A.R.
→ All Risk

Abandonment
Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss.
→ Notice of Abandonment → Waiver Clause

Absorption
Acceptance by the carrier of a portion of a joint rate or charge which is less than the amount which it would receive for the service in the absence of such joint rate or charge (air cargo).

Accept
Agreement to pay at some future date – a “time draft” drawn on the accepting party.

Acceptance of Goods
Process of receiving a consignment from a shipper, usually against the issue of a receipt. As from this moment and at this place the carrier’s responsibility for the consignment begins.

ACEP
→ Approved Continuous Examination Program

Acknowledgement of Receipt
Notification relating to the receipt of, for example, goods, messages and documents.

ACP90
Air Cargo Process. Computer system used at UK airports as an intermediary between airlines, airports authorities, agents and customs declarations.

Act of God
Natural event, such as floods, storms, lightning, earthquakes, etc., not preventable by human agency. Forces of nature that a carrier has no control over, and therefore cannot be held accountable for.
Synonym: → Force Majeure

Actual Total Loss
This occurs when: 1. The insured property is completely destroyed; or 2. The insured is irretrievably deprived of the insured property; or 3. Cargo changes in character so that it is no longer the thing that was insured (e.g., cement becomes concrete) or 4. A ship is posted “missing” at Lloyd’s, in which case both the ship and its cargo are deemed to be an actual total loss.
→ Notice of Abandonment

Actual Voyage Number
Code for identification purposes of the voyage of a vessel.

Ad Valorem
Mode of freight or customs duties levied on cargo based on its value.
→ Ad Valorem Duty

Ad Valorem Bill of Lading
Same as Valued Bill of Lading.

Ad Valorem Duty
Tax imposed on merchandise based on its value.

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

ADR
→ Articles Dangereux de Route

Advance
Down payment on account of final invoice amount.

Advance against Documents
Down payment in exchange for original shipping documents.

Advance Freight
Same as Prepaid Freight.

Advanced Interline
Interline carrier that picks up cargo from the shipper and delivers it to another carrier for shipment to the consignee.

Adventure
Exposure of property to risk.
→ General Average Act (York-Antwerp Rules)

Advice Note
Written shipment information, for example, about the status of the goods.

Advice of Fate
Notice given by the collecting bank to the remitting bank as to payment, acceptance, non-payment, or non-acceptance of a draft presented at the remitting bank’s request.

Advising Bank
Bank that handles Letters of Credit (L/C) for a foreign bank by notifying the seller that the buyer has opened a L/C in their favor. The advising bank fully informs the seller of the conditions of the Letter of Credit.
→ Confirmed Letter of Credit

Advisory Capacity
Term indicating that agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.
→ Without Reserve

Aeroquip System
Special accessories in a container consisting of, among other things, the attachment rails on the inside walls to provide facilities for lashing and securing of the cargo.

Affreightment
Contract which sets forth the obligations of both shipper and carrier concerning transportation of the merchandise. The most common forms of affreightment are Bills of Lading and Waybills.

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

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

Agent
A company (or person) which does business on behalf of another company based on a contractual agreement.

Aggregate Inventory
Inventory for any group of items or products, involving multiple stock-keeping units.
Synonym: Aggregate Stock

Air Commuter
Airline operating regional passenger traffic.

Air Consignment Note
→ Air Waybill

Air Waybill
Abbreviation: AWB. Document used for carriage by air, evidencing the conclusion of a contract of carriage. This is a non-negotiable document of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.
→ Consignment Note → Bill of Lading → Through Bill of Lading

All Risk
Abbreviation: A.R. Broadest form of insurance cover available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging or loss of market.
→ ICC → Named Perils Policy

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

Alongside
Phrase referring to the side of a ship. Goods to be delivered “alongside” are to be placed on the dock or barge within reach of the transport ship’s tackle so that they can be loaded aboard the ship.
→ Free Alongside Ship (FAS)

Annual Policy
Designed for clients with a small turnover of Goods in Transit. A deposit premium is paid and this is adjusted at the end of the year based on declarations made.

Apparel
1. A vessel’s outfit, such as rigging, anchor and life boats. 2. The term used in distribution/transport of clothing for a single piece of clothing – a garment.

Approved Continuous Examination Program
Abbreviation: ACEP. Agreement between the owners of the equipment and the responsible government body to allow continuous examination of the equipment (e.g. containers).

Approved Vessel
Vessel which the underwriters deem adequate to carry the insured cargo, at the agreed rate of premium. Where the vessel is not approved, the risk is still covered but is subject to a reasonable additional premium.

Apron
→ Platform

Arbitrage
Buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.

Area Code
Code specifying an area.
→ Zone Improvement Plan (ZIP)

Arrival Notice
Notice sent by a carrier or freight forwarder to notify party advising the arrival of a shipment.

Articles Dangereux de Route
Abbreviation: ADR. European agreement concerning the international carriage of dangerous goods by road.

Assembly
Stage of production in which components are put together into an end product.

Assignment
Transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to a third party.

Assignment of Proceeds
Stipulation within a Letter of Credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.

Assured Party
Party that has legal title to the cargo and to whom a claim payment will be paid.

Astern
1. Behind a vessel or an aircraft. 2. Backward; in a reverse direction.

Athwartships
Across the vessel, i.e., from one side to the other.
→ Fore and Aft Stowage

Audit
Methodical examination and review of a situation or condition (as within a business enterprise) concluding with a detailed report of findings.

Authentication
Proof by means of a signature or otherwise that a certain document or certain data is of undisputed origin and is genuine.

Authorization
Commission to a certain person or body to act on behalf of another person or body.

Auto Container
Container equipped for the transportation of vehicles.

Automated Guided Vehicle System
Unmanned vehicles equipped with automatic guidance equipment which follow a prescribed path.

Automatic Indentification
Means of identifying an item (e.g. a product, parcel or transport unit) by a device entering the data automatically into a computer. The most widely used technology at present is bar code; others include radio frequency, magnetic stripes and optical character recognition.

Average
Any loss or damage due to insured perils that is less than a total loss. Two types of average occur: Particular Average and General Average.
→ Particular Average → General Average → Average Adjusters

Average Adjusters
In general average adjusters are entrusted with the task of apportioning the loss and expenditure over the parties interested in the maritime venture. They also determine which expenses are to be regarded as average or general average.

Average Clause
Clause in marine policy which sets out the cover provided in the event of partial loss.

Average Irrespective of Percentage
Indicates that partial losses will be paid regardless of any franchise or percentage.

AWB
→ Air Waybill

B
B.D.I.
Both Days Inclusive.

B/L
→ Bill of Lading

Back Letter
1. Back letters are drawn up in addition to a contract in order to lay down rights and/or obligations between both contracting parties, which, for various possible reasons, cannot be included in the original contract.
2. This expression is sometimes used for letters of indemnity.

Back Order
Customer order or commitment, which is unfilled due to insufficient stock.

Backlog
1. The quantity of goods still to be delivered, received, produced, issued, etc., for which the planned or agreed date has expired. 2. The total number of customer orders which have been received but not yet been shipped.
Synonym: → Open Order

BAF
→ Bunker Adjustment Factor

Balance of Trade
Difference between a country’s total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.

Balespace
The capacity of cargo spaces under the deck of a vessel (including hatchways but excluding void spaces behind cargo battens and beams) expressed in cubic meters or cubic feet.

Ballast
Materials carried to improve the trim and the stability of the vessel. Vessels usually carry water in tanks as ballast. The tanks are specially designed for this purpose.

Bank Draft
Check issued by a bank.

Bank Guarantee
Undertaking by a bank to effect payment of a sum of money in the event of non performance by the party on whose behalf the guarantee is issued.

Bank Release
Negotiable time draft drawn on and accepted by a bank that adds its credit to that of an importer of merchandise.

Banker’s Acceptance
“Time draft” drawn on a bank and bearing the bank’s promise to pay at a future date.

Banking System
For marine purposes the practice of always keeping more than one piece of cargo on the quay or in the vessel ready for loading or discharging in order to avoid delays and to obtain optimal use of the loading gear.

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

Bareboat Charter
Charter whereby the charterer leases the bare ship and appoints the master and crew itself.

Barge
Flat-bottomed cargo transport vessel designed for canals, rivers and shallow waters with or without its own propulsion.
Synonym: → Lighter

Barratry
Unlawful act or fraudulent breach of duty on the part of a master of a ship or of the mariners resulting in the injury of the owner of the ship or cargo.

Barter
Trade in which merchandise is exchanged directly for other merchandise without use of money.
→ Countertrade

Basic Stock
Items of an inventory intended for issue against demand during the re-supply lead time.
→ Lead Time

Batch
Collection of products or data which is treated as one entity with respect to certain operations (e.g. processing and production).

Batch Production
Production process where products/components are produced in batches and where each separate batch consists of a number of the same products/components.

Bay
Vertical division of a container vessel from stem to stern, used to indicate stowage places for containers. The numbers run from stem to stern; odd numbers indicate a 20-foot position, even numbers indicate a 40-foot position.
→ Cell Position → Grid Number

Bay Plan
Stowage plan which shows the locations of all the containers on the vessel.

BC Code
→ Bulk Cargo Code → Segregation

Belly
Under-floor area of an aircraft.
→ Hold Space

Benchmarking
Measurement and comparison against a standard, of efforts and results in the business process (e.g. input, output, reliability, quality and customer satisfaction).

Beneficiary
Entity or person on whom a Letter of Credit has been opened or a draft has been drawn.
→ Assignment of Proceeds → Transferable Letter of Credit

Benefit of Insurance Clause
Clause by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in care of the bailee. Such a clause in a contract of carriage issued in accordance with the Carriage of Goods by Sea Act is void at law.

Berth
Location in a port where a vessel can be moored, often indicated by a code or name.
→ Wharf → Quay → Pier

Bilateral Trade
Commerce between two countries, usually in accordance with specific agreements.

Bilateral Transport Agreement
Agreement between two nations concerning transport relations.

Bill of Exchange
→ Draft

Bill of Lading
Abbreviation: B/L. Document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.
→ Air Waybill → Ocean Bill of Lading → Through Bill of Lading

Bill of Lading Clause
Particular article, stipulation or single provision in a Bill of Lading.

Bill of Material
List of all parts, sub-assemblies and raw materials that constitute a particular assembly, showing the quantity of each required item.

Bimodal Trailer
1. Road semi-trailer with retractable running gear to allow mounting on a pair of rail boogies.
Synonym: Road-Rail Trailer 2. Trailer which is able to carry different types of standardized unit loads (e.g. a chassis which is appropriate for the carriage of one FEU or two TEUs).

Block Train
Complete train moving straight from origin station to destination station without marshalling or decoupling of wagons.
→ Double Stack Train

Boatman
Member of the vessel’s crew.

Bollard
Post, fixed on a quay to lash mooring ropes.

Bolster
→ Container Bolster

Bona Fide
In good faith; without dishonesty, fraud or deceit.

Bonded Shipments
Shipments which are permitted to travel to inland destinations before customs clearance.

Bonded Transit Warehouse
Warehouse under customs control holding cargo in transit to further destination.

Bonded Warehouse
Warehouse authorized by customs authorities for storage of uncleared goods.
→ In Bond

Booking
Space reservation, conclusion of contract of carriage.
Synonym for Air Cargo: Reservation
→ Allotment

Booking Reference Number
Number assigned to a certain booking by the carrier or its agent.

Bordereau
→ Waybill

Bottom Fittings
Special conical-shaped devices to avoid the container moving during the voyage.

Bottom Lift
Handling of containers with equipment attached to the four bottom corner fittings (castings).

Bottom Limit
Maximum value at risk per shipment/sending/aircraft.

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

Break Bulk
1. Physical discharge of unitized cargo. 2. Administration procedure of document splitting at destination.

Break Bulk Cargo
General cargo conventionally stowed as opposed to unitized, containerized and Roll-on/Roll-off cargo.
Synonym: → Conventional Cargo

Break-Even Weight
Weight at which it is cheaper to charge the lower rate for the next higher weight-break multiplied by the minimum weight indicated, than to charge the higher rate for the actual weight of the shipment (air cargo).

Broken Stowage
Cargo space that is unavoidably lost when stowing cargo. The percentage of wasted space depends upon the kind of cargo, the packing and the used spaces.

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

Brussels Tariff Nomenclature
Abbreviation: BTN. Old Customs Cooperation Council Nomenclature for the classification of goods. Now replaced by the Harmonized System.
→ Harmonized System (HS)

BSI
British Standards Institution.

BTN
→ Brussels Tariff Nomenclature

Buffer Stock
Quantity of goods or articles kept in store to safeguard against unforeseen shortages or demands.

Bulk Cargo
Unpacked cargo loaded directly into the vessel’s holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers and similar commodities.

Bulk Cargo Code
Abbreviation: BC Code. Safe working practice code for solid bulk cargo.

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

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

Bulk Shipments
→ Bulk Cargo

Bulk Unitization Charge
Charge which applies to consignments carried from airport of departure to airport of arrival, entirely in Unit Load Devices (air cargo).

Bulkhead
1. Upright partition dividing compartments on board a vessel. 2. A vertically mounted board to provide front wall protection against shifting cargo and commonly seen on platform trailers (road cargo). 3. Partition in a container, providing a plenum chamber and/or air passage for either return or supply air. 4. Vertically mounted wall separating the fore respectively aft compartment from the rest of the aircraft (air cargo).

Bull Rings
Rings for lashing the cargo in containers.

Bunker
Spaces on board a vessel to store fuel.
Synonym: Tank

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

Bureau veritas
French classification society.

C.N.
→ Cover Note

C.O.G.S.A.
→ Carriage of Goods by Sea Act

C.P.
→ Charter Party

C.R.O.
Canceling (of policy) Returns Only

C.T.L.
→ Constructive Total Loss

C/D
→ Country Damage

Cabotage
1. Transport of goods between two ports or places located in the same country. 2. Transport of cargo in a country other than the country where the vehicle is registered (road cargo). 3. The carriage of a container from a surplus area to an area in which equipment is needed.

CAD
→ Cash against Documents

CAF
→ Currency Adjustment Factor

Call
Visit of a vessel to a port.

Capacity Control
Process of registering and steering of capacity.

Capacity Optimization
Activities to maximize the amount of freight that is carried in the hold space of an aircraft.

Cargo
Goods to be transported.

Cargo Accounts Settlement System
Abbreviation: CASS. System for automated account settlement between participating IATA airlines, billing participants and part participants, on the one hand and their appointed IATA cargo agents on the other hand (air cargo).

Cargo Aircraft
Any aircraft other than a passenger aircraft or a combi.

Cargo Assembly
Separate reception of parcels or packages and the holding of them for later dispatch as one consignment.
→ Consolidation

Cargo Disassembly
→ Break Bulk

Cargo Handling
Physical handling of goods.

Cargo IMP
→ Cargo Interchange Message Procedures

Cargo Interchange Message Procedures
Abbreviation: Cargo IMP. Procedures developed by the member airlines of the Air Transport Association of America (ATA) and the International Air Transport Association (IATA).

Cargo Manifest
List including all particulars of consignments.

Cargo Restriction Code
Code indicating that the use of a certain container is restricted to particular cargo.

Cargo Tracer
Information sent by the agent or airline to all relevant parties, stating that certain cargo is either missing or arrived in excess.

Carnet ATA
Customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without completing normal customs formalities. With a carnet, the holder avoids paying duties or posting bonds.

Carriage
Process of transporting (conveying) cargo, from one point to another.
Synonym: Transport

Carriage and Insurance Paid to (... Named Place of Destination)
Abbreviation: CIP. Incoterm
→ Incoterms

Carriage of Goods by Sea Act
Abbreviation: C.O.G.S.A. 1936 U.S. Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The act provides that the shipowner’s liability will be limited to $500 per shipping package, and it stipulates a one-year time limit for filing suit against the carrier. This act automatically applies to international ocean movements but not to domestic ocean transits unless the carrier agrees to be bound by it.

Carriage Paid to (... Named Place of Destination)
Abbreviation: CPT. Incoterm
→ Incoterms

Carrier
Company that carries the cargo, e.g. shipping line, airline, trucking company, etc.

Carrier Haulage
Inland transport service performed by the sea-carrier under the terms and conditions of the relevant transport document.
→ Merchant Inspired Carrier Haulage

Carriers’ Lien
Right to retain the property as security for the payment of services, material, or money expended on that property. E.g.: When the shipper ships goods “collect”, the carrier has a possessory claim on these goods, which means that the carrier can retain possession of the goods as security for the charges due.

Carrying Temperature
Required cargo temperature during transport and storage.
→ Setting/Air Delivery Temperature

Cartage
→ Haulage

Cash Against Documents
Abbreviation: CAD. Payment condition which implies transfer of title at time of payment.

Cash in Advance
Abbreviation: CIA. Payment condition which implies up-front payment before transfer of title of goods.

Cash on Delivery
Abbreviation: COD. Payment condition which implies payment of goods at the time of physical transfer.

Cash with Order
Abbreviation: CWO. Payment condition which implies payment when order is placed.

CASS
Abbreviation for: → Cargo Accounts Settlement System.
→ Part-Participant → Settlement Office

CASS Airline
Airline, fully participating in the CASS.

CCTV
Closed Circuit Television.

Cell
Location on board of a container vessel where one container can be stowed.

Cell Position
Location of a cell on board of a container vessel identified by a code for, respectively, the bay, the row and the tier, indicating the exact position of a container on that vessel.
→ Bay

Cell-Guide
Steel bars and rails used to steer containers during loading and discharging whilst sliding in the ship.
→ Fully Cellular Containership

Cellular Vessel
Vessel, specially designed and equipped for the carriage of containers.

CENSA
→ Council of European and Japanese National Ship-owners’ Associations

Center of Gravity
Point at which the entire weight of a body may be considered as concentrated so that if supported at this point the body would remain in equilibrium in any position.
→ Meta-Centric Height

Certificate
Document by which a fact is formally or officially attested and in which special requirements and conditions can be stated.

Certificate of Analysis
Document, often required by an importer or government authorities, attesting to the quality or purity of commodities.

Certificate of Classification
Certificate, issued by the classification society, stating the class under which a vessel or an aircraft is registered.

Certificate of Free Sale
Certificate, required by some countries as evidence that the goods are normally sold on the open market and approved by the regulatory authorities in the country of origin.

Certificate of Inspection
Document confirming that cargo has been inspected by a competent authority (SGS, Bureau Veritas or any national authority) before dispatch.

Certificate of Insurance
Document presented by the insurance company or insured as evidence that insurance is in effect. The insured may assign their rights under this negotiable document to a third party, usually the consignee, by endorsing the reverse of the certificate.

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

Certificate of Origin
Statement signed by the exporter, or its agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter’s country.

CFR
Incoterm for “Cost and Freight (... named port of destination)”
Synonym: C&F.
→ Incoterms

CFS
→ Container Freight Station

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

Charter Contract
→ Charter Party

Charter Party
Written contract, usually on a special form, between the owner of a vessel and a “charterer” who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.
Synonym for Airfreight: Charter Contract;
→ Bareboat Charter → Demise Charter → Lump-Sum Charter → Slot Charter
→ Space Charter → Time Charter

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

CIA
→ Cash in Advance

CIF
Incoterm for “Cost, Insurance and Freight (... named port of destination)”
→ Incoterms

CIF and C
Cost, Insurance, Freight and Commission.

CIM
→ Convention Internationale Concernant le Transport des Marchandises par Chemin de Fer

CIP
Incoterm for “Carriage and Insurance Paid to
(... named place of destination)”
→ Incoterms

City Terminal Service
Shuttle service between city and airport.

Class Rate
Rate applicable to a specifically designated class of goods (air cargo).
→ General Cargo Rate

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

Classification Society
Organization, whose main function is to carry out surveys of vessels, its purpose being to set and maintain standards of construction and upkeep for vessels, their engines and their safety equipment. A classification society also inspects and approves the construction of shipping containers.
→ Bureau Veritas → Det Norske Veritas → Germanischer Lloyd → Lloyd’s Register of Shipping

Clean Bill of Lading
Receipt for goods issued by a shipping line that indicates that the goods were received in “apparent good order and condition”, without damage or other irregularities.
→ Foul Bill of Lading → Letter of Indemnity

Clean Draft (Bill of Exchange)
Draft with no accompanying documents.

Clean on Board
When goods are loaded on board and the document issued in respect to these goods is clean. Note: Through the usage of the UCP 500 rules the term has now become superfluous.

Clearence Terminal
Terminal where customs facilities for the clearance of goods are available.

Cleared without Examination
Abbreviation: CWE. Cleared by customs without inspection.

Clip on Unit
Abbreviation: COU. Detachable aggregate for a temperature controlled container (Conair).

Closed Ventilated Container
Container of a closed type, similar to a general-purpose container, but specially designed for carriage of cargo where ventilation, either natural or mechanical (forced), is necessary.

CLP
→ Container Load Plan

CMR
→ Convention Relative au Contrat de Transport International de Marchandises par Route

Co-Insurance
Where two or more parties share the same risk. A co-insurer is not obliged to follow the decision of another co-insurer, except where they have given authority for the other party to act on their behalf. Each co-insurance is a separate contract with the insured.

Co-Loading
Combination of cargo from another shipper or carrier, having the same final destination as the cargo base load.

COD
→ Cash on Delivery

Cofferdam
Empty space on board of a vessel between two bulkheads or two decks separating oil tanks from each other and/or the engine room or other compartments.

Collapsible Container
Container which can be easily folded, disassembled and reassembled.

Collect Freight
Freight which is payable to the carrier when the merchandise arrives at the port of discharge named in the Bill of Lading.

Collecting Bank
Bank to which a remitting bank sends draft for collection.
→ Advice of Fate

Collection Papers
All documents (Commercial invoices, Bills of Lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

Collision
Physical impact between two or more vehicles. In collision liability insurance, the term does not include contact of the insured vessel with anything other than a ship or vessel.
→ Perils of the Sea

Combi Aircraft
Aircraft, carrying passengers and cargo upper deck.

Combination Chassis
Chassis which can carry either one 40-foot or two
20-foot containers.

Combination Joint Rate
Joint rate which is obtained by combining two or more published rates (air cargo).

Combined Transport
Intermodal transport where the major part of the journey is by one mode and any initial and/or final leg carried out by another mode.
Synonym: → Multimodal Transport
→ Combined Transport Document

Combined Transport Document
Abbreviation: CTD. Negotiable or non-negotiable document evidencing a contract for the performance of combined transport of goods.
Synonym: → Multimodal Transport Document

Combined Transport Operator
Abbreviation: CTO. Party that undertakes to carry goods with different modes of transport.
Synonym: → Multimodal Transport Operator

Commercial Invoice
Document issued by the seller to the buyer, which gives detail of merchandise sold, number of units being shipped, per unit cost and the terms of sale.
→ Declaration of Origin

Commercial Set
Set of four “negotiable” documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.

Commodity
Indication of the type of goods. Commodities are coded according to the harmonized system.
→ Harmonized System

Commodity Box Rate
Rate classified by commodity and quoted per container.
→ Harmonized System

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

Commodity Item Number
Specific description number required in air transport to indicate that a specific freight rate applies.

Common Carrier
Transporter that provides its services to the general public for the transportation of goods over a definite route and according to a regular schedule.

Compromised Total Loss
Arranged settlement on a hull policy where there is no claim for actual or constructive total loss, but where it is impractical to repair the vessel.

Conair Container
Thermal container served by an external cooling system (e.g. a vessel’s cooling system or a Clip on Unit), which regulates the temperature of the cargo. Note: Conair is a brand name.
→ Clip on Unit

Conditions of Carriage
General terms and conditions established by a carrier in respect of the carriage.

Conditions of Contract
Terms and conditions of a transportation contract.

Cones
Devices for facilitating the loading, positioning and lashing of containers. The cones insert into the bottom castings of the container.
Synonym: → Locating Pin

Conference
→ Liner Conference

Confirmed Letter of Credit
Letter of Credit, issued by a foreign bank, with validity confirmed by a bank of origin. A seller that requires a confirmed Letter of Credit from the buyer is assured of payment by the origin bank even if the foreign buyer or the foreign bank defaults.

Connecting Carrier
Carrier to whose services the cargo is to be transferred for onward connecting transport.

Connecting Road Haulage
→ Drayage

Consignee
Party, mentioned in the transport document, by whom the goods, cargo or containers are to be received.

Consignment
Separate identifiable number of goods to be transported from one shipper to one consignee.
Synonym: → Shipment

Consignment Instructions
→ Shipping Instructions

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

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

Consignor
→ Shipper

Consolidated Container
Container filled with several shipments from different shippers for delivery to one or more consignees.

Consolidation
Grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate.
→ Cargo Assembly → Consolidation Point

Consolidation Point
Location where consolidation of consignments takes place.

Consolidator
Firm or company which consolidates cargo.

Constructive Total Loss
Position which exists when the cost of repairing or recovering lost or damaged property plus the value of the salvage would exceed the property’s value when repaired or recovered.
→ Abandonment → Compromised Total Loss → Notice of Abandonment

Consular Declaration
Formal statement, made by the consulate of a foreign country.

Consular Documents
Bills of Lading, certificates of origin or special invoice forms that are officially legalized by the consul of the country of destination.

Consular Invoice
Document, required by some foreign countries, describing a shipment of goods and showing information such as the shipper, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country’s customs officials to verify the value, quantity, and nature of the shipment.

Container
Item of equipment as defined by the International Organization for Standardization (ISO) for transport purposes. It must be of: a) a permanent character and accordingly strong enough to be suitable for repeated use; b) specially designed to facilitate the carriage of goods, by one or more modes of transport without intermediate reloading; c) fitted with devices permitting its ready handling, particularly from one mode of transport to another; d) so designed as to be easy to fill and empty; e) having an internal volume of 1 m3 or more. The term container includes neither vehicles nor conventional packing.
Synonym: Freight Container

Container Bolster
Container floor without sides or end walls which does not have the ISO corner fittings and is generally used for Ro/Ro operations. Note: A bolster cannot be handled either full or empty by a container spreader without special fittings.
Synonym: → Bolster

Container Chassis
Vehicle specially built for the purpose of transporting containers.

Container Check Digit
7th digit of the serial number of a container used to check whether prefix and serial number are correct.

Container Depot
Storage area for empty containers.

Container Freight Station
Abbreviation: CFS. Term CFS at loading ports refers to the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS refers to the location designated by carriers in the port area for unpacking and delivery of cargo.

Container Lease
Contract by which the owner of containers (leasing company, lessor) gives the use of containers to a shipping line or other lessee for a specified period of time.

Container Load Plan
List of items loaded in a specific container and where appropriate, their sequence of loading.
→ Container Manifest

Container Logistics
Controlling and positioning of containers.

Container Manifest
Document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.
Synonym: Unit Packing List → Container Load Plan

Container Number
Identification number of a container consisting of prefix and serial number and check digit (e.g. KNLU 123456-7).
→ Container Serial Number → Container Prefix

Container Platform
Container floor without sides or end walls which can be loaded by spreader directly and is generally used for off-size cargo.

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

Container Prefix
Four-letter code that forms the first part of a container identification number indicating the owner of a container.
Synonym: → Owner’s Container Code

Container Safety Convention
Abbreviation: CSC. International convention for safe containers.

Container Serial Number
Seven digit serial number (6 plus 1 Check Digit) that forms the second part of a container identification number.

Container Service Charges
Charges to be paid by cargo interests as per local port tariffs.

Container Size Code
Two digit indication of the nominal length and nominal height of a container.

Container Size / Type
Description of the size and type of a freight container or similar unit load device as specified in ISO 6346.

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

Container Sublease
Contract by which a carrier gives the use of containers to another carrier for a specified period of time and for a fixed payment.

Container Terminal
Place where loaded and/or empty containers are stored awaiting dispatch or pick up.

Container Type Code
Two digits, the first of which indicates the category and the second of which indicates certain physical characteristics or other attributes of a container.

Container Yard
Abbreviation: CY. Facility at which containers are received from or delivered to the merchant by or on behalf of the carrier.
Synonym: Marshalling Yard

Containerized
Indication that goods have been stowed in a container.

Contingency Insurance
Secondary insurance coverage which will protect the insured’s financial interest if the primary insurance cover effected by others does not respond for a covered loss (Seller’s Insurance).

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

Contract
Agreement enforceable by law, between two or more parties stipulating their rights and obligations.

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

Contract of Affreightment
→ Affreightment

Contractual Carrier
The contractual carrier (called NVO, Non Vessel Operator or NVOC, Non Vessel Operating Carrier) is a party which contracts carriage of goods for the account of the Merchants and fulfills its commitment by using the services of a carrier (sometimes referred to as the “actual” carrier).

Contractual Port of Loading
Port at which an ocean vessel does not call, but which is equalized with the actual port of call and upon which inland haulage services and inland tariffs are based. Note: Generally speaking it is seen as the port mentioned on the B/L from which cargo is accepted (e.g. delivered by the consignee for sea transport).
Synonym: Commercial POL/POD

Contribution
This relates to situations where more than one party covers the risk. Each party is deemed to be liable for its portion of the loss. If the insured has recovered in full from one insurer, that insurer is entitled to recover from the other insurer that part of the loss which should have been paid by the latter. The term, as used in marine insurance, also applies to contributions paid by the insured in connection with salvage and/or General Average.
→ Contributory Value → General Average Bond → General Average Statement → Protection and Indemnity Club → Valuation Clause

Contributory Value
Value of property saved as a result of a General Average Act which forms the basis for determining each party’s contribution in General Average.

Convention Internationale Concernant le Transport des Marchandises par Chemin de Fer
Abbreviation: CIM. International agreement, applied by 19 European railway companies, setting out conditions for international railway transport of goods and the liabilities of the carrier.

Convention Relative au Contrat de Transport International de Marchandise par Route
Abbreviation: CMR. Convention for the international carriage of goods by road, setting out the conditions of carriage and the liabilities of the carrier. Note: Adherence to this set of regulations reflects a desire to standardize items such as documentation and rules on the carriers liability.

Conventional Cargo
→ Break Bulk Cargo

Convertible Currency
Currency that can be bought and sold for other currencies at free-trade.

Convertor Dolly
Auxiliary undercarriage assembly consisting of a chassis, fifth wheel and tow-bar used to convert a semi-trailer or a container chassis to a full trailer.

Conveyance
Transport of goods from one place to another.

Conveyor
Mechanical device in the form of a continuous belt used for transporting cargo.

Core Competence
Combination of individual skills and use of technologies that underlay the various products and/or services of a business.

Corner Fittings
Fittings located at the corners of containers providing means of supporting, stacking, handling and securing the container.
Synonym: Corner Casting

Corner Post
Vertical structural member at either side of an “end frame” of a container joining a top and a bottom corner fitting (and thereby forming a “corner structure”).

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

Cost and Freight (… Named Port of Destination)
Abbreviation: CFR. Incoterm
→ Incoterms

Cost, Insurance and Freight (… Named Port of Destination)
Abbreviation: CIF. Incoterm
→ Incoterms

COU
→ Clip on Unit

Council of European and Japanese National Shipowners’ Associations
Abbreviation: CENSA. Main objectives of this organization are to promote and protect sound shipping policies in all sectors of shipping, to coordinate and present the views of its members and to exchange views with other shipowner groups.

Count Bill of Lading
Bill of Lading which shows the actual number of units being shipped.

Countertrade
Sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country.
→ Barter

Country Damage
Damage caused by dirt, mud, etc., to commodities before they are shipped.

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

Country of Dispatch
Country from which the goods are shipped.
→ Country of Origin

Country of Origin
Country where the merchandise was grown, mined, or manufactured. In instances where the country of origin cannot be determined, transactions are credited to the country of dispatch.
→ Country of Dispatch

Country of Provenance
Country of origin of goods or cargo being sent to the importing country.

Cover Note
Non-negotiable document evidencing insurance which may or may not indicate the terms of cover.

CPT
Incoterm for “Carriage Paid to (... named place of destination)”.
→ Incoterms

Crane
Machine designed for moving and lifting weight by means of a movable projecting arm or a horizontal beam which is able to travel over a certain distance.

Credit Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods.

Crew Member
Any person actually employed for duties on board during a voyage in the working or service of a ship and included in the crew list (IMO).

Crosstrade
1. Used in shipping for the services of a vessel between nations other than the nation in which the vessel is registered. 2. Term used in the freight forwarding industry for the transportation services between nations other than the nation in which the cargo’s principle is domiciled (UNCTAD).

CSC
→ Container Safety Convention

CTD
→ Combined Transport Document

CTO
→ Combined Transport Operator

Currency
Medium of exchange of value, defined by reference to the geographic location of the authorities responsible for it (ISO 4217). In general, the monetary unit is represented by a name or a symbol.

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

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

Customer Service Level
Performance measure of customer service. Note: Generally this is seen as the degree with which customer orders can be executed, in accordance with the terms which are generally accepted in the market.

Customhouse Broker
Individual or firm licensed to enter and clear goods through customs.

Customs
Authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.

Customs Broker
Authorized agent specialized in customs clearance procedures on account of importers/exporters.
→ Customs Clearance Agent

Customs Clearance Agent
Customs broker or other agent of the consignee designated to perform customs clearance services for the consignee.
→ Customs Broker

Customs Entry Form
Form required by customs authorities for merchandise entering the country. It indicates the country of origin, description of merchandise and the amount of estimated duty to be paid before merchandise is released.

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

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

Cut-Off Time
Last point before a flight departs at which freight will be accepted to travel on that flight.

CWE
→ Cleared without Examination

CWO
→ Cash with Order

CY
→ Container Yard

Cycle Stock
That portion of stock available or planned to be available in a given period for normal demand, excluding excess stock and safety stock.

D/P
→ Documents against Payment

DAF
Incoterm for “Delivered at Frontier (... named place)”.
→ Incoterms

Damage Report
Form on which physical damage of a consignment or transportation unit (e.g. container) is recorded.

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

Dangerous Goods
Goods are to be considered dangerous if the transport of such goods might cause harm, risk, peril, or other evil to people, environment, equipment or any property whatsoever.
→ Articles Dangereux de Route → Dangerous Goods Packing Certificate → International Maritime Dangerous Goods Code → International Maritime Organization → Medical First Aid Guide → United Nations Dangerous Goods Number

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

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

Data Plate
Metal identification plate affixed to a container which displays, among other things, the gross and tare weights and external dimensions.

Date Draft (Bill of Exchange)
Draft that matures in a specified number of days after the date it is issued, without regard to the date of acceptance.
→ Draft → Sight Draft → Time Draft

DDP
Incoterm for “Delivered Duty Paid (... named place of destination)”.
→ Incoterms

DDU
Incoterm for “Delivered Duty Unpaid (... named place of destination)”.
→ Incoterms

Deadload
Difference between the actual and calculated ship’s draft.
→ Draft

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

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

Deck Cargo
Cargo carried outside on deck of a vessel.

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

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

Deductible
Specific dollar amount, or percentage of the insured value, which will be deducted from all losses recoverable under a policy.

Deep Tank
Tank fitted and equipped for the carriage of vegetable oil (e.g. palm oil and coconut oil) and other liquids in bulk.

Default Charge
Charge applicable for a trade, stretch or location. In the absence of specifics (not otherwise specified/enumerated) a general amount has been set.

Deferred Payment Credit
Type of Letter of Credit providing for payment some time after presentation of shipping documents by seller.

Degroupage
Splitting up shipments into small consignments.
→ Regroupage

Delay
Even under All Risk cover, damage due to delay is not recoverable. Most underwriters have inserted a “Delay Clause” in the Open Cargo Policy, which states specifically that damage caused by delay is not recoverable even if the delay was due to a peril insured against.
→ All Risk

Delivered at Frontier (… Named Place)
Abbreviation: DAF. Incoterm
→ Incoterms

Delivered Duty Paid (… Named Place of Destination)
Abbreviation: DDP. Incoterm
→ Incoterms

Delivered Duty Unpaid (… Named Place of Destination)
Abbreviation: DDU. Incoterm
→ Incoterms

Delivered Ex Quay (… Named Port of Destination)
Abbreviation: DEQ. Incoterm
→ Incoterms

Delivered Ex Ship (… Named Port of Destination)
Abbreviation: DES. Incoterm
→ Incoterms

Delivering Carrier
Carrier that delivers the consignment to the consignee or its agent.

Delivery
Process of delivering the consignment to the consignee at the agreed place.

Delivery Instruction
Document giving instructions regarding the details of the delivery of the shipment.

Delivery Order
1. A document issued by or on behalf of the carrier authorizing the release of import cargo identified thereon and manifested under a single Bill of Lading (shipping). 2. The authorization of the entitled party for the shipment to a party other than the consignee shown on the Air Waybill.

Delivery Party
Party to which goods are to be delivered.

Delivery Receipt
Document recording the delivery of shipment to a consignee.

Delivery Time
Time between order and delivery.

Demand Draft (Bill of Exchange)
→ Sight Draft

Demise Charter
Contract whereby the shipowner leases its vessel to the charterer for a period of time during which the whole use and management of the vessel passes to the charterer. This involves the charterer paying all expenses for the operation and maintenance of the vessel. Officers and crew become servants of the charterer. A demise charter whereby the charterer has the right to place its own master and crew on board of the vessel is also called “bareboat charter”.
→ Bareboat Charter

Demurrage
1. A variable fee charged to carriers and/or customers for the use of Unit Load Devices (ULD’s) owned by a carrier beyond the free time of shipment (air cargo). 2. Additional charge imposed for exceeding the free time which is included in the rate and allowed for the use of a certain equipment at the terminal.

Density of Commodity
Mass of a commodity to its volume.

Depot
Place designated by the carrier where empty containers are kept in stock and received from or delivered to the container operators or merchants.
Synonym: → Container Depot

DEQ
Incoterm for “Delivered Ex Quay (... named port of destination)”.
→ Incoterms

Derrick
Lifting equipment on board a conventional vessel for loading and discharging cargo, consisting of a post attached to the deck and an inclined spar.
→ Lift-on/Lift-off Vessel

DES
Incoterm for “Delivered Ex Ship (... named port of destination)”.
→ Incoterms

Despatch
→ Dispatch

Destination
1. Place for which goods or a vehicle is bound. 2. The ultimate stopping place according to the contract of carriage.

Destuffing Report
A document reporting the destuffing of a container indicating time and place as well as responsible peron and any damage.

Det Norske Veritas
Norwegian classification society.
→ Classification Society

Detention
Keeping equipment beyond the time allowed.
→ Demurrage

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

Deterioration
Downgrading of a product due to long storage, damage due to packing or other external influences.
→ Shelf Life → Wear and Tear

Devaluation
Official lowering of the value of one country’s currency in terms of one or more foreign currencies. (E.g., if the U.S. dollar is devalued in relation to the French franc, one dollar will “buy” fewer francs than before.)

Devanning
→ Stripping

Deviation from a Route
Divergence from the agreed or customary route.

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

Direct Covered
Condition which requires the insured voyage to be direct from one place to another. If the voyage is delayed en route or if there is a deviation from the direct route, the insurance cover continues subject to payment of an additional premium, but only if the assured gives prompt notice of the delay or deviation immediately on receipt of advice, unless the policy provides otherwise.

Direct Delivery
1. The conveyance of goods directly from the vendor to the buyer. Frequently used if a third party acts as intermediary agent between vendor and buyer. 2. Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of immediate transport from the port area.

Direct Route
Shortest operated route between two points.
→ Indirect Route

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

Discharge
1. Unloading of a vehicle, a vessel or an aircraft.
2. Landing of cargo.

Disclaimer
A statement in which a company or individual says that they are not responsible for something.

Disclosure
Duty of the insured and their broker to tell the underwriter every material circumstance before acceptance of the risk.

Discrepancy
Difference between the particulars given and the particulars found.

Discrepancy Letter of Credit
When documents presented do not conform to the Letter of Credit, it is referred to as a “discrepancy”.

Dispatch
Process of sending goods.
Synonym: → Despatch; → Dispatch Advice

Dispatch Advice
Information sent by shipper to the consignee informing that specified goods have been sent or are ready to be sent advising the detailed contents of the consignment.
Synonym: → Dispatch Note

Dispatch Note (for Post Parcels)
Document which, according to the agreement concerning postal parcels, is to accompany post parcels.

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

Disposable Pallet
Pallet intended to be discarded after a single cycle of use.
→ One-Way Pallet → Expendable Pallet

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

Distribution
Set of activities which ensure the availability of goods in the desired quality, quantity, place and time for the customer.
→ Physical Distribution

Distribution Center
Warehouse for the receipt, the storage and the dispersal of goods among customers.
Synonym: Branch Warehouse

Distribution Channel
Route by which a company distributes goods.

Divider
Vertically mounted partition in a compartment on board of an aircraft (air cargo).
Synonym: → Partition

Dock Receipt
Form issued by a carrier or its representative as evidence that merchandise was in fact received by the carrier for shipment. Often referred to as a Received for Shipment Bill of Lading.

Documentary Credit
Commercial Letter of Credit providing for payment by a bank to the name beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit.

Documentary Draft
Draft to which documents are attached.

Documents against Acceptance
Abbreviation: D/A. Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer’s acceptance of an attached draft.

Documents against Payment
Abbreviation: D/P. Instructions a shipper gives to its bank that the documents attached to a draft for collection are deliverable to the drawee only against their payment of the draft.

Domestic Carriage
Carriage whereby the place of departure and the place of destination are situated within one country (air cargo).

Domestic Rate
Rate applicable within a country, and in most cases subject to special conditions other than those of IATA (air cargo).

Door-to-Door Transport
→ House-to-House Transport

Double Stack Train
Railway wagons on which containers can be stacked two-high.
→ Block Train

Double-Deck Pallet
Flat pallet with a top and bottom deck.

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

Draft (or Bill of Exchange)
Unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date.
→ Date Draft → Sight Draft → Time Draft

Draft
Draft of a vessel is the vertical distance between the waterline and the underside of the keel of the vessel. During the construction of a vessel the marks showing the draft are welded on each side of the vessel near the stem, the stern and amidships.
Synonym: → Draught

Draught
→ Draft

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

Drawee
Individual or firm on whom a draft is drawn and who owes the stated amount.
→ Draft → Drawer

Drawer
Individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
→ Draft → Drawee

Drayage
1. The hauling of a load by a cart with detachable sides (dray). 2. Road transportation between the nearest railway terminal and the stuffing place.

Synonym: → Connecting Road Haulage

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

Dry Bulk Container
Container consisting of a cargo-carrying structure, firmly secured within a framework, for the carriage of dry solids in bulk without packaging. Containers of this type have type codes 80 and 81.

Dry Cargo Container
Shipping container which is designed for the carriage of goods other than liquids.

Due Diligence
The care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction.

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

Duress
Pressure that is used to make a company or an individual do something which they do not want to do.

Duty
1. Ad valorem duty means an assessed amount at a certain percentage rate on the monetary value of an import.
2. Specific duty: an assessment on the weight or quantity of an article without preference to its monetary value or market price. 3. Drawback: a recovery in whole or in part of duty paid on imported merchandise at the time of exportation, in the same or different form.
→ Drawback

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

DWT
→ Deadweight

Economic Speed
That speed of a means of transport which produces the best possible financial result for the owner. Such speed should not be in excess of the maximum or minimum output allowed for the engine(s).

Economy of Scale
Phenomenon which encourages the production of larger volumes of a commodity to reduce its unit cost by distributing fixed costs over a greater quantity.

ECT
Europe Combined Terminals (Rotterdam).

EDI
→ Electronic Data Interchange

EDIFACT
→ Electronic Data Interchange for Administration, Commerce and Transport

EDP
→ Electronic Data Processing

EDR
→ Equipment Damage Report

Eight Freedoms (Air)
Freedom 1: The right to fly and carry traffic over the territory of the grantor state.
Freedom 2: The right to fly and carry traffic over the grantor state and to make one or more stops for non-traffic purposes (e.g. refueling).
Freedom 3: The right to fly into the territory of the grantor state and set down traffic from the state of the carrier.
Freedom 4: The right to fly into the territory of the grantor state and take on traffic for the state of the carrier.
Freedom 5: The right to fly into the territory of the grantor state and take on or set down traffic to or from third states.
Freedom 6: The right to fly into the territory of the grantor state and take on or set down traffic for the carrier’s state. Such traffic being carried to a third state on a different service.
Freedom 7: The right for a flag-carrier operating entirely outside the territory of this own state to take on or set down traffic in the grantor state for carriage to or from a third state.
Freedom 8: The right of a carrier of another state to take (cabotage) on or set down traffic from one point in the territory of the grantor state to another point within the same state.
→ Five Freedoms (Air)

EIR
→ Equipment Interchange Receipt

Electronic Data Interchange
Abbreviation: EDI. Transfer of structured data, by agreed standards from applications on the computer of one party to the applications on the computer of another party by electronic means.

Electronic Data Interchange for Administration, Commerce and Transport
Abbreviation: EDIFACT. ISO application level syntax rules for the structuring of user data and of the associated service data in the interchange of messages in an open environment.

Electronic Data Processing
Abbreviation: EDP. Computerized handling of information (e.g. business data).

Elevator
Equipment used to discharge some bulk cargoes such as grain which is removed from the hold by a continuous line of buckets or by suction and carried on a conveyor belt to store.

Eligible Acceptance
Draft which meets requirements for discounting at a Federal Reserve Bank.

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

Endorsement
Transfer of the right to obtain delivery of the goods of the carrier by means of the consignee’s signature on the reverse side of a Bill of Lading. If the name of the new consignee (transferee) is not stated, the endorsement is an open one which means that every holder of the document is entitled to obtain delivery of the goods.
→ Negotiable

Enhanced Remote Transit Shed
Abbreviation: ERTS. Term used in the UK: Warehouse where agents can transfer incoming groupage/consolidations for customs clearance purposes.

Equipment Damage Report
Abbreviation: EDR. Written statement concerning damage to equipment, based on a physical inspection.

Equipment Interchange Receipt
Abbreviation: EIR. Physical inspection and transfer receipt.

ERTS Facility
→ Enhanced Remote Transit Shed

Estimated Time of Arrival
Abbreviation: ETA. Expected date and time of arrival in a certain (air)port.
Synonym: Expected Time of Arrival

Estimated Time of Departure
Abbreviation: ETD. Expected date and time when a certain (air)port is left.
Synonym: Expected Time of Departure

ETA
→ Estimated Time of Arrival

ETD
→ Estimated Time of Departure

European Article Numbering Association
Abbreviation: EAN. International body responsible for administering the European Article Numbering system. It has affiliates in many countries such as: CCG in Germany, DCC in Japan, ANA in the United Kingdom. Note: The North American body responsible for the Uniform Product Code (UPC) coding is the Uniform Code Council (UPC is considered a subset of EAN).

European Pallet Pool
Pool for the exchange of standard-sized pallets (the so-called Europallets) in European cargo traffic, formed in 1961 by a number of European rail administrators.

European Zone Charge
Abbreviation: EZC. Charge for inland haulage transport in case of carrier haulage in Europe.

Ex “From”
When used in pricing terms such as “Ex Factory” or “Ex Dock”, it signifies that the price quoted applies only at the point of origin (e.g., at the seller’s factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.
→ Incoterms

Ex Dock
Seller owns goods until they are unloaded on dock at port of discharge; selling price includes all costs so far plus cost of unloading from vessel.
→ Incoterms

Ex Factory
Seller owns goods until they are picked up at their factory; selling price is the cost of the goods.
→ Incoterms

Ex Quay
Ex Quay means that the seller makes the goods available to the buyer on the quay (wharf) at the place named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. There are two “Ex Quay” contracts in use: a) Ex Quay “duty paid” and b) Ex Quay “duties on buyer’s account” in which the liability to clear goods for import is to be met by the buyer instead of by the seller.
→ Incoterms

Ex Works (... Named Place)
Abbreviation: EXW. Incoterm
→ Incoterms

Exceptions Clause
→ Exemption Clause

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

Exchange Permit
Government permit required to convert local currency into foreign (hard) money for transfer abroad.

Exchange Rate
Price of one currency in terms of another.
→ Currency Adjustment Factor

Execution
Actual act of carrying out a task.

Exemption Clause
Clause in a contract, which relieves the contractor’s responsibility for mentioned events.
Synonym: → Exceptions Clause

Expendable Pallet
→ Disposable Pallet → One-Way Pallet

Expiration
Termination of a certain period.

Export
Sending goods to another country or countries. The sale of products to clients abroad.

Export Broker
Individual or company that brings together buyers and sellers for a fee but does not take part as principal in actual sales transactions.

Export Commission House
Organization which, for a commission, acts as a purchasing agent for a foreign buyer.

Export Declaration
Form indicating the value, weight, destination, and other basic information about an export shipment.

Export License
Government document that permits the licensee to export designated goods.
→ General Export License → Individually Validated Export License

Export Packer
Company that packs goods for export.

Exporter
Party responsible for the export of goods.

Extract
Summary or copy of something written, e.g. used in connection with the log book.

EXW
Incoterm for “Ex Works“.
→ Incoterms

EZC
→ European Zone Charge

F.C. & S.
Free of Capture & Seizure. Clause excluding war risks from the Marine Policy. War risks can be covered by issuing a separate War Policy with an additional premium being charged.

F.I.
→ Free in

F.I.A.
Full Interest Admitted as between insurer and insured (honor policy).

F.O.
→ Free out

F.O.C.F.A.R.
Free of Claim for Accident Reported.

F.O.D. ABS
Free of Damage Absolutely.

F.O.R.
Free on Rail.

F.O.T.
Free on Train or Truck.

F.P.A.
Free of Particular Average.
→ Free of Particular Average, English Conditions → Free of Particular Average, American Conditions

F.P.A. A.C.
→ Free of Particular Average, American Conditions

F.P.A. ABS
Free of Particular Average Absolutely.

F.P.A. E.C.
→ Free of Particular Average, English Conditions

F.P.A.U.C.B.
Free of Particular Average Unless Caused by (stranding, etc.).

F.P.I.L.
Full Premium If Lost (used in connection with time risks for periods of less than twelve months, the balance of a year’s premium being claimable by insurers before paying a total loss).

F.W.D.
Fresh Water Damage.

Fairway
Navigable channel for vessels, often the regular or prescribed track a vessel will follow in order to avoid dangerous circumstances such as shallow waters.

FAK
→ Freight All Kinds

FAS
Incoterm for “Free Alongside Ship”.
→ Incoterms

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

FCA
Incoterm for “Free Carrier”.
→ Incoterms

FCC
→ Fully Cellular Containership

FCIA
Foreign Credit Insurance Association.

FCL
→ Full Container Load

FCR
FIATA Forwarder’s Certificate of Receipt. An official document which proves that the freight has been received by the forwarder.

Feeder Vessel
Vessel used for local or coastal transport to and from ports not scheduled by the main (ocean) vessel.

Fender
Appliance made of rubber, timber and/or rope or other materials normally attached to a dock or quay used to prevent damage to the hull of a vessel especially during mooring and un-mooring operations.

FEU
→ Forty Foot Equivalent Unit

FIFO
→ First in/First out

FILO
→ Free in Liner out

FIO
→ Free in and out

First Carrier
Carrier that actually performs the first part of the air transport (air cargo).

First in/First out
Abbreviation: FIFO. Method whereby the goods which have been longest in stock (first in) are used, delivered (sold) and/or consumed first (first out).

Five Freedoms (Air)
Collective term which depicts the five areas of “rights” for the air transportation of passengers or cargo, viz. (expressed in terms of an airline of country A):
Freedom 1: The right to fly over a foreign country.
Freedom 2: The right to make a technical stop at a country C en route from country A to B.
Freedom 3: The right to set down (off loading) passengers or cargo in a country B from home country A.
Freedom 4: The right to pick up (loading) passengers/cargo from a country B to home country A.
Freedom 5: The right to carry passengers or cargo between two foreign countries.
→ Eight Freedoms (Air)

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

Flammable
Capable of being set on fire under given circumstances (Amendment 25 IMO DGS).
→ Flash Point

Flash Point
Lowest temperature at which a good produces enough vapor to form a flammable mixture with air.
→ Flammable

FLAT
→ Flat-Rack Container >Flat-Bed Trailer

Flat-Bed Trailer
Wheeled trailer or a semi-trailer with a flat cargo carrying surface or deck and without any superstructure.

Flat Pack
Garments packed in cardboard boxes.

Flat-Rack Container
Container with two end walls, open sides and no roof.
Synonym: → Flat

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

Flight Number
Combination of two letters, indicating the airline, and digits indicating the number of the voyage.
Synonym: → Line Number

Floating Crane
Crane mounted on a barge or pontoon, which can be towed or is self propelled.

Floating Dock
Floating structure which can be partially submerged to enable vessels to enter and to leave and which can be raised for use as a dry dock.

Floating Policy
→ Open Insurance Policy

Floating Stock
→ Pipeline Inventory

Flow Chart
Diagram, using symbols and depicting the sequence of events that should take place in a complex set of tasks.

Flow Control
Term often used to describe a specific production control system.

Flow Line
Direction of flow in which, e.g., pallets have been positioned and stowed.

Flow of Materials
Flow of materials and components which goes to and through the factory for the production process.
→ Procurement Logistics

FMC
Federal Maritime Commission (Control of shipping acts USA).

FO’C’S’LE
→ Forecastle

FOB
Incoterm for “Free on Board”.
→ Incoterms

FOB Vessel
(Free on board vessel.) Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of loading on vessel.
→ Incoterms

FOR
→ Free on Rail

Force Majeure
Title of a standard