 digit supplementals are also supported.
UPCE is a zero suppressed version of the UPCA barcode. This version allows 6 digits to be encoded. The first digit must be zero. Both 2 and 5 digit supplementals are also supported.
US Customs and Border Protection (CBP)
A law enforcement agency that manages goods shipped to the U.S.
Valid At Time Of Shipment (VATOS)
Is a related term meaning that whatever the estimate shown on the forwarder’s quote, the BAF and CAF will be charged by the forwarder at the rates in force when the goods are sent, generally the date the goods are loaded on board.
A document required for commodities deemed important to national security, foreign-policy objectives, or protecting domestic supplies of strategic materials. The license constitutes permission to export a specific product to a specific party. The exporter applies for the license, which must be returned to an Export Administration after completing the specified shipments.
Transport charges for certain goods, based on the value declared for the carriage of such goods (also: ‘Ad Valorem’).
A form of indirect sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate customer. A number essential to import goods into the E.U. VAT numbers are specific per country.
Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases.
A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed.
Verified Copy of Bill of Lading (VC )
Verified Copy (VC) is a draft of Bill of Lading (B/L) issued by the carrier to the shipper who gave his final approval that all inserted Information in this draft are correct.
“In May 2014, the International Maritime Organization adopted an amendment to the Safety of Life at Sea (SOLAS) regarding a mandatory container weight verification requirement on shippers. This convention applies to all containers shipments to which SOLAS amendments apply. From 1st July 2016, shippers will be required to provide the Verified Gross Mass (VGM) of each shipment to their ocean carrier. The responsibility is with the shipper to confirm the VGM before the carrier’s load list cut-off date. The new SOLAS amendments introduce two main new requirements: The shipper is responsible for providing the verified weight by stating it in the shipping document and submitting it to the master or his representative and to the terminal representative sufficiently in advance to be used in the preparation of the ship stowage plan; The verified gross mass is a condition for loading a packed container onto a ship. If not confirmed, the container will not be loaded on board (potential increased charges). For more information please see VGM methods and also can be found as well at IMO website (International Maritime Organization) https://www.imo.org”
Verified Gross Mass (VGM) methods
“Two weighing methodologies are permitted: Method 1: Upon the conclusion of packing and sealing a container, the shipper may weigh, or arrange a third party to weigh, the packed container. Method 2: the shipper or, by arrangement of the shipper, a third party may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container, and add the tare mass of the container to the sum of the single mass of the container’s contents. “
The international carrier is obligated to make declarations of the ship’s crew and contents at both the port of departure and arrival. The vessel manifest lists various details about each shipment by bill of lading number. The bill of lading serves as the core source from which the manifest is created.
Vessel operating common carrier (VOCC)
A carrier defined by maritime law, offering an international cargo transport service operating their own vessels under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission.
A charge for the carriage of goods based on their volume (by units of one cubic metre or 40 cubic feet).
Charter for a specific voyage or voyages between certain ports or areas of loading or unloading.
The reference number assigned by the carrier or his agent to the voyage of the vessel.
“A trucking tariff term referring to any period of time beyond the allocated Free Time that a driver has to wait while the customer loads or unloads a container. Until the Free Time period has expired a driver can wait without the customer incurring extra expenses. Waiting Time, however, is chargeable to the client. In the event the necessary Waiting Time would be too costly, shippers may opt for a ‘drag-and-drop’ solution, whereas the trucker would drop the container and immediately leave. They will return to pick up the container once laden. This option is more costly than a straight load but may be a lot cheaper than paying for Waiting Time.”
Document used to allow cargo carriage by different flag vessels other than original destination country vessels. Also for government cargo where vessels under certain flags cannot carry the shipments.
A secured facility for the storage of cargo; numerous types exist and are usually designed to the specific supply chain processes they support. Warehouses can be bonded and/or non-bonded, they can be shared user (multi-customer) or client dedicated
A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non-negotiable if delivery is only permitted to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt and serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.
A strake of timber laid against the frames or bulwark stanchions at the margin of a laid wooden deck, usually about twice the thickness of the deck plank.
“Gross – The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped. Net – The weight of the goods themselves without the inclusion of any wrapper. Tare – The weight of the packaging or container. Weight/Measurement Ton – In many cases, a rate is shown per weight/measurement ton, carrier’s option. This means that the rate will be assessed on either a weight ton or measurement ton basis, whichever will yield the carrier the greater revenue. As example, the rate may be quoted on the basis of 2,240 pounds or 40 cubic feet or of one metric ton or one cubic metre. Weight Ton – There are three types of weight ton; the short ton, weighing 2,000 pounds; the long ton, weighing 2,240 pounds; and the metric ton weight 2,204.68 pounds. The last is frequently quoted for cargo being exported from Europe.”
Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved.
The basis for assessing freight charges used in breakbulk shipments. Also known as ‘worm.’ In a Bill of Lading, the term signify that the master and the carrier are unaware of the nature or quantity of the contents of e.g. a carton, crate, container or bundle and are relying on the abbreviation for Weight and/or measurement. This is also a possible method to assess a freight rate to a shipment. In ocean freight, the W/M is per metric ton or per cubic meter – whichever is greater. In air freight, the W/M is per kilogram or per cubic foot – whichever is greater.
Gross/Long Ton: 2,240 lbs. (1016 kg) Net/Short Ton: 2,000 lbs (907.19 kg) Metric/Kilo Ton: 2,204.6 lbs (1,000 kg)
Also called ‘Upstream energy emissions’. Energy consumption and indirect emissions from fuel production, transport and provision from the well to the tank (i.e., emissions resulting from the production of the fuel).
Well-to-Wheel /Well-to-Wake(WtW)
Also called ‘Full lifecycle emissions’. Sum of the Well-to-Tank and Tank-to-Wheel emissions (i.e., sum of the emissions from the production and combustion of the fuel).
A fee charged by ocean carriers to use the wharf when unloading a vessel, usually included in the Terminal Handling Charge.
A phrase preceding the signature of a drawer or endorser of a negotiable instrument; it signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of non-payment or non-delivery.
A term indicating a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without the approval of the group or individual represented. For more information see Advisory capacity.
All materials, and partly finished products that are at various stages of the production process. Excludes inventory of raw materials at the start of the production cycle and finished products inventory at the end of the production cycle.
World Trade Organization (WTO)
An organisation that supervises international trade, seeking to deal with global rules of trade between nations through several rounds of successive trade negotiations to promote the free and fair flow of goods and services between nations.
Also known as a Non-Intrusive Inspection (NII) or a VACIS (Vehicle and Cargo Inspection System) exam, an X-Ray exam of goods is the ‘easiest’ Customs exam.
Year on Year of figures/prices as compared with the corresponding ones from one year earlier.
The total of something from the first day of the year through the current date. It is a time-based measurement used in financial management and investment.
The rate for which the carrier will undertake the haulage of goods or containers between either the place of delivery and the carrier’s appropriate terminal. Such haulage will be undertaken only subject to the terms and conditions of the tariff and of the carrier’s Combined Transport Bill of Lading.