AA: Always afloat.
AAEI: American Association of Exporters and Importers.
AAR: Against All Risks. Also the acronym for American Association of Railroads.
Abaft: A point beyond the midpoint of a ships length, towards the rear or stern
Able Bodied Seamen: A member of the deck crew who is able to perform all the duties of an experienced seamen; certificated by examination; must have three years sea service. Also called Able Seamen and A.B.
Aboard: Referring to cargo being put, or laden, onto a means of conveyance.
About: "About", "Approx.", and "Circa" are terms which when used in a letter of credit, are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price stipulated in the letter of credit.
Abandonment: An insurance term indicating that damage suffered by a vessel is severe enough to constitute a constructive total loss. The term also refers to the refusal of a consignee to accept delivery of freight so badly damaged in transit that it is worthless. Alternate Definition: The act of relinquishing claim or right to property.
Abatement: A discount allowed for damage or overcharge in the payment of a bill.
Abbrochment: The purchase at wholesale of all merchandise that is intended to be sold in a particular retail market for the purpose of controlling that market
See Automated Broker Interface.
ABS: See American Bureau of Shipping.
Absorption: Investment and consumption purchases by households, businesses and governments both domestic and imported. Alternative Definition: 1. An economic term for the total expenditures by a nation's residents on goods and services. 2. The assumption by one carrier of the charges of another without any increase in the charges to the shipper. Additional Alternative Definition: Acceptance by the carrier of a portion of a joint rate or charge which is less than the amount which it would receive for the service in the absence of such joint rate or charge (aircargo).
Accelerated Tariff Elimination: The gradual reduction of import duties over time. Alternative Definition: The reduction of import duties faster than originally had been agreed upon or projected.
Acceptance: A time draft that the drawee (the payer) has accepted and acknowledged in writing the unconditional obligation to pay it at maturity. Alternative Definition: 1. A draft calling for payment at a future date which the drawee has agreed to pay by signing "Accepted" on the draft. 2. An unconditional assent to an offer; or an assent to an offer conditioned on only minor changes that do not affect any material terms of the offer; 3. An agreement to purchase goods on specified terms. 4. Receipt of a shipment by a consignee thus terminating the liability of the carrier for delivery.
Acceptance of Goods: 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.
Acceptance Letter Of Credit: A letter of credit which, in addition to other required documents, requires presentation of a term draft drawn on the bank nominated as the accepting bank under the letter of credit. Alternative Definition: A letter of credit which instead of agreeing to pay the beneficiary immediately upon presentation of documents, requires presentation of a time draft drawn by the beneficiary upon the issuing bank or another bank. However, the beneficiary may, in effect, obtain prompt payment by discounting the draft.
Accepted Draft: A bill of exchange accepted by the drawee (acceptor) by putting his signature (acceptance) on its face. In doing so, he commits himself to pay the bill upon presentation at maturity. Alternative Definition: A draft or a bill of exchange accepted by the drawee (acceptor) by putting his signature and "accepted' on its face. In doing so, he commits himself to pay the bill upon presentation at maturity.
A bank that by signing a time draft accepts responsibility to pay when
the draft becomes due. In this case the bank is the drawee (party asked to pay
the draft), but only becomes the acceptor (party accepting responsibility to
pay) upon acceptance (signing the draft). See acceptance; bill of exchange.
Alternative Definition: A bank which by signing 'accepted' on a
time draft accepts responsibility to pay when the draft becomes due.
Acceptor: The party that signs a draft or obligation, thereby agreeing to pay the stated sum at maturity. Alternative Definition: The party that signs 'accepted' on a draft or obligation, agreeing to pay the stated sum at maturity.
Accession is a process by which a country becomes a member of an international
agreement such as the General Agreement on Tariffs and Trade (GATT),
(usually an agreement that has already been accepted by other countries).
Accessions: Goods that are affixed to and become part of other goods.
Accessorial Charges: Charges made for additional, special, or supplemental services, normally over and above the line haul services.
Services performed by a shipping line or airline in addition to the
basic transportation service.
Accommodation: An action by one individual or legal entity that is taken as a favor, without any consideration, for another individual or legal entity. Alternative Definition: An arrangement or engagement made as a favor to another, not dependent upon a consideration received.
Accommodation Note Or Paper: A commercial instrument of debt that is issued by or for an accommodated party (who is expected to pay the debt) and that contains the name of the accommodation party. Alternative Definition: A bill of exchange or banker's acceptance which is endorsed, accepted, or drawn by one party (the accommodating party) to benefit another party. The accommodating party generally does not charge or seek compensation for this act.
transport of complete road vehicles by another means of transport (e.g. train,
ferry accompanied by the driver).
Accord And Satisfaction: A means of discharging a contract or cause of action by which the parties agree (the accord) to alter their obligations and then perform (the satisfaction) the new obligations.
Account Number: An identifying number issued by a carrier's accounting office to identify a shipper and/or consignee. Alternative Definition: An identification number assigned in its records for purposes of faster and more accurate accounting and record keeping, by banks, institutions, and businesses of all kind to their depositors, users, members, subscribers, customers, vendors, or other entities.
Same as Applicant, the party at whose request a bank issues a letter of credit.
Accounts Payable: A current liability representing the amount owed by an individual or a business to a creditor(s) for merchandise or services purchased on an open account or short-term credit.
Accounts Receivable: Money owed a business enterprise for merchandise or services bought on open account.
Accrual Of Obligation: The time at which an obligation matures or vests, requiring the obligor to perform. Alternative Definition: The maturing of an obligation to the date when the obligated party must perform. (Such as a time draft which must be paid by the drawee on the date stated.)
ACE: See Automated Commercial Environment.
ACEP: See Approved Continuous Examination Program.
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.
Acquisition: The purchase of complete or majority ownership in a business enterprise. Alternative Definition: The act of becoming owner of a property. In finance, it is the purchase of a company's assets or its common stock.
written receipt in full, in discharge from all claims.
ACS: See Automated Commercial System.
Act Of God: "An act of nature beyond man's control such as lightning, flood, earthquake or hurricane. Many shipping and other performance contracts include a "force majeure" clause which excuses a party who breaches the contract due to acts of God."
Action Ex Contractu: A legal action for breach of a promise stated in an express or implied contract. Alternative Definition: 1. A legal action for breach of a promise stated in an express or implied contract. 2. An action arising out of a contract.
Action Ex Delicto: (a) A legal action for a breach of a duty that is not stated in a contract but arises from the contract. (b) A legal action that arises from a wrongful act, such as fraud. Alternative Definition: 1. A legal action for a breach of a duty that is not stated in a contract but arises from the contract. 2. A legal action that arises from a wrongful act, such as fraud, fault, misconduct or malfeasance.
Address Of Record:
The official or primary location for an individual, company, or other
Adhesion Contract: Contract with standard, often printed, terms for sale of goods and services offered to consumers who usually cannot negotiate any of the terms and cannot acquire the product unless they agree to the terms.
Adjustment Assistance: Financial, training and re-employment technical assistance to workers, and technical assistance to firms and industries, to help them cope with adjustment difficulties arising from increased import competition.
Admeasurement: Confirmed or official dimensions of a ship.
Administrative Law Judge: A representative of a government commission or agency vested with power to administer oaths, examine witnesses, take testimony, and conduct hearings of cases submitted to, or initiated by, that agency. Also called Hearing Examiner.
A court of law that has jurisdiction over maritime legal issues.
Admiralty: Any civil or criminal issue having to do with maritime law.
Admission Temporaire: The free entry of goods normally dutiable. See A.T.A. Carnet.
According to value.
Ad Valorem Duty: A U.S. Customs duty assessed as a percentage rate or value of the imported merchandise. Alternative Definition: Duty calculated on the basis of value (usually a percentage of the value.)
Ad Valorem Tariff: A tariff calculated as a percentage of the value of goods cleared through customs, e.g., 15 percent ad valorem means 15 percent of the value.
Advance: To move cargo
up line to a vessel leaving sooner than the one booked. (See "Roll.")
Advance Against Collection: A short term loan or credit extended to the seller (usually the exporter) by the seller's bank once a draft has been accepted by the buyer (generally the importer) of the seller's goods.
Advance Against Documents: A loan made on the security of the documents covering the shipment.
Advance Arrangements: The shipment of certain classes of commodities that require arrangements in advance with carriers. Alternative Definition: In transportation, advance arrangements must be made for certain kinds of cargo which require special handling: hazardous cargo, over weight, over sized, over normal quantity, time sensitive, shipped unpacked, live animals etc. Not every carrier can or will transport every kind of cargo.
Transportation charge advanced by one carrier to another to be collected by the
later carrier from the consignor or consignee.
Advanced Technology Products (ATP): Products whose technology is from a recognized high technology field, represent leading edge technology in that field; and constitute a significant part of all items covered in the selected classification code.
Shipment of goods on shipper's own
account. A bill of adventure is a document signed by the master of the ship that
carries goods at owner' risk.
Advice: A form of letter that relates or acknowledges a certain activity or result with regard to a customer's relations with a bank. Alternative Definition: 1. A report from one party to another informing them of an occurrence with regard to some business transaction: a shipment, a collection, a manufacture etc.etc. 2. A notification by an advising bank on behalf of the issuing bank to a beneficiary informing them of the terms of a letter of credit.
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.
Advised Credit: A letter of credit whose terms and conditions have been confirmed by a bank. Alternative Definition: A letter of credit whose terms and conditions have been notified to the beneficiary by an advising bank on behalf of the issuing bank. The advising bank does not thereby commit itself to pay or guarantee the payment of the letter of credit.
Advising Bank: A domestic bank that handles letters of credit for a foreign bank by notifying the exporters that the credit has been opened in their favor and informing them fully of the conditions and terms without assuming responsibility. Alternative Definition: An 'advising bank' is a correspondent of a bank which issues a letter of credit, and, on behalf of the issuing bank, the advising bank notifies the beneficiary of the terms of the credit, without engagement on its part to pay or guarantee the credit.
Advisory Capacity: A term indicating that a shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.
Advisory Committee On Export Policy: A U.S. government interagency dispute resolution body that operates at the Assistant Secretary level. Alternative Definition: A U.S. government interagency dispute resolution body that operates at the Assistant Secretary level.
Advisory Committee On Trade Policy And Negotiation: A U.S. government group appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements.
Affiliate: A business enterprise located in one country which is directly or indirectly owned or controlled by a person of another country. Alternative Definition: A condition of being united, allied, associated, or attached. An affiliate company is one effectively controlled by another.
Affiliated Foreign Group: Equivalent of the foreign parent or any foreign person associated with the foreign parent that is owned more than 50 percent by the person above it.
Affreightment Contract: A contract with a shipowner to hire all or part of a ship for transporting goods. Alternative Definition: A contract with a ship owner to hire all or part of a ship for transporting goods:may involve a charter.
Affreightment: The hiring or chartering of all or part of a vessel for the transport of goods.
Refers to a shipment of cargo that is currently on board a vessel
between ports (as opposed to on land).
African, Caribbean, and Pacific Countries (ACP): Developing countries that receive preferential trade treatment from European Union members under the Lome Convention.
Aft: Direction toward the stern of the vessel (ship or aircraft).
AFTA: See ASEAN Free Trade Area.
After Date: A term used to indicate that the date of maturity of a draft is fixed by the date on which it was drawn and is not dependent upon acceptance by the drawee. Alternative Definition: A notation used on financial instruments (such as drafts or bills of exchange) to fix the maturity date as a fixed number of days past the date of drawing of the draft.
After Sight: A term indicating that payment on a draft is due a specified number of days after presentation of the draft to the drawee or payee. Alternative Definition: A notation on a draft that indicates that payment is due a stated number of days after the draft has been presented to the drawee.
Chemical symbol for silver. Latin: argentum.
Agency Fee: A fee charged to the ship by the ship's agent, representing payment for services while the ship was in port. Sometimes called attendance fee.
Agency Tariff: A tariff published by an agent on behalf of several carriers.
A person or legal entity with the proper authorization to act on behalf
of another person or legal entity. Alternative Definition:
A person authorized to
transact business for and in the name of another person or company. Types of
agent are: (1) brokers, (2)
commission merchants, (3) resident buyers,
(4) sales agents, 5) manufacturer's representatives.
Agent Bank: A bank acting on behalf of a foreign bank. Alternative Definition: 1. A bank acting on behalf of another bank. 2. A bank acting for lenders and bondholders, similar to an indenture trustee.
Aggregated Shipments: Several shipments from various shippers that are consolidated and treated as a single consignment. Alternative Definition: Several shipments intended for one consignee from various shippers that are consolidated and treated as a single consignment.
AGR Imports: American goods returned.
Agreed Valuation: The set value of a shipping load that is agreed upon by both the shipper and the carrier to define rate and/or liability. Alternative Definition:The value of a shipment agreed upon in order to secure a specific freight rate.
Agreed Weight: The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number.
AID: Agency for International Development.
AIES: See Automated Information Exchange System.
American Institute of Merchant Shipping.
Air Cargo: Property of any kind that is transported by aircraft (excluding passenger baggage and mail).
Air Express: Expedited air freight service.
Air Parcel Post: Term used to describe priority mail, consisting of first class mail which weighs more than 13 ounces. Alternative Definition: Parcels shipped through the mails to be transported by air.
Air Waybill: A non-negotiable instrument of air transport, which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and has obligated itself to carry the consignment to the airport of destination according to specified conditions. Alternative Definition: The shipping document used for the transportation of air freight: includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes.
Ability to be transferred or conveyed.
Aliquot: A fractional share.
The act if striking or
collision of a moving vessel against a stationary object.
Alloy: A mixture of two or more metals.
All Risks Coverage: The broadest type of standard marine insurance coverage; excludes damage caused by war, strikes, and riots.
All-Cargo Aircraft: Any aircraft that is used for the sole purpose of transporting cargo. Alternative Definition: Any aircraft that is used for the sole purpose of transporting cargo or mail.
All-In: A freight quotation including all charges, often in one lump sum rather than broken down.
Allowance: An amount paid by the seller as restitution or reimbursement if the receiving party was dissatisfied with the shipment for any number of reasons: faulty packaging, late arrival, etc. Alternative Definition: A deduction or discount from the price permitted by a seller.
Alongside: The side of the vessel. Goods to be delivered alongside are to be delivered to the dock or lighter from which they can be loaded aboard the ship. Alternative Definition: A phrase referring to the side of a ship. Goods delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded.
Alternative Rates: Privilege to use the rate producing the lowest charge.
Alternative Tariff: A tariff with two or more rates for the same goods, to and from the same points, with the discretion to use the lowest of the charges. Alternative Definition: In transportation, a tariff with two or more rates for the same goods, to and from the same points, with the opportunity available to the shipper to use the lowest of the charges.
Amalgam: Alloy of mercury with one or more other metals.
Ambient Temperature: The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.
American Maritime Congress.
Amendment: An addition, deletion, or change in a document (i.e.; Letter of Credit)
Known as ABS, a U.S.-based private classification, or
standards setting society for merchant ships and other marine systems.
U.S. classification society which certifies
seagoing vessels for compliance to standardized rules regarding construction and
American Institute in Taiwan: Unofficial, non-profit, private agency that represents U.S. commercial, cultural, and other interests in Taiwan.
American Waterway Operators:
Known as AWO, the national trade association for the
barge and towing industry and the shipyards employed in the repair and
construction of these craft.
Amidships: In the middle of the vessel; often preferred by shippers because of the minimal motion and the benefits to fragile freight. Alternative Definition: The area of a vessel midway between the front (the bow) and the rear (the stern). When the term applies to an airplane, it is midway between the nose and the tail.
Amortization: The gradual diminishment of any amount over a period of time. Alternative Definition: 1. The provision to pay a debt over a period of time.
2. The gradual repayment of borrowings in a series of installments. 3. A transaction or security where the principal reduces over the life of the agreement.
4. The writing off or reduction in value of an intangible asset over time (depreciation) 5. Allocation of the cost of an asset over its estimated useful life.
AMS: See Automated Manifest System.
API: American Petroleum Institute.
A subgroup of the Latin American Free Trade Association (now the Latin American
Integration Association) that aims to harmonize members' political, economic,
and social policies. Primarily a trade pact formerly known as the Andean Group
or Andean Common Market; aims to eliminate tariffs and trade barriers among
Andean Group (Grupo Andino): Also Andean Common Market or Andean Pact (Pacto Andino). Name changed to Andean Community in 1996.
Antidumping: The opposite of dumping as defined by the system of laws to remedy dumping.
Antidumping Duties: Special tariffs imposed to offset price advantages resulting from imports sold below fair market value. Otherwise, it can result in material injury to a US industry. Alternative Definition: Additional duties which are assessed on imported goods when those goods are sold to the importing country at a price that is less than "fair value", ("fair value" usually being defined as the price on the exporting country's domestic market or to third countries), and when those imported goods are found to cause or to threaten material injury to industry of the importing country. Additional Alternative Definition: A tariff imposed to discourage sale of foreign goods, subsidized to sell at low prices detrimental to local manufacturers.
Any Quantity: Also known as AQ, a cargo rating that applies to an article without consideration of weight. Alternative Definition: A cargo freight rate that applies to an article without regard to the weight or quantity shipped.
Apparent Good Order: When freight appears to be free of damage so far as a general survey can determine.
Applicant: 1. The party at whose request a bank issues a letter of credit. 2. A person who applies for something: a job, a passport, a visa, a license, a ticket etc. etc. See also Account Party.
Appraisement: Determination of the dutiable value of imported merchandise by a Customs official who follows procedures outlined in their country's tariff, such as the U.S. Tariff Act of 1930.
Appraiser's Stores: The warehouse or public stores to which samples of imported goods are taken to be inspected, analyzed, weighed, etc. by examiners or appraisers.
Appreciation: An increase in the value of one form of currency as compared to the currency of another nation. Alternative Definition: An increase in the value of something,:of goods, of currency, of shares of stock, etc.
Same as "about" and "circa"; terms
which when used in a letter of credit are construed to allow a difference not to
exceed 10% more or 10% less than the monetary amount, or the quantity, or the
Appurtenance: An accessory connected to a primary property used in conjunction with the primary property; usually permanently affixed (i.e. a crane on a ship).
Apron: Area of the airport where planes are parked for loading and unloading. Alternative Definition: 1. Area of the airport where planes are parked. May be used for loading and unloading of aircraft. 2. Area along the waterside edges of a pier, not under cover, used for loading and unloading of vessels.
Approved Continuous Examination Program: An agreement between the owners of the equipment and the responsible governmental body to allow continuous examination of the equipment (e.g. containers).
AQ: See Any Quantity.
Arab Cooperation Council:
Organization consisting of Egypt, Iraq, Jordan, and Yemen; created in
1989 to promote economic cooperation and integration among members.
Arab League: See League of Arab States.
Arab Maghreb Union (Union du Maghreb Arabe): Established in February 1989 to foster integration of Maghreb economy. Members include Algeria, Libya, Mauritania, and Morocco. Also aims to join the AMU and the Gulf Cooperation Council states in a common market.
Arbitrage: The process of buying foreign exchange, stocks, bonds, or other commodities in one market and immediately selling them in another market for profit. Alternative Definition: A method of taking advantage of the fact that there may be different prices in different markets for identical goods such as gold, foreign exchange or commodities. Simultaneously, one buys in the lower price market and sells in the higher one.
Arbitrary: A stated amount over a fixed rate to one point to make a rate to another point.
Area Code: A code for the area where a container is situated.
Area of Repair: Geographical area where a container is under repair.
Area Off Hire Lease: Geographical area where a leased container becomes off hire.
Area Off Hire Sublease: Geographical area where a subleased container becomes off hire.
Area On Hire Lease: Geographical area where a leased container becomes on hire.
Area On Hire Sublease:Geographical area where a subleased container becomes on hire.
ARLC: See Automatic Revolving Letter of Credit.
Arrival Notice: A
notification by carrier of ship's arrival to the consignee, the "Notify Party,"
and:when applicable:the "Also Notify Party." These parties in interest are
listed in blocks 3, 4 and 10, respectively, of the Bill of Lading.
A notice sent by a
carrier to a nominated notify party advising of the arrival of a certain
Arrivals: Imported goods that have been placed in a bonded warehouse for which duty has not been paid.
Arterial Roads: A traffic term which refers to wide streets or major roads that carry large volumes of traffic through a community
Articles of Agreement: The document containing all particulars relating to the terms of agreement between the Master of the vessel and the crew. Sometimes called ship's articles, shipping articles.
Articles Dangereaux de Route: Known as ADR, a European agreement concerning the international carriage of dangerous goods by road.
ASBA: American Shipbrokers Association.
ASEAN Free Trade Area: Known as AFTA, an agreement made in 1992 by ASEAN members to gradually introduce a common effective preferential tariff and lower non-tariff trade barriers for intra-group trade.
The stage of production in which components are put
together into an end product appropriate to the process concerned.
Asia Pacific Economic Cooperation (APEC): Informal grouping of Asia Pacific countries, including the United States; established in 1989 to provide a forum for ministerial level discussion of a broad range of economic issues related to trade and investment. The group has agreed upon a schedule to implement open and free trade among member states.
As Is: Indicates goods for sale; does not include a warranty or guarantee. Alternative Definition: Indicates goods for sale do not include a warranty , implied or expressed; the buyer takes the entire risk as to the quality or condition of the goods involved and must trust to his own inspection. In sum, the sale is "without recourse".
de Integracion: See
Latin American Integration Association.
Assay: To analyze a metal to determine its purity and value.
Assembly Service: A service under which an airline combines multiple shipments from multiple shippers into one shipment to one receiver. Alternative Definition: A service under which a carrier or a forwarder or a warehouse combines multiple shipments from multiple shippers into one shipment for one receiver.
Assessment: The placement of
antidumping duties on imported goods. Alternative
Definition: 1. The
valuation, or determination as to value, of property.
2. The act of apportioning amounts to be paid. 3. An amount assessed or charged, for example: taxes or dues.
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.
Assignment of Proceeds of
a Letter of Credit:
If the bank agrees, the beneficiary
assigns all or part of the proceeds to be paid to another party after the
required documents have been presented.
Association of Southeast Asian Nations (ASEAN): A regional organization established in 1967 to promote economic, political, and social cooperation among member countries.
Astern: A backward direction in the line of a vessel's fore and aft line; behind. If a vessel moves backwards it is said to move astern; opposite to ahead.
ASWP: Any Safe World Port.
A.T.A. Carnet: (Admission Temporaire): A standardized customs document permitting duty-free, tax free, and bond-free temporary admission of certain goods such as commercial samples, medical, scientific, or other professional equipment, and advertising materials into participating countries
ATDNSHINC: Any time Day or Night Sundays & Holidays Included.
At Sea: In marine insurance this phrase applies to a ship which is free from its moorings and ready to sail.
The terms of a negotiable instrument indicating that payment is due upon
presentation or demand.
Definition: A notation on a draft which indicates that payment is due
upon its presentation.
Athwartships: Across a vessel form side to side.
Au: Chemical symbol for gold. Latin: aurum.
Audit: A methodical examination and review of a situation or condition (as within a business enterprise) concluding with a detailed report of findings.
Authentication: Proof by means of a signature or otherwise that a certain document or certain data is of undisputed origin and genuine.
Authorization: The commission to a certain person or body to act on behalf of another person or body. The person or body can be authorized e.g. to issue Bills of Lading or to collect freight.
Auto Container: Container equipped for the transportation of vehicles.
Automated Broker Interface: Known as ABI, a module of ACS which provides a communications link for the transmission of entry and entry summary data on imported merchandise between all ABI users. It is a computer system that allows a Customs Broker to interface directly with U.S. Customs' computer system. Alternative Definition: (USA) A module of the U. S. Customs Automated Commercial System which provides a communications link for the transmission of entry and entry summary data on imported merchandise between ABI users and Customs.
Automated Commercial Environment: Known as ACE, a US Customs electronic data system, which when complete, will provide support for enforcing trade and contraband laws, ensuring trade compliance, and providing service and information to the international trade community. Alternative Definition: (USA) A US Customs electronic data system, which provides support for enforcing trade and contraband laws, ensuring trade compliance, and providing service and information to the international trade community. When completed, it will cover the full gamut of Customs activities.
Automated Commercial System: Known as ACS, a comprehensive tracking, controlling, and processing system of the U.S. Customs Service. ACS is composed of many different modules or systems. Alternative Definition: (USA) The comprehensive electronic data system of U. S. Customs for tracking, controlling, and processing commercial importations.
Automated Guided Vehicle System: Unmanned vehicles equipped with automatic guidance equipment which follow a prescribed path, stopping at each necessary station for automatic or manual loading or unloading.
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. The most widely used technology at present is bar code; others include radio frequency, magnetic stripes and optical character recognition.
Automatic Identification Manufacturers: Known as AIM, international organization of companies and/or associations involved or interested in automatic identification.
Known as AIES, a module of ACS which provides an automated
method of exchanging information between Field Import Specialist and National
Import Specialists. Alternative Definition:
(USA) A module of the Automated Commercial System of U. S. Customs which
provides an automated method of exchanging information between Field Import
Specialists and National Import Specialists.
Automated Manifest System: Known as AMS, a module of ACS designed to control imported merchandise from the time a carrier's cargo manifest is electronically transmitted to US Customs until control is relinquished to another ACS module. Alternative Definition: (USA) A module of the Automated Commercial System of U. S. Customs designed to control imported merchandise from the time a carrier's cargo manifest is electronically transmitted to U.S. Customs until the cargo is properly entered, released by customs and delivered.
Automatic Pilot: An instrument designed to control automatically a vessel's steering gear so that she follows a pre-determined track through the water.
Automatic Revolving Letter of Credit: Known as ARLC, automatically reinstated and guaranteed successively in the amount of each shipment for a pre-set schedule, as decided between buyer and seller.
Average: The numerical result obtained by dividing the sum of two or more quantities by the number of quantities. In marine insurance: a loss or damage to or in respect of goods or equipment.
Averager: See Insurance.
Avoirdupois Pound: Same as 0.4535924277 kilograms.
Auto Parts Advisory Committee:
Established by an amendment to the Trade Act to set up an advisory committee to
the U.S. Department of Commerce for dealing with U.S.-Japan trade issues
involving the auto parts industry.
Avoidance Of Contract: The legal cancellation of a contract because an event occurs that makes performance of the contract terms impossible or inequitable and that releases the parties from their obligations. Alternative Definition: The legal cancellation of a contract because an event occurs that makes performance of the contract terms impossible or inequitable and that releases the parties from their obligations.
AWO: See American Waterway Operators.
AWWL: Always within Institute Warranties Limits (Insurance purpose).
Backfreight: The owners of a ship are entitled to payment as freight for merchandise returned through the fault of either the consignees or the consignors. Such payment, which is over and above the normal freight, is called backfreight.
Backhaul: A deviation to move cargo on the return leg of a voyage for the purpose of minimizing ballast mileage and thereby reducing transportation costs. Alternative Definition: The return of a carrier to the original point or area from which its journey began. If a carrier can obtain cargo to carry on the back haul route, that cargo may often obtain a favorable freight rate because otherwise the carrier would have to return empty.
Backlog: 1. The quantity of goods still to be delivered, received, produced, issued, etc., for which the planned or agreed date has expired. 2. The total number of customer orders which have been received but not yet been shipped. Synonym: Open Order.
Back Letter: Where a seller/shipper issues a 'letter of indemnity' in favor of the carrier in exchange for a clean bill of lading. May have only a limited value. Example: P & I problems. Alternative Definition: Back letters are drawn up in addition to a contract in order to lay down rights and/or obligations between both contracting parties, which, for some reason cannot be included in the original contract. This expression is sometimes used for letters of indemnity which are drawn up if the condition of the goods loaded gives rise to remarks and, nevertheless, the shipper insists upon receiving clean Bills of Lading. Letters of indemnity are only allowed in very exceptional circumstances.
Back Order: That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available. Alternative Definition: A customer order or commitment, which is unfilled due to insufficient stock.
Back Scheduling: A method of obtaining a production schedule by working backwards from the required due date in order to predict the latest start date consistent with meeting that due date.
Bad Faith: The intent to mislead or deceive. It does not include misleading by an honest, inadvertent or uncalled-for misstatement.
BAF: See Bunker Adjustment Factor.
Bagged Cargo:Various kinds of commodities usually packed in sacks or in bags, such as sugar, cement, milk powder, onion, grain, flour, etc. Alternative Definition: Goods shipped in sacks.
BAH: See Basic Allowance for Housing.
Bailment: A delivery of goods or personal property by one person (the bailor) to another (the bailee) on an express or implied contract for a particular purpose related to the goods while in possession of the bailee, who has a duty to redeliver them to the bailor.
Balance of Payments: A statement summarizing all the economic and financial transactions between companies, banks, private households and public authorities of one nation with those of the other nations of the world over a specific time period. It includes merchandise trade payments, payments and receipts on account of shipping services, tourist services, financial services, government expenditures, short and long term capital movements, interest and dividends, gold movements, etc.
Balance of Trade: The difference in value between a country's total imports and exports over a specific time period.
Balanced Economy: A condition of national finances in which imports and exports are equal.
Bale: A large bundle or package of compressed and bound goods, usually with an outer covering, often of burlap.
Bale Cargo: Cargo shipped in bales.
Balespace: The balespace of a vessel is 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: Heavy material or water placed in the lower holds of a ship or in strategically placed tanks along the sides to improve its stability. Alternative Definition: Materials, solely carried to improve the trim and the stability of the vessel. In vessels usually water is carried as ballast in tanks, specially designed for that purpose.
Ballast Bonus: A special payment above the chartering price when the ship has to sail a long way on ballast to reach the loading port.
Ballast Movement: A voyage or voyage leg made without any paying cargo in a vessel's tanks. To maintain proper stability, trim, or draft, seawater is usually carried during such movements.
Ballast Tank: Compartments at the bottom of a ship or on the sides which are filled with liquids for stability and to make the ship seaworthy. Any shipboard tank or compartment on a tanker normally used for carrying salt water ballast. When these compartments or tanks are not connected with the cargo system they are called segregated ballast tanks or systems.
Balloon Freight: Light, bulky articles.
Bank Acceptance: A draft drawn on and accepted by a bank.
Bank Delivery Order to an Airline: A letter addressed to an air carrier from a bank who is shown as consignee on an air waybill instructing the carrier to release a shipment. Often airlines will accept as a delivery order a bank's endorsement on the air waybill, although an air waybill is a non-negotiable document.
Bank Draft: A form of check drawn by a bank against its account in another bank. Alternative Definition: An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.
Bank Guarantee: An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier. Alternative Definition: Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading. Additional Alternative Definition: An undertaking by a bank to be answerable for payment of a sum of money in the event of non performance by the party on whose behalf the guarantee is issued.
Bank Holding Company: (USA) Any company which directly controls, with power to vote, more than five percent of voting shares of two or more banks (as defined by the Bank Holding Company Act .
Bank Holiday: A day on which banks are closed.
Bank Note: A promissory note having the appearance of currency, issued by a bank or banker authorized to do so, payable to bearer on demand, and intended to circulate as money.
Bank Release: A document issued by a bank who is the consignee of a shipment authorizing a carrier to deliver a shipment.
Banker's Bank: A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.
Banker's Draft: A draft payable on demand and drawn by, or on behalf of, a bank upon itself or upon another bank, sometimes a foreign bank, where it maintains an account or a relationship.
Bankers Acceptance: A draft calling for payment at a future date on which the drawee is a bank, and the bank has agreed to pay by signing "accepted" on the draft.
Banking System: For marine purposes the practice of always keeping more than one piece of cargo on the quay or in the vessel ready for loading or discharging in order to avoid delays and to obtain optimal use of the loading gear.
Bankruptcy: The condition of a legal entity that does not have the financial means to pay their incurred debts as they come due. In the U.S. this status is established through legal procedures involving a petition by the bankrupt or by its creditors.
Barcodes: A method of encoding data for fast and accurate electronic readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers, used to facilitate timely and accurate input of data to a computer system. Bar codes represent letters and/or numbers and special characters.
Bare Boat Charter: A charter in which the bare ship is chartered without crew; the charterer, for a stipulated sum taking over the vessel for a stated period of time, with a minimum of restrictions; the charterer appoints the master and the crew and pays all running expenses. See Demise Charter. Alternative Definition: The charter of a vessel where the charter party has the right to use his own master and crew on the vessel. Pays all operating expenses.
Barge:Flat-bottomed boat designed to carry cargo on inland waterways, usually without engines or crew accommodations. Barges can be lashed together and either pushed or pulled by tugs, carrying cargo of 60,000 tons or more. Small barges for carrying cargo between ship and shore are known as lighters. Alternative Definition: A flat bottomed cargo vessel primarily used on rivers and canals. Usually it is towed or pushed but it may be self-propelled. Additional Alternative Definition: Flat bottomed inland cargo vessel for canals and rivers with or without own propulsion for the purpose of transporting goods. Synonym: Lighter.
Barge Aboard Catamaran: A way of loading cargo into large barges and then in turn loading the barges into a ship.
Barge Carriers: Ships designed to carry either barges or containers exclusively, or some variable number of barges and containers simultaneously. Currently this class includes two types of vessels, the LASH and the SEABEE.
Barratry: 1. In maritime law the intentional misconduct of the ship's master or crew; includes theft, intentional casting away of vessel, or breach of trust. 2. The offense of frequently stirring up quarrels and suits, either at law or otherwise. Alternative Definition: An act committed by the master or mariners of a vessel, for some unlawful or fraudulent purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include negligence, if so gross as to evidence fraud.
Barrel: A term of measure referring to 42 gallons of liquid at 60 Degrees Farenheit.
Bars: Special devices mounted on container doors to provide a watertight locking. Synonym: Door lock bars.
Barter: Trade of goods or services without the use of money.
Base: Home depot of container or trailer.
Base Rate: A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate.
Basic Allowance for Housing: Definition pending.
Basic Stock: Items of an inventory intended for issue against demand during the resupply lead-time.
Basing Point: A location which is used to set the selling price of goods and the freight rates to all points. A price is set at a given location chosen as the ex-factory basing point with freight to the place of delivery added to create a delivered price. Then like goods, wherever they may be sold from, are charged freight to their destination as if they were shipped from the same location (the basing point).
Basing Rate: A freight rate which is used for the sole purpose of determining other freight rates. For an explanation of how this works, see 'Basing Point'.
Basket of Currencies: A composite unit consisting of weighted amounts of the currencies of a group of designated nations.
Batch: A collection of products or data which is treated as one entity with respect to certain operations e.g. processing and production.
Batch Lot: A definite quantity of some product manufactured or produced under conditions which are presumed uniform and for production control purposes passing as a unit through the same series of operations.
Batch Production: The production process where products/components are produced in batches and where each separate batch consists of a number of the same products/components.
Battens: 1.The protruding fixtures on the inside walls of a vessel's hold which are used to keep the cargo away or to fasten it in place. 2. Similar structural parts to the above in truck bodies, containers and rail cars. Alternative Definition: Members protruding from the inside walls of a vessel's hold or a (thermal) container to keep away the cargo from the walls to provide an air passage. They may be integral with the walls, fastened to the walls or added during cargo handling.
Bay: A vertical division of a vessel from stem to stern, used as a part of the indication of a stowage place for containers. The numbers run from stem to stern; odd numbers indicate a 20 foot position, even numbers indicate a 40 foot position.
Bay Plan: A stowage plan which shows the locations of all the containers on the vessel.
BB: See Ballast Bonus.
BBB: Before breaking bulk. Refers to freight payments that must be received before discharge of a vessel commences.
BC Code: Safe working practice code for solid bulk cargo.
BCO: See Beneficial Cargo Owner.
B/d: Barrels per day (measure of petroleum production).
Beam: The width of a ship. Also called breadth.
Bearer: The person in possession of a negotiable instrument, document of title, or security marked "payable to bearer", or the person in possession of one of these documents endorsed in blank.
Beggar-Thy-Neighbor Policy: A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, and thus improve its own position at the expense of its trading partners.
Belly Cargo: Freight accommodation below the main deck.
Belly Pits or Holds: Compartments beneath the cabin of an aircraft used for the transport of cargo or baggage.
Belt Line: A switching railroad operating within a commercial area.
Bending-Moment: Is the result of vertical forces acting on a ship as a result of local differences between weight and buoyancy. The total of these forces should be zero, otherwise change of draft will occur. At sea the bending moment will change as a result of wave impact which than periodically changes the buoyancy distribution. Note: The maximum allowed bending moment of a vessel is restricted by the class bureau to certain limits which are different under port and sea conditions.
Beneficial Cargo Owner: Known as BCO, refers to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods.
Beneficial Ownership: Designates the owner who receives the benefits or profits from the operation.
Beneficiary: 1. In the case of a letter of credit, the individual or company who is entitled to draw or demand payment under its terms. 2. In the case of insurance, the person entitled to take the proceeds. 3. The person for whose benefit a contract, or trust, or will is executed or enforced. Alternate Definition: Entity to whom money is payable; The entity for whom a letter of credit is issued; The seller and the drawer of a draft. Additional Alternative Definition: The seller of goods in a letter of credit transaction. If all L/C terms are met, the bank transfers funds to this person.
Berth: The place beside a docking area where a ship is secured and cargo can be loaded or unloaded. Alternative Definition: A location in a port where a vessel can be moored, often indicated by a code or name.
Berth Cargo: When a liner cargo vessel accepts extra cargo to fill up the empty space remaining.
Berth Liner Service: A regularly scheduled steamship line with regularly published schedules (ports of call) from and to defined trade areas.
Berth Terms: Shipped under rate that includes cost from end of ship's tackle at load port to end of ship's tackle at discharge port. Alternative Definition: An expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for the ship owner's account, and usually applying from the end of the ship's tackle in the port of loading to the end of the ship's tackle in the port of discharge.
Beyond: Used with reference to charges assessed for cargo movement past a line-haul terminating point.
Bid Bond: A type of indemnity bond. A surety guarantee often required to be established by a bidder to guarantee fulfillment of his offer if accepted.
Bilateral: A contract term meaning both parties agree to provide something for the other.
Bilateral Investment Treaty: A treaty between two countries with the goal of ensuring that investments made by either of them in the other receive treatment equal to that afforded their domestic entities or any third country entities.
Bilateral Trade: The commerce between two countries.
Bilateral Transport Agreement: Agreement between two nations concerning their transport relations.
Bill: 1. A "Bill of Exchange" or "Draft" (same thing). 2. A written statement of contract terms. 3 .The word "Bill" has many other international trade connotations:"Invoice" etc.
Bill of Credit: A written authority from one person to another, empowering the recipient of the document to receive money from the correspondents of the issuer abroad . (The usual issuer is a bank)
Bill of Exchange: Draft or Bill. Alternative Definition: In the United States, commonly known as a "Draft." However, bill of exchange is the correct term.
Bill of Health: An official certificate (Pratique) issued by the authorities upon the departure of a vessel or airplane showing the state of health at the place of departure, and of the passengers and crew. Alternative Definition: The Bill of Health is the certificate issued by local medical authorities indicating the general health conditions in the port of departure or in the ports of call. The Bill of Health must have been visaed before departure by the Consul of the country of destination. When a vessel has free pratique, this means that the vessel has a clean Bill of Health certifying that there is no question of contagious disease and that all quarantine regulations have been complied with, so that people may embark and disembark.
Bill of Lading:
issued by a carrier which is evidence of receipt of the goods, and is a contract
of carriage. It describes the goods, the details of the intended voyage, and it
specifies the conditions of transportation. If issued in negotiable form, i.e.
"to order", it becomes documentary evidence of title to the goods.
Alternative Definition: 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.
Additional Alternative Definition:
plural B/Ls. A document which evidences a contract of
carriage by sea. The document has the following
functions: 1. A receipt for goods, signed by a duly
authorized person on behalf of the carriers. 2. A
document of title to the goods described therein. 3. Evidence of the terms and
conditions of carriage agreed upon between the two parties.
Bill of Lading, Amended: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.
Bill of Lading, Canceled: B/L status; used to cancel a processed B/L; usually per shipper's request; different from voided B/L.
Bill of Lading, Charter Party: A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.
Bill of Lading, Claused:
A bill of lading which has exemptions to the
receipt of merchandise in "apparent good order" noted.
A notation on a bill of lading which
denotes a deficient condition of the goods or packaging, or other annotated
conditions modifying the printed conditions on the Bill Of Lading.
Bill of Lading, Clean: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging. Alternative Definition: (1) A bill of lading which bears no superimposed clause or notation which expressly declares a defective condition of the goods and/or the packaging (Article 18, Uniform Customs and Practice for Documentary Credits). A bill of lading that contains a clause declaring defective goods is called a Foul Bill of Lading. (2) A bill of lading that is silent as to the place of storage, indicating that the goods have been stowed under deck. See Bill of Lading, Unclean. Alternative Definition: A bill of lading issued by a carrier for goods delivered in "apparent good order and condition":bearing no notations or added clauses which may limit the liability of the carrier.
Bill of Lading,
Combined: B/L that covers cargo
moving over various transports. Alternative Definition:
of lading covering a shipment of goods by more than one mode of transportation.
Bill of Lading, Consolidated: B/L combined or consolidated from two or more B/L's.
Bill of Lading, Corrected: B/L requiring any update which results in money or other financially related changes.
Bill of Lading, Domestic: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders.
Bill of Lading, Duplicate: Another original Bill of Lading set if first set is lost. also known as reissued B/L.
Bill of Lading, Express: Non-negotiable B/L where there are no hard copies of originals printed.
Bill of Lading, Forwarder's: A bill of lading issued by a forwarder to a shipper as a receipt for merchandise that the forwarder will consolidate with cargo obtained from other exporters and ship to his agent at the port of destination. In most cases, the Forwarder's Bill of Lading has legal standing for banking purposes. Also called House Bill of Lading.
Bill of Lading, Foul: A receipt for goods issued by a carrier bearing a notation that the outward containers or the goods have been damaged.
Bill of Lading, Freight: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
Bill of Lading, Inland:
A bill of lading used in transporting goods
overland to the exporter's international carrier.
Bill of Lading, Government: Referred to as GBL, a bill of lading issued by the U.S. Government on the Optional Form 1103 or 1203 and is the transportation document used as a receipt of goods, evidence of title, and a contract of carriage.
Bill of Lading, Hitchment: B/L covering parts of a shipment which are loaded at more than one location. Hitchment B/L usually consists of two parts, hitchment and hitchment memo. The hitchment portion usually covers the majority of a divided shipment and carries the entire revenue.
Bill of Lading, House: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.
Bill of Lading, Intermodal: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.
Bill of Lading, Long Form: B/L form with all Terms & Conditions written on it. Most B/L's are short form which incorporate the long form clauses by reference.
Bill of Lading, Memo: Unfreighted B/L with no charges listed.
Bill of Lading, Military:
B/L issued by the U.S. military; also known as GBL, or Form DD1252.
Bill of Lading, Numbers: U.S. Customs' standardized B/L numbering format to facilitate electronic communications and to make each B/L number unique.
Bill of Lading, Negotiable: 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. Alternate Definition: There are two types: (1) A bill drawn to the order of a foreign consignee, enabling him to endorse the bill to a third party. (2) A bill drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of the latter bill is to protect the shipper against the buyer's obtaining the merchandise before he has paid or accepted the relative draft. (See also Endorsement in Blank)
Bill of Lading, Non-Negotiable: See Straight B/L. Sometimes means a file copy of a B/L.
Bill of Lading, Ocean: A document defining the terms and conditions of carriage for transport of cargo by sea freight.
Bill of Lading, Onboard: B/L validated at the time of loading to transport. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types. Alternative Definition: A bill of lading acknowledging that the relative goods have been received on board for shipment on a specified vessel.
Bill of Lading, Optional Discharge: B/L covering cargo with more than one discharge point option possibility.
Bill of Lading,
Order: See Negotiable B/L.
Bill of Lading, Original: The part of the B/L set that has value, especially when negotiable;rest of set are only informational file copies. Abbreviated as OBL.
Bill of Lading, Received for Shipment: Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard". Alternative Definition: A bill of lading acknowledging the receipt of goods by a carrier for shipment on a specified vessel. This type of bill of lading is not acceptable under a letter of credit unless it is specially authorized. English law does not regard these bills as a valid tender under CIF contracts because the CIF seller is obligated to ship the goods, and a Received for Shipment Bill of Lading is not considered proof of shipment.
Bill of Lading,
Reconciled: B/L set which has
completed a prescribed number of edits between the shippers instructions and the
actual shipment received. This produces a very accurate B/L.
Bill of Lading, Short Term: Opposite of Long Form B/L, a B/L without the Terms &Conditions written on it. Also known as a Short Form B/L. The terms are incorporated by reference to the long form B/L.
Bill of Lading, Split: One of two or more B/L's which have been split from a single B/L.
Bill of Lading, Stale: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void.
Bill of Lading, Straight (Consignment): Indicates the shipper will deliver the goods to the consignee. It does not convey title (non-negotiable). Most often used when the goods have been pre-paid. Alternative Definition: A non-negotiable bill of lading whereby the consignee named in the bill is the owner of the relative goods.
Bill of Lading, Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier's liabilities and contractual agreements.
Bill of Lading, Through: A bill of lading that covers transportation by more than one carrier from the point of issue to the final destination (e.g., a bill from New York, via Kurabo, to Pampatar, Venezuela).
Bill of Lading, Through Railway Export: A bill of lading showing the place of receipt by the carrier at an inland point, with transport to the port of exit accomplished using rail/intermodal connections.
Bill of Lading,
To Order: See Negotiable B/L.
Bill of Lading, Type: refers to the type of B/L being issued. Some examples are: a Memo(ME), Original (OBL), Non-negotiable, Corrected (CBL) or Amended (AM) B/L.
Bill of Lading, Status: represents whether the bill of lading has been input, rated,reconciled, printed, or released to the customer.
Bill of Lading, Unclean: A bill containing reservations as to the good order and condition of the goods or the packaging or both. Examples: bags torn,drums leaking, one case damaged, and rolls chafed.
Bill of Lading,
Unique Identifier: U.S.
Customs' standardization: four-alpha code unique to each carrier placed in front
of nine digit B/L number; APL's unique B/L Identifier is "APLU". Sea-land uses "SEAU".
These prefixes are also used as the container identification.
Bill of Lading, Voided: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L.
Bill of Lading Port Discharge: Port where cargo is discharged from means of transport.
Bill of Material: A list of all parts, sub-assemblies and raw materials that constitute a particular assembly, showing the quantity of each required item.
Bill of Sale: A written document by which a party legally transfers ownership of goods to another party.
Bill of Sight: A written description of goods given by an importer to a customs officer in the event shipping documents have not arrived in time and the importer wishes to avoid delayed entry charges. When an importer enters goods on a bill of sight, he usually must make a cash deposit covering the estimated amount of duty. When the shipping documents are received and a correct entry is made, the exact amount of duty is levied.
Bill-To Party: The party designated on purchase order, invoice, or bill of lading as the one to whom the bill should be sent for payment.
Billed Weight: The designated weight shown on the freight bill which is used to calculate the freight charges. Alternative Definition: The weight shown in a waybill and freight bill, i.e, the invoiced weight.
Billing Carrier: Also referred to as Bill Road, the carrier performing the first line haul service of the movement. This carrier is responsible for preparing the waybill document.
Billing Third Party: The transference of transportation charges to a party other than the shipper or consignee.
Bill Road: See Billing Carrier.
Bimodal Trailer: 1. A road semi-trailer with retractable running gear to allow mounting on a pair of rail boogies. Synonym: Road-Rail trailer 2. A trailer which is able to carry different types of standardized unit loads, (e.g. a chassis which is appropriate for the carriage of one FEU or two TEU's).
Biological Agents: A complex substance of organic origin which can treat or cause disease.
B/L: Bill of Lading
Black Cargo: Cargo banned by general cargo workers for some reason. This ban could be because the cargo is dangerous or hazardous to health.
Black Gang: A slang expression referring to the personnel in the engine department aboard ship. The term came from the days of coal burning engines that covered the workers in black dust.
Black Market: Buying or selling of products that violate government restrictions.
Blanket Bond: A bond covering a group of persons, articles or properties.
Blanket Rate: In insurance, a rate of premium applied across the board when there is more than one kind of property which is the subject of insurance. Alternative Definition: A rate applicable to or from a group of points; A special rate applicable to several different articles in a single shipment.
Blanket Waybill: A waybill covering two or more consignments of freight.
Blind Shipment: A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.
Blockade: Prevention of commercial exchange by physically preventing carriers from entering a port or nation.
Block Stowage: Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.
Blocked Trains: Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction. Alternative Definition: A number of railway wagons (loaded with containers), departing from a certain place and running straight to a place of destination, without marshalling, transshipping or any coupling or decoupling of wagons.
Blocking or Bracing: Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting.
BLs: Abbreviation for "Bales."
BLS (BLS): Bureau of Labor Statistics, Department of Labor.
Board: To gain access to a vessel.
Board Feet: The basic unit of measurement for lumber. One board foot is equal to a one inch board, 12 inches wide and one foot long.Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet.
Boatman: Person who attends to the mooring and unmooring of vessels.
Boatswain: Knowne as BOSUN, The highest unlicensed rating in the deck department who has immediate charge of all deck hands and who in turn comes under the direct orders of the master or chief mate or mate.
Bobtail: Movement of a tractor, without trailer, over the highway.
Bogie: A set of wheels built specifically as rear wheels under the container. Alternative Definition: A frame with wheels on which a container rides, more commonly referred to as a chassis.
Boilers: Steam generating units used aboard ship to provide steam for propulsion (and) for heating and other auxiliary purposes.
Bollard: Post, fixed to a quay or a vessel, for securing mooring ropes.
Bolster: A device fitted on a chassis or railcar to hold and secure the container.
Bona Fide: In or with good faith, honesty, and sincerity.
Bond: 1. A written undertaking to perform or refrain from performing specified acts, usually guaranteed by a third party. 2. A security evidencing debt, specifying the date payment is due and usually specifying a rate of interest and its dates of periodic payment.
Bonded: (USA) This term refers to goods which are held, stored or transported under circumstances where applicable duty or taxes have not yet been definitely determined or paid, and admissibility has not yet been arranged. Bonds must be posted by those who are responsible for the goods during this period (the carriers, warehouses, and/or importers) to indemnify the government if the goods are released improperly. Alternative Definition: The storage of certain goods under charge of customs viz. customs seal until the import duties are paid or until the goods are taken out of the country. 1. Bonded warehouse (place where goods can be placed under bond). 2. Bonded store (place on a vessel where goods are placed behind seal until the time that the vessel leaves the port or country again). 3. Bonded goods (dutiable goods upon which duties have not been paid i.e. goods in transit or warehoused pending customs clearance).
Bonded Freight: Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions.
Bonded Terminal: (USA) A terminal approved by Customs for temporary storage of imported goods until Customs duties are paid or goods released. Bonds must be posted by the terminal operator to indemnify the government if the goods are released improperly.
Bonded Warehouse: (USA) An approved private warehouse used for the storage of goods until duties or taxes are paid and the goods are properly released by Customs. Bonds must be posted by the warehouse proprietor and by the importer to indemnify the government if the goods are released improperly. Alternative Definition: A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Bond of Indemity: A bond to indemnify and save harmless the party to whom the bond is issued against some anticipated loss.
Bond Port: Port of initial Customs entry of a vessel to any country. Also known as First Port of Call.
Bond System: (USA) An automated electronic system, part of the Automated Customs System, whose purpose is to control and track indemnity bonds issued to Customs to secure compliance with various laws.
Booking: The making of arrangements for a shipment with the representatives of a vessel or airline. Alternative Definition: Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.
Booking Confirmation: Provided to shipper as confirmation of booking.
Booking Number: Reservation number used to secure equipment and act as a control number prior to completion of a B/L.
Booking Reference Number: The number assigned to a certain booking by the carrier or his agent.
BOSUN: See Boatswain.
Bottom-Air Delivery: A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling, and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.
Bottom Side Rails: Structural members on the longitudinal sides of the base of the container.
Bounties: A compensation paid to persons to induce certain actions. In this class are government payments to producers or exporters to strengthen their competitive position.
Bow: The front of a vessel.
Bow Thrusters: A propeller at the lower sea-covered part of the bow of the ship which turns at right angles to the fore-and-aft line and thus provides transverse thrust as a maneuvering aid.
Box: 1. Term referring to a trailer, semi-trailer, or container used in transportation. 2. A type of package of wood, cardboard, metal, plastic or other material.
Box Car: A closed railroad freight car.
Boycott: A concerted refusal to deal commercially with a person, firm, or country.
B/p or BOP: Balance of payments.
Breadth: See Beam.
1. A monetary
allowance that a manufacturer allots for compensation to a buyer for breakage to
goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in computing interest. 3. In marine insurance, "breakage" refers to breakage of fragile goods such as glass and china.
Break Bulk: 1. A breakbulk ship is one which transports cargo which is packed in cases, bales, cartons, drums, carboys etc., and this cargo is carried in the ship's cargo holds rather than in containers (although some loaded containers may be carried). 2. 'to breakbulk' is to unload packaged cargo from a 'breakbulk ship' or from a container and to distribute it. Alternative Definition: To unload and distribute a portion or all of the contents of a rail car, container, or trailer; Loose, non-containerized cargo.
Breakbulk Cargo: Cargo that is shipped in packing units such as cartons, cases, crates, bales, or drums, but not containerized.
Breakbulk Vessel: A general, multipurpose, cargo ship that carriers cargoes of nonuniform sizes, often on pallets, resulting in labor-intensive loading and unloading; calls at various ports to pick up different kinds of cargoes. Alternative Definition: (1) A vessel designed to handle palletized, pre-slung, boxed, and unitized cargo. Holds can be at the open bay or between deck type. Between deck means, the hold can be converted from multi levels to open bay. This type of vessel is usually self-sustaining. (2) A general, multipurpose, cargo ship that carriers cargoes of non-uniform sizes, often on pallets, resulting in labor-intensive loading and unloading; calls at various ports to pick up different kinds of cargoes.
Break of Bulk: A transportation term which refers to the separation of a shipment into smaller amounts for easier shipping to customers.
Breakpoint: The weight at which freight charges change, e.g., 100 kilos.
Bridge: Used loosely to refer to the navigating section of the vessel where the wheel house and chart room are located; erected structure amidships or aft or very rarely fore over the main deck of a ship to accommodate the wheelhouse.
Bridge Point: An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading.
Bridge Port: A port where cargo is received by the ocean carrier and stuffed into containers but then moved to another coastal port to be waded on a vessel.
Broken Stowage: The loss of space caused by irregularity in the shape of packages; Any void or empty space in a vessel or container not occupied by cargo.
Broker: One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission. Alternative Definition: A person who arranges for transportation of loads for a percentage of the revenue from the load.
Brokerage: Freight forwarder/broker compensation as specified by ocean tariff or contract.
B/s: Bags; bales.
B/S (B/S): Bunker Surcharge. See Bunker Charge, Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF).
Bulk: Cargo shipped in loose condition and of a homogeneous nature. Cargoes that are shipped unpackaged either dry, such as grain and ore, or liquid, such as petroleum products. Bulk service generally is not provided on a regularly scheduled basis, but rather as needed, on specialized ships, transporting a specific commodity.
Bulk Cargo: Cargo that is made up of an unpacked commodity; examples include grain, oil, and ore.
Bulk Carrier: A vessel designed for the shipment of bulk cargo. Alternative Definition: Ship specifically designed to transport vast amounts of cargoes such as sugar, grain, wine, ore, chemicals, liquefied natural gas; coal and oil. See also LNG Carrier, Tanker, OBO Ship.
Bulk Freight: Cargo not in packages or containers.
Bulk Freight Carrier: A container with a discharge hatch in the front wall; allows bulk commodities to be carried.
Bulkhead: A partition separating one part of a ship, freight car, aircraft or truck from another part.
Bulk Sale: The transfer or sale of substantially all of an inventory of an enterprise in a single transaction not in the usual course of business.
Bulk Solids: Dry cargo shipped loose, such as grain, ore, etc. Alternative Definition: Dry cargo shipped in containers, loose and in bulk, without counting or marking.
Bull Rings: Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo.
Bunker Adjustment Factor: Known as BAF, an adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.
Bunker Charge: An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. Also known as Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor or (FAF).
Bunker Fuel: The fuel used to power a ship.
Bunkers: 1. A compartment (hold) of a ship for storage of fuel. 2. The fuel for a vessel.
Buoy: A floating object employed as an aid to mariners to mark the navigable limits of channels, their fairways, sunken dangers, isolated rocks, telegraph cables, and the like; floating devices fixed in place at sea, lake or river as reference points for navigation or for other purposes.
Bureau of Alcohol, Tobacco and Firearms: The Bureau of Alcohol, Tobacco and Firearms (ATF) is a law enforcement organization within the United States Department of Treasury with unique responsibilities dedicated to reducing violent crime, collecting revenue, and protecting the public. ATF enforces the Federal laws and regulations relating to alcohol, tobacco, firearms, explosives and arson by working directly and in cooperation with others.
Bureau of Industry and Security: A U.S. government agency responsible for control of exports for reasons of national security, foreign policy and short supply.
Buy American Acts: U.S. federal and state government statutes that give a preference in government contracts to U.S. produced goods.
Cable Ship: A specially constructed ship for the laying and repairing of telegraph and telephone cables across channels, seas, lakes, and oceans.
Cabotage: The carriage of goods or passengers for remuneration taken on at one point and discharged at another point within the territory of the same country. Alternative Definition: Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service.
Cabotage Policies: Reservation of a country's coastal (domestic) shipping for its own flag vessels.
CAD: See Cash Against Documents.
CAF: See Currency Adjustment Factor.
Call: 1. A demand for early repayment of an obligation, or for the performance of a specific act under a contract. 2. A demand for the payment of money. 3. The act of redeeming a bond earlier than the full term. 4. Short for "Call Option," a contract giving the holder the right to receive from the issuer a specified amount of a security at a specified price on or before a certain date. 5. Short for "Margin Call":a call by a future or an options exchange, or by a broker to its clients, for additional collateral to that previously posted when the futures, options, or securities were purchased without posting their full value.
Call Money: Money lent by banks on a short term basis which the bank, as lender, can "call" (demand payment at any time, usually on 24 hours notice.)
CAORF: Computer-Assisted Operations Research Facility: A MARAD R&D facility located at U.S. Merchant Marine Academy, Kings Point, New York.
Capacity to Contract: Legal competency to make a contract.
Capital Goods: 1. Durable goods which are used to produce other goods for consumption: for example machinery, equipment, buildings. 2. Also, material used or consumed to produce other goods.
Capital Market: The market for long term investment funds in the form of stocks, bonds, commercial paper etc.
Captain's Protest: A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company. Alternative Definition: A written sworn statement of the master of a vessel to the effect that damage suffered by the ship during the voyage was caused by storm or other peril of the sea, without any negligence or misconduct on his own part.
Carfloat: A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways.
Cargo: Merchandise/commodities carried by means of transportation.
Cargo Agent: An agent appointed by an airline or shipping line to solicit and process international air and ocean freight shipments.
Cargo Handling: The act of loading and discharging a cargo ship.
Cargo Insurance: Insurance to protect the financial interest of the cargo owner during transportation in case of a loss.
Cargo Manifest: A manifest that lists all cargo carried on a specific vessel voyage. Alternative Defintion: A list of cargo being transported or warehoused.
Cargo Network Services: Known as CNS, an agency to which IATA forwarders pay their freight bills.
Cargo NOS: Cargo Not Otherwise Specified. Usually the rate entry in a tariff that can apply to commodities not covered under a specific item or sub-item in the applicable tariff.
Cargo Plan: A plan giving the quantities and description of the various grades carried in the ship's cargo tanks, after the loading is completed.
Cargo Preference: Reserving a portion of a nation's imports and exports to national-flag vessels. Alternative Definition: Cargo reserved by a Nation's laws for transportation only on vessels registered in that Nation. Typically the cargo is moving due to a direct or indirect support or activity of the Government. Alternative Definition: Cargo preference is the legal requirement for all, or a portion of all, ocean-borne cargo to be transported on U.S. flag vessels.
Cargo Receipt: Receipt of cargo for shipment by a consolidator (used in ocean freight).
Cargo Retention Clauses: Clauses introduced by charterers based on shortage of delivered cargo because of increased oil prices.
Cargo Selectivity System: (USA) An Automated Customs System module which is used to identify high risk cargo and to apply more intensive examinations to it.
Cargo Tonnage: Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)
Carload Rate: A rate applicable to a carload of goods.
Carnet: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds. Alternative Definition: A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds. Any of various Customs documents required for crossing some international borders.
Carpooling: Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers.
Carriage and Insurance Paid To: Known as CIP, The seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.
Carriage of Goods by Sea Act: A law enacted in 1936 covering the transportation of merchandise by sea to or from ports of the United States and in foreign trades.
Carriage Paid To: Known as CPT, the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
Carrier: Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.
Carrier Approval Requirements: Definition Pending.
Carrier's Certificate: A certificate required by U.S.Customs to release cargo properly to the correct party. Alternative Definition: (USA) A document issued by a carrier providing the particulars of a shipment and designating to customs who may make a customs entry on that shipment.
Carrier Container/Shipping Container: A container over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing, or renting a shipper-owned container.
Carriers: Owners or operators of vessels providing transportation to shippers. The term is also used to refer to the vessels.
Car Seal: Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.
Cartage: Usually refers to intra-city hauling on drays or trucks.
Cartel: An association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or industry.
Cartment: Customs form permitting in-bond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier's possession while draying cargo.
Cash Against Documents: Known as CAD, a method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house. Alternative Definition: A term used in collections supported by shipping documents which are released to the buyer only against payment. Same as Documents Against Payment (D/P).
Cash in Advance: Known as CIA, a method of payment for goods whereby the buyer pays the seller before shipping the goods.
Cash with Order: Known as CWO, A method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.
CASUS Major: An extraordinary casualty such as a fire, shipwreck etc.
Catamaran: A double or treble-hulled vessel constructed in wood, aluminum or reinforced glass fibre and is also composed of two or three hulls diagonally joined together by various methods. Normally no ballast is needed to counteract the center buoyancy since it enjoys good stability at sea.
Category Groups: A classification system which groups various products for statistical, export control or quota control purposes.
CATUG: Catamaran Tug. A rigid catamaran tug connected to a barge. When joined together, they form and look like a single hull of sa ship; oceangoing integrated tug-barge vessels.
Catwalk: A raised bridge running fore and aft from the midship, and also called "walkway". It affords safe passage over the pipelines and other deck obstructions.
Caveat Emptor: Let the buyer beware, which is to say the purchaser buys at his own risk.
CCF: Capital Construction Fund. A tax benefit for operators of U.S.-built, U.S.-flag ships in the U.S. foreign, Great Lakes, or noncontiguous domestic trades, by which taxes may be deferred on income deposited in a fund to be used for the replacement of vessels.
CDS: Construction Differential Subsidy. A direct subsidy paid to U.S. shipyards building U.S.-flag ships to offset high construction costs in American shipyards. An amount of subsidy (up to 50 percent) is determined by estimates of construction cost differentials between U.S. and foreign yards.
CE: See Consumption Entry.
Cells: The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it.
Census Interface: (USA) An Automated Customs System module that captures trade data for the U.S. Bureau of Census.
Center of Gravity: The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo.
Central Bank: An institution with the sole right to issue bank notes and power to dictate the monetary policy for a currency zone.
Centralized Household Goods Traffic Management Program: Also known as CHAMP. Definition Pending.
Certificate: A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment; The document issued by the U.S. Coast Guard certifying an American flag vessel's compliance with applicable laws and regulations.
Certificate of Inspection: A certificate usually required for industrial equipment and meat products. There are companies in every port city that specialize in issuing certificates of inspection for machinery. The Meat Inspection Division of the U.S. Department of Agriculture issues certificates of inspection for meat products that are recognized throughout the world. Alternative Definition: A certificate issued by an independent third party verifying the condition of cargo or of property.
Certificate of Manufacture: A document used under a letter of credit containing an affidavit that goods have been manufactured and are being held for the account and risk of the buyer. In war times when transportation facilities are disrupted, it is common for letters of credit to be paid against presentation of a certificate of manufacture. This is rare in ordinary times, except in the case of specially manufactured goods. Alternative Definition: 1. A certificate sometimes required from a manufacturer to attest that goods have been manufactured according to the contract; for example, to support payment under a letter of credit. 2. (USA) A form required to support a claim for duty drawback based on manufacture in the United States.
Certificate of Origin: A document containing an affidavit to prove the origin of imported goods. It is used for customs or foreign exchange purposes or both. Certificates of origin are commonly certified by an official organization in the country of origin such as a consular office or a chamber of commerce.
Certificate of Registry: A document specifying the nation registry of the vessel.
Certificate of Weight: A document certifying to the weight of a shipment.
Certification: 1. Official proof of authenticity. 2. The formal assertion of some fact in writing.
Cession of Goods: A surrender or assignment of goods for the benefit of one's creditors.
CET: See Common External Tariff.
CFR: See Cost and Freight.
CFS: See Container Freight Station.
CFS/CFS (Pier to Pier): The term CFS/CFS, sometimes referred to as Pier to Pier, means cargo delivered by breakbulk to carrier's container freight station (CFS) to be packed by carrier into containers and to be unpacked by carrier from the container at carrier's destination port CFS.
CFS Charge: The charge assessed for services performed at the loading or discharging port in the packing or unpacking of cargo into/from containers at a Container Freight Station (CFS).
CFS/CY: The term CFS/CY means cargo delivered breakbulk to carrier's CFS to be packed by carrier into containers and accepted by consignee at carrier's CY and unpacked by the consignee off carrier's premises, all at consignee's risk and expense.
CFS Receiving Services: The service performed at the loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following: (1) Moving empty containers from CY to CFS (2) Drayage of loaded containers from CFS to CY and/or ship's tackle. (3) Tallying. (4) Issuing dock receipt/shipping order (5) Physical movement of cargo into, out of, and within CFS (6) Stuffing, sealing, and marking containers (7) Storage. (8) Ordinary sorting and stacking. (9) Preparing carrier's internal container load plan.
C&F: Cost and Freight
C&F Terms of Sale: Known as INCOTERMS, obsolete, albeit heavily used,term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.
C&I: See Cost and Insurance
CHAMP: See Centralized Household Goods Traffic Management Program.
Chandler: A person who deals in the selling of provisions, dried stores, etc.
Chargeable Weight: The weight or volume of a shipment used in determining freight charges.
Charter Agreement/Charter Party: A lease or agreement to hire an airplane, vessel, or other means of conveyance to transport goods to one or more designated locations. Among other specifications, the contract usually stipulates the exact obligations of the vessel owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.), or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides.
Charterer: The person to whom is given the use of the whole of the carrying capacity of a ship for the transportation of cargo or passengers to a stated port for a specified time.
Charter Party: A contractual agreement between a ship owner and a cargo owner, usually arranged by a broker, whereby a ship is chartered (hired) either for one voyage or a period of time.
Charter Rates: The tariff applied for chartering tonnage in a particular trade.
Charter Service: Temporary hiring of an aircraft or vessel for the transportation of cargo or passengers.
Chartered Ship: A ship leased for a stated time, voyage, or voyages.
Chassis: (1) A wheel assemble including bogies constructed to accept mounting of containers. (2) A frame with wheels on which a container rides. Alternative Definition: 1. A special trailer or undercarriage on which containers are moved over the road. 2. The undercarriage of a vehicle.
Chemical Tanker: Specially designed for the transport of chemicals.
Chief Engineer: The senior engineer officer responsible for the satisfactory working and upkeep of the main and auxiliary machinery and boiler plant on board ship. Alternate Definition: Head of engineering department. Keeps records of all engine parts and repairs. Generally tends to the functioning of all mechanical equipment on ship. Calculates fuel and water consumption and requirements. Coordinates operations with shoreside port engineer.
Chief Mate: The officer in the deck department next in rank to the master; second in command of a ship. He is next to the master, most especially in the navigation and as far as the deck department is concerned. The chief mate assumes the position of the Master in his absence.
Chief Steward: Orders food. Prepares menus. Assists chief cook in food preparation.
Chock: A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.
CI: See Cost and Insurance.
CIA: See Cash in Advance.
CI&F: See Cost, Insurance and Freight.
CIF: See Cost, Insurance and Freight.
CIF&C: Price includes commission as well as CIF.
CIF&E: Cost, Insurance, Freight And Exchange.
CIFI & E: Cost, Insurance, Freight, Interest and Exchange.
CIFCI: Cost, Insurance, Freight, Collection And Interest.
CIP: See Carriage and Insurance Paid To...named Port of Destination
Circa: Same as "about" and "approx."; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.
City Terminal Service: A service provided by some airlines that involves receiving or delivering cargo at terminals in-town instead of at airports.
CKD: Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.
CL: Abbreviation for "Carload" and "Containerload".
Claim: A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence. Alternative Definition: 1. A demand of payment. 2. In insurance, a demand for payment of money or property as the result of an insured loss. 3. In transportation, a demand for return of overpaid charges. Also, a demand for reimbursement of losses due to loss or casualty to cargo or failure to deliver.
Class Rates: A class of goods or commodities is a large grouping of various items under one general heading, and all items in the group make up a class. The freight rates that apply to all items in the class are called class rates.
Classification: A customs term for the placement of an item under the correct number in the customs tariff for duty purposes. At times, this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by customs on a given item. Alternative Definition: A publication,such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules. Additional Alternative Definition: The categorization of merchandise:In transportation:to permit determination of freight rates within a tariff. In customs:to permit the determination of duty status within the Harmonized Tariff Schedules.
Classification Rating: The designation provided in a classification by which a class rate is determined.
Classification Society: Worldwide experienced and reputable societies. which undertake to arrange inspections and advise on the hull and machinery of a ship. A private organization that supervises vessels during their construction and afterward, in respect to their seaworthiness, and the placing of vessels in grades or "classes" according to the society's rules for each particular type. It is not compulsory by law that a shipowner have his vessel built according to the rules of any classification society; but in practice, the difficulty in securing satisfactory insurance rates for an unclassed vessel makes it a commercial obligation.
Classification Yard: A railroad yard with many tracks used for assembling freight trains.
Clayton Act: An anti-trust act of the U.S. Congress making price discrimination unlawful.
Clean Draft: A draft to which no documents have been attached.
Cleaning in Transit: The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination.
Clean Ship: Refers to tankers which have their cargo tanks free of traces of dark persistent oils which remain after carrying crudes and heavy fuel oils.
Clearance:The size beyond which cars or loads cannot use Limits bridges, tunnels, etc. Alternative Definition: 1. The completion of governmental requirements so that a carrier may arrive in a port and unlade cargo and passengers, or may lade cargo and passengers and depart for a foreign destination. 2. The accomplishment of the customs formalities necessary to allow goods to be imported or to be exported.
Cleat: A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.
Clip-On: Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.
Closed-End Transaction: A credit transaction with a fixed amount of time for repayment.
CM: Abbreviation for "Cubic Meter."
cm (Small Letters): Abbreviation for "centimeter."
CMB: Abbreviation for "Cubic Meter."
CNS: See Cargo Network Services.
COA: See Contract of Affreightment.
Coastal Trade: Trade by vessel between the ports of one nation.
Coastwise: Domestic shipping routes along a single coast.
COD: Abbreviation for: Collect (cash) on Delivery; Carried on Docket (pricing).
Code of Liner Conduct: Known as UNCTAD, a convention drafted under the auspices of the United Nations Conference on Trade and Development which provides that all shipping traffic between two foreign countries is to be regulated as far as the quantities of shipments are concerned on the following percentages -- 40% for owners of the country of origin, 40% for owners of country of destination, and 20% for owners of the country which is neither the origin nor the destination.
COFC: Container on flat car; a type of rail freight service involving the shipment of containers without chassis.
COGSA: Carriage of Goods by Sea Act.:U.S. Federal codification passed in 1936 which standardizes carrier's liability under carrier's bill of lading. U.S. enactment of The Hague Rules.
Collar: An agreement that puts upper and lower limits on the interest rate of a financial instrument or on the price of something, and through this device limits the possible amount of loss or gain from the rise or fall of interest or price of the thing "collared."
Collect Charges: 1. Transportation practice where the receiver of the goods pays the freight and charges to the carrier. 2. Collection practice where the buyer is expected to pay the bank charges for handling the collection.
Collecting Bank: A bank that acts as an agent to the seller's bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise.
Collection: A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance. Alternative Definition: 1. The presentation for payment of an obligation and the payment thereof. 2. A gathering of similar goods.
Collection Letter: Customer's written instructions to a bank on how to handle a collection. Many banks have an instruction form for use instead of a letter.
Collection Papers: Drafts, invoices, printed lists, documents which relate to a shipment, and other similar instruments presented to the designated buyer/ payee to obtain payment or acceptance.
Collection System: (USA) In U.S. Customs, it is the process that controls and accounts for payments collected by the agency.
Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Collect on Delivery: Known as COD, a service where the purchase price of a shipment is collected by the carrier upon delivery of the shipment and subsequently paid to the shipper.
Collier: Vessel used for transporting coal.
Collision Avoidance System: Electronic system commonly used to prevent collisions in inland navigable waterways.
COLREG: Convention on International Regulations for Preventing Collisions at Sea.
COMBI: Combination passenger/cargo vessel; a vessel specifically designed to carry both containers and conventional cargoes.
Combination Aircraft: An aircraft capable of transporting both cargo and passengers on the same flight.
Combination Export Manager: A firm that acts as an export sales agent for more than one noncompeting manufacturer.
Combination Rate: A rate made up of two or more factors, separately published.
Combination Vessels: A type of ship that accommodates both container and breakbulk cargo. It can be either self-sustaining or non-self sustaining. Also known as a Container/Breakbulk Vessel.
Combined Ships: Ships that can carry both liquid and dry bulk cargoes.
Combined Transport: Consignment sent by means of various modes of transport.
Comity: 1. In international relations it is the recognition that one sovereignty allows within its territory to the legislative, executive or judicial acts of another sovereignty, with due regard to the rights of its own citizens. 2. Courtesy, respect, and good will.
Command Economy: An economic system where the decisions about allocation of resources, production, distribution and consumption are made by a central government authority instead of being determined by market forces. An example was the Nazi economy.
Commercial Bank: In the USA, a bank that is authorized to accept demand deposits. It may also receive time deposits, make loans, engage in trust services, issue letters of credit, accept and pay drafts, rent safe deposit boxes and engage in many other similar activities.
Commercial Bill of Lading: Definition Pending.
Commercial Invoice: An itemized list of goods shipped that is usually included among an exporter's collection papers. Alternative Defintion: A document which details the transaction between a seller and a buyer. It minimally should give the name and address of the seller and of the buyer, the date of the sale, a description of the goods sold, the quantity, the unit price, the terms of sale, and the total money amount due. If it is an invoice between buyer and seller of different countries it should also indicate the kind of currency.
Commercial Letter of Credit: An instrument by which a bank substitutes its credit for that of a customer to enable him to finance the purchase of goods or to incur other commitments. The bank issues a letter (or document) on behalf of its client to a supplier and agrees to pay them upon presentation of documentary evidence that the supplier has performed in accordance with the terms of the letter of credit.
Commercial Officers: Embassy and consular officials who assist their country's citizens and businesses in a foreign country through arranging appointments with local business and government officials and providing counsel on local trade regulations, laws, and customs.
Commercial Paper: Negotiable instruments used in commerce. Usually they are short term, unsecured, promissory notes issued by highly rated entities and are traded on the money markets.
Commercial Set: The documents required to evidence the shipment of goods; usually includes an invoice, packing list, and bill of lading; may include certificate of origin, certificate or policy of insurance, and other special documents.
Commercial Treaty: An agreement between two or more countries that establishes the conditions under which business may be conducted between their citizens within their countries.
Commingling: 1. The packing or mingling of various goods subject to different rates of duty so that the value and quantity of each class of goods cannot be readily determined. 2. To combine funds or properties into a common mass.
Commission: 1. A board or committee officially appointed to perform certain functions or exercise certain jurisdiction of a public nature. 2. The amount paid by a principal to an agent for their role in the completion of a transaction involving the sale of goods or services. 3.The authority under which one acts, transacts business or negotiates for another.
Commodity: Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.
Commodity Code: The system of identifying a commodity by an assigned number.
Commodity Rate: A rate published to apply to a specific article or articles. Alternative Definition: The rate applicable to shipping a given commodity between points.
Commodity Specialist: An official authorized by the U.S. Treasury to determine the proper tariff and value of imported goods.
Common Carrier: (1) A publicly or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid. (2) A transportation company engaged in the business of handling persons or goods for compensation and for all persons impartially. Alternate Definition: Holds himself out for hire to the public. Must post rates and cannot discriminate against customers whose cargo he is equipped to carry.
Common Law: Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.
Common Point: 1. A location serviced by two or more transportation lines. 2. A significant point over which aircraft fly and report to the air controllers.
Commuted Rate System: The system under which a Federal Agency may allow its employees to make their own household goods shipping arrangements, and apply for reimbursement.
Competitive Rate: Rate determined by one transportation line to compete with the rate of another transportation line.
Complement: The number of officers and crew employed upon a vessel for its safe navigation and operation.
Compradore: An agent in a foreign country employed by a domestic businessman to facilitate transactions with local businesses within the foreign country.
Concealed Damage: Damage to the contents of a package which is not evident from the appearance of the exterior of the package.
Concealed Loss: 1. Loss from a package bearing concealed damage. 2. Damage, loss, or shortage of goods within a package which is not apparent from its exterior condition.
Conference: An affiliation of shipowners operating over the same route(s) who agree to charge uniform rates and other terms of carriage. A conference is "closed" if one can enter only by the consent of existing members of the conference. It is "open" if anyone can enter by meeting certain technical and financial standards. Conference members are common carriers.
Confirmed Letter of Credit: A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.
Confirming Bank: The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit. Alternative Definition: A bank which engages to honor a letter of credit issued by another, or engages that such letter of credit will be honored by the issuer or by a third bank.
Confiscation: The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.
Congestions: Port/berth delays.
Connecting Carrier: A carrier that has a direct physical connection with another or forming a connecting link between two or more carriers.
Consignee: The person to whom cargo is consigned as stated on the bills of lading. Alternate Definition: (1) The receiver of freight shipped by the shipper (consignor) (2) -The individual or company to whom a seller or shipper sends merchandise and who, upon presentation of necessary documents, is recognized as the merchandise owner for the purpose of declaring and paying customs duties. Alternate Definition: Consignee is the person or agent to whom freight or household goods are delivered.
Consignee Mark: A symbol placed on packages for identification purposes generally consisting of a triangle, square, circle, diamond, or cross, with letters or numbers as well as the port of discharge.
Consignment: The physical transfer of goods from a seller (consignor) with whom the title remains until the goods are sold, to another legal entity (consignee) that acts as a selling agent. Only if there is a subsequent sale does the seller receive any payment.
named in the bill of lading as the one from whom the goods have been received
for shipment. Alternate Definition:
(1) The person by whom freight is shipped; shipper (2) A
term used to describe any person who consigns goods to himself or to another
party in a bill of lading or equivalent document. A consignor might be the owner
of the goods, or a freight forwarder who consigns goods on behalf of his
principal. Alternate Definition: Consignor is
the person or firm that ships freight or household goods to a consignee.
Consolidated Shipment: An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.
Consolidation: 1. In transportation, the combining of smaller shipments into a single shipment that is sent to a destination point. 2.The reorganization of corporations to combine two or more into a successor corporation.
Consolidator: An agent who brings together a number of shipments for one destination to qualify for preferential rates. Alternative Definition: A company that provides freight consolidation services.
Consortium: The name for an agreement under which several nations or nationals (usually corporations) of more than one nation join together for a common purpose (e.g., a shipping consortium).
Construction Differential Subsidy: A program whereby the U.S.government attempted to offset the higher shipbuilding cost in the U.S. by paying up to 50% of the difference between cost of U.S. and nonU.S. construction. The difference went to the U.S. shipyard. It is unfunded since 1982.
Construction Unit: Equipped to assist during offshore construction and maintenance work.
Consul: A government official residing in a foreign country charged with representing the interests of his or her country and its nationals.
Consular Declaration: A formal statement describing goods to be shipped; filed with and approved by the consul of the country of destination prior to shipment.
Consular Documents: Special forms signed by the consul of a country to which cargo is destined.
Consular Invoice: A document required by some countries describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official, the country�s customs officials to verify the value, quantity, and nature of the shipment use a consular invoice.
Consular Visa: An official signature or seal affixed to certain documents by the consul of the country of destination.
Consulate: An office of a country within another country (often there are several, located in the larger commercial centers). These offices represent the commercial interests of the citizens of their country.
Consumer Goods: Any goods produced for the express use of individuals rather than the production or manufacturing of other goods.Any goods produced for the express use of individuals rather than the production or manufacturing of other goods.
Consumption Entry: Known as CE, the process of declaring the importation of foreign-made goods into the United States for use in the United States. Alternative Definition: (USA) A "consumption entry" is the filing with Customs in proper form of an "entry summary for consumption" on imported goods , and payment of estimated duties, taxes, and fees, if any, resulting in the release of the goods by Customs. When the release is unconditional, the importer may dispose of the goods.
Container: A van, flatrack, open top trailer or other similar trailer body on or into which cargo is loaded and transported without chassis aboard ocean vessels.; a large rectangular or square container/box of a strong structure that can withstand continuous rough handling from ship to shore and back. It opens from one side to allow cargo to be stacked and stowed into it. Alternative Definition: (1) An open or enclosed structural unit designed for intermodal transport of commodities; many have standard corner fittings to secure them to highway chassis, rail cars, or ocean vessels, facilitating interchange among carriers in international trade (2) A single, rigid, sealed, reusable metal "box" in which merchandise is shipped by vessel, truck, or rail. Container types include standard, high cube, hardtop, open top, flat, platform, ventilated, insulated, refrigerated, or bulk. Containers (except for flat-rack vehicle rack and portable liquid tank types) have a closure or permanently hinged door that allows ready access to cargo. All containers have constructions, fittings, and fastenings able to withstand, without permanent distortion, all stresses that may be applied in normal service use of continuous transportation. Containers must bear the manufacturer's specifications. Additional Alternative Definition: A reusable, rigid, exterior "box" in which merchandise is shipped by air, vessel, truck, or rail.
Container Booking: Arrangements with a steamship line to transport containerized cargo.
Container Depot: Container freight station or a designated area where empty containers can be picked up or dropped off.
Container Freight Charge: Charge made for the packing or unpacking of cargo from ocean freight containers.
Container Freight Station: Known as CFS, the term at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term means the bonded location designated by carriers in the port area for unpacking and delivery of cargo. Alternative Definition: 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.
Container Load: A load sufficient in size to fill a container either by cubic measurement or by weight. Alternative Definition: A shipment of cargo that, according to weight or volume, will fit a standard container.
Container Manifest: Document showing contents and loading sequence of a container.
Container, Ocean: 1) Designed to be moved inland on its own chassis, an ocean container can be loaded at the shipper's plant for shipment overseas. The average outside dimensions are generally 20, 35, and 40 feet in length, 8 feet wide, and 8 feet high. (2) A van, flatrack, open top trailer or other similar trailer body on or into which cargo is loaded and transported without chassis aboard ocean vessels; a large rectangular or square container/box of a strong structure that can withstand continuous rough handling from ship to shore and back. It opens from one side to allow cargo to be stacked and stowed into it.
Container On Flatcar: A container without wheels put on railcars for transport inland.
Container Part Load: A shipment of cargo that according to weight or volume will not fill a standard container on its own but is expected to be shipped in a container, if necessary with other shipments which are also too small to take up a full container themselves.
Container Pool: An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required.
Container Ship: A ship constructed in such a way that she can easily stack containers near and on top of each other as well as on deck. A vessel designed to carry standard intermodal containers enabling efficient loading, unloading, and transport to and from the vessel. Oceangoing merchant ship designed to transport a unit load of standard-sized containers 8 feet square and 20 or 40 feet long. The hull is divided into cells that are easily accessible through large hatches, and more containers can be loaded on deck atop the closed hatches. Loading and unloading can proceed simultaneously using giant traveling cranes at special berths. Container ships usually carry in the range of 25,000 to 50,000 deadweight tons. Whereas a general-cargo ship may spend as much as 70 percent of its life in port loading and discharging cargo, a container ship can be turned around in 36 hours or less, spending as little as 20 percent of its time in port. This ship type is the result of American design innovation. Specialized types of container ships are the LASH and SeaBee which carry floating containers (or "lighters,") and RoRo ships, which may carry containers on truck trailers.
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 Vessel: An ocean going vessel designed specifically to handle the loading, carriage and removal of standard freight containers.
Container Yard: A materials-handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.
Containerization: A concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft.
Containerization Cargo: Cargo that will fit into a container and result in an economical shipment.
Continuous Bond: An annual customs bond insuring compliance with all regulations and requirements.
Contraband: Cargo that is prohibited. Alternative Definition: Any product that a nation has made unlawful to possess, produce, transport, import, or export.
Contract: A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.
Contract of Affreightment: Known as COA, a service contract under which a ship owner agrees to transport a specified quantity of fuel products or specialty products, at a specified rate per ton, between designated loading and discharge ports. This type contract differs from a spot or consecutive voyage charter in that no particular vessel is. specified.
Contract Carrier: Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation. Alternative Definition: Excluding common carriers, any person who under contract will transport passengers or goods for agreed upon compensation.
Contract Rate: This can refer to "service contract" rates which are low, favorable rates fixed over an extended period of time in exchange for which the carrier receives a volume commitment from the shipper.
Controlled Atmosphere: Sophisticated, computer-controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.
Convertability: The attribute of being exchangeable, such as a currency freely able to be exchanged for another, or as preferred stock or bonds to be exchanged for common stock.
Cook and Baker: Also known as Chief Cook. Cooks and bakes on ship.
Core Inflation: The basic level of inflation over a period of time as opposed to temporary fluctuations.
Corner Posts: Vertical frame components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends.
Correspondent Bank: A bank that, in its own country, handles the business of a foreign bank.
Corporate Dumping: The practice of exporting banned or out of date goods to a foreign market where restrictions on that product are not as severe.
Cost and Freight: The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as 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. (Note: this Incoterm, CFR, has replaced the term C&F which has been in common usage)
Cost and Insurance: Known as CI or C&I, 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.
Cost, Insurance and Freight: Known as CIF or CI&F, an export term in which the price quoted by the exporter includes the costs of ocean transportation to the port of destination and insurance coverage. Alternative Definition: Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller. Additional Alternative Definition: The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.
Cost Plus: A pricing method where the purchaser agrees to pay the production cost of the good plus a fixed percentage to the seller for profit.
Counter Trade: A reciprocal trading arrangement in which the seller is required to accept goods or other instruments or trade in partial or whole payment for its products. Common transactions include barter, buyback, counterpurchase, offset requirements, swap, switch; or triangular trade, evidence, or clearing.
Countervailing Duties: Special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country. Alternative Definition: (USA) Duties which are assessed, in addition to regular duties, to offset the effects of foreign subsidies or bounties upon the export of merchandise to the United States which has been found to materially injure, or threaten material injury to, an American industry.
Country of Departure: The country from which a shipment of goods, a carrier, or a passenger has or is scheduled to depart.
Country of Destination: The country that is the ultimate destination for a shipment of goods. For a carrier, it is the country in which it intends to complete its current voyage or flight.
Country of Dispatch: The country from which a cargo is shipped.
Country of Export Destination: The country to which goods are going in order to be consumed, further processed, or manufactured, as presumed by the shipper at the time of exportation.
Country of Exportation: The country from which goods are shipped with intention to separate them from the mass of goods in that country.
Country of Origin: The country in which goods were produced, mined, grown or manufactured.
Country Risk: The financial risks of a transaction which relate to the political, economic, or social instability of the country of the debtor, and is over and above the credit risk of the borrower.
Courier: 1. Attendant who accompanies shipments. 2. Express company which handles shipments of documents and small packages on an expedited basis and may or may not have the shipments accompanied by attendants.
CPI: Consumer Price Index.
CPT: See Carriage Paid To.
Crew: The personnel engaged on board ship, excluding the master and officers and the passengers on passenger ships.
Crew List: List prepared by the master of a ship showing the full names, nationality, passport or discharge book number, rank and age of every officer and crew member engaged on board that ship. This serves as one of the essential ship's documents which is always requested to be presented and handed over to the customs and immigration authorities when they board the vessel on arrival.
Cross Member: Transverse members fitted to the bottom side rails of a container, which support the floor.
Cross-Trades: Foreign-to-foreign trade carried by ships from a nation other than the two trading nations.
Crude Oil Washing: A technique of cleaning tanks in oil tankers.
Cu: An abbreviation for "Cubic." A unit of volume measurement.
Cube Out: When a container or vessel has reached its volumetric capacity before its permitted weight limit.
Cubic Foot: 1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long.
Currency Adjustment Factor: Known as CAF, a surcharge on freight charges by a carrier to offset foreign currency fluctuations. Alternative Definition: A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.
Customhouse: A government office where duties are paid, import documents filed, etc., on foreign shipments.
Customhouse Broker: A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer).
Customs: Government agency charged with enforcing the rules passed to protect the country's import and export revenues. Alternative Definition: The government service which is responsible for the administration of Customs law and the collection of duties and taxes relating thereto, and which has responsibility for the application of other laws and regulations relative to the importation , transit, and exportation of goods.
Customs Bonded Warehouse: A warehouse authorized by Customs to receive duty-free merchandise.
Customs Broker:An individual or service company that transacts customhouse formalities on behalf of an importer. In the U.S.A., a customs broker must be licensed by the Treasury Department and pass a government examination covering a broad range of knowledge, including all phases of import regulations, rates of duties, and customs law. Licensing and requirements vary from country to country, so check with your local United Shipping Partner for details.
Customs Court: The court to which importers must appeal or protest decisions made by customs officers.
Customs Electronic Bulletin Board: (USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin board accessible by computer, sponsored by U.S. Customs, providing the trade community with up-to-date information, clearance requirements, and operation instructions.
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.
Customs Invoice: A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin.Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice.
Customs of the Port: A phrase often included in charter parties and freight contracts referring to local rules and practices which may impact upon the costs borne by the various parties.
Customs Union: An agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries.
Cut-Off Time: The time a vehicle must be tendered at the terminal to meet a scheduled train departure.
Cwt: Hundred weight (United States, 100 pounds: U.K.,112)
CWO: See Cash with Order.
CY: See Container Yard. Also the designation for full container receipt/delivery.
CXT: See Common External Tariff.
D/A: See Documents Against Acceptance.
DAF: See Delivered at Frontier.
Damages: 1. A loss or harm to a person or their property. 2. The pecuniary compensation or indemnity which may be recovered by any person who has suffered loss, detriment or injury to his person, property or rights through the unlawful act, omission, or negligence of another.
Dangerous Cargo: All substances of an inflammable nature which are liable to spontaneous combustion either in themselves or when stowed adjacent to other substances and, when mixed with air, are liable to generate explosive gases or produce suffocation or poisoning or tainting of foodstuffs.
Dangerous Goods: Articles or substances capable of posing a significant risk to health, safety or property and that ordinarily require special attention when being transported. Alternative Definition: Goods which are capable of posing a health or safety risk.
Dangerous Liquids: liquids giving off inflammable vapors.
Date Draft: A draft that matures on a fixed date, regardless of the time of acceptance. Alternative Definition: A draft which matures a specified number of days after the date it is issued.
Date of Issue: The arbitrary date on a contract or on a financial instrument fixed as the date from which the term runs. (Neither the actual date on the instrument, nor the date the instrument was actually signed, nor the date the instrument was executed, nor the date the instrument was delivered, are considered to be the "Date of issue" or the "issuance date".)
Davits: Two radial cranes on a ship which hold the lifeboats. They are constructed in such a way as to lower and lift the lifeboats the easiest way possible and are also unobstructed in case of an emergency.
DBA: See Doing Business As.
DCA: See Department of Civil Aviation.
DDC: See Destination Delivery Charge.
DDP: See Delivered Duty Paid.
DDU: See Delivered Duty Unpaid.
D&H: Dangerous and Hazardous Cargo.
Deadfreicht: Space booked by shipper or charterer on a vessel but not used.
Dead Freight: Freight charges paid by the charterer of a vessel for the contracted space that is left partially unoccupied.
Deadfreight Factor: Percentage of a ship's carrying capacity that is not utilized.
Deadhead: One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment.
Deadweight: Known as DWAT or DWCC, a common measure of ship carrying capacity. The number of tons (2240 lbs.) of cargo, stores and bunkers that a vessel can transport. It is the difference between the number of tons of water a vessel displaces "light" and the number of tons it displaces "when submerged to the 'deep load line'." a vessel's cargo capacity is less than its total deadweight tonnage. The difference in weight between a vessel when it is fully loaded and when it is empty (in general transportation terms, the net) measured by the water it displaces. This is the most common, and useful, measurement for shipping as it measures cargo capacity. Alternative Definition: 1. In maritime terms, the deadweight of a vessel is the maximum weight of the cargo, crew, stores and bunkers that it can carry when loaded so that it settles in the water to the Plimsoll line. This is also measurable by the weight of the water the vessel displaces when fully loaded less the displacement when it was unloaded. 2. Deadweight cargo is cargo of such high density that a long ton (2240 lbs.) of such cargo can be stowed in less than 70 cubic feet.
Deadweight Cargo: A long ton of cargo that can be stowed in less than 40 cubic feet.
Dealer: An individual or firm who purchases goods for resale.
Debarment: An action to exclude a TSP, for a period of time, from providing services to the Federal Government under a rate tender or any contract under the Federal Acquisition Regulation (48 CFR part 9, subpart 9.406).
Debtor Nation: A nation that is owed less foreign currency obligations than it owes other nations.
Deck Cargo: Cargo carried on deck rather than stowed under deck. On-deck carriage is required for certain commodities, such as explosives.
Deck Gang: The officers and seamen comprising the deck department aboard ship. Also called deck crew, deck department, or just deck.
Deckhand: Seaman who works on the deck of a ship and remains in the wheelhouse attending to the orders of the duty officers during navigation and manoeuvering. He also comes under the direct orders of the bosun.
Deck House: Small superstructure on the top deck of a vessel which contains the helm and other navigational instruments.
Deck Log: Also called captain's log. A full nautical record of a ship's voyage, written up at the end of each watch by the deck officer on watch. The principal entries are: courses steered; distance run; compass variations, sea and weather conditions; ship's position, principal headlands passed; names of lookouts, and any unusual position, principal headlands passed; names of lookouts, and any unusual happenings such as fire, collision, and the like.
Deck Officer: As distinguished from engineer officer, refers to all officers who assist the master in navigating the vessel when at sea, and supervise the handling of cargo when in port.
Declared Value for Carriage: The value of goods declared to the carrier by the shipper for the purposes of determining charges and establishing the liability of the carrier.
Declared Value for Customs: The value of a shipment according to the customs laws of the destination country required to be declared by the shipper on the shipping documents or by the importer when he presents the goods for customs clearance.
Deconsolidation Point: Place where loose or other non-containerized cargo is ungrouped for delivery.
Dedicated Train: One that exclusively carries intermodal equipment (containers and trailers).
Deep Sea Trades: The traffic routes of both cargo and passenger vessels which are regularly engaged on the high seas or on long voyages.
Deep Stowage: Any bulk, bagged or other type of cargo stowed in single hold ships.
Defense Transportation Regulation: Known as DTR. Definition Pending.
Deferred Air Freight: Arrangements can be made according to the tariffs of some air carriers to have less urgent freight delivered at a lower cost on later flights which are more convenient for the airline.
Deferred Payment Letter of Credit: A letter of credit that allows the buyer to take possession of goods by agreeing to pay the issuing bank or the confirming bank at a fixed future date.
Deferred Rebates: The return of a portion of the freight charges by a carrier or a conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually six months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate that will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier of conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade between other countries.
Deficit Weight: The weight by which a shipment is less than the minimum weight.
Del Credere Risk: A situation where a sales agent sells on credit and for an additional commission guarantees to his principal the credit of the purchaser and the performance of the contract.
Delivered at Frontier: Known as DAF, the seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country.
Delivered Duty Paid: The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.
Delivered Duty Unpaid: This reflects the emergence of "door-to-door" intermodal or courier contracts or carriage where only the destination customs duty and taxes (if any) are paid by consignee. Alternative Definition: The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities). The buyer has to pay any additional costs and bear any risks caused by his failure to clear the goods for import in time.
Delivered Ex Quay - Duty Paid: Known as DEQ, the seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto. (Note: If the parties wish the buyer to clear the goods for importation and pay the duty, the words "duty unpaid" should be used instead of "duty paid", and other costs of importation can also be excluded from the seller's obligations if this is made clear by adding words to this effect.)
Delivery: 1. In the case of transportation, the act of transferring physical possession. 2. The act of actually or of constructively placing goods or property within the possession or control of another.
Delivery Carrier: The transport carrier whose responsibility it is to place a shipment at the disposal of the consignee at the named destination.
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. Alternative Definition: Specific delivery instructions for the freight forwarder or carrier stating exactly to whom, where and when goods are to be delivered.
Delivery Order: A document from the consignee, shipper, or owner of freight ordering the release of freight to another party.
DEMDES: See Demurrage/Despatch Money.
Demise: 1. A lease of property. 2. Death.
Demise Charter: A lease of a vessel in which all control is relinquished by the owner to the charterer, and the charterer bears all the expenses of operation. Similar to bareboat charter. Similiar to Bareboat Charter.
Demurrage: A fee levied by the shipping company upon the port or supplier for not loading or unloading the vessel by a specified date agreed upon by contract. Usually, assessed upon a daily basis after the deadline. Alternate Definition: (1) A charge made on cars or other equipment held by or for consignor or consignee for loading or unloading, for forwarding directions or for any other purpose (2) A penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal. Also a charge for undue detention of transportation equipment or carriers in port while loading or unloading. Additional Alternative Definition: 1. In international transportation, a charge for the failure to remove cargo from a terminal within the allowed free time. Also, a charge for failure to load or unload a ship within the allowed period. 2. (USA) In domestic transportation, a penalty charge against users for use of carriers' equipment beyond the allowed free time. Alternate Definition: Demurrage is the penalty charge to an agency for delaying the agreed time to load or unload shipments by rail or ocean TSPs.
Demurrage/Despatch Money: Known as DEMDES, under vessel chartering terms, the amount to be paid if the ship is loading/discharging slower/faster than foreseen.
Density: Density means pounds per cubic foot. The cubage of loose articles or pieces, or packaged articles of a rectangular, elliptical, or square shape on one plane, shall be determined by multiplying the greatest straight line dimensions of length, width, and depth in inches, including all projections, and dividing the total by 1728 (to obtain cubic feet). The density is the weight of the article divided by the cubic feet thus obtained.
Department of Civil Aviation: Denotes the government department of any foreign country that is responsible for aviation regulation and granting traffic rights.
Department of Transportation: U.S. Department of Transportation, whose purpose is to provide a dynamic federal system of transportation to meet the country's needs.
DEQ: See Delivered Ex Quay - Duty Paid.
Despatch: Time saved, reward for quick turnaround - in dry cargo only. Alternative Definition: An incentive payment paid to a carrier to loading and unloading the cargo faster than agreed. Usually negotiated only in charter parties.
Destination: The place to which a shipment is consigned; the place where carrier actually turns over cargo to consignee or his agent.
Destination Control Statements: Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations.
Destination Delivery Charge: Known as DDC, 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.
Destination Rail Freight Station: Known as DRFS. The same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.
Detention: Penalty assessed to the consignor or consignee for using railroad-owned equipment more than allotted free time. Alternative Definition: The act of keeping back or withholding either accidentally or by design a person or thing. Alternate Definition: Detention is the penalty charge to an agency for delaying the agreed time to load or unload shipments by truck TSPs.
Devanning: The unloading of a container or cargo van.
Developed Countries: A term used to describe the industrialized nations.
Developing Countries: A term used to describe countries that lack strong amounts of industrialization, infrastructure, and sophisticated technology, but are beginning to build these capabilities.
Deviation: Vessel departure from specified voyage course.
DF Car: Damage-Free Car. Boxcars equipped with special bracing material.
Differential: An amount added or deducted from base rate to make a rate to or from some other point or via another route.
Dim Weight: Dimensionalized Weight. An international airfreight formula determined by calculating length x width x height and dividing by 166. It is charged when the actual weight is less than the dimensionalized weight.
Direct Mail Collection: Known as DMC, a seller may forward his documents and instructions for collecting payment directly to a collecting bank in a foreign country, without going through the intermediary of the seller's own domestic bank.
Disabled Ship: When a ship is unable to sail efficiently or in a seaworthy state as a result of engine trouble, lack of officers or crew, damage to the hull or ship's gear.
Discharge: 1. To release; liberate; annul; unburden; disencounter; dismiss. To extinguish an obligation; terminate all employment of a person; release, as from prison or military services. 2. The unloading of passengers or cargo from a vessel, vehicle, or aircraft.
Discharges: An essential document for officers and seamen as it serves an official certificate confirming sea experience in the employment for which he was engaged.
Discharging: The unloading of cargo from a carrier, or of the contents from a container.
Discounted Bill: An accepted draft against which a loan is made and the interest is deducted immediately.
Discounted Draft: A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.
Discounting: 1. The sale at less than original price of a commodity or monetary instrument, often for immediate payment. 2. A loan by a bank with a deduction of the interest in advance.
Discrepancy Letter of Credit: When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." Banks will not process L/C's which have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions.
Discrimination: A failure to treat all persons or parties equally where no reasonable distinction can be found between those favored and those not favored. It mat be reflected in treatment, service or rates.
Dishonor: 1. The refusal by a drawee to accept a draft or to pay it when due. 2. The act of disrespect or insult.
1.An amount paid by a vessel's
operator to a charterer if loading or unloading is completed in less time than
stipulated in the charter agreement.
2. a message or report to a newspaper from a correspondent, or between government services such as state or military. 3. to send to a destination.
Displacement: The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.
Distribution Service: A transportation service that accepts a shipment from a shipper and at destination separates and sorts the packages and distributes them to many receivers.
Distributor: An agent who sells for a supplier at wholesale and usually maintains an inventory of the supplier's products.
Diversion: A change made in the route of a shipment in transit. Alternative Definition: A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.
Division: Carriers' practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.
DMC: See Direct Mail Collection.
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. Alternative Definition: 1. A loading or unloading platform at an industrial location or carrier terminal. 2. A ship's berth or wharf.
Docket: Present a rate proposal to a conference meeting for adoption as a conference group rate.
Dock Examination: (USA) Examination of imported merchandise by Customs at the terminal where it is discharged from the import carrier.
Dock Receipt: When cargo is delivered to a steamship company at the pier, the receiving clerk issues a dock receipt. Alternative Definition: A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.
Number: The unique
number on a bill of lading, Government Bill of Lading, Government Transportation
transportation ticket, used to track the movement of shipments and individuals.
Documents Against Acceptance: Known as D/A, instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft. Alternative Definition: As a procedure to collect payment on an exported shipment. instructions are given that documents necessary to obtain the merchandise from customs and the carrier are to be released to a buyer only against the buyer's acceptance of a time draft drawn upon him.
Documents Against Payment: Also known as Cash Against Documents, an indication on a draft that the documents attached are to be released to the drawee only on payment. Alternative Definition: As a procedure to collect payment for an export shipment, instructions are given that the documents necessary for the buyer to obtain the shipment from customs and the carrier are to be released to him only upon payment of the draft. (Same as CAD)
DoD: Department of Defense.
Dolly: A set of wheels that support the front of a container; used when the automotive unit is disconnected. Alternative Definition: A piece of equipment with wheels used to move freight with or without a tractor.
Domestic Containerization: Movement of domestic freight in ocean containers, (to assist in repositioning of those containers) or in dedicated domestic containers.
Domestic Imports: Exports of goods which were grown, produced, mined, or manufactured in the country from which exported.
Domestic Offshore Trades: Domestic shipping routes serving Alaska and non-continental u.s. States and territories.
Domicile: That place where a person or organization has their principal residence with intent to make it their permanent home.
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. Alternative Definition: Shipping service from shipper's door to consignee's door.
DOT: See Department of Transportation.
Double Bottom: General term for all watertight spaces contained between the outside bottom plating, the tank top and the margin plate. The double bottoms are sub-divided into a number of separate tanks which may contain boiler feed water, drinking water, fuel oil, ballast, etc.
Double-Column Tariff: A customs tariff schedule with two columns of rates, one for preferred trading partners and one for imports from others.
Double Stack: The movement of containers on specialized articulated rail cars that enable the vertical stacking of the containers on each platform of the car.
Double Stack Train: The transport by rail between two points of a trainload of containers with two containers per chassis, one on top of the other.
Doing Business As: A legal term for conducting business under a registered name.
Downstream Dumping: The sale of products below cost or below fair value by a producer to a another producer in its own domestic market by whom the product is then further processed and exported to another country at a price lower than would otherwise be charged and thus causing injury in that country.
D/P: see Documents Against Payment.
Draft: The depth of a ship in the water. The vertical distance between the waterline and the keel, in the U.S. Expressed in feet, elsewhere in meters. Alternative Definition: (1) An unconditional order in writing from one person (the Drawer) to another (the Drawee), directing the drawee to pay a specified amount to a named drawer on a fixed date. Also known as a Bill of Exchange. (2)The depth of a ship in the water. The vertical distance between the waterline and the keel, in the U.S. expressed in feet, elsewhere in meters.
Drawback: A remission of duty or charges paid, in whole or in part, when imported goods are re-exported or used in the manufacture of exported goods. Alternative Definition: A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.
Drawback System: (USA) An Automated Customs System module that provides the means for processing and controlling all types of drawback entries.
Drawee: The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer.
Dray: A vehicle used to haul cargo or goods, usually drawn by a horse.
Drayage: Connecting Road Haulage (1) The hauling of a load by a cart with detachable sides. (dray) (2) Road transportation between the nearest railway terminal and the stuffing place (3) (pick-up and/or delivery) the truck portion of an intermodal move. Alternative Definition: Charge made for local hauling by dray or truck. Same as Cartage. Alternate Defintion: Local transportation service obtained by contract, the rate or charges for which are not subject to tariffs on file with state or Federal regulatory bodies.
DRFS: See Destination Rail Freight Station.
Drill Ship: Regular ship shaped vessel, production ship. Positioned by anchors or dynamic positioning. Has its own propulsion machinery.
Drilling Unit: Fitted with drilling rig (oil derrick with rotary drill and a mud pumping system), drilling for petroleum.
Drop-Off: The delivery of a shipment by a shipper to a carrier for transportation.
Drop Shipment: At the request of a wholesaler, a shipment of goods from a manufacturer directly to a dealer or consumer, avoiding delivery to the wholesaler.
Dry-Bulk Container: A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.
Dry Cargo: Merchandise other than liquid carried in bulk. Alternative Definition: Cargo that is not liquid and normally does not require temperature control. Additional Alternative Definition: Cargo which is of solid, dry material. It is not liquid or gas, and generally the term excludes cargo requiring special temperature controls.
Dry Cargo Container: Any shipping container designed to transport goods other than liquids or gasses.
Dry Cargo Ship: Vessel which carriers all merchandise, excluding liquid in bulk.
Dry Dock: An enclosed basin into which a ship is taken for underwater cleaning and repairing. It is fitted with water tight entrance gates which when closed permit the dock to be pumped dry.
DST: See Double Stack Train.
DSU: Delay in Startup Insurance is a policy to protect the seller of a construction project from penalties if the project is not completed on time. See Liquidated Damages.
DTR: See Defense Transportation Regulation.
Dual Exchange Rate: The existence of two exchange rates for a single currency for use in different circumstances as mandated by the government.
Dual Pricing: The selling of identical products in different markets for different prices.
Dual Purpose Ship: Specially constructed ship able to carry different types of cargoes such as ore and/or oil.
Dumping: Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country. Alternative Definition: The sale of goods in a foreign country at less than" fair value" (a price lower than that at which it is sold within the exporting country or to third countries), and which thereby materially injures, or threatens to materially injure, that industry in the foreign country.
Dunnage: A term applied to loose wood or other material used in a ship's hold for the protection of cargo. Alternative Definition: The material used to protect or support freight in or on railcars or trailers.
Durable Goods: Any product which is not consumed through use.
Dutiable List: The list of Items in a country's tariff schedule on which it charges import duty.
Duty: A tax levied by a government on the import or export of goods. Note: The U.S. Constitution forbids the levying of taxes by the U.S. on exports. However, most foreign governments do not have this restriction.
dw: Deadweight. The maximum carrying capacity of a ship expressed in tons of cargo, stores, provisions, and bunker fuel.
DWAT: See Deadweight.
dwc: Cargo of such weight and volume that a long ton (2,240 lbs) is stowed in an area of less than 70 cubic feet.
DWCC: See Deadweight.
Dwt: Deadweight tons.
EEC: European Economic Community.
Electronic Commerce: An electronic technique for carrying out business transactions (ordering and paying for goods and services), including electronic mail or messaging, Internet technology, electronic bulletin boards, charge cards, electronic funds transfers, and electronic data interchange.
Entry: A customs form used for the clearance of ships or merchandise.
EUSC: Effective U.S. Control.
Even Keel: When the draft of a ship fore and aft are the same.
EXIMBANK: Export-Import Bank. A Federal agency that aids in financing exports of U.S. goods and services through direct loans, loan guarantees, and insurance.
Expediting: An action taken before the carrier receives a specific shipment to ensure movement from origin to destination in the shortest time possible.
Express Receipts: Definition Pending.
FACS: Federation of American Controlled Shipping.
FAS: Free Along Side (of ship).
Federal Maritime Commission:Known as FMC, authorizes tariffs and rate-making procedures on conferences operating in the United States.
Feeder: A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.
FEU: Forty Foot Equivalent Units (Containers).
FIO: Free in and out.
Fireman: An unlicensed member of the engine, room staff whose duties consist in standing watch in the boiler room and insuring the oil burning equipment is working properly.
Flags of Convenience: The registration of ships in a country whose tax on the profits of trading ships is low or whose requirements concerning manning or maintenance are not stringent. Sometimes referred to as flags of necessity; denotes registration of vessels in foreign nations that offer favorable tax structures and regulations; also the flag representing the nation under whose jurisdiction a ship is registered. Ships are always registered under the laws of one nation but are not always required to establish their home location in that country.
Floating Oil Storage: Oil stored on floating vessels. It has been the practice for oil to be stored in large laid-up oil tankers in order to offset the loss involved while the tankers are inactive.
FMC: See Federal Maritime Commission.
FOB: See Free on Board.
Forecastle: The raised part of the forward end of a ship's hull. The inside space may be used for crew accommodation or quarters, though on new ships this space is being used for the storage of paints, tackle, deck and engine stores, tarpaulins, etc.
Foreign Flag Vessel: Any vessel of foreign registry including vessels owned by U.S. citizens but registered in a foreign country.
Forward: At or in the direction of the bow. Also the fore part of the ship.
Free on Board: Known as FOB, cost of a product before transportation costs are figured in. Alternative Definition: Export term in which the price quoted by the exporter does not include the costs of ocean transportation, but does include loading on board the vessel.
Freight: Property or goods transported as cargo.
Freight Forwarder: Arranges shipments for customers usually break bulk. Does not actually carry the cargo or conduct business for the ship. Alternate Definition: A freight forwarder is defined as a firm which uses the services of common carriers to get a shipment to its destination. A freight forwarder will arrange pickup, transportation, and delivery of the freight through customs to the consignee's door, if requested.
Freight Rate: The charge made for the transportation of freight.
Fuel Adjustment Factor: Known as FAF, Used to compensate steamship lines for fluctuating fuel costs. Sometimes called Bunker Adjustment Factor or BAF.
Fund Site: Definition pending.
Gangway: A narrow portable platform used as a passage, by persons entering or leaving a vessel moored alongside a pier or quay.
GATF: General Agreements on Tariffs and Trade
GBL: Government Bill of Lading. See Bill of Lading, Government.
GDP: See Gross Domestic Product.
General Cargo: A non-bulk oil cargo composed of miscellaneous goods.
GNP: Gross National Product: GDP plus the net income accruing from foreign sources.
Government Impelled: Cargo owned by or subsidized by the Federal Government.
Government Mess and Government Quarters: Definition pending.
Governmentwide Transportation Policy Council: Referred to as GTPC, A U.S. Government interagency forum to help the General Services Administration formulate policy. It provides Federal Agencies managing transportation programs a forum to exchange information and ideas to solve common problems.
Great Lakes Ports: Ports in the lakes of Canada and/or USA popular for grain shipments. In Canada: Port Arthur and Fort William in Lake Superior; Hamilton, Kingston, Toronto and Prescott in Lake Ontario. In USA: Chicago, Milwaukee in Lake Michigan; Duluth and Superior in Lake Superior and Toledo in Lake Erie.
Great Lakes Ships: Cargo ship developed to carry raw materials and manufactured goods on the Great Lakes. Most carry bulk cargoes of grain, iron ore or coal.
Gross Domestic Product: Known as GDP. the total value of goods and services produced by a nation over a given period, usually 1 year.
Gross Freight: Freight money collected or to be collected without calculating the expenses relating to the running cost of the ship for the voyage undertaken.
Gross Registered Tons: A common measurement of the internal volume of a ship with certain spaces excluded. One ton equals 100 cubic feet; the total of all the enclosed spaces within a ship expressed in tons each of which is equivalent to 100 cubic feet.
Grounding: Deliberate contact by a ship with the bottom while she is moored or anchored as a result of the water level dropping.
GSA Audit Division: Definition pending.
GTPC: See Governmentwide Transportation Council.
Harbor Dues: Various local charges against all seagoing vessels entering a harbor, to cover maintenance of channel depths, buoys, lights, etc. all harbors do not necessarily have this charge.
Harbor Master: A person usually having the experience of a certificated master mariner and having a good knowledge of the characteristics of the port and its whole area. He administers the entire shipping movements that take place in and within reach of the port he is responsible for.
Hard Aground: A vessel which has gone aground and is incapable of refloating under her own power.
Hard Currency: A currency which is sound enough to be accepted internationally and which is usually fully convertible.
Harter Act:(1893). This U.S. statute refers to merchandise or property transported from or between ports of the United States and foreign ports. Now partially superseded by the US Carriage of Goods by Sea Act of 1936.
Hatch:An opening, generally rectangular, in a ship's deck affording access into the compartment below.
Hazardous Material: A substance or material the Secretary of Transportation determines to be an unreasonable risk to health, safety, and property when transported in commerce, and labels as hazardous under section 5103 of the Federal Hazardous Materials Transportation Law (49 U.S.C. 5103 et seq.). When transported internationally hazardous material may be classified as ``Dangerous Goods.'' All such freight must be marked in accordance with applicable regulations and the carrier must be notified in advance.
Hawser:Large strong rope used for towing purposes and for securing or mooring ships. Hawsers are now mostly made of steel.
Helm:A tiller or a wheel generally installed on the bridge or wheelhouse of a ship to turn the rudder during manoeuvering and navigation. It is in fact the steering wheel of the ship.
HHG: See Household Goods.
Highways: A traffic term which refers to very wide roads that carry large volumes of traffic between communities
Hoisting Rope:Special flexible wire rope for lifting purposes, generally being of six strands with 19 wires in each strand and in most cases having a hemp rope at the center.
Hold:A general name for the spaces below the main deck designated for stowage of general cargo. A hold on a tanker is usually just forward of #1 cargo tank. Some newer tankers have no hold.
Household Goods: Referred to as HHG, the personal effects of Federal Government employees and their dependents.
Household Goods Tender of Service: Definition pending.
Hovercraft: A vessel used for the transportation of passengers and cargo riding on a cushion of air formed under it. It is very maneuverable and is also amphibious.
HTOS: Se Household Goods Tender of Service.
Hull: Shell or body of a ship.
Hydrofoil: A craft more or less similar to the Hovercraft insofar as it flies over water and thus eliminates friction between the water and the hull. Under acceleration it rises above water but remains in contact with the surface through supporting legs.
ILO: International Labor Organization; Based in Geneva, it is one of the oldest components of the UN system of specialized agencies and has been involved over the years in appraising and seeking to improve and regulate conditions for seafarers. In its unusual tripartite way, involving official representatives of government, employer and employee interests, its joint Maritime Commission have had in hand moves on the employment of foreign seafarers to urge the application of minimum labor standards, on crew accommodation, accident prevention, medical examination and medical care, food and catering and officers competency.
IMDG: International Maritime Dangerous Goods Code.
IMF: International Monetary Fund.
IMO: International Maritime Organization: Formerly known as the Inter-Governmental Maritime Consultative Organization (IMCO), was established in 1958 through the United Nations to coordinate international maritime safety and related practices.
INCOTERMS: See C&F Terms of Sale.
Inert Gas System: A system of preventing any explosion in the cargo tanks of a tanker by replacing the cargo, as it is pumped out, by an inert gas, often the exhaust of the ship's engine. Gas-freeing must be carried out subsequently if worker have to enter the empty tanks.
Inflammable Liquids: Liquids liable to spontaneous combustion which give off inflammable vapors at or below 80 degrees F. For example, ether, ethyl, benzine, gasoline, paints, enamels, carbon disulfide, etc.
Inland Waters: Term referring to lakes, streams, rivers, canals, waterways, inlets, bays and the like.
INMARSAT: International Maritime Satellite System.
Integrated Tug Barge: A large barge of about 600 feet and 22,000 tons cargo capacity, integrated from the rear on to the bow of a tug purposely constructed to push the barge.
Interagency Transportation Management System: Definition pending.
Intercoastal: Domestic shipping routes serving more than one coast.
Intermodalism: The concept of transportation as a door-to-door service rather than port-to-port. Thus efficiency is enhanced by having a single carrier coordinating the movement and documentation among different modes of transportation.
Intermodal Transport: A transportation term which refers to the moving of a product between places using more than one type of transportation.
International Load Line Certificate: A certificate which gives details of a ship's freeboards and states that the ship has been surveyed and the appropriate load lines marked on her sides. This certificate is issued by a classification society or the Coast Guard.
International Oil Pollution Compensation Fund: An inter-governmental agency designed to pay compensation for oil pollution damage, exceeding the shipowner's liability. It was created by an IMO Convention in 1971 and started its operations in October 1978. Contributions come mainly from the oil companies of member states.
International Tonnage Certificate: A certificate issued to a shipowner by a government department in the case of a ship whose gross and net tonnages have been determined in accordance with the International Convention of Tonnage Measurement of Ships. The certificate states the gross and net tonnages together with details of the spaces attributed to each.
International Waterways: Consist of international straits, inland and interocean canals and rivers where they separate the territories of two or more nations. Provided no treaty is enforced both merchant ships and warships have the right of free and unrestricted navigation through these waterways.
INTERTANKO: An association of independent tanker owners whose aims are to represent the views of its members internationally.
Intracoastal: Domestic shipping routes along a single coast.
ITMS: See Interagency Transportation Management System.
Jones Act: Merchant Marine Act of 1920, Section 27, requiring that all U.S. domestic waterborne trade be carried by U.S.-flag, U.S.-built, and U.S.-manned vessels.
Junction: A location at which point two or more pathways or routes meet.
Just-in-Time Delivery: An operational term which refers to parts being ordered and received just before a company needs to use them.
Keel: The lowest longitudinal timber of a vessel, on which framework of the whole is built up; combination of iron plates serving same purpose in iron vessel.
Knot: Unit of speed in navigation which is the rate of nautical mile (6,080 feet or 1,852 meters) per hour.
Laid-Up Tonnage: Ships not in active service; a ship which is out of commission for fitting out, awaiting better markets, needing work for classification, etc.
Laker:Type of ship which trades only in the Great Lakes of North America. They usually carry grain and ore cargoes.
Landbridge: A system of through rates and service offered by a carrier for cargo shipments from a foreign port to a U.S. port, across U.S. land to another U.S. port and finally by sea to a foreign port destination.
Lash: Lighter aboard ship: A barge carrier designed to act as a shuttle between ports, taking on and discharging barges.
Lash Ships: LASH stand for Lighter Aboard Ship. It is a specialized container ship carrying very large floating containers, or "lighters." The ship carries its own massive crane, which loads and discharges the containers over the stern. The lighters each have a capacity of 400 tons and are stowed in the holds and on deck. While, the ship is at sea with one set of lighters, further sets can be made ready. Loading and discharge are rapid at about 15 minutes per lighter, no port or dock facilities are needed, and the lighters can be grouped for pushing by towboats along inland waterways.
Laytime: Time allowed by the shipowner to the voyage charterer or bill of lading holder in which to load and/or discharge the cargo. It is expressed as a number of days or hours or as a number of tons per day.
Lay-Up: Temporary cessation of trading of a ship by a shipowner during a period when there is a surplus of ships in relation to the level of available cargoes. This surplus, known as overtonnaging, has the effect of depressing freight rates to the extent that some shipowners no long find it economical to trade their ship, preferring to lay them up until there is a reversal in the trend.
Less Than Container Load: A consignment of cargo which is inefficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station.
Lifeboat: A specially constructed double ended boat which can withstand heavy, rough seas.
Lifeboat Drill: The master of every vessel is bound by international law to make the officers, crew and passengers adequately acquainted with the procedures of lowering and the use of lifeboats in case of emergency.
Light Displacement Tonnage: The weight of a ship's hull, machinery, equipment and spares. This is often the basis on which ships are paid for when purchased for scrapping. The difference between the loaded displacement and light displacement is the ship's deadweight.
Lighter: General name for a broad, flat-bottomed boat used in transporting cargo between a vessel and the shore. The distinction between a lighter and a barge is more in the manner of use than in equipment. The term "lighter" refers to a short haul, generally in connection with loading and unloading operations of vessels in harbor while the term "barge" is more often used when the cargo is being carried to its destination over a long distance.
Lighter Aboard Ship: An ocean ship which carries barges. These barges are loaded with cargo, often at a variety of locations, towed to the ocean ship, sometimes referred to as the mother ship, and lifted or, in some cases, floated on board. After the ocean crossing, the barges are off-loaded and towed to their various destinations. The ocean ship then receives a further set of barges which have been assembled in readiness. This concept was designed to eliminate the need for specialized port equipment and to avoid transshipment with its consequent extra cost.
Lighterage: Charge for conveying cargo by lighters or barges.
Lightering: Conveying cargo with another vessel known as a lighter from ship to shore, or vice versa.
Line-Haul: The movement of freight between cities excluding pickup and delivery service.
Liner: A cargo-carrying ship which is operated between scheduled, advertised ports of loading and discharge on a regular basis.
Liner Service:Vessels operating on fixed itineraries or regular schedules and established rates available to all shippers. The freight rates which are charged are based on the shipping company's tariff or if the company is a member of a liner conference, the tariff of that conference.
Linkage: A device which allows places to be connected by the movement of people, goods, or information.
Lloyd's Register of Shipping: British classification society.
LNG: Liquefied Natural Gas, or a carrier of LNG.
LNG Carrier: Liquefied natural gas carrier, perhaps the most sophisticated of all commercial ships. The cargo tanks are made of a special aluminum alloy and are heavily insulated to carry natural gas in its liquid state at a temperature of -2850F. The LNG ship costs about twice as much as an oil tanker of the same size.
Load Line: The line on a vessel indicating the maximum depth to which that vessel can sink when loaded with cargo. Also known as marks.
Loaded Leg: Subdivision of a ship's voyage during which the ship is carrying cargo.
Local Trucking: Local transportation service between points within a commercial zone, a metropolitan area, or from a point within a city or town or village to a point adjacent thereto, for which rates and charges are published in tariffs on file with state or Federal regulatory bodies, in tariffs on file with the municipality concerned or in special tenders or rates on file with the U.S. Government. Local trucking service obtained under contract is usually considered drayage.
Location Factors: A general term which refers to things that influence the choice of a company's location.
Long Ton: Known as L/T, 2,240 pounds.
Lookout: A member of the crew stationed on the forecastle, or on the bridge, whose duty it is to watch for any dangerous objects or for any other vessels heaving into sight.
LPG: Liquefied Petroleum Gas, or a carrier of LPG.
LSA: Liner Shipping Agreements.
L/T: See Long Ton.
Main Deck: The main continuous deck of a ship running from fore to aft; the principle deck; the deck from which the freeboard is determined.
Manifest: A document containing a full list of the ship's cargo, extracted from the bills of lading.
Manning Scales: The minimum number of officers and crew members that can be engaged on a ship to be considered as sufficient hands with practical ability to meet every possible eventuality at sea.
Deck Department Licensed
Master (Captain): Highest officer aboard ship. Oversees all ship operations. Keeps ships records. Handles accounting and bookkeeping. Takes command of vessel in inclement weather and in crowded or narrow waters. Handles communications. Receives and implements instructions from home office.
First Mate (Chief Mate): In charge of four to eight watch. Directly responsible for all deck operations (cargo storage and handling, deck maintenance deck supplies). Assigns and checks deck department overtime. Ship's medical officer.
Second Mate: In charge of twelve to four watch. Ships navigation officer. Keeps charts (maps) up to date and monitors navigation equipment on bridge.
Third Mate: In charge of eight to twelve watch. Makes sure emergency survival equipment (lifeboats, life rings, etc.) are in order. Assists other officers as directed.
Engine Department Licensed
Chief Engineer: Head of engineer department. Keeps records of all engine parts and repairs. Generally tends to the functioning of all mechanical equipment on ship. Calculates fuel and water consumption and requirements. Coordinates operations with shoreside port engineer.
First Assistant Engineer: In charge of four to eight watch. Usually works from eight to four handling engine maintenance. Assigns duties to unlicensed personnel and monitors and records overtime. Consults with Chief regarding work priorities.
Second Assistant Engineer: In charge of twelve to four watch. On steam vessels has responsibility for the boilers, on diesels, the evaporators and the auxiliary equipment.
Third Assistant Engineer: In charge of eight to twelve watch. Maintains lighting fixtures. Repairs malfunctioning accessories in living quarters. Assist other engineers as directed.
Deck Department Unlicensed
Boatswain (BOSUN): Receives working orders for deck gang from chief mate and passes them onto AB's and ordinaries. Tantamount to foreman, he is on deck directly supervising maintenance operations.
Ships Chairman (Shop Steward): In charge of union business for unlicensed personnel. Handles grievances.
Able Seamen (AB): Stand watch, during which they steer the vessel, stand lookout, assist the mate on watch and make rounds of the ship to insure that all is in order. They also tie up and untie the vessel to and from the dock and maintain the equipment on deck.
Ordinary Seaman (OS): An apprentice AB, assists AB's bosun, and officers, keeps facilities clean.
Engine Department Unlicensed
Pumpman and Electrician:Qualified Members of the Engine Department (Q.M.E.D.): Trained in all crafts necessary to engine maintenance (welding, refrigeration, lathe operation, die casting, electricity, pumping, water purification, oiling, evaluating engine gauges, etc.) Usually watchstanders but on some ships day workers.
Pumpman (Tankers): Operates pumps and discharges petroleum products. Maintains and repairs all cargo handling equipment.
Equipment (Liners): Maintains and repairs cargo handling equipment and also cargo with special handling characteristics.
Wipers: Apprentice QMED. Cleans engine room. Assists officers and QMED's.
Chief Steward: Orders food. Prepares menus. Assists chief cook in food preparation.
Cook and Baker (Chief Cook): Cooks and bakes.
Steward Assistant: Clean galley and mess halls, set tables, prepare salads, clean living quarters.
Radio Operator: Maintains and monitors radio, sends and receives messages. Often maintains electronic navigation equipment.
Maritime Administration: Known as MARAD, oversees subsidy programs to the United States Merchant Marine. Assigns routes to subsidized liners.
Maritime Lien: A claim which attaches to the res, i.e., the ship,. freight, or cargo.
Maritime Subsidy Board: Known as MSB, a branch within the Maritime Administration which deals with Operating Differential Subsidy and Construction Differential Subsidy.
MARPOL 73/78: The International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978.
Masthead Light: A white light positioned over the fore and aft centerline of the vessel.
Member with Dependents: Definition
Member without Dependents: Definition pending.
MFN: Most Favored Nation.
MIB: Marine Index Bureau.
MIHA: Definition pending.
Miniland Bridge: The process of taking inland cargo bound for export to the coast by rail and loading it directly to the ship.
MIRAID: Maritime Institute for Research and Industrial Development.
Mixed Shipment: A shipment consisting of more than one commodity, articles described under more than one class or commodity rate item in a tariff.
Microbridge: A system of through rates and service offered by a carrier for cargo shipments from any inland U.S. location to a port, by sea to a foreign port and finally overland to foreign inland destination.
Mode: A method of transportation, such as rail, motor, air, water, or pipeline.
MODU: Mobile Offshore Drilling Unit.
Mooring Line: A cable or line to tie up a ship.
Move-In Housing Allowance Claim: Definition pending.
MSB: Maritime Subsidy Board.
M/T: Metric tons (2,250 lbs.).
MTC: Maritime Transport Committee, OECD
Multipurpose Ship: Any ship capable of carrying different types of cargo which require different methods of handling. There are several types of ships falling into this category, for example, ships which can carry roll on/roll off cargo together with containers.
National Cargo Bureau: A private organization having representatives throughout the main harbors in the U.S. It is empowered to inspect cargoes of a hazardous nature and issue certificates which are automatically approved by the Coast Guard.
National Flag: The flag carried by a ship to show her nationality.
Network: A general term which refers to a multiple number of pathways joined together.
Neobulk: Shipments consisting entirely of units of a single commodity, such as cars, lumber, or scrap metal.
Net Capacity: The number of tons of cargo which a vessel can carry when loaded in salt water to her summer freeboard marks. Also called cargo carrying capacity, cargo deadweight, useful deadweight.
Net Tonnage: Equals gross tonnage minus deductions for space occupied by crew accommodations, machinery, navigation equipment and bunkers. It represents space available for cargo (and passengers). Canal tolls are based on net (registered) tonnage.
Non-Conference Line: A shipping line which operates on a route served by a liner conference but which is not a member of that conference.
Noncontiguous: Domestic shipping routes serving Alaska and non-continental U.S. States and territories.
Norske Veritas: Norwegian classification society.
NRT: Net registered tons. This tonnage is frequently shown on ship registration papers; it represents the volumetric area available for cargo at 100 cubic feet = 1 ton. It often is used by port and canal authorities as a basis for charges.
NVO: Non-vessel-operating common carrier, a ships agent, conducts business for the ship but does not operate the vessel.
OBL: Definition pending.
OBO Ship: A multipurpose ship that can carry ore, heavy dry bulk goods and oil. Although more expensive to build, they ultimately are more economical because they can make return journeys with cargo rather than empty as single-purpose ships often must.
Ocean Waybill: A document, issued by a shipping line to a shipper which serves as a receipt for the goods and evidence of the contract carriage.
ODS: Operating Differential Subsidy: A direct subsidy paid to U.S.-flag operators to offset the high operating cost of U.S.-flag ships when compared to foreign-flag counterparts.
OECD: Organization for Economic Cooperation and Development. The Maritime Transport Committee is part of this organization.
Off-Hire Clause: In a time charter, the owner is entitled to a limited time for his vessel to be off hire until such time as the vessel may be repaired or dry-docked.
Officer: Any of the licensed members of the ship's complement.
Off-Load: Discharge of cargo from a ship.
OHA: Definition pending.
Oiler: An unlicensed member of the engine room staff who oils and greases bearings and moving parts of the main engine and auxiliaries. Most of this work is now done automatically and the oiler merely insures it operates correctly.
Oil Record Book: A book or log kept by the master of an oil tanker wherein every discharge or escape of oil is recorded.
Oil Tanker: A ship designed for the carriage of oil in bulk, her cargo space consisting of several or many tanks. Tankers load their cargo by gravity from the shore or by shore pumps and discharge using their own pumps.
Open Rates: Pricing systems that are flexible and not subject to conference approval. Usually applied to products in which tramps are substituted for liners.
Oeon Registry: A term used in place of "flag of convenience" or "flag of necessity" to denote registry in a country which offers favorable tax, regulatory, and other incentives to ship owners from other nations.
Ore Carrier: A large ship designed to be used for the carnage of ore. Because of the high density of ore, ore carriers have a relatively high center of gravity to prevent them being still when at sea, that is, rolling heavily with possible stress to the hull.
Ore-Bulk-Oil Carrier: A large multi-purpose ship designed to carry cargoes wither of ore or other bulk commodities or oil so as to reduce the time the ship would be in ballast if restricted to one type of commodity. This type of ship is sometimes called bulk-oil carrier.
Ore-Oil Carrier: A ship designed to carry either ore or oil in bulk.
Ordinary Seaman: A deck crew member who is subordinate to the Able Bodied Seamen.
Organizational Code: Definition pending.
Over Packing: Excessive application of preservation, packaging, or packing materials.
Overseas Housing Allowance: Definition pending.
Overtonnaging: A situation where there are too many ships generally or in a particular trade for the level of available cargoes.
Pallet: A flat tray, generally made of wood but occasionally of steel, on which goods particularly those in boxes, cartons or bags, can be stacked. Its purpose is to facilitate the movement of such goods, mainly by the use of forklift trucks.
Panamax: A vessel designed to be just small enough to transit the Panama Canal
Passenger Ship: A passenger ship that its authorized to carry over twelve passengers.
Pathway: A route which flows between places once a link has been made.
Per Container Rate: Rates and/or changes on shipments transported in containers or trailers and rated on the basis of the category of the container or trailer.
Personal Floatation Device: Approved floats meant as life preservers and carried on board American ships.
Pilot: A person who is qualified to assist the master of a ship to navigate when entering or leaving a port.
Pilotage: The act carried out by a pilot of assisting the master of a ship in navigation when entering or leaving a port. Sometimes used to define the fee payable for the services of a pilot.
Pilotage Dues: A fee payable by the owner or operator of a ship for the services of a pilot. This fee is normally based on the ship's tonnage.
Pilot House: The enclosed space on the navigating bridge from which a ship is controlled when under way.
PL 480: Agricultural Trade Development and Assistance Act of 1954.
PL 664: Mandates that 50 percent of government impelled cargoes be carried under U.S. flag. Known as the 50/50 shipping law.
PMA: Pacific Maritime Association.
Pooling:The sharing of cargo or the profit or loss from freight by member lines of a liner conference. Pooling arrangements do not exist in all conferences.
Post-Payment Audit: Postpayment audit means an audit of transportation billing documents after payment to decide their validity, propriety, and conformity with tariffs, quotations, agreements, or tenders. This process may also include subsequent adjustments and collections actions taken against a TSP by the Federal Government.
PR-17: Public Resolution which requires that U.S. Government financed cargoes (Eximbank) must be shipped 100% in U.S. flag ships, but that the requirement may be waived up to 50% in some cases.
Pre-Payment Audit: An audit of transportation billing documents before payment to determine their validity, propriety and conformity with tariffs, quotations, agreements, or tenders.
Principle of Least Effort: A journey between two places which follows the shortest possible route.
Product Carrier: A tanker which is generally below 70,000 deadweight tons and used to carry refined oil products from the refinery to the consumer. In many cases, four different grades of oil can be handled simultaneously.
Propane Carrier: A ship designed to carry propane in liquid form. The propane is carried in tanks within the holds; it remains in liquid form by means of pressure and refrigeration. Such ships are also suitable for the carriage of butane.
Pumpman: A rating who tends to the pumps of an oil tanker.
Purser: A ship's officer who is in charge of accounts, especially on a passenger ship.
Qualified Member of the Engine Department: Known as QMED, unlicensed members of the engine department who attend to a fully automated engine room.
Quartermaster/Helsman: An able-bodied seamen entrusted with the steering of a vessel.
Radio Operator: An officer who operates and controls the shipboard communication equipment.
Rate Authority: Definition pending.
Rate Schedule: A list of freight rates, taxes, and charges assessed against non-household goods cargo.
Rate Source: Definition pending.
Rate Tender: An offer a TSP sends to an agency, containing service rates and charges.
Receipt: A written or electronic acknowledgment by the consignee or TSP as to when and where a shipment was received.
Reefer: Refrigerator ship; a vessel designed to carry goods requiring refrigeration, such as meat and fruit. A reefer ship has insulated holds into which cold air is passed at the temperature appropriate to the goods being carried.
Reefer Box: An insulated shipping container designed to carry cargoes requiring temperature control. It is fitted with a refrigeration unit which is connected to the carrying ship's electrical power supply.
Value: Stated in
dollars and is considered the assigned value of the cargo for reimbursement
purposes, not necessarily
the actual value of the cargo. Released value may be more or less than the actual value of the cargo. The released value is the maximum amount
that could be recovered by the agency in the event of loss or damage for the shipments of freight and household goods. The statement of released
value must be shown on any applicable tariff, tender, or other document covering the shipment.
Release Number: Definition pending.
Reparation: A payment to or from an agency
to correct an improper transportation billing involving a TSP. Improper routing,
duplicate payments may cause such improper billing. This is different from a payment to settle a claim for loss and damage.
Request for Offers: Definition pending.
Return Cargo: A cargo which enables a ship to return loaded to the port or area where her previous cargo was loaded.
RFO: See Request for Offers.
Rolling Cargo: Cargo which is on wheels, such as truck or trailers, and which can be driven or towed on to a ship.
RO/RO Ship: Freight ship or ferry with facilities for vehicles to drive on and off (roll-on roll-off); a system of loading and discharging a ship whereby the cargo is driven on and off on ramps. Equipped with large openings at bow and stern and sometimes also in the side, the ship permits rapid loading and discharge with hydraulically operated ramps providing easy access. Fully loaded trucks or trailers carrying containers are accommodated on the deck.
Route Order: Definition pending.
Salvage: The property which has been recovered from a wrecked vessel, or the recovery of the vessel herself.
SCAC: See Standard Carrier Alpha Code.
SEABEE: Sea-barge, a barge carrier design similar to "LASH" but which uses rollers to move the barges aboard the ship; the self-propelled loaded barges are themselves loaded on board as cargo and are considerably larger than those loaded on LASH ships.
Seal Record: Seals are applied at point of origin on carload, truckload, or sea van shipments. The seal record indicates whether the original seals were intact upon arrival of the shipment or whether seals were missing, broken, tampered with, or substituted. Seal numbers other than those applied at point of origin are recorded in the Seal Record. When a sealed carload, truckload, or container arrives at destination with original seals intact but with a shortage, such original seals will be evidence that the shortage is not the responsibility of the carrier in the absence of evidence to the contrary. When a sealed carload, truckload, or container arrives at destination with original seals missing, broken, tampered with, or substituted, the fact that seals are not intact may be considered as evidence that the shortage or damage is the responsibility of the carrier, in the absence of evidence to the contrary.
Sea Trials: A series of trials conducted by the builders during which the owner's representatives on board act in a consulting and checking capacity to determine if the vessel has met the specifications.
Sea Vans: Government or commercial owned or leased shipping containers.
Sea Worthiness: The sufficiency of a vessel in materials construction, equipment, crew and outfit for the trade in which it is employed. Any sort of disrepair to the vessel by which the cargo may suffer -- overloading, untrained officers, etc., may constitute a vessel unseaworthy.
Seaworthiness Certificate: A certificate issued by a classification society surveyor to allow a vessel to proceed after she has met with a mishap that may have affected its seaworthiness. It is frequently issued to enable a vessel to proceed, after temporary repairs have been effected, to another port where permanent repairs are then carried out.
Self-Sustaining Ship: A containership which has her own crane for loading and discharging shipping containers enabling the ship to serve ports which do not have suitable lifting equipment.
Self-Trimming Ship: A ship whose holds re shaped in such a way that the cargo levels itself.
Self-Unloader: A bulk carrier which is equipped with gear for unloading cargo.
Sharer: Definition pending.
Shifting: This refers to movements or changing positions of cargo from one place to another. This can easily endanger the seaworthiness or cargo worthiness of the ship.
Ship's Articles: A written agreement between the master of a ship and the crew concerning their employment. It includes rates of pay and capacity of each crewman, the date of commencement of the voyage and its duration.
Ship's Stability: The seaworthiness of a ship regarding the centrifugal force which enables her to remain upright.
Ship's Agent: A person or firm who transacts all business in a port on behalf of shipowners or charterers. Also called shipping agent; agent.
Shippers: Individuals or businesses who purchase transportation services or commodities.
Shipper's Council: An organization of shippers formed to collectively and services with the conferences of ship operators.
Short Ton: 2,000 pounds.
Sister Ships: Ships built on the same design.
Sight Draft: A draft payable on demand upon presentation.
SIU: Seafarers International Union.
Slop Tank: A tank in a tanker into which slops are pumped. These represent a residue of the ship's cargo of oil together with the water used to clean the cargo tanks. They are left to separate out in the slop tank.
Small Package Tender of Service: Definition pending.
SOD: See Statement of Difference.
Soft Currency: Currency which is not fully convertible to all currencies but only to some other soft currencies.
SOLAS: Safety of Life a Sea Convention
SPLIC: See Standard Point Location Code.
Spot (Voyage): A charter for a particular vessel to move a single cargo between specified loading port(s) and discharge port(s) in the immediate future. Contract rate ("spot" rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew's wages and food, insurance and repairs. Cargo owner absorbs, in addition, any expenses specifically levied against the cargo.
SPTOS: See Small Package Tender of Service.
S/T: See Short Ton.
Referred to as SCAC, a unique four-letter code
assigned to each TSP by the National Motor Freight Traffic Association,
Standard Point Location Code: Definition pending.
Starboard: The right-hand side of a ship when facing the front or forward end. The starboard side of a ship during darkness is indicated by a green light.
Statement of Difference:
Statement of difference means a statement issued by a
Federal Agency or its designated audit contractor during a prepayment
audit when they determine that a TSP has billed the agency for more than the
proper amount for the services. This statement tells the TSP on the invoice, the
amount allowed and the basis for the proper charges. The statement also cites
the applicable rate references and other data relied on for
support. The agency issues a separate statement of difference for each transportation transaction.
Station Allowance: Definition pending.
Station Bill: A list which shows the vessel's complement and details their various duties in connection with fire and boat drills.
Stern: The upright post or bar of the bow of a vessel.
Sternway: The reverse movement of a vessel.
Store: A general term for provisions, materials and supplies used aboard ship for the maintenance of the crew, and for the navigation, propulsion and upkeep of the vessel and its equipment.
Stowage: The placing of goods in a ship in such a way as to ensure the safety and stability of the ship not only on a sea or ocean passage but also in between ports when parts of the cargo have been loaded or discharged.
Suspension: An action taken by an agency to disqualify a TSP from receiving orders for certain services under a contract or rate tender (48 CFR part 9, subpart 9.407).
running of a ship on shore on a beach.
Tail Shaft: The extreme section at the aft end of a ship's propeller shaft.
Tank-Barge: A river barge designed for the carriage of liquid bulk cargoes.
Tank Cleaning: Removal of all traces of a cargo from the tanks of a tanker normally by means of high pressure water jets.
Tanker: A tanker is a bulk carrier designed to transport liquid cargo, most often petroleum products. Oil tankers vary in size from small coastal vessels of 1,500 tons deadweight, through medium-sized ship of 60,000 tons, to the giant VLCCs (very large crude carriers).
Tariff/Special Authority: Definition pending.
Tender of Service: Definition pending.
Territorial Waters: That portion of the sea up to a limited instance which is immediately adjacent to the shores of any country and over which the sovereignty and exclusive jurisdiction of that country extend.
TEU: Twenty Foot Equivalent Unit (containers): A measurement of cargo-carrying capacity on a containership, referring to a common container size of 20 ft in length.
Time Charter: A form of charter party wherein owner lets or leases his vessel and crew to the charterer for a stipulated period of time. The charterer pays for the bunkers and port charges in addition to the charter hire.
Time Draft: A draft that matures at a fixed or determinable time after presentation or acceptance.
Title XI: A ship financing guarantee program.
TLA: Definition pending.
Tonnage: A quantity of cargo normally expressed as a number of tons. Alternate Definition: Deadweight, gross, net, displacement.
Top-Off: To fill a ship which is already partly loaded with cargo.
Ton Mile: A measurement used in the economics of transportation to designate one ton being moved one mile. This is useful to the shipper because it includes the distance to move a commodity in the calculation.
TOS: See Tender of Service.
Tow: When one or more vessels are being towed; when a tug is towing one or more floating objects; to pull an object in the water by means of a rope.
Towage: Charges for the services of tugs assisting a ship or other vessels in ports or other locations; the act of towing a ship or other objects from one place to another.
Tracing: The procedure for locating shipments. Also referred to as tracking.
Tramp Service: Vessels operating without a fixed itinerary or schedule or charter contract.
Transit Privileges: Definition pending.
Transportation Document: Any executed agreement for transportation service, such as bill of lading, Government Bill of Lading (GBL), Government travel request (GTR) or transportation ticket.
Transportation Service: A service involved in the physical movement (from one location to another) of products, people, household goods, and any other objects by a TSP for an agency as well as activities directly relating to or supporting that movement. Examples of this are storage, crating, or connecting appliances.
Transportation Service Provider: Transportation service provider (TSP) is any party, person, agent or carrier that provides freight or passenger transportation and related services to an agency. For a freight shipment this would include packers, truckers and storers. For passenger transportation this would include airlines, travel agents and travel management centers.
Trim: The relationship between a ship's draughts forward and aft.
Truck Load: Definition pending.
TSP: See Transportation Service Provider.
Tug: A small vessel designed to tow or push large ships or barges. Tugs have powerful diesel engines and are essential to docks and ports to maneuver large ships into their berths. Pusher tugs are also used to push enormous trains of barges on the rivers and inland waterways of the U.S. Oceangoing salvage tugs provide assistance to ships in distress and engage in such work as towing drilling rigs and oil production platforms.
ULCC: Ultra Large Crude Carriers. Tankers larger than 300,000 dwt.
UNCTAD: United Nations Conference on Trade and Development
Under Packing: Inadequate protection.
Unmanned Machinery Spaces: A space where alarm bells are installed on the bridge of a ship to trace or rectify any machinery faults. The computerized devices will report any fault immediately it appears and the engineers on board can attend to the necessary ramifications.
Unseaworthiness: The state or condition of a vessel when it is not in a proper state of maintenance, or if the loading equipment or crew, or in any other respect is not ready to encounter the ordinary perils of sea.
U.S. Effective Controlled Fleet: That fleet of merchant ships owned by United States citizens or corporations and registered under flags of "convenience" or "necessity" such as Liberia or Panama. The term is used to emphasize that, while the fleet is not U.,$.-flag, it is effectively under U.S. control by virtue of the ship's owners and can be called to serve U.S. interests in time of emergency.
U.S. Flag Air Carrier: An air carrier holding a certificate issued by the United States under 49 U.S.C. 41102 (49 U.S.C. 40118, 48 CFR part 47, subpart 47.4).
U.S. Flag Vessel: A commercial vessel, registered and operated under the laws of the U.S., owned and operated by U.S. citizens, and used in commercial trade of the United States.
VGBL: See Virtual GBL.
Vicinity: Definition This section of this Desk Reference is under development.
Virtual GBL: Referred to a VGBL, the use of a unique GBL number on a commercial document, which binds the TSP to the terms and conditions of a GBL.
VLCC: Very Large Crude Carriers: Tankers between 200,000 and 300,000 dwt.
Voyage Charter: A contract whereby the shipowner places the vessel at the disposal of the charterer for one or more voyages, the shipowner being responsible for the operation of the vessel.
Watch: The day at sea is divided into six four hour periods. Three groups of watchstanders are on duty for four hours and then off for eight, then back to duty. Seamen often work overtime during their off time.
Worldscale: An index representing the cost of time chartering a tanker for a specific voyage at a given time. The index is given at Worldscale 100, which represents the price in dollars per ton for carrying the oil at that rate. The negotiated rate will be some percentage of the index value.
Glossary is a feature of Know Net, a knowledge management, e-learning and performance support system sponsored by the Government of the United States of America. Know Net can be accessed at http://www.knownet.hhs.gov