Shipping Glossary

Shipping Glossary
3PL / 4PL - Third or fourth party Logistics Companies that can be employed (hired) to assume tasks that were previously performed in-house by the client.
AA - Always Afloat A contract term requiring that the vessel not rest on the ground. In some ports the ship is aground when approaching or at berth.
AAR Abbreviation for: – Against All Risks (insurance clause). – Association of American Railroads.
Abaft A point beyond the midpoint of a ship’s length, towards the rear or stern.
Abandon A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.
Abatement A discount allowed for damage or overcharge in the payment of a bill.
ABI U.S. Customs’ “Automated Broker Interface,” by which brokers file importers’ entries electronically.
Aboard Referring to cargo being put, or laden, onto a means of conveyance.
Absorption One carrier assumes the charges of another without any increase in charges to the shipper.
Acceptance – A time draft (or bill of exchange) that the drawee (payer) has accepted and is unconditionally obligated to pay at maturity. – Broadly speaking, any agreement to purchase goods under specified terms.
Acceptance of Good The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment and on this place the carrier's responsibility for the consignment begins.
Accessorial Charges Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery.
ACI - Advance Commercial Information System Canada Border Services Agency (CBSA) require that some key data elements to be transmitted electronically 24 hours before loading at the foreign port using ACI-EDI cargo reporting.
Acquiescence When a bill of lading is accepted or signed by a shipper or shipper’s agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Acquitance A written receipt in full.
ACS - Alameda Corridor Surcharge Surcharge applied to IPI and MLB cargo moving via the Rail System where the port of Long Beach/Los Angeles is the Gateway.
Act of God An extraordinary force of nature (such as a severe flood or earthquake) that experience, prescience or care cannot reasonably foresee or prevent.
Active Inventory Covers raw material, work in progress, finished products, which will be used or sold within a given period without extra cost or loss. This term does not cover the so-called reserve inventory.
Ad Valorem (Latin) According to Value (English); For example, if a bill of lading shows a value for the cargo being carried, an Ad Valorem charge will be levied. This charge is required because the insurance liability of the carrier increases. This charge may be levied as a percentage of the value that has been shown.
Advising Bank Bank where a shipper negotiates documents or where documents are first presented, usually at country of origin. Also, often referred to as the negotiating bank.
AEO Authorized Economic Operator 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. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors. Is equal to the American CT-PAT certification.
AFR Advanced Filing Rules Japan Customs Advance Filing Rules (AFR) require carriers and non-vessel operating common carriers (NVOCCs) to electronically submit filings for Japan-bound cargo no later than 24 hours before vessels depart from their ports of loading.
AFT The back part of vessel That is the part upper the rudder.
Agent A person or organisation authorised to act for or on behalf of another person or organisation.
Aggregated Shipments Numerous shipments from different shippers delivered to one consignee, that are consolidated and treated as a single consignment.
AI - All Inclusive Denotes that a rate is all inclusive except for applicable war risk surcharge.
Air Container Any unit load device, primarily intended for transport by air, having an internal volume of 1 m3 or more, incorporating restraint provisions compatible with an aircraft restraint system, and an entirely flush base bottom to allow handling on roller-bed cargo handling systems.
Air Freight Forwarder 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.
Air Waybill - AWB A document made out by or on behalf of the carrier(s) confirming receipt of the goods by the carrier and evidencing the contract between the shipper and the carrier(s) for the carriage of goods as described therein.
All Water When a shipment is transported from its origin to its destination solely by water transportation.
AMS - Advanced Manifest System Related for USA imports and now replaced with the ISF 10+2 filing (see below for further explanation under ISF 10+2).
Any Quantity [AQ] A rating that applies to an item regardless of weight.
APERAK A confirmation message which advises the sending party if an EDI message went through or failed.
AQI - Agriculture Quarantine Inspection Inspection for agricultural products to ensure compliance with quarantine laws.
Arrival Notice Documentation that notifies the consignee of arrival information for the goods and the freight charges due to be paid in exchange for the goods.
Asset-Based, Third Party Provider A third party provider that owns transportation and/or warehouse assets.
Assignment 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.
ATD - Artificial Tween Decks Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.
Automatic Identification A means of identifying an item (e.g., a product, parcel, or transport unit) by a machine (device) entering the data automatically into a computer. Technologies include barcodes, radio frequency identification (RFID), magnetic stripes, and optical character recognition.
Average Adjusters In general average affairs, average adjusters apportion the loss and expenditure over the parties interested in the maritime venture and determine which expenses are to be regarded as average or general average.
Average Inventory The average inventory level over a period of time.
AW, AWR, AWS - All Water Service Imported traffic moving to a destination port where the sea vessel is the only mode of transport.
AWDINH - All Working Days Including Holidays A term indicating that all working days, including holidays, are counted.
AWWG Condition used in chartering terms that applies if all weather conditions are favorable.
Back Haul To obtain transport on the return leg of a trip, typically from destination B back to origin A after delivering goods from A to B.
BAF - Bunker Adjustment Factor Refers to the floating part of the ocean freight charge which represents additions due to oil prices.
Balespace The capacity of cargo spaces under deck (including hatchways but excluding void spaces behind cargo battens and beams) expressed in cubic meters or cubic feet.
Ballast Materials carried solely to improve the trim and stability of the vessel, often water carried in specially designed tanks.
Bank Guarantee 1. Accepted under certain circumstances in lieu of an original bill of lading to release cargo. 2. A statement issued by an importer's bank guaranteeing payment of drafts to the exporter or carrier. 3. Other forms of guarantees by banks in favor of a beneficiary.
Banker's Acceptance A form of financing used in import/export transactions.
Baplie An EDI message conveying the Bayplan on occupied and empty slots in a vessel at a specific time.
Barcode A series of bars and spaces read by a scanning device for translation into a numeric or alphanumeric identification code that represents data in machine-readable or computerized form.
Barcode, 2-D A PDF 1000 style barcode used to store up to 1800 characters of text, designed for storing and retrieving more information electronically.
Barge A flat-bottomed inland cargo vessel used on canals and rivers, with or without its own propulsion system.
Base Port Ports from which standard tariff rates apply to those normally serviced directly by members.
Basing Points Points used in the construction of through rates between other points.
Batch Lot A definite quantity of a product manufactured under presumed uniform conditions, passing as a unit through the same series of operations for production control purposes.
Battens Members protruding from the inside walls of a vessel's hold or thermal container to keep cargo away from the walls and provide an air passage.
Bay A section of a vessel where containers are held.
Benchmarking 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.
Bending-moment The result of vertical forces acting on a ship due to local differences between weight and buoyancy. It can change due to wave impact, affecting buoyancy distribution. The maximum allowed bending moment is restricted by classification bureaus under different conditions.
Berne Gauge Standard gauge for railways in Europe, which is narrower than the standard gauge in the United States.
Berth The designated area where a vessel docks.
Best Practice A methodology (also known as competitive benchmarking) to determine state-of-industry performance or application.
BI Reporting - Business Intelligence Reporting The process of converting organizational capabilities into knowledge, generating information that can lead to new opportunities and competitive advantages in the market.
Bill of Exchange 1. A signed, written order by one company instructing another to pay a third party a specific amount. 2. An unconditional written order addressed by one person to another, requiring payment at a fixed or determinable future time, commonly used in foreign transactions.
Bill of Health A certificate issued by local medical authorities indicating the health conditions in the port of departure or call. Required for clearance before departure.
Bill of Lading - B/L A document that serves as a receipt for goods, a document of title, and evidence of the terms and conditions of carriage by sea. Different types include Combined Transport and Sea Waybill.
Billed Weight The weight stated on a waybill or bill of lading.
Bimodal Trailer A road semi-trailer with retractable running gear for mounting on rail bogies, capable of carrying different standardized unit loads.
Binnacle A housing for a ship's compass, typically mounted in front of the helm.
Blitz – Sales visits Intensive sales visits.
Block Train A train of railway wagons carrying containers, running directly from one location to another without marshalling or transshipping.
BOC - Buyers Own Consol(idation) Freight forwarders' service consolidating shipments from multiple shippers into one full-container load, including booking, inspection, documentation, customs clearance, warehousing, and distribution.
Bolero An open platform for electronic trade document processing, focusing on functions like the carrier's bill of lading and trade settlement.
Bollard A post on a quay or vessel used for securing mooring ropes.
Bonded The status of goods held under customs seal until duties are paid or the goods leave the country.
Booking The act of arranging for the movement or transportation of goods by vessel or other conveyance.
Bottlenecks Points in a process that limit performance, such as a warehouse or distribution center where goods accumulate faster than they can be processed or stored.
Bottom Fittings Devices between a container and a vessel's deck to prevent shifting during transport.
Bottomary Money borrowed against a ship, repaid upon its arrival at port.
Bow The forward part of a vessel.
Box Rate A flat rate charged to move cargo in containers from origin to destination.
Brackish Water Water where freshwater meets seawater.
Break Bulk Cargo not containerized due to its size or weight.
Broker A person or firm that arranges transportation between shippers and carriers.
Brokerage Licence Authority granted to engage in arranging transportation of persons or property.
Bulkhead A partition dividing compartments on a vessel for safety and structural integrity.
Bull Rings Attachments on vessels for securing cargo.
Bunker Storage on board for fuel.
Bunker Adjustment Factor (BAF) Adjustment to ocean freight charges to account for fluctuating fuel costs.
C-TPAT - Customs - Trade Partnership Against Terrorism A voluntary program improving supply chain security led by US Customs and Border Protection.
Cabotage Transport of goods between ports in the same country or using a container owned by its operator in exchange for which the operator can use the container.
CAF - Currency Adjustment Factor Adjustment to ocean freight charges due to currency fluctuations.
Call Sign A code for information exchange between vessels, port authorities, and participants in trade.
Cargo Goods transported by ship or aircraft.
Cargo Assembly Arrangement of cargo for shipment.
Cargo Bays Doors in a warehouse for loading and unloading cargo.
Carrier's Certificate A document advising customs of shipment details.
CBM - Cubic Metre A unit of volume equal to 1 cubic meter (35.314 cubic feet).
CBP - U.S. Customs and Border Protection A US agency overseeing trade regulation, immigration, and border security.
Cell A slot on a container ship where containers are stowed.
CFR - Cost and Freight An Incoterm where the seller pays costs and freight to the destination port.
CFS - Container Freight Station Location designated by the shipping company for receiving, delivering, assembling, and distributing shipments into or out of steamship line containers. Most LCL cargos are either packed into or devanned at the CFS.
Chassis Trailer or wheeled unit on which a container is placed for road transport.
CIF - Cost, Insurance and Freight Similar to CFR or CF, but with the addition that the seller must procure marine insurance against the buyer's risk of loss or damage during carriage. The seller is required to obtain insurance on "minimum coverage" and clear the goods for export.
Clean On Board A clause in the bill of lading indicating that no irregularities or discrepancies were noted in the packing or general condition of the goods.
Codabar A variable length barcode capable of encoding 16 data characters, primarily used for numeric data.
COFC - Container on Flat Car Rail service where a container is loaded onto a flat car without chassis, bogies, or wheels.
Combined Transport Bill of Lading Provides combined transport using at least two different modes of transportation from origin to destination.
Commercial Invoice Document by the shipper/seller detailing merchandise description, country of origin, and itemized prices.
Commercial Transport Vessel Any ship primarily used for transporting persons or goods for commercial purposes.
Commodity A specific type of goods or product category, e.g., toys, electronics, or welding machinery.
Common Point Point where two or more transportation lines converge.
Common Tariff Tariff published jointly by two or more transportation lines.
Company Guarantee Letter of guarantee from a company indemnifying the carrier against responsibility associated with the release of goods without a bill of lading.
Conference An association of ocean carriers permitted to engage in concerted activity under a common tariff, offering standardized services between designated ports.
Consignee Recipient of goods shipped or consigned.
Consignment Instructions Instructions from shipper/consignor or buyer/consignee to facilitate the movement, handling, and documentation of goods by a carrier or freight forwarder.
Consignment Note Document detailing goods shipped by the consignor.
Consolidation Combining LCL cargo from multiple sources into a single container for cost efficiency.
Consular Invoice Document required by some foreign countries, detailing consignor, consignee, value, and description of shipment.
Container Equipment designed for transport, fitting ISO standards for easy handling and storage without reloading, with an internal volume of 1 m³ or more.
Container Depot Location maintained by an ocean carrier for pick-up or drop-off of empty containers.
Container Stuffing List (CSL) List showing how cargo is loaded into each container.
Container Yard (CY) Area at a port where containers are received and delivered from ships or inland carriers.
Continuous Flow Distribution (CFD) Efficient distribution method aligning product flow with customer demand while minimizing costs.
Continuous Replenishment Program (CRP) Supply chain program triggering product manufacture and movement based on real-time customer purchases.
Contract Carrier For-hire operators offering transportation services under contract to specific shippers.
Core Competency A company's primary function essential to its success.
CPT - Carriage Paid To Term where seller pays freight to the named destination, transferring risk to the buyer upon delivery to the carrier.
CRM - Customer Relationship Management Strategy managing company interactions with customers, using technology to organize, automate, and synchronize business processes.
Cross-Docking Direct movement of merchandise from receiving to shipping dock, avoiding storage.
CSC - Container Service Charge Charge by terminal for container positioning.
Currency Adjustment Factor Adjustment to freight charges to account for currency fluctuations.
CUS - Chassis Usage Surcharge Surcharge for chassis usage at a destination.
Customs House Broker Broker certified to handle customs formalities for importers and exporters.
Cut-Off Time Last possible time when containers/cargoes may be delivered to a ship or designated point.
Cycle Count Counting inventory by checking a particular location or set of locations and comparing the physical counts with the system-maintained inventory levels.
Cycle Time The amount of time it takes to complete a business process. For example, the amount of time from when a service is ordered until it is received by the customer.
Cycle Time Reduction The process of reducing cycle time, cutting costs and improving customer service.
DAT Delivered AT Terminal Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
DDU Delivery Duty Unpaid. Terms of sale.
Delivery Order An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release. Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.
Demand Chain Another name for supply chain, with emphasis on the customer or party controlling demand.
Demise Charter A contract whereby the shipowner leases his vessel to the charterer for a period of time during which the whole use and management of the vessel passes to the charterer, which involves that the charterer is to pay all expenses for the operation and maintenance of the vessel. Officers and crew will become servants of the charterer. A demise charter whereby the charterer has the right to place his own master and crew on board of the vessel is also called 'bareboat charter'.
Demurrage Charge payable for detaining a vessel or container at a berth or terminal beyond the time allowed free by the ship owner or terminal operator.
DEQ Delivery Ex Quay. Terms of sale.
DES Delivered Ex Ship. Terms of sale.
Differential Amount added or deducted from base rate to create a rate to or from some other point or via another route.
Distribution The full range of activities and planning required to move a product from the production line to the end-user.
Distribution Requirements Planning A system of determining demand for an inventory at distribution centres, consolidating the demand information backwards, and acting as input to the production and material system.
Diversion Charge Fee for diverting cargo from original intended destination port to a new location.
Divider A vertically mounted partition in a compartment on board of an aircraft.
Dock Receipt Receipt given for a shipment received or delivered at a pier or dock (warehouse).
Double Banking Two vessels moored alongside each other on certain berth.
Double Stack Car Rail car capable of carrying two containers stacked on top of each other.
Draft The height up to which vessel is submerged in water. Sometimes called 'Draught'.
Drawback 99% refund of imported or duty paid materials which are to be re-exported.
Drayage 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.
Dry Dock Used to lay up vessels for repair.
Dunnage Stowage material, mainly timber or board, used to prevent damage to cargo during carriage.
Duty Drawback (1) Payment returned for cargo re-exported or trade show material. (2) A customs refund on re-exported cargo.
EAN 13 EAN barcodes are used when the country origin needs to be known. There are 13 digits in EAN 13, where the first two characters are used to define the country of origin, the next 10 are data, followed by the checksum. Both 2 and 5 digit supplementals are also supported.
EAN 8 EAN barcodes are used when the country origin needs to be known. There are 8 digits in EAN 8, where the first two characters are used to define the country of origin, the next 5 are data, followed by the checksum. Both 2 and 5 digit supplementals are also supported.
Earnings Income after a company's taxes and all other expenses have been paid. Also called profit or net income.
EBS - Emergency Bunker Surcharge Fuel premium added to the freight. Changes on a periodic basis monthly or quarterly depending on fluctuation of oil prices.
Economic Value Added (EVA) A measure of the shareholder value as a company's operating profits after tax, less a charge for the capital used in creating the profits. EVA is a registered trademark of Stern & Co. in the USA.
EDI Invoicing An EDI Invoice is an electronic version of a paper invoice or bill. EDI stands for Electronic Data Interchange. Companies use EDI to reduce the errors and costs associated with the manual keying of data, and to speed up the process of sending and receiving Invoices.
EDI – Electronic Data Interchange When two computer systems are connected with each other and the transfer of data (booking details, bl instructions, tracking details etc) is done automatically. This is done between WWA Members, but is also accessible for our customers.
Efficient Consumer Response (ECR) A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter.
EIR Equipment Interchange Receipt. A document used to receive or deliver a full or empty container/chassis at any terminal or inland container pool/depot.
Electronic Funds Transfer (EFT) Payment for goods or services via exchanges of electronic authorisations against bank accounts. Authorisation is sent to an automated clearing house (usually a bank), which verifies the source of the transaction as having control over the accounts, and performs the fund transfer.
Endorsement The transfer of the right to obtain delivery of the goods of the carrier by means of the consignee's signature on the reverse side of a bill of lading. If the name of the new consignee (transferee) is not stated, the endorsement is an open one which means that every holder of the document is entitled to obtain delivery of the goods.
ENS Entry Summary Declaration This is valid for European imports. Carriers are required to file an Entry Summary Declaration for shipments to Europe.
Equalisation (1) Monetary allowance to a customer for picking up or delivering cargo to or from a point which is not the origin/destination shown on the B/L. (2) Compensation for additional charges incurred by the shipper for delivering cargo to port designated by the carrier other than the closest port to the supplier.
ESI Electronic Shipping Instruction. The electronic transfer of BL Instructions. For example, the transfer via portals where customers can transfer the BL instructions and the portal sends it further to the WWA portal.
ETA Estimated Time of Arrival.
ETD Estimated Time of Departure.
ETL Extract / Transfer / Load information. IT terms used in Datawarehousing where information/data is extracted from a single system, transferred to a single server, and loaded.
Extra Loader Additional vessel brought into schedule to cope with exceptionally strong market conditions.
EXW Ex Works Means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used.
FAK Freight All Kinds. Usually refers to consolidated cargo.
FAS Free Along Side Means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the buyer to clear the goods for export. It should not be used when the buyer cannot carry out directly or indirectly the export formalities.
FCA Free Carrier Means that the seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk and expense.
FCL Full Container Load.
FEWB Far East Westbound From Asia to Europe.
FFE Forty-foot Equivalent Unit The standard measurement unit of containerized cargo.
FIFO Free In Free Out. Terms of sale.
FIO Free In Free Out. Terms of sale.
Flat Bed Truck designed to haul heavy or oversized non-containerisable cargo.
Floating Cranes Heavy-duty cranes that are able to handle exceptionally heavy cargo if unable to use conventional gantry cranes.
FMC Federal Maritime Commission. U.S. Government agency responsible for overseeing regulatory aspects of the Shipping Act.
FOB Free on Board Means that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
For-Hire Carriers Persons or firms engaged in the transportation of goods or passengers for compensation. Classified into two general categories, specialised and general freight motor carriers.
Force Majeure A state of emergency or condition that permits a company to depart from the strict terms of a 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.
Forwarder's Cargo Receipt A non-negotiable document issued by a forwarder which will satisfy the legal requirements of a letter of credit. Since a forwarder is not an NVOCC it cannot issue actual bills of lading. The FCR is legally binding upon the forwarder and is an industry standard.
Free Time Time allowed for shippers or consignees/receivers to load or unload cargo before demurrage, detention and other charges accrue.
Freight Bill Destination (Collect) Freight Bill: Prepaid Freight Bill. (1) Bill rendered by a transportation line to consignee containing description of freight, shipper name, point of origin and weight charges (if not prepaid). (2) Bill rendered by a transportation line to shipper containing description of freight, consignee, destination and weight charges.
Freight Cashier Responsible for collections of freight/charges/release of cargo/release of bills of lading.
Freight Release Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain the release of the cargo. Normally, once the freight is paid, freight releases are arranged without additional documentation. Also known as a freight bill receipt.
Full Visible Capacity The trailer is loaded as full as the nature of the freight and other conditions permit, so that no more of the same type of freight can be loaded, consistent with safety and damage precautions.
Gantry Crane Port crane used to load and discharge containers from vessels, can be positioned by moving along rail tracks.
GRDB - Global Rate Data Base Global Rate Database
GRI General Rate Increase. When rates are going up in a market we announce it as a GRI.
Handling Costs The cost involved in transferring, preparing and otherwise contracting inventory.
Hangertainer Specialised container equipped with hanger beams for the purpose of stowing garments on hangers.
Harmless Chemicals 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.
HAWB/MAWB - House Airwaybill/Master Airwaybill Documents required for air transportation of cargo.
HAZ / HAZMAT - Hazardous Material Dangerous Material governed by IMDG (Ocean) or ADR (Road) transportation.
Hitchment Marrying 2 or more portions of one shipment that originate at different geographical locations, moving under one bill of lading, from one shipper to one consignee.
Holds Section of vessel in which containers are stored. See also Bays.
HS Code - Harmonized Commodity Description and Coding System The code is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO).
Hull The main hold of the vessel where all cargo is stuffed. This is the main part of the vessel from where they can earn freight.
Hustler Tractor that pulls containers around the pier for positioning. Also known as a yard hustler.
IMCO - International Maritime Control Organisation See IMO - International Maritime Organization.
IMCO Classification International Maritime Control Organisation classification for hazardous cargo.
Imports Goods and services which one country's residents purchase and transport from another country into their own country.
Inbound Import Shipment.
INCO Terms Incoterms 2000 is the latest version of ICC's standard trade definitions, commonly known as the INCO terms.
Independent Action A separate action taken by an individual member of a conference agreement to change rates or terms of carriage as laid out in the conference agreements.
Independent Carrier Carrier that is not a member of a shipping conference.
Inland Carrier Transportation company which hauls imports or exports between ports and inland points.
Insurance Certificate Document which assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit.
Integrated Carriers Carriers that have both air and ground fleets or other combinations, such as sea, rail and truck.
Intermodal Coordinated transport of freight, especially in connection with relatively long-haul movements, using any combination of freight forwarders, piggy-back, containerisation, air freight, assemblers, rail and road.
Intermodal Marketing Company (IMC) Consolidates container loads or piggyback trailers from several shippers and contracts with railroads for volume space.
Inventory Carrying Costs Generally, carrying costs or holding costs are financial measurements that calculate all the costs associated with holding goods in storage. It includes inventory-in-storage, warehousing, obsolescence, deterioration, spoilage and labour costs, as well as insurance and taxes.
Inventory Turnover The cost of goods sold, divided by the average level of inventory on hand. The ratio measures how many times a company's inventory has been sold during the year.
Inventory Velocity The speed with which products move from receiving dock to shipping dock.
IPI - Inland Point Intermodal Imported traffic moving from a US arrival port to an interior US point (non-ports) via truck or rail, on an Ocean through Bill of Lading (e.g., Hong Kong to Chicago via Seattle).
ISF Import Security Filing This is valid for the USA imports. Known as the Importer Security Filing (ISF) or more commonly called 10+2, which requires cargo information for security purposes, to be transmitted to the agency at least 24 hours before goods are loaded onto an ocean vessel for shipment into the USA. 10+2 is pursuant to section 203 of the SAFE Port Act and requires importers to provide 10 data elements to CBP, as well as 2 more data elements from the carrier.
IT (1) Immediate Transportation Entry: refers to an IT entry (U.S. Customs). Allows the cargo to move beyond the vessel entry point in bond for customs clearance at the destination named in the I.T. movement from one customs district to another, e.g. cargo entering the U.S. at Los Angeles destined for Chicago can move to Chicago before having a customs inspection. (2) Information Technology: A generic term for people or systems working toward business improvement.
ITIGG - International Transport Implementation Guidelines Group ITIGG is an international group of experts engaged in the development and implementation of UN/EDIFACT-standard messages for electronic trading in the transport industry.
Joint Rate A rate from a point located on one transportation line to a point on another transportation line which is published in a single tariff.
Jones Act Section 27 of the Merchant Marine Act of 1920, requiring that all shipments by water between ports in the United States (including Puerto Rico) be carried by U.S.-flag, be U.S.-built, and U.S.-crewed vessels.
Just-In-Time (JIT) In this method of inventory control, 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.
KPI – Key Performance Indicator A performance indicator or key performance indicator (KPI) is industry jargon for a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often success is simply the repeated, periodic achievement of some level of operational goal.
Label Cargo Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code.
Land Bridge 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).
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 full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.
Letter of Credit (LC) (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.
Licenses Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s).
Line Haul Marine portion of a vessel's route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).
LNG Carrier Liquified Natural Gas Carrier.
Location Any named geographical place, recognised by a competent national body, with permanent facilities used for goods movements associated with international trade, and used frequently for these purposes. Geographical place such as a port, an airport, an inland freight terminal, a container freight station, a container yard, a container depot, a terminal or any other place where customs clearance and/or regular receipt or delivery of goods can take place. An area (e.g. in a warehouse) marked off or designated for a specific purpose.
Log Book The daily report, authenticated by the master of all events and other relevant particulars of a vessel, attested by the proper authorities as a true record.
Logistics 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, encompassing factories, assembly and packing plants, warehouses, distribution centres and retail outlets.
Longshoreman Also known as stevedore. Worker who loads and unloads a ship. Terminal operator who is designated to facilitate the operation of loading and discharging vessels, as well as other terminal activities.
LSF or LSS A charge to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines.
LT - Long Ton 1 Long Ton = 2,240 lbs.
Lumpsum An agreed sum of money, which is paid in full settlement at one time. This term is often used in connection with charter parties.
Marks and Numbers The identifying details on or of a package or the actual markings that appear on the packages.
Mate's Receipt A document signed by the chief officer of a vessel acknowledging the receipt of a certain consignment on board of that vessel. On this document, remarks can be made as to the order and condition of the consignment.
Materials Management The procurement, movement and management of materials and products from acquisition through to production.
Merchant Haulage Inland transport of cargo in containers arranged by the Merchant. It includes empty container-moves to and from hand-over points in respect of containers released by the Carrier to Merchants. Note: Carrier's responsibility under the Bill of Lading does not include the inland transport stretch under Merchant Haulage.
Meta-centric Height MIG - Message Implementation Guide. The description of how EDI connections are programmed by the IT department. There are different MIG depending on booking, manifest and shipment tracking.
Milestone The defined shipment status booked cargo through which provides visibility on the status of the shipment.
Mixed Shipment Shipment consisting of items described in and rated under two or more rate items within a tariff.
MLB - Mini Land Bridge An Intermodal system for handling imported containers by Ocean, and then move via rail or truck to another port (e.g., Hong Kong to NY via Seattle).
Mooring A Mooring refers to any permanent structure to which a vessel may be secured.
Mother Vessel Main ocean vessel in a liner service designated to move containers from set origin points to set destination ports/points on a regular basis.
MQA - Minimum Quantity Agreement (FCL) Contract which lists a minimum quantity of TEUs or services.
MT - Metric Ton 1 MT = 2,204.62 lbs or 35.314 cubic feet.
Inventory Carrying Costs Generally, carrying costs or holding costs are financial measurements that calculate all the costs associated with holding goods in storage. It includes inventory-in-storage, warehousing, obsolescence, deterioration, spoilage and labour costs, as well as insurance and taxes.
Inventory Turnover The cost of goods sold, divided by the average level of inventory on hand. The ratio measures how many times a company's inventory has been sold during the year.
Inventory Velocity The speed with which products move from receiving dock to shipping dock.
IPI - Inland Point Intermodal Imported traffic moving from a US arrival port to an interior US point (non-ports) via truck or rail, on an Ocean through Bill of Lading (e.g., Hong Kong to Chicago via Seattle).
ISF Import Security Filing This is valid for the USA imports. Known as the Importer Security Filing (ISF) or more commonly called 10+2, which requires cargo information for security purposes, to be transmitted to the agency at least 24 hours before goods are loaded onto an ocean vessel for shipment into the USA. 10+2 is pursuant to section 203 of the SAFE Port Act and requires importers to provide 10 data elements to CBP, as well as 2 more data elements from the carrier.
IT (Immediate Transportation Entry) Refers to an IT entry (U.S. Customs). Allows the cargo to move beyond the vessel entry point in bond for customs clearance at the destination named in the I.T. movement from one customs district to another, e.g. cargo entering the U.S. at Los Angeles destined for Chicago can move to Chicago before having a customs inspection.
IT (Information Technology) A generic term for people or systems working toward business improvement.
ITIGG - International Transport Implementation Guidelines Group ITIGG is an international group of experts engaged in the development and implementation of UN/EDIFACT-standard messages for electronic trading in the transport industry.
Joint Rate A rate from a point located on one transportation line to a point on another transportation line which is published in a single tariff.
Jones Act Section 27 of the Merchant Marine Act of 1920, requiring that all shipments by water between ports in the United States (including Puerto Rico) be carried by U.S.-flag, be U.S.-built, and U.S.-crewed vessels.
Just-In-Time (JIT) In this method of inventory control, 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.
KPI – Key Performance Indicator A performance indicator or key performance indicator (KPI) is industry jargon for a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often success is simply the repeated, periodic achievement of some level of operational goal.
Label Cargo Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code.
Land Bridge 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).
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 full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.
Letter of Credit (LC) (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.
Licenses Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s).
Line Haul Marine portion of a vessel's route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).
LNG Carrier Liquified Natural Gas Carrier.
Location Any named geographical place, recognised by a competent national body, with permanent facilities used for goods movements associated with international trade, and used frequently for these purposes. Geographical place such as a port, an airport, an inland freight terminal, a container freight station, a container yard, a container depot, a terminal or any other place where customs clearance and/or regular receipt or delivery of goods can take place. An area (e.g. in a warehouse) marked off or designated for a specific purpose.
Log Book The daily report, authenticated by the master of all events and other relevant particulars of a vessel, attested by the proper authorities as a true record.
Logistics 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.
Longshoreman Also known as stevedore. Worker who loads and unloads a ship. Terminal operator who is designed to facilitate the operation of loading and discharging vessels, as well as other terminal activities.
LSF or LSS A charge to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines.
LT - Long Ton 1 Long Ton = 2,240 lbs.
Lumpsum An agreed sum of money, which is paid in full settlement at one time. This term is often used in connection with charter parties.
Marks and Numbers The marks and numbers placed on cargo packages for export identification purposes. These are provided by the shipper and are usually recorded on the bill of lading.
MAWB - Master Air Waybill Document issued by an airline for the movement of cargo on an air carrier, with which it has direct or connecting flight to a destination. The MAWB represents the agreement between shipper and airline and for transportation over the aircraft is consigned, and is signed by the issuing carrier as evidence of the acceptance of the cargo for the aircraft.
Manifest The general declaration of the ship's cargo, crew, and passengers. It is part of the regular information required by the port authorities about the vessel on arrival, and shows the cargo carried in the vessel's cargo holds.
Marine Insurance Insurance covering loss or damage to goods at sea.
Maritime Anything pertaining to the ocean, sea, or ships.
Marks and Numbers The identifying details on or of a package or the actual markings that appear on the packages.
Mate's Receipt A document signed by the chief officer of a vessel acknowledging the receipt of a certain consignment on board of that vessel. On this document, remarks can be made as to the order and condition of the consignment.
Materials Management The procurement, movement, and management of materials and products from acquisition through to production.
Merchant Haulage Inland transport of cargo in containers arranged by the Merchant. It includes empty container-moves to and from hand-over points in respect of containers released by the Carrier to Merchants. Note: Carrier's responsibility under the Bill of Lading does not include the inland transport stretch under Merchant Haulage.
Meta-centric Height The distance between the center of gravity of a floating body and its metacenter, which determines the stability of the body.
MIG - Message Implementation Guide The description of how EDI connections are programmed by the IT department. There are different MIGs depending on booking, manifest, and shipment tracking.
Milestone The defined shipment status that provides visibility on the status of the shipment.
Mixed Shipment A shipment consisting of items described in and rated under two or more rate items within a tariff.
MLB - Mini Land Bridge An Intermodal system for handling imported containers by Ocean, and then move via rail or truck to another port (e.g., Hong Kong to NY via Seattle).
Mooring A Mooring refers to any permanent structure to which a vessel may be secured.
Mother Vessel Main ocean vessel in a liner service designated to move containers from set origin points to set destination ports/points on a regular basis.
MQA - Minimum Quantity Agreement (FCL) Contract which lists a minimum quantity of TEUs or services.
MT - Metric Ton 1 MT = 2,204.62 lbs or 35.314 cubic feet.
NDA - Non-Disclosure Agreement Also known as a confidentiality agreement, it is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to by third parties.
Negotiable Bill of Lading A document that can be negotiated, transferred, or assigned from one person to another in return for equivalent value.
Negotiating Bank Bank where a shipper negotiates documents or where documents are first presented, usually at the country of origin. Also often referred to as the advising bank.
Nested 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.
Neutral Body An investigating body designated by conference carriers to ensure that all regulations and rules are adhered to.
NOE - Not Otherwise Enumerated Refers to items not specifically listed or categorized.
Non-Asset-Based Third Party Providers Third party providers who generally do not own assets, such as transportation and/or warehouse equipment.
Non-Negotiable Bill of Lading A document that is not made out "to order" and does not represent a document of title.
NOS - Not Otherwise Stated Refers to information or details not explicitly mentioned.
Notify Party 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.
NVOCC - Non-Vessel Operating Common Carrier Carrier offering an international cargo transport service through the use of underlying carriers and under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission in Washington D.C.
OAC - Origin Arbitrary Charges Charges at origin, including pre-carriage and loading costs.
OBL - Original Bill of Lading The original document issued by a carrier to acknowledge receipt of cargo for shipment.
On Deck Stowage Cargo stowed on the deck of the vessel.
On-Time Performance The proportion of time that a transit system adheres to its published schedule times within stated tolerances.
Order Cycle The time and process involved from the placement of an order to the receipt of the shipment.
Outbound Export shipments.
Outport Destination port, other than a base port, to which rates apply but which may be subject to additional outport arbitraries.
Outsource To hire a third-party provider to assume tasks previously performed in-house.
Over Landed Cargo that has been taken beyond its original port of discharge or cargo volume counted more than originally shipped.
Overland Common Port (OCP) A special rate concession made by shipping lines, rail carriers, and truckers serving the U.S. West Coast for export and import traffic, intended to benefit midwest shippers and importers by equalizing rates to and from other coastal areas.
Packing List A detailed list of packages and their contents for each shipment.
Pallet A flat transport structure that supports goods in a stable fashion while being lifted by a forklift.
Partlow Chart A chart that indicates the temperature readings in a refrigerated container.
Partnerships and Alliances Agreements between shippers and providers designed to benefit both parties.
PCS - Panama Canal Surcharge A surcharge applied to cargo transiting through the Panama Canal.
Per Diem Charges calculated on a daily basis.
Physical Distribution All logistics activities from the production line to the final user, including traffic, packaging, materials handling, warehousing, order entry, customer service, and inventory control.
Pier A structure built over water where ships can dock to load and unload cargo.
Piggyback The transportation of highway trailers or demountable trailer bodies on specially equipped rail flat cars.
Pilferage The theft of cargo from containers, warehouses, or terminals.
PLC - Post Landing Charges Local charges applicable at the port of destination.
Plimsoll Mark A marking on a ship's hull indicating the maximum depth to which it may be safely loaded under various conditions.
POA - Power of Attorney A legal document granting authority to act on behalf of another person or entity in legal or business matters.
Point Value The relative value of an empty container of a certain size type in a depot location, used to quantify imbalance costs resulting from container flows.
Point to Point Transport Direct transport service between two specified locations.
Port The area where ships berth and load or unload cargo.
Positioning The relocation of empty equipment from surplus to deficit areas.
PSS - Peak Season Surcharge A surcharge added to cargo moving from Asia during peak shipping seasons.
Purchase Order Common grouping of orders for goods/services. Several SKU categories may be listed on one purchase order. Most customers group their orders in a particular way to facilitate distribution at the other end. For example, one purchase order for an apparel importer might encompass 2 dozen green sweaters and 2 dozen red sweaters. If those P.O.s originated from the same store, it is simple for the store to put all items under that P.O. onto the right truck.
Quay A pier, wharf or other structure built along a shore for landing, loading and unloading boats or ships.
Railhead Location for loading and unloading containers at railroad terminal.
Register Ton The unit of measurement for the internal capacity of a vessel whereby one register ton equals 100 cubic feet (2.83 cubic meter). The gross (bruto) tonnage comprises all spaces below the main (tonnage) deck and the enclosed spaces above the main (tonnage) deck less exempted spaces. The net tonnage consists of the gross tonnage less exemptions like ballast tanks, engine room, living quarters etc. The register tonnage is mentioned on the tonnage certificate. Registration Authority (Key Management)
Relay Marine shipment that is transferred to its ultimate destination port after having been shipped to an intermediate point.
Replenishment The process of moving the inventory of an item from a reserve storage location to the primary picking location or to another mode of storage in which picking is performed.
Return Cargo Cargo to be returned to the original place of receipt.
Revenue Ton Number of tonnes for which freight is paid per ton.
Reverse Logistics Reverse Logistics is a rather general term. In its broadest sense, reverse logistics stands for all operations related to the reuse of products and materials. The management of these operations can be referred to as Product Recovery Management (PRM). PRM is concerned with the care of products and materials after they have been used. Some of these activities are, to some extent, similar to those occurring in the case of internal returns of defective items due to unreliable production processes. Reverse logistics refers however to all logistics activities the collection, disassembly and processing of used products, product parts and/or materials in order to ensure a sustainable (environmentally-friendly) recovery.
RFI - Request For Information Basic information about the company which is sent prior to a RFQ.
RFQ - Request For Quote Including FOB, Ocean and PLC charges on are port/port or cfs/cfs trade.
RIPI - Reverse Inland Point Intermodal An inland point provided by an All Water Carriers Ocean Bill of Lading, by first discharging the container in an East Coast Port, then moving via truck or rail to an inland point, in an Ocean Through Bill of Lading (e.g., Hong Kong to Pittsburgh via New York).
Routing The determination of the most efficient route(s) that people, goods, materials and or means of transport have to follow. The process of determining how a shipment will be moved between consignor and consignee or between place of acceptance by the carrier and place of delivery to the consignee. The process of aiding a vessel's navigation by supplying long range weather forecasts and indicating the most economic and save sailing route.
Row SCAC Standard Carrier Alpha Code. This is a unique code used to identify transportation companies. Examples: MSCU is MSC, MAEU is Maersk, OOLU is OOCL, SUDU is Hamburg Sued.
Schedule B number - Customs Tariff Number See under HS codes.
SCS - Suez Canal Sur Charge Surcharge applied to cargo transiting through the Suez Canal.
Seawaybill A type of bill of lading used for port-to-port or combined transport carriage. A waybill is identical to a negotiable bill of lading except that it is not a document of title. There are no originals issued for this type of document. In some jurisdictions, such as the USA, a waybill is deemed the equivalent of a (straight) consigned bill of lading.
Service Agreement Private contracts between one or more carriers and one or more shippers to transport cargo between specified points under terms and conditions of carriage agreed and listed in the contract. It often allows for particular rates based on volume over a specified period of time. Also commonly known as a service contract.
Service Bills A service Bill (of Lading) is a contract of carriage issued by one carrier to another for documentary and internal control purposes. For internal documentary and control purposes a so-called participating agent in a consortium uses some kind of document which, depending on the trade, is referred to as 'Memo Bill' which will among others state: Name of Carrier on whose behalf the original document (Way Bill, Bill of Lading, etc.) was issued. The original document number. The agent who issued the original document and his opponent at the discharging side. The number of packages, weight and measurement, marks and numbers and goods description. Further mandatory details in case of special cargo. No freight details will be mentioned and the Memo Bill is not a contract of carriage. See Bill of Lading.
Set Point Specific temperature that a refrigerated container has been set to keep. Ideally, the set point and the actual temperature should be identical throughout the voyage.
Ship's Chandlers Suppliers of various items to the vessel.
Shipper 1) Person who consigns something (e.g. the goods of an individual shipment). 2) Legal entity or person named on the bill of lading or waybill as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a carrier. Also known as consignor.
Shipper Packed Contents of containers as loaded (stuffed), stowed (packed/braced), weighed and/or counted by or for the shipper, usually a CY load.
Shipping Order Equivalent of booking and contract of carriage evidencing the agreement to transport goods.
Short Landed Cargo volume count (at delivery destination) less than originally shipped.
Short Shipped Cargo missing a vessel that it was originally intended for.
Slot Charter Contract where the carrier agrees to charter space on a vessel.
SOLAS International convention to maintain safety standards at sea.
SOP - Standard Operational Procedures Defined processes for handling tasks in a consistent manner.
Sourcing Acquisition of raw materials, components or finished goods.
Special Customs Invoice An invoice providing details to enable the assessment of customs duties.
ST - Short Ton Equivalent to 2,000 pounds (about 907.19 kilograms).
STC - Said To Contain Indication that the contents of a container are unknown, as the consignor or consignee prefers not to declare them.
Stevedore Person or company that provides the labor for loading or unloading ships at ports.
Stock Keeping Unit (SKU) Unique identifier for each distinct product and service that can be purchased.
Storage Charge Charge for storing goods.
Stowaway Person who hides on a ship to obtain free passage or evade authorities.
Straddle Carrier Specialized vehicle used to transport and stack ISO containers.
Supply Chain Network of organizations and activities involved in supplying goods and services to consumers.
Supply Chain Management Management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.
Surcharges Additional charges applied to a basic freight rate, usually for services such as loading and unloading.
SWIFT Society for Worldwide Interbank Financial Telecommunication.
TAEB - Trans Atlantic East Bound Voyage direction from North America to Europe.
TAEB - Trans Atlantic Eastbound North America to Europe voyage direction.
TAWB - Trans Atlantic West Bound Voyage direction from Europe to North America.
TAWB - Trans Atlantic Westbound Europe to North America voyage direction.
TEU - Twenty-foot Equivalent Unit Standard container size equivalent to 20 feet.
THC - Terminal Handling Charges Charges levied for services performed within the terminal area.
Third Party Providers Companies that provide logistics and shipping services without owning their own transport vehicles.
Through Rates Rates applicable from point of origin to destination.
TIR Carnet Customs document facilitating the international transit of goods.
To Order of Shipper Bill of lading where delivery is to the order of the shipper.
TOFC - Trailer on Flat Car Rail Intermodal transportation method where trailers are transported on flat railcars.
TOS - Terms of Sale Agreement terms between seller and buyer, typically regarding delivery and payment.
Total Average Inventory (1) The sum of average order quantity (one half of order quantity) plus safety stock. Safety stock is the amount on hand after the arrival of the order. (2) Also, the average normal use stock plus the average lead stock plus safety stock.
Total Cost of Distribution The sum of purchasing, transportation and storage costs in the movement of finished products through the post production channel.
Total Quality Management An approach to business management that focuses on quality and typically has: a strong customer orientation, total involvement, measurement systems, systematic support and continuous improvement.
TPEB - Trans Pacific East Bound From Asia to the USA.
TPEB Transpacific Eastbound From Asia to USA.
TPWB - Trans Pacific West Bound From USA to Asia.
TPWB – Trans Pacific Westbound From the USA to Asia.
Tracer 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.
Transhipment A shipment under one Bill of Lading, whereby sea (ocean) transport is 'broken' into two or more parts. The port where the sea (ocean) transport is 'broken' is the transhipment port. Transfer of cargo from one means of transport to another for on-carriage during the course of one transport operation. Customs: Customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office which is the office of both importation and exportation.
Transloading Transfer of containers from one vessel to another vessel. Synonymous with Transshipments.
Transmittal Letter List of the particulars of the shipment and a record of the documents being transmitted, together with instructions for the disposition of documents.
TRC Terminal Receiving Charge. Charge assessed by the terminal for cargo being delivered for export.
Unit Cost The cost associated with a single unit of product; it is calculated as the total cost of producing a product or service divided by the number of units in the run or lot.
Usufruct The legal right of using and enjoying the profits of something belonging to another party.
VATOS Valid At Time of Shipment Often listed then quoting and there the no fixed surcharges, but we declare that we will charges as per the actual month.
Vendor External supplier of merchandise.
Vessel Sharing Agreement (VSA) A term agreement between two or more carriers in which a number of container positions ("slots") equal in space are reserved on particular vessels for each of the participants. The number of slots (space) on different vessels on the same route can vary by vessel type and direction but may also be expressed as each party's capacity use of the vessels employed jointly.
Vessel Ton A unit of interior capacity of ships equal to 100 cubic feet or 2,832 cubic metres; register ton.
VGM Verified Gross Mass The verified Gross Weight of an unit. Part of the SOLAS implementation.
Volume Rate Rate applicable in connection with a specified volume (weight) of freight.
Voyage Charter A contract under which the shipowner agrees to carry an agreed quantity of cargo from a specified port or ports to another port or ports for a remuneration called freight, which is calculated according to the quantity of cargo loaded, or sometimes at a lumpsum freight.
WAIC SCAC Code of the WWA SCAC code of the WorldWide Alliance.
Waiver 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.
War Risk Perils of war or warlike operations, such as capture, seizure, arrests, restraints of kings, princesses and people, hostilities, civil war, mines, torpedo's. War risks are not covered under a policy for marine perils and must therefore be covered under a separate policy for war risks.
Waybill See Seawaybill.
Web Services A Web service is a method of communication between two electronic devices over a network. Used primarily as a means for businesses to communicate with each other and with clients. Web services allow organizations to communicate data without intimate knowledge of each other’s IT systems.
Wharf A structure built along a shore, and often into the water, at which boats can be docked and loaded or unloaded; Also known as pier or quay.
WWA Regions Asia Pacific, Europe, Middle East and Africa, Latin America and North America.
YTD - Year To Date
Zonate Marked with or arranged in zones.

3PL / 4PL - Third or fourth party Logistics

Companies that can be employed (hired) to assume tasks that were previously performed in-house by the client.

AA - Always Afloat

A contract term requiring that the vessel not rest on the ground. In some ports the ship is aground when approaching or at berth.

AAR

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

Abaft

A point beyond the midpoint of a ship’s length, towards the rear or stern.

Abandon

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

Abatement

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

ABI

U.S. Customs’ “Automated Broker Interface,” by which brokers file importers’ entries electronically.

Aboard

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

Absorption

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

Acceptance

– A time draft (or bill of exchange) that the drawee (payer) has accepted and is unconditionally obligated to pay at maturity.
– Broadly speaking, any agreement to purchase goods under specified terms.

Acceptance of Good

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

Accessorial Charges

Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery.

ACI - Advance Commercial Information System

Canada Border Services Agency (CBSA) require that some key data elements to be transmitted electronically 24 hours before loading at the foreign port using ACI-EDI cargo reporting.

Acquiescence

When a bill of lading is accepted or signed by a shipper or shipper’s agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.

Acquitance

A written receipt in full.

ACS - Alameda Corridor Surcharge

Surcharge applied to IPI and MLB cargo moving via the Rail System where the port of Long Beach/Los Angeles is the Gateway.

Act of God

An extraordinary force of nature (such as a severe flood or earthquake) that experience, prescience or care cannot reasonably foresee or prevent.

Active Inventory

Covers raw material, work in progress, finished products, which will be used or sold within a given period without extra cost or loss. This term does not cover the so-called reserve inventory.

Ad Valorem (Latin)

According to Value (English);
For example, if a bill of lading shows a value for the cargo being carried, an Ad Valorem charge will be levied. This charge is required because the insurance liability of the carrier increases. This charge may be levied as a percentage of the value that has been shown.

Advising Bank

Bank where a shipper negotiates documents or where documents are first presented, usually at country of origin. Also, often referred to as the negotiating bank.

AEO Authorized Economic Operator

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. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors. Is equal to the American CT-PAT certification.

AFR Advanced Filing Rules

Japan Customs Advance Filing Rules (AFR) require carriers and non-vessel operating common carriers (NVOCCs) to electronically submit filings for Japan-bound cargo no later than 24 hours before vessels depart from their ports of loading.

AFT

The back part of vessel That is the part upper the rudder.

Agent

A person or organisation authorised to act for or on behalf of another person or organisation.

Aggregated Shipments

Numerous shipments from different shippers delivered to one consignee, that are consolidated and treated as a single consignment.

AI - All Inclusive

Denotes that a rate is all inclusive except for applicable war risk surcharge.

Air Container

Any unit load device, primarily intended for transport by air, having an internal volume of 1 m3 or more, incorporating restraint provisions compatible with an aircraft restraint system, and an entirely flush base bottom to allow handling on roller-bed cargo handling systems.

Air Freight Forwarder

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.

Air Waybill - AWB

A document made out by or on behalf of the carrier(s) confirming receipt of the goods by the carrier and evidencing the contract between the shipper and the carrier(s) for the carriage of goods as described therein.

All Water

When a shipment is transported from its origin to its destination solely by water transportation.

AMS - Advanced Manifest System

Related for USA imports and now replaced with the ISF 10+2 filing (see below for further explanation under ISF 10+2).

Any Quantity [AQ]

A rating that applies to an item regardless of weight.

APERAK

A confirmation message which advises the sending party if an EDI message went through or failed.

AQI - Agriculture Quarantine Inspection

Inspection for agricultural products to ensure compliance with quarantine laws.

Arrival Notice

Documentation that notifies the consignee of arrival information for the goods and the freight charges due to be paid in exchange for the goods.

Asset-Based, Third Party Provider

A third party provider that owns transportation and/or warehouse assets.

Assignment

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.

ATD - Artificial Tween Decks

Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.

Automatic Identification

A means of identifying an item (e.g., a product, parcel, or transport unit) by a machine (device) entering the data automatically into a computer. Technologies include barcodes, radio frequency identification (RFID), magnetic stripes, and optical character recognition.

Average Adjusters

In general average affairs, average adjusters apportion the loss and expenditure over the parties interested in the maritime venture and determine which expenses are to be regarded as average or general average.

Average Inventory

The average inventory level over a period of time.

AW, AWR, AWS - All Water Service

Imported traffic moving to a destination port where the sea vessel is the only mode of transport.

AWDINH - All Working Days Including Holidays

A term indicating that all working days, including holidays, are counted.

AWWG

Condition used in chartering terms that applies if all weather conditions are favorable.

Back Haul

To obtain transport on the return leg of a trip, typically from destination B back to origin A after delivering goods from A to B.

BAF - Bunker Adjustment Factor

Refers to the floating part of the ocean freight charge which represents additions due to oil prices.

Balespace

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

Ballast

Materials carried solely to improve the trim and stability of the vessel, often water carried in specially designed tanks.

Bank Guarantee

1. Accepted under certain circumstances in lieu of an original bill of lading to release cargo.
2. A statement issued by an importer's bank guaranteeing payment of drafts to the exporter or carrier.
3. Other forms of guarantees by banks in favor of a beneficiary.

Banker's Acceptance

A form of financing used in import/export transactions.

Baplie

An EDI message conveying the Bayplan on occupied and empty slots in a vessel at a specific time.

Barcode

A series of bars and spaces read by a scanning device for translation into a numeric or alphanumeric identification code that represents data in machine-readable or computerized form.

Barcode, 2-D

A PDF 1000 style barcode used to store up to 1800 characters of text, designed for storing and retrieving more information electronically.

Barge

A flat-bottomed inland cargo vessel used on canals and rivers, with or without its own propulsion system.

Base Port

Ports from which standard tariff rates apply to those normally serviced directly by members.

Basing Points

Points used in the construction of through rates between other points.

Batch Lot

A definite quantity of a product manufactured under presumed uniform conditions, passing as a unit through the same series of operations for production control purposes.

Battens

Members protruding from the inside walls of a vessel's hold or thermal container to keep cargo away from the walls and provide an air passage.

Bay

A section of a vessel where containers are held.

Benchmarking

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.

Bending-moment

The result of vertical forces acting on a ship due to local differences between weight and buoyancy. It can change due to wave impact, affecting buoyancy distribution. The maximum allowed bending moment is restricted by classification bureaus under different conditions.

Berne Gauge

Standard gauge for railways in Europe, which is narrower than the standard gauge in the United States.

Berth

The designated area where a vessel docks.

Best Practice

A methodology (also known as competitive benchmarking) to determine state-of-industry performance or application.

BI Reporting - Business Intelligence Reporting

The process of converting organizational capabilities into knowledge, generating information that can lead to new opportunities and competitive advantages in the market.

Bill of Exchange

1. A signed, written order by one company instructing another to pay a third party a specific amount.
2. An unconditional written order addressed by one person to another, requiring payment at a fixed or determinable future time, commonly used in foreign transactions.

Bill of Health

A certificate issued by local medical authorities indicating the health conditions in the port of departure or call. Required for clearance before departure.

Bill of Lading - B/L

A document that serves as a receipt for goods, a document of title, and evidence of the terms and conditions of carriage by sea. Different types include Combined Transport and Sea Waybill.

Billed Weight

The weight stated on a waybill or bill of lading.

Bimodal Trailer

A road semi-trailer with retractable running gear for mounting on rail bogies, capable of carrying different standardized unit loads.

Binnacle

A housing for a ship's compass, typically mounted in front of the helm.

Blitz – Sales visits

Intensive sales visits.

Block Train

A train of railway wagons carrying containers, running directly from one location to another without marshalling or transshipping.

BOC - Buyers Own Consol(idation)

Freight forwarders' service consolidating shipments from multiple shippers into one full-container load, including booking, inspection, documentation, customs clearance, warehousing, and distribution.

Bolero

An open platform for electronic trade document processing, focusing on functions like the carrier's bill of lading and trade settlement.

Bollard

A post on a quay or vessel used for securing mooring ropes.

Bonded

The status of goods held under customs seal until duties are paid or the goods leave the country.

Booking

The act of arranging for the movement or transportation of goods by vessel or other conveyance.

Bottlenecks

Points in a process that limit performance, such as a warehouse or distribution center where goods accumulate faster than they can be processed or stored.

Bottom Fittings

Devices between a container and a vessel's deck to prevent shifting during transport.

Bottomary

Money borrowed against a ship, repaid upon its arrival at port.

Bow

The forward part of a vessel.

Box Rate

A flat rate charged to move cargo in containers from origin to destination.

Brackish Water

Water where freshwater meets seawater.

Break Bulk

Cargo not containerized due to its size or weight.

Broker

A person or firm that arranges transportation between shippers and carriers.

Brokerage Licence

Authority granted to engage in arranging transportation of persons or property.

Bulkhead

A partition dividing compartments on a vessel for safety and structural integrity.

Bull Rings

Attachments on vessels for securing cargo.

Bunker

Storage on board for fuel.

Bunker Adjustment Factor (BAF)

Adjustment to ocean freight charges to account for fluctuating fuel costs.

C-TPAT - Customs - Trade Partnership Against Terrorism

A voluntary program improving supply chain security led by US Customs and Border Protection.

Cabotage

Transport of goods between ports in the same country or using a container owned by its operator in exchange for which the operator can use the container.

CAF - Currency Adjustment Factor

Adjustment to ocean freight charges due to currency fluctuations.

Call Sign

A code for information exchange between vessels, port authorities, and participants in trade.

Cargo

Goods transported by ship or aircraft.

Cargo Assembly

Arrangement of cargo for shipment.

Cargo Bays

Doors in a warehouse for loading and unloading cargo.

Carrier's Certificate

A document advising customs of shipment details.

CBM - Cubic Metre

A unit of volume equal to 1 cubic meter (35.314 cubic feet).

CBP - U.S. Customs and Border Protection

A US agency overseeing trade regulation, immigration, and border security.

Cell

A slot on a container ship where containers are stowed.

CFR - Cost and Freight

An Incoterm where the seller pays costs and freight to the destination port.

CFS - Container Freight Station

Location designated by the shipping company for receiving, delivering, assembling, and distributing shipments into or out of steamship line containers. Most LCL cargos are either packed into or devanned at the CFS.

Chassis

Trailer or wheeled unit on which a container is placed for road transport.

CIF - Cost, Insurance and Freight

Similar to CFR or CF, but with the addition that the seller must procure marine insurance against the buyer's risk of loss or damage during carriage. The seller is required to obtain insurance on "minimum coverage" and clear the goods for export.

Clean On Board

A clause in the bill of lading indicating that no irregularities or discrepancies were noted in the packing or general condition of the goods.

Codabar

A variable length barcode capable of encoding 16 data characters, primarily used for numeric data.

COFC - Container on Flat Car

Rail service where a container is loaded onto a flat car without chassis, bogies, or wheels.

Combined Transport Bill of Lading

Provides combined transport using at least two different modes of transportation from origin to destination.

Commercial Invoice

Document by the shipper/seller detailing merchandise description, country of origin, and itemized prices.

Commercial Transport Vessel

Any ship primarily used for transporting persons or goods for commercial purposes.

Commodity

A specific type of goods or product category, e.g., toys, electronics, or welding machinery.

Common Point

Point where two or more transportation lines converge.

Common Tariff

Tariff published jointly by two or more transportation lines.

Company Guarantee

Letter of guarantee from a company indemnifying the carrier against responsibility associated with the release of goods without a bill of lading.

Conference

An association of ocean carriers permitted to engage in concerted activity under a common tariff, offering standardized services between designated ports.

Consignee

Recipient of goods shipped or consigned.

Consignment Instructions

Instructions from shipper/consignor or buyer/consignee to facilitate the movement, handling, and documentation of goods by a carrier or freight forwarder.

Consignment Note

Document detailing goods shipped by the consignor.

Consolidation

Combining LCL cargo from multiple sources into a single container for cost efficiency.

Consular Invoice

Document required by some foreign countries, detailing consignor, consignee, value, and description of shipment.

Container

Equipment designed for transport, fitting ISO standards for easy handling and storage without reloading, with an internal volume of 1 m³ or more.

Container Depot

Location maintained by an ocean carrier for pick-up or drop-off of empty containers.

Container Stuffing List (CSL)

List showing how cargo is loaded into each container.

Container Yard (CY)

Area at a port where containers are received and delivered from ships or inland carriers.

Continuous Flow Distribution (CFD)

Efficient distribution method aligning product flow with customer demand while minimizing costs.

Continuous Replenishment Program (CRP)

Supply chain program triggering product manufacture and movement based on real-time customer purchases.

Contract Carrier

For-hire operators offering transportation services under contract to specific shippers.

Core Competency

A company's primary function essential to its success.

CPT - Carriage Paid To

Term where seller pays freight to the named destination, transferring risk to the buyer upon delivery to the carrier.

CRM - Customer Relationship Management

Strategy managing company interactions with customers, using technology to organize, automate, and synchronize business processes.

Cross-Docking

Direct movement of merchandise from receiving to shipping dock, avoiding storage.

CSC - Container Service Charge

Charge by terminal for container positioning.

Currency Adjustment Factor

Adjustment to freight charges to account for currency fluctuations.

CUS - Chassis Usage Surcharge

Surcharge for chassis usage at a destination.

Customs House Broker

Broker certified to handle customs formalities for importers and exporters.

Cut-Off Time

Last possible time when containers/cargoes may be delivered to a ship or designated point.

Cycle Count

Counting inventory by checking a particular location or set of locations and comparing the physical counts with the system-maintained inventory levels.

Cycle Time

The amount of time it takes to complete a business process. For example, the amount of time from when a service is ordered until it is received by the customer.

Cycle Time Reduction

The process of reducing cycle time, cutting costs and improving customer service.

DAT Delivered AT Terminal

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DDU

Delivery Duty Unpaid. Terms of sale.

Delivery Order

An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release. Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.

Demand Chain

Another name for supply chain, with emphasis on the customer or party controlling demand.

Demise Charter

A contract whereby the shipowner leases his vessel to the charterer for a period of time during which the whole use and management of the vessel passes to the charterer, which involves that the charterer is to pay all expenses for the operation and maintenance of the vessel. Officers and crew will become servants of the charterer. A demise charter whereby the charterer has the right to place his own master and crew on board of the vessel is also called 'bareboat charter'.

Demurrage

Charge payable for detaining a vessel or container at a berth or terminal beyond the time allowed free by the ship owner or terminal operator.

DEQ

Delivery Ex Quay. Terms of sale.

DES

Delivered Ex Ship. Terms of sale.

Differential

Amount added or deducted from base rate to create a rate to or from some other point or via another route.

Distribution

The full range of activities and planning required to move a product from the production line to the end-user.

Distribution Requirements Planning

A system of determining demand for an inventory at distribution centres, consolidating the demand information backwards, and acting as input to the production and material system.

Diversion Charge

Fee for diverting cargo from original intended destination port to a new location.

Divider

A vertically mounted partition in a compartment on board of an aircraft.

Dock Receipt

Receipt given for a shipment received or delivered at a pier or dock (warehouse).

Double Banking

Two vessels moored alongside each other on certain berth.

Double Stack Car

Rail car capable of carrying two containers stacked on top of each other.

Draft

The height up to which vessel is submerged in water. Sometimes called 'Draught'.

Drawback

99% refund of imported or duty paid materials which are to be re-exported.

Drayage

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.

Dry Dock

Used to lay up vessels for repair.

Dunnage

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

Duty Drawback

(1) Payment returned for cargo re-exported or trade show material. (2) A customs refund on re-exported cargo.

EAN 13

EAN barcodes are used when the country origin needs to be known. There are 13 digits in EAN 13, where the first two characters are used to define the country of origin, the next 10 are data, followed by the checksum. Both 2 and 5 digit supplementals are also supported.

EAN 8

EAN barcodes are used when the country origin needs to be known. There are 8 digits in EAN 8, where the first two characters are used to define the country of origin, the next 5 are data, followed by the checksum. Both 2 and 5 digit supplementals are also supported.

Earnings

Income after a company's taxes and all other expenses have been paid. Also called profit or net income.

EBS - Emergency Bunker Surcharge

Fuel premium added to the freight. Changes on a periodic basis monthly or quarterly depending on fluctuation of oil prices.

Economic Value Added (EVA)

A measure of the shareholder value as a company's operating profits after tax, less a charge for the capital used in creating the profits. EVA is a registered trademark of Stern & Co. in the USA.

EDI Invoicing

An EDI Invoice is an electronic version of a paper invoice or bill. EDI stands for Electronic Data Interchange. Companies use EDI to reduce the errors and costs associated with the manual keying of data, and to speed up the process of sending and receiving Invoices.

EDI – Electronic Data Interchange

When two computer systems are connected with each other and the transfer of data (booking details, bl instructions, tracking details etc) is done automatically. This is done between WWA Members, but is also accessible for our customers.

Efficient Consumer Response (ECR)

A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter.

EIR

Equipment Interchange Receipt. A document used to receive or deliver a full or empty container/chassis at any terminal or inland container pool/depot.

Electronic Funds Transfer (EFT)

Payment for goods or services via exchanges of electronic authorisations against bank accounts. Authorisation is sent to an automated clearing house (usually a bank), which verifies the source of the transaction as having control over the accounts, and performs the fund transfer.

Endorsement

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

ENS Entry Summary Declaration

This is valid for European imports. Carriers are required to file an Entry Summary Declaration for shipments to Europe.

Equalisation

(1) Monetary allowance to a customer for picking up or delivering cargo to or from a point which is not the origin/destination shown on the B/L. (2) Compensation for additional charges incurred by the shipper for delivering cargo to port designated by the carrier other than the closest port to the supplier.

ESI

Electronic Shipping Instruction. The electronic transfer of BL Instructions. For example, the transfer via portals where customers can transfer the BL instructions and the portal sends it further to the WWA portal.

ETA

Estimated Time of Arrival.

ETD

Estimated Time of Departure.

ETL

Extract / Transfer / Load information. IT terms used in Datawarehousing where information/data is extracted from a single system, transferred to a single server, and loaded.

Extra Loader

Additional vessel brought into schedule to cope with exceptionally strong market conditions.

EXW Ex Works

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

FAK

Freight All Kinds. Usually refers to consolidated cargo.

FAS Free Along Side

Means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the buyer to clear the goods for export. It should not be used when the buyer cannot carry out directly or indirectly the export formalities.

FCA Free Carrier

Means that the seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk and expense.

FCL

Full Container Load.

FEWB Far East Westbound

From Asia to Europe.

FFE Forty-foot Equivalent Unit

The standard measurement unit of containerized cargo.

FIFO

Free In Free Out. Terms of sale.

FIO

Free In Free Out. Terms of sale.

Flat Bed

Truck designed to haul heavy or oversized non-containerisable cargo.

Floating Cranes

Heavy-duty cranes that are able to handle exceptionally heavy cargo if unable to use conventional gantry cranes.

FMC

Federal Maritime Commission. U.S. Government agency responsible for overseeing regulatory aspects of the Shipping Act.

FOB Free on Board

Means that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

For-Hire Carriers

Persons or firms engaged in the transportation of goods or passengers for compensation. Classified into two general categories, specialised and general freight motor carriers.

Force Majeure

A state of emergency or condition that permits a company to depart from the strict terms of a 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.

Forwarder's Cargo Receipt

A non-negotiable document issued by a forwarder which will satisfy the legal requirements of a letter of credit. Since a forwarder is not an NVOCC it cannot issue actual bills of lading. The FCR is legally binding upon the forwarder and is an industry standard.

Free Time

Time allowed for shippers or consignees/receivers to load or unload cargo before demurrage, detention and other charges accrue.

Freight Bill

Destination (Collect) Freight Bill: Prepaid Freight Bill. (1) Bill rendered by a transportation line to consignee containing description of freight, shipper name, point of origin and weight charges (if not prepaid). (2) Bill rendered by a transportation line to shipper containing description of freight, consignee, destination and weight charges.

Freight Cashier

Responsible for collections of freight/charges/release of cargo/release of bills of lading.

Freight Release

Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain the release of the cargo. Normally, once the freight is paid, freight releases are arranged without additional documentation. Also known as a freight bill receipt.

Full Visible Capacity

The trailer is loaded as full as the nature of the freight and other conditions permit, so that no more of the same type of freight can be loaded, consistent with safety and damage precautions.

Gantry Crane

Port crane used to load and discharge containers from vessels, can be positioned by moving along rail tracks.

GRDB - Global Rate Data Base

Global Rate Database

GRI

General Rate Increase. When rates are going up in a market we announce it as a GRI.

Handling Costs

The cost involved in transferring, preparing and otherwise contracting inventory.

Hangertainer

Specialised container equipped with hanger beams for the purpose of stowing garments on hangers.

Harmless Chemicals

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.

HAWB/MAWB - House Airwaybill/Master Airwaybill

Documents required for air transportation of cargo.

HAZ / HAZMAT - Hazardous Material

Dangerous Material governed by IMDG (Ocean) or ADR (Road) transportation.

Hitchment

Marrying 2 or more portions of one shipment that originate at different geographical locations, moving under one bill of lading, from one shipper to one consignee.

Holds

Section of vessel in which containers are stored. See also Bays.

HS Code - Harmonized Commodity Description and Coding System

The code is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO).

Hull

The main hold of the vessel where all cargo is stuffed. This is the main part of the vessel from where they can earn freight.

Hustler

Tractor that pulls containers around the pier for positioning. Also known as a yard hustler.

IMCO - International Maritime Control Organisation

See IMO - International Maritime Organization.

IMCO Classification

International Maritime Control Organisation classification for hazardous cargo.

Imports

Goods and services which one country's residents purchase and transport from another country into their own country.

Inbound

Import Shipment.

INCO Terms

Incoterms 2000 is the latest version of ICC's standard trade definitions, commonly known as the INCO terms.

Independent Action

A separate action taken by an individual member of a conference agreement to change rates or terms of carriage as laid out in the conference agreements.

Independent Carrier

Carrier that is not a member of a shipping conference.

Inland Carrier

Transportation company which hauls imports or exports between ports and inland points.

Insurance Certificate

Document which assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit.

Integrated Carriers

Carriers that have both air and ground fleets or other combinations, such as sea, rail and truck.

Intermodal

Coordinated transport of freight, especially in connection with relatively long-haul movements, using any combination of freight forwarders, piggy-back, containerisation, air freight, assemblers, rail and road.

Intermodal Marketing Company (IMC)

Consolidates container loads or piggyback trailers from several shippers and contracts with railroads for volume space.

Inventory Carrying Costs

Generally, carrying costs or holding costs are financial measurements that calculate all the costs associated with holding goods in storage. It includes inventory-in-storage, warehousing, obsolescence, deterioration, spoilage and labour costs, as well as insurance and taxes.

Inventory Turnover

The cost of goods sold, divided by the average level of inventory on hand. The ratio measures how many times a company's inventory has been sold during the year.

Inventory Velocity

The speed with which products move from receiving dock to shipping dock.

IPI - Inland Point Intermodal

Imported traffic moving from a US arrival port to an interior US point (non-ports) via truck or rail, on an Ocean through Bill of Lading (e.g., Hong Kong to Chicago via Seattle).

ISF Import Security Filing

This is valid for the USA imports. Known as the Importer Security Filing (ISF) or more commonly called 10+2, which requires cargo information for security purposes, to be transmitted to the agency at least 24 hours before goods are loaded onto an ocean vessel for shipment into the USA. 10+2 is pursuant to section 203 of the SAFE Port Act and requires importers to provide 10 data elements to CBP, as well as 2 more data elements from the carrier.

IT

(1) Immediate Transportation Entry: refers to an IT entry (U.S. Customs). Allows the cargo to move beyond the vessel entry point in bond for customs clearance at the destination named in the I.T. movement from one customs district to another, e.g. cargo entering the U.S. at Los Angeles destined for Chicago can move to Chicago before having a customs inspection.
(2) Information Technology: A generic term for people or systems working toward business improvement.

ITIGG - International Transport Implementation Guidelines Group

ITIGG is an international group of experts engaged in the development and implementation of UN/EDIFACT-standard messages for electronic trading in the transport industry.

Joint Rate

A rate from a point located on one transportation line to a point on another transportation line which is published in a single tariff.

Jones Act

Section 27 of the Merchant Marine Act of 1920, requiring that all shipments by water between ports in the United States (including Puerto Rico) be carried by U.S.-flag, be U.S.-built, and U.S.-crewed vessels.

Just-In-Time (JIT)

In this method of inventory control, 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.

KPI – Key Performance Indicator

A performance indicator or key performance indicator (KPI) is industry jargon for a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often success is simply the repeated, periodic achievement of some level of operational goal.

Label Cargo

Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code.

Land Bridge

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).

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 full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.

Letter of Credit (LC)

(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.

Licenses

Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s).

Line Haul

Marine portion of a vessel's route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).

LNG Carrier

Liquified Natural Gas Carrier.

Location

Any named geographical place, recognised by a competent national body, with permanent facilities used for goods movements associated with international trade, and used frequently for these purposes. Geographical place such as a port, an airport, an inland freight terminal, a container freight station, a container yard, a container depot, a terminal or any other place where customs clearance and/or regular receipt or delivery of goods can take place. An area (e.g. in a warehouse) marked off or designated for a specific purpose.

Log Book

The daily report, authenticated by the master of all events and other relevant particulars of a vessel, attested by the proper authorities as a true record.

Logistics

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, encompassing factories, assembly and packing plants, warehouses, distribution centres and retail outlets.

Longshoreman

Also known as stevedore. Worker who loads and unloads a ship. Terminal operator who is designated to facilitate the operation of loading and discharging vessels, as well as other terminal activities.

LSF or LSS

A charge to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines.

LT - Long Ton

1 Long Ton = 2,240 lbs.

Lumpsum

An agreed sum of money, which is paid in full settlement at one time. This term is often used in connection with charter parties.

Marks and Numbers

The identifying details on or of a package or the actual markings that appear on the packages.

Mate's Receipt

A document signed by the chief officer of a vessel acknowledging the receipt of a certain consignment on board of that vessel. On this document, remarks can be made as to the order and condition of the consignment.

Materials Management

The procurement, movement and management of materials and products from acquisition through to production.

Merchant Haulage

Inland transport of cargo in containers arranged by the Merchant. It includes empty container-moves to and from hand-over points in respect of containers released by the Carrier to Merchants. Note: Carrier's responsibility under the Bill of Lading does not include the inland transport stretch under Merchant Haulage.

Meta-centric Height

MIG - Message Implementation Guide. The description of how EDI connections are programmed by the IT department. There are different MIG depending on booking, manifest and shipment tracking.

Milestone

The defined shipment status booked cargo through which provides visibility on the status of the shipment.

Mixed Shipment

Shipment consisting of items described in and rated under two or more rate items within a tariff.

MLB - Mini Land Bridge

An Intermodal system for handling imported containers by Ocean, and then move via rail or truck to another port (e.g., Hong Kong to NY via Seattle).

Mooring

A Mooring refers to any permanent structure to which a vessel may be secured.

Mother Vessel

Main ocean vessel in a liner service designated to move containers from set origin points to set destination ports/points on a regular basis.

MQA - Minimum Quantity Agreement (FCL)

Contract which lists a minimum quantity of TEUs or services.

MT - Metric Ton

1 MT = 2,204.62 lbs or 35.314 cubic feet.

Inventory Carrying Costs

Inventory Turnover

The cost of goods sold, divided by the average level of inventory on hand. The ratio measures how many times a company's inventory has been sold during the year.

Inventory Velocity

The speed with which products move from receiving dock to shipping dock.

IPI - Inland Point Intermodal

Imported traffic moving from a US arrival port to an interior US point (non-ports) via truck or rail, on an Ocean through Bill of Lading (e.g., Hong Kong to Chicago via Seattle).

ISF Import Security Filing

IT (Immediate Transportation Entry)

Refers to an IT entry (U.S. Customs). Allows the cargo to move beyond the vessel entry point in bond for customs clearance at the destination named in the I.T. movement from one customs district to another, e.g. cargo entering the U.S. at Los Angeles destined for Chicago can move to Chicago before having a customs inspection.

IT (Information Technology)

A generic term for people or systems working toward business improvement.

ITIGG - International Transport Implementation Guidelines Group

ITIGG is an international group of experts engaged in the development and implementation of UN/EDIFACT-standard messages for electronic trading in the transport industry.

Joint Rate

A rate from a point located on one transportation line to a point on another transportation line which is published in a single tariff.

Jones Act

Just-In-Time (JIT)

In this method of inventory control, 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.

KPI – Key Performance Indicator

Label Cargo

Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code.

Land Bridge

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).

Less Than Container Load (LCL)

Letter of Credit (LC)

Licenses

Line Haul

Marine portion of a vessel's route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).

LNG Carrier

Liquified Natural Gas Carrier.

Location

Log Book

The daily report, authenticated by the master of all events and other relevant particulars of a vessel, attested by the proper authorities as a true record.

Logistics

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.

Longshoreman

Also known as stevedore. Worker who loads and unloads a ship. Terminal operator who is designed to facilitate the operation of loading and discharging vessels, as well as other terminal activities.

LSF or LSS

A charge to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines.

LT - Long Ton

1 Long Ton = 2,240 lbs.

Lumpsum

An agreed sum of money, which is paid in full settlement at one time. This term is often used in connection with charter parties.

Marks and Numbers

The marks and numbers placed on cargo packages for export identification purposes. These are provided by the shipper and are usually recorded on the bill of lading.

MAWB - Master Air Waybill

Document issued by an airline for the movement of cargo on an air carrier, with which it has direct or connecting flight to a destination. The MAWB represents the agreement between shipper and airline and for transportation over the aircraft is consigned, and is signed by the issuing carrier as evidence of the acceptance of the cargo for the aircraft.

Manifest

The general declaration of the ship's cargo, crew, and passengers. It is part of the regular information required by the port authorities about the vessel on arrival, and shows the cargo carried in the vessel's cargo holds.

Marine Insurance

Insurance covering loss or damage to goods at sea.

Maritime

Anything pertaining to the ocean, sea, or ships.

Marks and Numbers

The identifying details on or of a package or the actual markings that appear on the packages.

Mate's Receipt

Materials Management

The procurement, movement, and management of materials and products from acquisition through to production.

Merchant Haulage

Meta-centric Height

The distance between the center of gravity of a floating body and its metacenter, which determines the stability of the body.

MIG - Message Implementation Guide

The description of how EDI connections are programmed by the IT department. There are different MIGs depending on booking, manifest, and shipment tracking.

Milestone

The defined shipment status that provides visibility on the status of the shipment.

Mixed Shipment

A shipment consisting of items described in and rated under two or more rate items within a tariff.

MLB - Mini Land Bridge

An Intermodal system for handling imported containers by Ocean, and then move via rail or truck to another port (e.g., Hong Kong to NY via Seattle).

Mooring

A Mooring refers to any permanent structure to which a vessel may be secured.

Mother Vessel

Main ocean vessel in a liner service designated to move containers from set origin points to set destination ports/points on a regular basis.

MQA - Minimum Quantity Agreement (FCL)

Contract which lists a minimum quantity of TEUs or services.

MT - Metric Ton

1 MT = 2,204.62 lbs or 35.314 cubic feet.

NDA - Non-Disclosure Agreement

Also known as a confidentiality agreement, it is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to by third parties.

Negotiable Bill of Lading

A document that can be negotiated, transferred, or assigned from one person to another in return for equivalent value.

Negotiating Bank

Bank where a shipper negotiates documents or where documents are first presented, usually at the country of origin. Also often referred to as the advising bank.

Nested

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.

Neutral Body

An investigating body designated by conference carriers to ensure that all regulations and rules are adhered to.

NOE - Not Otherwise Enumerated

Refers to items not specifically listed or categorized.

Non-Asset-Based Third Party Providers

Third party providers who generally do not own assets, such as transportation and/or warehouse equipment.

Non-Negotiable Bill of Lading

A document that is not made out "to order" and does not represent a document of title.

NOS - Not Otherwise Stated

Refers to information or details not explicitly mentioned.

Notify Party

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.

NVOCC - Non-Vessel Operating Common Carrier

Carrier offering an international cargo transport service through the use of underlying carriers and under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission in Washington D.C.

OAC - Origin Arbitrary Charges

Charges at origin, including pre-carriage and loading costs.

OBL - Original Bill of Lading

The original document issued by a carrier to acknowledge receipt of cargo for shipment.

On Deck Stowage

Cargo stowed on the deck of the vessel.

On-Time Performance

The proportion of time that a transit system adheres to its published schedule times within stated tolerances.

Order Cycle

The time and process involved from the placement of an order to the receipt of the shipment.

Outbound

Export shipments.

Outport

Destination port, other than a base port, to which rates apply but which may be subject to additional outport arbitraries.

Outsource

To hire a third-party provider to assume tasks previously performed in-house.

Over Landed

Cargo that has been taken beyond its original port of discharge or cargo volume counted more than originally shipped.

Overland Common Port (OCP)

A special rate concession made by shipping lines, rail carriers, and truckers serving the U.S. West Coast for export and import traffic, intended to benefit midwest shippers and importers by equalizing rates to and from other coastal areas.

Packing List

A detailed list of packages and their contents for each shipment.

Pallet

A flat transport structure that supports goods in a stable fashion while being lifted by a forklift.

Partlow Chart

A chart that indicates the temperature readings in a refrigerated container.

Partnerships and Alliances

Agreements between shippers and providers designed to benefit both parties.

PCS - Panama Canal Surcharge

A surcharge applied to cargo transiting through the Panama Canal.

Per Diem

Charges calculated on a daily basis.

Physical Distribution

All logistics activities from the production line to the final user, including traffic, packaging, materials handling, warehousing, order entry, customer service, and inventory control.

Pier

A structure built over water where ships can dock to load and unload cargo.

Piggyback

The transportation of highway trailers or demountable trailer bodies on specially equipped rail flat cars.

Pilferage

The theft of cargo from containers, warehouses, or terminals.

PLC - Post Landing Charges

Local charges applicable at the port of destination.

Plimsoll Mark

A marking on a ship's hull indicating the maximum depth to which it may be safely loaded under various conditions.

POA - Power of Attorney

A legal document granting authority to act on behalf of another person or entity in legal or business matters.

Point Value

The relative value of an empty container of a certain size type in a depot location, used to quantify imbalance costs resulting from container flows.

Point to Point Transport

Direct transport service between two specified locations.

Port

The area where ships berth and load or unload cargo.

Positioning

The relocation of empty equipment from surplus to deficit areas.

PSS - Peak Season Surcharge

A surcharge added to cargo moving from Asia during peak shipping seasons.

Purchase Order

Common grouping of orders for goods/services. Several SKU categories may be listed on one purchase order. Most customers group their orders in a particular way to facilitate distribution at the other end. For example, one purchase order for an apparel importer might encompass 2 dozen green sweaters and 2 dozen red sweaters. If those P.O.s originated from the same store, it is simple for the store to put all items under that P.O. onto the right truck.

Quay

A pier, wharf or other structure built along a shore for landing, loading and unloading boats or ships.

Railhead

Location for loading and unloading containers at railroad terminal.

Register Ton

The unit of measurement for the internal capacity of a vessel whereby one register ton equals 100 cubic feet (2.83 cubic meter). The gross (bruto) tonnage comprises all spaces below the main (tonnage) deck and the enclosed spaces above the main (tonnage) deck less exempted spaces. The net tonnage consists of the gross tonnage less exemptions like ballast tanks, engine room, living quarters etc. The register tonnage is mentioned on the tonnage certificate. Registration Authority (Key Management)

Relay

Marine shipment that is transferred to its ultimate destination port after having been shipped to an intermediate point.

Replenishment

The process of moving the inventory of an item from a reserve storage location to the primary picking location or to another mode of storage in which picking is performed.

Return Cargo

Cargo to be returned to the original place of receipt.

Revenue Ton

Number of tonnes for which freight is paid per ton.

Reverse Logistics

Reverse Logistics is a rather general term. In its broadest sense, reverse logistics stands for all operations related to the reuse of products and materials. The management of these operations can be referred to as Product Recovery Management (PRM). PRM is concerned with the care of products and materials after they have been used. Some of these activities are, to some extent, similar to those occurring in the case of internal returns of defective items due to unreliable production processes. Reverse logistics refers however to all logistics activities the collection, disassembly and processing of used products, product parts and/or materials in order to ensure a sustainable (environmentally-friendly) recovery.

RFI - Request For Information

Basic information about the company which is sent prior to a RFQ.

RFQ - Request For Quote

Including FOB, Ocean and PLC charges on are port/port or cfs/cfs trade.

RIPI - Reverse Inland Point Intermodal

An inland point provided by an All Water Carriers Ocean Bill of Lading, by first discharging the container in an East Coast Port, then moving via truck or rail to an inland point, in an Ocean Through Bill of Lading (e.g., Hong Kong to Pittsburgh via New York).

Routing

The determination of the most efficient route(s) that people, goods, materials and or means of transport have to follow. The process of determining how a shipment will be moved between consignor and consignee or between place of acceptance by the carrier and place of delivery to the consignee. The process of aiding a vessel's navigation by supplying long range weather forecasts and indicating the most economic and save sailing route.

Row

SCAC Standard Carrier Alpha Code. This is a unique code used to identify transportation companies. Examples: MSCU is MSC, MAEU is Maersk, OOLU is OOCL, SUDU is Hamburg Sued.

Schedule B number - Customs Tariff Number

See under HS codes.

SCS - Suez Canal Sur Charge

Surcharge applied to cargo transiting through the Suez Canal.

Seawaybill

A type of bill of lading used for port-to-port or combined transport carriage. A waybill is identical to a negotiable bill of lading except that it is not a document of title. There are no originals issued for this type of document. In some jurisdictions, such as the USA, a waybill is deemed the equivalent of a (straight) consigned bill of lading.

Service Agreement

Private contracts between one or more carriers and one or more shippers to transport cargo between specified points under terms and conditions of carriage agreed and listed in the contract. It often allows for particular rates based on volume over a specified period of time. Also commonly known as a service contract.

Service Bills

A service Bill (of Lading) is a contract of carriage issued by one carrier to another for documentary and internal control purposes. For internal documentary and control purposes a so-called participating agent in a consortium uses some kind of document which, depending on the trade, is referred to as 'Memo Bill' which will among others state: Name of Carrier on whose behalf the original document (Way Bill, Bill of Lading, etc.) was issued. The original document number. The agent who issued the original document and his opponent at the discharging side. The number of packages, weight and measurement, marks and numbers and goods description. Further mandatory details in case of special cargo. No freight details will be mentioned and the Memo Bill is not a contract of carriage. See Bill of Lading.

Set Point

Specific temperature that a refrigerated container has been set to keep. Ideally, the set point and the actual temperature should be identical throughout the voyage.

Ship's Chandlers

Suppliers of various items to the vessel.

Shipper

1) Person who consigns something (e.g. the goods of an individual shipment). 2) Legal entity or person named on the bill of lading or waybill as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a carrier. Also known as consignor.

Shipper Packed

Contents of containers as loaded (stuffed), stowed (packed/braced), weighed and/or counted by or for the shipper, usually a CY load.

Shipping Order

Equivalent of booking and contract of carriage evidencing the agreement to transport goods.

Short Landed

Cargo volume count (at delivery destination) less than originally shipped.

Short Shipped

Cargo missing a vessel that it was originally intended for.

Slot Charter

Contract where the carrier agrees to charter space on a vessel.

SOLAS

International convention to maintain safety standards at sea.

SOP - Standard Operational Procedures

Defined processes for handling tasks in a consistent manner.

Sourcing

Acquisition of raw materials, components or finished goods.

Special Customs Invoice

An invoice providing details to enable the assessment of customs duties.

ST - Short Ton

Equivalent to 2,000 pounds (about 907.19 kilograms).

STC - Said To Contain

Indication that the contents of a container are unknown, as the consignor or consignee prefers not to declare them.

Stevedore

Person or company that provides the labor for loading or unloading ships at ports.

Stock Keeping Unit (SKU)

Unique identifier for each distinct product and service that can be purchased.

Storage Charge

Charge for storing goods.

Stowaway

Person who hides on a ship to obtain free passage or evade authorities.

Straddle Carrier

Specialized vehicle used to transport and stack ISO containers.

Supply Chain

Network of organizations and activities involved in supplying goods and services to consumers.

Supply Chain Management

Management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Surcharges

Additional charges applied to a basic freight rate, usually for services such as loading and unloading.

SWIFT

Society for Worldwide Interbank Financial Telecommunication.

TAEB - Trans Atlantic East Bound

Voyage direction from North America to Europe.

TAEB - Trans Atlantic Eastbound

North America to Europe voyage direction.

TAWB - Trans Atlantic West Bound

Voyage direction from Europe to North America.

TAWB - Trans Atlantic Westbound

Europe to North America voyage direction.

TEU - Twenty-foot Equivalent Unit

Standard container size equivalent to 20 feet.

THC - Terminal Handling Charges

Charges levied for services performed within the terminal area.

Third Party Providers

Companies that provide logistics and shipping services without owning their own transport vehicles.

Through Rates

Rates applicable from point of origin to destination.

TIR Carnet

Customs document facilitating the international transit of goods.

To Order of Shipper

Bill of lading where delivery is to the order of the shipper.

TOFC - Trailer on Flat Car Rail

Intermodal transportation method where trailers are transported on flat railcars.

TOS - Terms of Sale

Agreement terms between seller and buyer, typically regarding delivery and payment.

Total Average Inventory

(1) The sum of average order quantity (one half of order quantity) plus safety stock. Safety stock is the amount on hand after the arrival of the order.
(2) Also, the average normal use stock plus the average lead stock plus safety stock.

Total Cost of Distribution

The sum of purchasing, transportation and storage costs in the movement of finished products through the post production channel.

Total Quality Management

An approach to business management that focuses on quality and typically has: a strong customer orientation, total involvement, measurement systems, systematic support and continuous improvement.

TPEB - Trans Pacific East Bound

From Asia to the USA.

TPEB Transpacific Eastbound

From Asia to USA.

TPWB - Trans Pacific West Bound

From USA to Asia.

TPWB – Trans Pacific Westbound

From the USA to Asia.

Tracer

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.

Transhipment

A shipment under one Bill of Lading, whereby sea (ocean) transport is 'broken' into two or more parts. The port where the sea (ocean) transport is 'broken' is the transhipment port. Transfer of cargo from one means of transport to another for on-carriage during the course of one transport operation. Customs: Customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office which is the office of both importation and exportation.

Transloading

Transfer of containers from one vessel to another vessel. Synonymous with Transshipments.

Transmittal Letter

List of the particulars of the shipment and a record of the documents being transmitted, together with instructions for the disposition of documents.

TRC

Terminal Receiving Charge. Charge assessed by the terminal for cargo being delivered for export.

Unit Cost

The cost associated with a single unit of product; it is calculated as the total cost of producing a product or service divided by the number of units in the run or lot.

Usufruct

The legal right of using and enjoying the profits of something belonging to another party.

VATOS Valid At Time of Shipment

Often listed then quoting and there the no fixed surcharges, but we declare that we will charges as per the actual month.

Vendor

External supplier of merchandise.

Vessel Sharing Agreement (VSA)

A term agreement between two or more carriers in which a number of container positions ("slots") equal in space are reserved on particular vessels for each of the participants. The number of slots (space) on different vessels on the same route can vary by vessel type and direction but may also be expressed as each party's capacity use of the vessels employed jointly.

Vessel Ton

A unit of interior capacity of ships equal to 100 cubic feet or 2,832 cubic metres; register ton.

VGM Verified Gross Mass

The verified Gross Weight of an unit. Part of the SOLAS implementation.

Volume Rate

Rate applicable in connection with a specified volume (weight) of freight.

Voyage Charter

A contract under which the shipowner agrees to carry an agreed quantity of cargo from a specified port or ports to another port or ports for a remuneration called freight, which is calculated according to the quantity of cargo loaded, or sometimes at a lumpsum freight.

WAIC SCAC Code of the WWA

SCAC code of the WorldWide Alliance.

Waiver

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.

War Risk

Perils of war or warlike operations, such as capture, seizure, arrests, restraints of kings, princesses and people, hostilities, civil war, mines, torpedo's. War risks are not covered under a policy for marine perils and must therefore be covered under a separate policy for war risks.

Waybill

See Seawaybill.

Web Services

A Web service is a method of communication between two electronic devices over a network. Used primarily as a means for businesses to communicate with each other and with clients. Web services allow organizations to communicate data without intimate knowledge of each other’s IT systems.

Wharf

A structure built along a shore, and often into the water, at which boats can be docked and loaded or unloaded; Also known as pier or quay.