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

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

Ad Valorem
A term from Latin meaning, "according to value."

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

Advising Bank
A bank operating in the seller's country, that handles letters of credit in behalf of a foreign bank.

Air Waybill
The forwarding agreement or carrying agreement between shipper and air carrier and is issued only in nonnegotiable form.

All In
The total price to move cargo from origin to destination, inclusive of all charges.

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

Arrival Notice
A notification by carrier of ship's arrival to the consignee.

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

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

Base Rate
A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate.

Beneficiary

• Entity to whom money is payable.
• The entity for whom a letter of credit is issued.
• The seller and the drawer of a draft.

Bill of Lading (B/L)
A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.

• Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.
• B/L Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier's liabilities and contractual agreements.
• B/L's Type: refers to the type of B/L being issued. Some examples are: a Memo(ME), Original (OBL), Nonnegotiable, Corrected (CBL) or Amended (AM) B/L.
• Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper'srequest; different from voided B/L.
• Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.
• Combined B/L: B/L that covers cargo moving over various transports.
• Consolidated B/L: B/L combined or consolidated from two or more B/L's.
• Corrected B/L: B/L requiring any update which results in money  or other financially related changes.
• Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L.
• Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.
• Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
• House B/L: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.
• Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.
• Negotiable B/L: The B/L is a title document to the goods, issued "to the order of" a party, usually the shipper, whose endorsement is required to effect is negotiation. Thus, a shipper's order (negotiable) B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions. The buyer must submit the original B/L to the carrier in order to take possession of the goods.
• Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L.
• "Onboard" B/L: B/L validated at the time of loading to transport.Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types.
• Original B/L: The part of the B/L set that has value, especially when negotiable;rest of set are only informational file copies. Abbreviated as OBL.
• Voided B/L: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L.

Bill of Lading Port of Discharge
Port where cargo is discharged from means of transport.

Billed Weight
The weight shown in a waybill and freight bill, i.e, the invoiced weight.

Board
To gain access to a vessel.

Bonded Warehouse
A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Booking
Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.

Booking Number
Reservation number used to secure equipment and act as a control number prior to completion of a B/L.

Break Bulk

• To unload and distribute a portion or all of the contents of a rail car, container, or trailer.
• Loose, non-containerized cargo.

Broken Stowage

• The loss of space caused by irregularity in the shape of packages.
• Any void or empty space in a vessel or container not occupied by cargo.

Bulk Cargo
Not in packages or containers; shipped loose in the hold of a ship without mark and count." Grain, coal and sulfur are usually bulk freight.

Bulk-Freight Container
A container with a discharge hatch in the front wall; allows bulk commodities to be carried.

Bunker Charge
An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.)

Bunkers
A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers.

Cargo Manifest
A manifest that lists all cargo carried on a specific vessel voyage.

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

Cartage
Usually refers to intracity hauling on drays or trucks.

CBM (CM)
Abbreviation for "Cubic Meter."

Certificate of Origin
A certified document showing the origin of goods; used in international commerce.

CFS
Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded ("stuffed") into or unloaded ("stripped") from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.

Chassis
A frame with wheels and container locking devices in order to secure the container for movement.

CI
Abbreviation for "Cost and Insurance." A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination.

CIF
Abbreviation for "Cost, Insurance, Freight." (Named Port) Same as C&F or CFR except seller also provides insurance to named destination.

Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "cleaned."

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

Commodity
Article shipped. For dangerous and hazardous cargo,the correct commodity identification is critical.

Common Carrier
A transportation company which provides service to the general public at published rates.

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

Consignee
A person or company to whom commodities are shipped.

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

Consignment

1. A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
2. A shipment of goods to a consignee.

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

Consolidation
Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees.

Consolidator
A person or firm performing aconsolidation service for others. The consolidator takes advantage of lower full carload(FCL) rates, and savings are passed on to shippers.

Container
A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack,open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0" or 8'6" in width, and 8'6" or 9'6" in height.

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

Container Terminal
An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation.Here containers are picked up, dropped off, maintained and housed.

Container Yard (CY)
A materialshandling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.

Containerizable Cargo
Cargo that will fit into a container and result in an economical shipment.

Containerization
Stowage of general or special cargoes in a container for transport in the various modes.

Cost, Insurance and Freight (CIF)
Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.

Customs
Government agency charged with enforcing the rules passed to protect the country's import and export revenues.

Customs Bonded Warehouse
A warehouse authorized by Customs to receive duty-free merchandise.

Customs Entry
All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise. The importer's statement is compared against the carrier's vessel manifest to ensure that all foreign goods are properly declared.

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

CY

• Abbreviation for Container Yard.
• The designation for full container receipt/delivery.

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

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

Delivery Instructions
Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order.

Demurrage
A penalty charge against shippers or consignees for delaying the carrier's equipment beyond the allowed free time. The ree time and demurrage charges are set forth in the charter party or freight tariff.

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

Destination

• The place to which a shipment is consigned.
• The place where carrier actually turns over cargo to consignee or his agent.

Detention
A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. See Per Diem.

Devanning
The unloading of a container or cargo van.

Dock

• For ships, a cargo handling area parallel to the shoreline where a vessel normally ties up.
• For land transportation, a loading or unloading platform at an industrial location or carrier terminal.

Dock Receipt
A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.

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

Dry Cargo
Cargo that is not liquid and normally does not require temperature control.

Dumping
Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country.

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

FAS
Abbreviation for "Free Alongside Ship."

FCL
Abbreviation for "Full Container Load."

Feeder Service
Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

Flat Rack/Flat Bed Container
A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

Force Majeure
The title of a common clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.

Free Alongside (FAS)
The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. See Terms of Sale.

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

• FOB Freight Allowed: The same as FOB named inland carrier, except the buyer paysthe transportation charge and the seller reduces the invoice by a like amount.
• FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the freight charges of the inland carrier.
• FOB Named Point of Exportation: Seller is responsible for the cost of placing thegoods at a named point of exportation. Some European buyers use this form when they actually mean FOB vessel.
• FOB Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

Cost of unloading a vessel is borne by the charterer.

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

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

Freight Forwarder
A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.

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

HAZ MAT
An industry abbreviation for "Hazardous Material."

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

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

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

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

Insurance with Average-clause
This type of clause covers merchandise if the damage amounts to three percent or more of the insured value of the package or cargo. If the vessel burns, sinks, collides, or sinks, all losses are fully covered. In marine insurance, the word average describes partial damage or partial loss.

Insurance, All-risk
This type of insurance offers the shipper the broadest coverage available, covering against all losses that may occur in transit.

Insurance, General-Average
In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss.

Insurance, Particular Average
A Marine insurance term to refer to partial loss on an individual shipment from one of the perils insured against, regardless of the balance of the cargo. Particularaverage insurance can usually be obtained, but the loss must be in excess of a certain percentage of the insured value of the shipment, usually three to five percent, before a claim will be allowed by the company.

Intermodal
Used to denote movements of cargo containers interchangeably between transport modes,i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems.

Irrevocable Letter of Credit
Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.

Issuing Bank
Bank that opens a straight or negotiable letter of credit and assumes the obligation to pay the bank or beneficiary if the documents presented are in accordance with the terms of the letter of credit.

LCL
Abbreviation for "Less than Container Load." The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.

Letter of Indemnity
In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition.

Marking
Letters, numbers, and other symbols placed on cargo packages to facilitate identification. Also known as marks.

On Board
A notation on a bill of lading that cargo has been loaded on board a vessel. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the contrary.

Open Top Container
A container fitted with a solid removable roof, or with a tarpaulin roof so the container can be loaded or unloaded from the top.

Origin
Location where shipment begins its movement.

Original Bill of Lading (OBL)
A document which requires proper signatures for consummating carriage of contract. Must be marked as "original" by the issuing carrier.

Overheight Cargo
Cargo more than eight feet high which thus cannot fit into a standard container.

Partial Shipments
Under letters of credit, one or more shipments are allowed by the phrase "partial shipments permitted."

Place of Delivery
Place where cargo leaves the care and custody of carrier.

Place of Receipt
Location where cargo enters the care and custody of carrier.

POL
Abbreviation for:

• Port of Loading.
• Petroleum, Oil, and Lubricants.

Port of Call
Port where a ship discharges or receives traffic.

Pre-cooling
A process employed in the shipment of citrus fruits and other perishable commodities.The fruit is packed and placed in a cold room from which the heat is gradually extracted.The boxes of fruit are packed in containers that have been thoroughly cooled and transported through to destination without opening the doors.

Revenue Ton (RT)
A ton on which the shipment is freighted. If cargo is rated as weight or measure (W/M),whichever produces the highest revenue will be considered the revenue ton. Weights are based on metric tons and measures are based on cubic meters. RT=1 MT or 1 CBM.

Shipment
The tender of one lot of cargo at one time from one shipper to one consignee on one bill of lading.

Shipper
The person or company who is usually the supplier or owner of commodities shipped. Also called Consignor.

Shipper's Instructions
Shipper's communication(s) to its agent and/or directly to the international water-carrier. Instructions may be varied, e.g., specific details/clauses to be printed on the B/L, directions for cargo pickup and delivery.

Shipper's Load & Count (SL & C)
Shipments loaded and sealed by shippers and not checked or verified by the carriers.

Shipping Order
Shipper's instructions to carrier for forwarding goods; usually the triplicate copy of the bill of lading.

Store-Door Pick-up Delivery
A complete package of pick up or delivery services performed by a carrier from origin to final consumption point.

STC
Said to contain.

Straight Bill of Lading
A non-negotiable bill of lading which states a specific identity to whom the goods should be delivered. See Bill of Lading.

Stuffing
Putting cargo into a container.

Subrogate
To put in place of another; i.e.,when an insurance company pays a claim it is placed in the same position as the payee with regard to any rights against others.

• EXW (Ex Works) (...Named Place): A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in 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.
• FOB (Free On Board) (...Named Port of Shipment): An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
• CFR (Cost and Freight) (...Named Port of Destination): A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
• CIF (Cost, Insurance and Freight) (...Named Place of Destination): A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

Transshipment Port
Place where cargo is transferred to another carrier.

Turnaround
In water transportation, the time it takes between the arrival of a vessel and its departure.

Waybill (WB)
A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. It is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination.Abbreviation is WB. Unlike a bill of lading, a waybill is NOT a document of title.

Weight Cargo
A cargo on which the transportation charge is assessed on the basis of weight.

W.M. (W/M)
Abbreviation for "Weight or Measurement;" the basis for assessing freight charges.

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