Back Haul

To obtain transport on the home run from B to A after having performed a full transport from A to B.

Bank Guarantee

(1) Under certain circumstances, accepted in lieu of original bill of lading to release cargo.
(2) A statement issued by an importer's bank guaranteeing the payment of (L/C) drafts to the exporter or to the carrier.
(3) Other forms of guarantees by banks in favour of a beneficiary.

Banker's Acceptance

A form of financing used in import/export transactions.

Barcode

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

Barcode, 2-D

The PDF 1000 style barcode is used to store up to 1800 characters of text. Designed to allow more information to be stored and retrieved electronically; it has not achieved wide use.

Barge

Conveyance used to carry loose cargo or containers in small volumes.

Base Port

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

Base Rate

Rate used only for construction of other rates.

Basing Points

A point (location) used in construction of through rates between other points.

Bay

Section of vessel in which containers are held.

Benchmarking

The process of comparing a firm's performance against the practices of other leading companies - in or outside of an industry - for the purpose of improving performance. Companies also benchmark internally by tracking and comparing past performance.

Berth

Vessel docking area.

Best Practice

Also known as competitive benchmarking, the methodology that determines state-of-industry performance or application.

Bill of Exchange

1. A signed, written order by one company that instructs another company to pay a third party a specific amount.
2. An unconditional written order addressed by one person to another and signed by the person placing it. It requires the person, to whom it is addressed, to pay on demand or at a fixed or determinable future time, a certain sum of money to the order of a specified person or to bearer. The drawee is not liable on it until he has accepted it.
3. Usually used in foreign transactions.

Bill of Lading

Legal document signed by or for the captain/master, agents, owners of a vessel or the (common) carrier. It is written evidence of the contract of carriage by sea and/or by land. It is
(1) A receipt of the goods (in the owner's/carrier's or his/their agent's custody) and
(2) An undertaking to carry and deliver the goods safely to the place directed/agreed, dangers of the sea excepted, against
(3) Surrender of the document where/when provisions in the document stipulate delivery to order of a named person, to order (blank) or to bearer
4) It evidences the terms of the contract of carriage.

Billed Weight

Weight stated in a waybill and/or (freight) bill of lading.

Bolero

Bolero is a neutral, open platform, intended to be a cross-industry community moving world trade onto the Internet. The focus is to process trade documents fully electronically via a secure communication platform (CMP). The initial focus has been on the carrier's bill of lading through the Title Registry replicating the paper bill of lading functionality and bill of lading parties' roles. Lately, Bolero's focus has changed towards the trade settlement engine, 'SURF', Settlement Utility for Risk and Finance, which Bolero has developed together with some major banks.
Maersk Line is a member of Bolero, and, to date (August 2002), has conducted a number of pilots to test functionality.
For more information see:
» http://www.bolero.net/
» http://www.boleroassociation.org/

Bonded Warehouse

Warehouse owned by persons approved by the relevant customs and excise authorities (for example in the USA it is the Treasury Department), and under bond (or guarantee) for the strict observance of the revenue laws. Utilised for storing goods until duties are paid or goods are otherwise properly released.

Bonded Warehouse - Export

A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored. Goods are considered foreign and must go out for export. In some countries, a bonded warehouse is defined as a warehouse with customs officials onsite. In others, it is a warehouse in which customs inspect cargo prior to authorising export clearance. Ensure the local definition is established. In some countries, some manufacturers are also granted a licence to operate a bonded warehouse in which they can store manufactured products in anticipation of export and hence suspend payment of local taxes (e.g. on cigarettes).

Bonded Warehouse - Import

A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored.

Booking

1. Act of recording arrangements for the movement/transportation of goods by vessel or other conveyance.
2. To express in advance a desire for something in order to reserve it e.g. transportation of goods.
3. Also known as a booking request.

Box Rate

A lump sum charged to move cargo in various size containers from origin to destination.

Break Bulk

Cargo which is not containerised due to its weight and/or size e.g. steel pipes, boats etc.

Broker

A person or firm, other than a motor carrier or agent of a motor carrier that as a principal or agent sells, offers for sale, or holds itself out by solicitation, advertisement or otherwise as selling, providing or arranging for transportation by motor carrier for competition. A broker is a middleman that brings together the shipper and carrier; a broker does not take responsibility for the transportation. An agent/middleman who for a fee or commission negotiates contract e.g. purchase and sale (such as real estate, commodities or securities) between buyers and sellers without himself taking title to that which is the subject of negotiation and usually without having physical possession of it.

Brokerage Licence

Authority granted by the Interstate Commerce Commission (ICC) to persons to engage in the business of arranging for the transportation of persons or property in interstate commerce.

Bunker Adjustment Factor (BAF)

Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs.

Bunker Surcharge

Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs.

C&F

Cost and Freight.
Terms of sale.
Seller quotes price including the cost of goods and all transportation charges to the named point of destination.

C-TPAT

Customs Trade Partnership Against Terrorism.

Cabotage

Trade or transport in coastal waters or between two ports/points within a country especially by parties other than domestic carriers. Many countries, such as the USA, have laws requiring domestic-owned vessels to perform domestic interport water transportation services.

CAF

Cost, Assurance and Freight.
Also known as Currency Adjustment Factor.
Used to adjust ocean freight due to currency fluctuations.

Cargo Bays

Doors in a warehouse where vehicles back up to load/unload cargo.

Cargo Manifest

An invoice of all cargo loaded on board a vessel. Listing of all cargo on board a vessel is required by the relevant local authorities.
Same as manifest.

Carrier's Certificate

A release order used to advise customs of the details of the shipment, its ownership, port of lading, etc. By means of this document the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo. A U.S. Customs form used in lieu of a bill of lading.

CBM

Cubic Metre.
1 cubic metre = 35,314 cubic feet.

Cell

Container slot where container fits into place on vessel.

Certificate of Origin

Document used to assure the buying country precisely which country produced the goods being shipped. Usually completed by a recognised chamber of commerce.

CFR

Cost and Freight.

For more information see:
» www.iccwbo.org

CFS

Container Freight Station.
Location designated by the ocean carrier for the receiving and delivering of a shipment, and for assembly and distribution of shipments into or out of steamship line containers. Most LCL cargos are either packed into or devanned at the CFS. The carrier may store empty containers at a CFS but not receive or deliver containers.

Chassis

Trailer or wheeled unit on which a container is placed in order to move container over the road.

CIF

Cost, Insurance and Freight.

For more information see:
» www.iccwbo.org

CIP

Carriage and Insurance Paid.

For more information see:
» www.iccwbo.org

Claim Tracer

Request for advice concerning the status of a claim.

Clean On Board

A clause inserted in the bill of lading by some shipping/transportation companies, stating that they have not noted or are not familiar with any irregularities or discrepancies in the packing or in the general condition of any part of the goods or its description.

Codabar

Codabar is a variable length barcode that can encode 16 data characters including 0-9, plus the symbols - $ ; / . +. Codabar is used primarily for numeric data.

Code 128 Auto

Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This version, "Code 128 Auto", automatically selects the subset that will produce the smallest barcode.

Code 128A

Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (A) allows all standard upper case alpha-numeric keyboard characters plus control characters.

Code 128B

Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (B) allows all standard upper case alpha-numeric keyboard characters and lower case alpha characters.

Code 128C

Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (C) includes a set of 100 digit pairs from 00 to 99 inclusive. This allows double density numeric digits, two digits per barcoded character.

Code 3 of 9

This barcode is an alphanumeric barcode allowing upper case letters and numbers. Each character consists of nine elements. 3 of the nine elements are wide, hence the name "3 of 9".

Code 93

Code 93 is an alpha-numeric barcode allowing upper case letters and numbers. BarCode/VBX will convert lower case letters to upper case before encoding them.

COFC

Container on Flat Car
Rail service whereby a container is loaded onto a flat car without chassis, bogies or wheels.

Combined Transport Bill of Lading

Provides a combined transport by at least two different modes of transportation from a place from which the goods are taken to a place designated for delivery.

Commercial Invoice

A document produced by the shipper/seller of goods which contains an accurate description of the merchandise and the country of origin. All items are itemised and with actual price.

Commodity

A specification of goods/product types, e.g. toys, electronics or welding machinery.

Common Point

Point reached by two or more transportation lines.

Common Tariff

Tariff published by or for the account of two or more transportation lines as issuing carriers.

Company Guarantee

A letter of guarantee from a company indemnifying the carrier of responsibility associated with the release of goods in lieu of a bill of lading.

Conference

Defined in the 1984 Shipping Act as: ... an association of ocean common carriers permitted, pursuant to an approved or effective agreement, to engage in concerted activity and to utilise a common tariff; but the term does not include a joint service, consortium, pooling, sailing or transshipment arrangement.
It is basically a group of steamship companies offering equitable freight rates, standardised shipping practices and regularly scheduled services between designated ports. These arrangements are given anti-trust immunity as authorised by the 1984 Shipping Act.

Consignee

Person to whom something is consigned or shipped and entitled to take delivery.

Consignor

Person who consigns something (as the goods of an individual shipment). See also shipper.

Consolidation

The placing of LCL/LTL cargo from several sources into a container in order to fill the container and obtain a better per-unit cost for shipping.

Consular Invoice

Document required by some foreign countries, showing exact information as to consignor, consignee, value description etc. for a shipment.

Container

Weatherproof box designed for the shipment of freight, generally used for overseas shipments. The container is separable from the chassis when loaded onto vessels or rail cars.

Container Depot

Location, other than a container yard, maintained by or on behalf of an ocean carrier at which shippers or consignees may pick up or drop off empty equipment. No loaded containers may be received at CDs and such locations may not be owned or controlled by a shipper or his agent.

Container Service Charge

The charge assessed by the terminal for the positioning of containers within the terminal/yard.

Container Stuffing List (CSL)

List showing how cargo is stowed in each container.

Container Yard (CY)

Area adjacent to the vessel berth where containers are delivered to and received from the vessel or inland carrier.

Continuous Flow Distribution (CFD)

The streamline pull of products in response to customer requirements while minimising the cost of distribution.

Continuous Replenishment Program (CRP)

A program that triggers the manufacturing and movement of a product through the supply chain when the identical product is purchased by an end user.

Contract Carrier

For-hire interstate operators which offer transportation services to certain shippers under contracts.

Core Competency

A company's primary function considered essential to its success.

CPT

Carriage Paid To.

For more information see:
» www.iccwbo.org

Cross-Docking

The process of moving merchandise directly from the receiving dock to the shipping dock, eliminating the need to place the merchandise in storage.

Customs clearance

The process of declaring and clearing cargoes through customs.

Customs Entries

Consumption Entry Form required by U.S. Customs for importing goods into the United States. The form contains information as to the origin of the cargo, a description of the merchandise and estimated duties applicable to the particular commodity. Estimated duties must be paid at the time the entry is filled.

Immediate Delivery Entry is used to expedite clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows for the subsequent filing of the consumption entry and duty. Also known as an ID entry.

Immediate Transportation Entry allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalisation of the entry at the port of arrival. Known as an IT entry.

Transportation and Exportation Entry allows goods coming from or going to a third country, such as Canada or Mexico, to enter the United States for the purpose of transshipment. Known as a T&E entry.

Vessel Repair Entry is the law known as the "Foreign Vessel Repair Statute". It provides that when any repairs in a foreign country are made on a vessel documented under the laws of the United States, an ad valorem duty of 50% is imposed on the cost of repair, including labour and labour costs, when the vessel arrives in the United States. All equipment, parts or materials purchased, and repairs made outside the United States must be declared on Customs Form 226 (CF-226) and filed at the port of first arrival within 5 working days.

Customs House Broker

Independent broker certified by the U.S. Bureau of Customs to act for importers and businessmen in the handling of customs formalities and other details of importing and exporting goods.

Cut-Off Time

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

Cycle Count

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

Cycle Time

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

Cycle Time Reduction

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

DDP

Delivery Duty Paid.

For more information, see:
» www.iccwbo.org

DDU

Delivery Duty Unpaid.

For more information, see:
» www.iccwbo.org

Delivery

(1) The physical and legal transfer of a shipment from consignor to carrier and from carrier/ transport agent to consignee.
(2) The act of putting property into the legal possession of another, whether involving the actual transfer of the physical control of the object from one to the other or being constructively effected in various other ways.

Delivery Order

An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release.

A document which is neither a bill of lading or a waybill but contains an undertaking which
(1) is given under or for the purposes of a contract for the carriage by sea of goods to which the document relates, or of goods which include those goods; and
(2) is an undertaking by the carrier to a person identified in the document to deliver those goods to that person which the document relates.

Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.

Demand Chain

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

Demurrage

(1) Compensation (as liquidated damages) for delay in removing cargo from terminal facilities.
(2) A charge assessed for detaining a container, freight car, truck or other vehicle beyond the freetime stipulated for loading or unloading.

DEQ

Delivery Ex Quay.

For more information, see:
» www.iccwbo.org

DES

Delivered Ex Ship.

For more information, see:
» www.iccwbo.org

Detention

Costs incurred when a shipper/consignee or his/her agent removes a container from the carrier's origin/destination CY to the shipper/consignee's place of business, and does not return the loaded/empty container to the CY or to another location designated by the carrier within the permitted freetime as stipulated in the applicable tariff.

Differential

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

Distribution

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

Distribution Requirements Planning

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

DIT

Destination Interchange Terminal.

Facility operated by the ocean carrier or his agent at which containers are interchanged with the delivering motor carrier.

Diversion Charge

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

Dock Receipt

Receipt given for a shipment received or delivered at a pier or dock. When delivery of a foreign shipment is completed, the dock receipt is exchanged for a bill of lading with the transportation line.

Double Stack Car

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

Draft

Marine: The depth to which a vessel's deepest point is under water. Rail: A cut of coupled cars. Financial: A signed, written order by one party that instructs another party to pay a third party a specific amount. It can also be called a bill of exchange.

Drawback

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

Drayage

Inland transportation from vendors to the port of shipment, and from discharge port to the point of stripping the ocean container. Drayage is hence undertaken for CY and CFS cargo.

Dry Dock

Used to lay up vessels for repair.

Dunnage

Material used around cargo to prevent breakage or shifting, normally provided by shipper. Its weight is included in the rating.

Duty Drawback

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

EAN 13

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

EAN 8

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

Earnings

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

Economic Value Added (EVA)

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

EDI

Electronic Data Interchange.
The automated exchange of any predefined and structured data for business among information systems of two or more organisations.

EDI message

An approved, published and maintained formal description of how to structure the data required to perform a specific business function in such a way as to allow for the transfer and handling of this data by electronic means.

Efficient Consumer Response (ECR)

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

EIR

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

Electronic Funds Transfer (EFT)

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

Equalisation

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

Error List

Report showing discrepancies (errors) in data input.

ETA

Estimated Time of Arrival.

ETD

Estimated Time of Departure.

Export Declaration

(1) Government document permitting designated goods to leave the country. Issued by the U.S. Dept. of Commerce. Includes complete particulars on the shipment. Although customers can submit their declarations themselves to U.S. Customs, the carrier is still responsible for penalties if the documentation is not available by the time a vessel is "cleared" by customs for sailing. Also known as an ex-dec or SED (Shipper´s Export Declaration).
(2) Shippers need to obtain a Bureau of Census document which spells out shipment details for entry into a government statistical system. Documents for export shipping, declaring the value of the cargo to the U.S. Customs.

Extended 3 of 9

Similar to Code 3 of 9 except that it allows the full 128 ASCII character set to be encoded by printing two barcode characters for each text character.

Extended Code 93

Similar to Code 93 except that it allows the full 128 character ASCII character set to be encoded.

Extra Loader

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

EXW

Ex works. The buyer receives the cargo directly from the factory and thereafter arranges shipment, insurance and other related services themselves.

FAK

Freight All Kinds
Usually refers to consolidated cargo.

FAS

Free Along Side

For more information, see:
» www.iccwbo.org

FCA

Free Carrier

For more information, see:
» www.iccwbo.org

FCL

Full Container Load.
Containers are charged a specific rate for ocean transit regardless of their (lack of) contents. A full container will thus offer a better price per unit shipped than will a LCL.

Feeder

Transportation conveyance utilised to relay cargo from the mother vessel to ultimate destination or from first receipt port to mother vessel.

FFE

Forty-foot Equivalent Unit
The standard measurement unit of containerized cargo.

FIFO

Free In Free Out
See also FIO.

FIO

Free In Free Out

Flat Bed

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

Floating Cranes

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

FMC

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

FOB

Free On Board

For more information, see:
» www.iccwbo.org

For-Hire Carriers

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

Force Majeure

A state of emergency or condition that permits a company to depart from the strict terms of contract because of an event or effect that cannot be reasonably anticipated or controlled, i.e: beyond human control (French superior or irresistible force).
Compare: ACT OF GOD, INEVITABLE ACCIDENT, VIS MAJOR.

Forwarder's Cargo Receipt

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

Free Time

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

Freight Bill

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

Freight Cashier

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

Freight Forwarder

(1) Person engaged in assembling, collecting, consolidating shipping and distributing less than trailer load freight.
(2) Also, a person acting as an agent in the transshipping of freight to or from foreign countries and clearing freight through federal customs.

Freight Release

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

Full Visible Capacity

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

Gantry Crane

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

Garment-on-Hanger (GOH)

Method of storing apparel in containers for garments that should not be folded.

Gateway

Shipping: Point at which freight moving from one territory to another is interchanged between transportation lines.
Computers: Computers, like bridges and routers, are a method of connecting two local area networks. Gateways translate between two LAN protocols.
Gateways: are protocol-specific and can only translate between two types of networks, not directly to PCs.

Genset

Generator sets which supply power to refrigerated containers when no external source is available. It is used to regulate the temperature in a reefer container. It can use its own power or plugs provided on the pier/vessel.

GRI

General Rate Increase

General Average

General Average is defined in the York-Antwerp rules as: There is a General Average act when, and only when, any extraordinary sacrifice expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. When a cargo ship encountered a serious accident at sea, e.g. a grounding, the vessel owners may ha to incur additional costs to salvage the ship and its cargo, and may resort to declaring General Average.

General Average requires that all parties with an interest in saving ship, the cargo, etc. share proportionately the cost of saving the common adventure . This means that cargo owners would be responsible a proportion of the costs equal to the proportion of the value of the cargo to the common adventure. General Average is applied according to an internationally acknowledged set of rules, the York-Antwerp rules.

Handling Costs

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

Hangertainer

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

Harmless Chemicals

A cargo description, which is a contradiction of terms. A chemical is a substance and whether it is harmless or not, depends on the context in which the substance appears or is used.
Maersk Line does not accept harmless chemicals as a valid cargo description on the shipping documents.

Harmonised Tariff System

An international classification system designed to improve the collection of import and export statistics as well as provide a uniform tariff code structure for incorporation into national tariff systems. Promotes a high degree of international uniformity in the presentation of customs tariffs and foreign trade statistics. Consists of approximately 5,000 item descriptions, grouped into 21 sections and 97 chapters.

HAWB/MAWB

House Airwaybill/Master Airwaybill
Documents required for air transportation of cargo.

Heavy Lift Charge

Charge for cargo which is too heavy to be lifted by standard cranes or ship's tackle.

Hitchment

Marrying 2 or more portions of one shipment that originate at different geographical locations, moving under one bill of lading, from one shipper to one consignee. Authority for this service must be granted by tariff publication.

Holds

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

Hustler

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

IA

Independent Action.
A carrier can take an independent action in a conference, resulting in a unique rate for that carrier within a conference; ability to file a rate independently of other carriers' actions.

IMCO

International Maritime Control Organisation. See IMO.

IMCO Classification

International Maritime Control Organisation classification for hazardous cargo.

IMO

International Maritime Organisation. Formally IMCO.

Imports

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

Inbound

Import Shipment.

INCO Terms

Incoterms 2000 is the latest version of ICC's standard trade definitions, commonly known as the INCO terms. The terms consist of 13 rules which are fundamental to international trade, defining the most important responsibilities of buyers and sellers in international sales contracts. Incoterms are a basic reference for sales contracts, recognised as the international standard by customs authorities and courts everywhere. Since they were first published in 1936, Incoterms - a trademarked ICC product - have been updated six times.

For more information, see:
» www.iccwbo.org

Independent Action

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

Independent Carrier

Carrier that is not a member of a shipping conference.

Inland Carrier

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

Insurance Certificate

Document which assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit.
A certificate issued by an insurer to a shipper (or other party) as evidence that a shipment of merchandise is covered under a marine policy.

Integrated Carriers

Carriers that have both air and ground fleets or other combinations, such as sea, rail and truck. They usually handle thousands of small parcels an hour.

Interleaved 2 of 5

This is strictly a numeric barcode. Each encoded character is made up of five elements, two are wide and three are narrow. The number of characters to be printed must be an even number. If the number of characters to be printed is odd, a zero will be appended to the beginning of the code.

Intermodal

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

Intermodal Marketing Company (IMC)

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

International Freight Forwarders

Freight forwarders that handle booking, paperwork and consolidation of exports.

Inventory Carrying Costs

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

Inventory Turnover

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

Inventory Velocity

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

IPI

Inland Point Intermodal.
Cargo moving via land from/to an inland point.
See also Micro Bridge.

ISA

Information System Agreement.
Leading organisation of ocean carriers that develops, promotes and implements electronic commerce solutions for the maritime industry.

IT

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

ITIGG

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

ITIGG is a subgroup of D4, the UN/EDIFACT Message Development Group for Transport.

ITIGG develops recommendations which provide software developers with a series of simple, straightforward tools to assist in designing applications which can be used for trading electronically throughout the world, and to clarify the intentions of the designers of key UN/EDIFACT messages.

JOC

Journal of Commerce
A trade publication. Trade transportation journal.

Joint Rate

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

Jones Act

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

Just-In-Time (JIT)

In this method of inventory control, warehousing is minimal or non-existent; the container is the moveable warehouse and must arrive "just in time," i.e. not too early and not too late.

Label Cargo

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

Land Bridge

Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also MLB.

Less Than Container Load (LCL)

Common term for an amount of goods to be shipped and which do not fill an entire container. Ocean rates for LCL are commonly higher on a per-unit basis than for a full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.

Less Than Trailer Load (LTL)

See "Less Than Container Load" (LCL).

Letter of Credit (LC)

(1) Letter of agreement issued by a bank stating a foreign purchaser has established a line of credit in a seller's favour, and confirming that payment for goods will be made upon presentation of certain documents which are in agreement with terms on the letter of credit.
(2) A letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on him or his credit up to a certain sum.
(3) A letter addressed by a banker to a person, to whom credit is given, authorising him to draw on the issuing bank or on a bank in his country up to a certain sum and guaranteeing to accept the drafts if duly made, also called commercial letter of credit, confirmed credit or confirmed letter of credit.
Letters of credit may take various forms, represent various undertakings for various purposes and be subject to different conditions.

Line Haul

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

LNG Carrier

Liquified Natural Gas Carrier.

Logistics

The management of freight and information throughout the total supply chain from the original raw material source to the ultimate consumer of the finished product, encompassing factories, assembly and packing plants, warehouses, distribution centres and retail outlets.

Longshoreman

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

LT

Long Ton
1 Long Ton = 2,240 lbs

Manifest

Entire listing of all cargo on board a vessel as required by the relevant local authorities e.g. customs.
Same as cargo manifest.

Marks and Numbers

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

Materials Management

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

Merchant Haulage

Inland transportation performed by an inland carrier contracted by and for the account of the shipper or consignee.

Mixed Shipment

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

MLB

An abbreviation for Mini Land Bridge Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also Land Bridge.

Mother Vessel

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

MSI Plessey

This barcode is a variable length barcode that can encode up to 15 numeric digits. Checksum generation is dependent on the value of the checksum parameter. The following table indicates the value of the checksum property and the type of checksum created. Setting, Description, 0, one modulus 10 checksum, 1, two modulus 10 checksums, 2, one modulus 11 checksum/one modulus 10 checksum.

MT

Metric Ton.
1 MT = 2,204.62lbs or 35.314 cft.

Negotiable Bill of Lading

Something that can be negotiated, transferred or assigned from one person to another in return for equivalent value by being delivered either with endorsement (as of an instrument to order) or without endorsement (as of an instrument to bearer) so that the title passes to the transferee who is not prejudiced in his rights by any defect or flaw in the title of prior parties nor by personal defenses available to prior parties among themselves provided in both cases that the transferee is a bona fide holder without notice e.g. bills of lading, bills of exchange, promissory notes, and cheques that are payable to bearer or order are negotiable instruments, as are also, in some jurisdictions, some other instruments (as bonds, some forms of stock) i.e. negotiable paper/negotiable securities. "Negotiable" used analogously for "transferable" - see also negotiability/transferability.

Negotiating Bank

Bank where a shipper negotiates documents or where documents are first presented, usually at country of origin.

Also, often referred to as the advising bank.

Nested

Three or more different sizes of the same item or commodity which must be enclosed, each smaller piece within the next larger piece, or three or more of the items must be placed one within the other so that the top item does not project above the lower item by more than 1/3 of its height.
Nested Solid: Three or more of items must be placed on or inside the other, so that the external side surfaces of the top item is in contact with the internal side surfaces of the item below, and the top item does not project above the next lower item by more than 1/2 inch.

Neutral Body

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

NOE

Not Otherwise Enumerated

Non-Asset-Based Third Party Providers

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

Non-Negotiable Bill of Lading

A document not made out "to order", but being a receipt and evidence of the contract of carriage, but which is not a document of title, e.g. a waybill and, in some jurisdictions (such as the USA), a (straight) consigned bill of lading.

NOS

Not Otherwise Stated.

Notify Party

Company/person who appears on the bill of lading or waybill to be notified when the cargo arrives at destination. Could be different from the consignee, but is often the actual receiver of the goods. A notify party has no particular rights (beyond the notification) under the bill of lading or waybill.

NVOCC

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

OBL

Original bill of lading.
See also Negotiable Bill of Lading.

OMT, ORT, DMT

Origin Motor Terminal, Origin Rail Terminal, Destination Motor Terminal.
Location designated by a motor/rail carrier at origin/destination points where, the motor carrier or his authorised agent assembles, holds or stores an ocean carrier's containers and chassis; where loaded containers are received from shippers or their agents; where empty containers are delivered to shippers or their agents.

On Deck Stowage

Cargo stowed on the deck of the vessel.

On-Carriage

The carriage of goods (containers) by any mode of transport to the place of delivery after discharge from the ocean vessel (main means of transport) at the port (place) of discharge.

On-Time Performance

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

Open Rates

Rates established for each individual carrier. These rates are listed in a tariff list but may differ according to carrier.

Order Cycle

This includes the time and the process involved from the placement of the order to the receipt of the shipment. It includes the following processes: Communicating the order, order processing, transporting the shipment.

Out of Gauge

Cargo which exceeds the internal dimensions of the container in width, length or height.

Outbound

Export shipments.

Outport

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

Outsource

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

Over Landed

(1) Cargo volume count more than originally shipped.
(2) Cargo taken beyond original port of discharge.

Overland Common Port (OCP)

A special rate concession made by shipping lines, rail carriers and truckers serving the U.S. West Coast for export and import traffic, intended to benefit midwest shippers and importers by equalising rates to and from other coastal areas, and offering these midwest companies a comparable alternative. The steamship companies lower their rates and the inland carriers pick up the terminal charges, which consist of handling charges, wharfage charges and car loading or unloading charges. OCP rates apply to cargo shipped from or consigned to the states of: North Dakota, South Dakota, Nebraska, Colorado, New Mexico and all states east thereof. OCP rates in Canada apply to the provinces of: Manitoba, Ontario and Quebec.

Packing List

List of packages for each shipment, showing individual breakdown in weights/measure and quantity.

Pallet

Wooden structure used to support cargo and ease movement by forklifts.

Partlow Chart

A chart that indicates the temperature reading in a reefer container.

Partnerships and Alliances

Shippers and providers who enter into agreements designed to benefit both parties.

Per Diem

On a daily basis.

Physical Distribution

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

Pier

A structure built away from land and extending some distance over water, often used for docking boats.
Also known as a wharf.

Piggyback

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

Pilferage

Cargo stolen from the container, warehouse or terminal.

Plimsoll Mark

Depth to which a vessel may safely load. Identified by a circle on the vessel's side with a vertical line through and a number of small horizontal lines showing the max depth for summer and winter.

Port & Terminal Service Charge [PTSC]

South Europe Conference [SEAC] charge incurred when the shipper is not able to deliver cargo directly alongside the vessel. The carrier may assess its expenses in moving cargo from the shipper's point of delivery to the vessel.

Positioning

The moving of empty equipment from surplus areas to deficit areas.

POSTNET

The POSTNET barcode is used on envelopes and postcards that are sent through the U.S. Postal Service. This barcode is placed in the lower right-hand corner of the envelope.

Primage

A charge paid by shippers to ship agents for services provided by the agent in Turkish and Greek ports, generally for loading activities conducted by port stevedores. It is not an actual contractual term so the obligation to pay does not depend on its inclusion in the bill of lading.
Turkey: 3% on Total Ocean Freight including all surcharges and intermodal charges.
Greece: 3% Piraeus, 5% Salonika (except on cargo originating in Bulgaria).

PTI

Pre-Trip Inspection. (Typically the shipping line's inspection of reefer containers prior to release to the shipper for stuffing/loading).

Purchase Order

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

Quality Control

The systematic planning, measuring and control of a combination of people, materials, metrology and machines, with the objective of producing a product that satisfies the quality and profitability of the enterprise.

Quay

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

Quick Response (QR)

A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter. Distributors, carriers and suppliers act as trading partners and focus on improving the total supply system.

Quitclaim

A legal instrument used to release one person's right, title or interest to another without providing a guarantee or warranty of title.

Railhead

Location for loading and unloading containers at railroad terminal.

Rate Agreement

Group of carriers who discuss rates and common problems with options to file independent tariffs.

Re-engineering

An approach to improving business operations through reinventing, reevaluating, redesigning and redoing.

Received for Shipment Bill of Lading

Can be issued on the carrier's actual receipt or taking custody of goods, if requested goods are not yet necessarily loaded on board a vessel or other conveyance. This form of bill of lading would usually be switched to an on board bill of lading or added as an on board notation upon the actual loading of goods on board a vessel or other conveyance.

Register Ton

A unit of interior capacity of ships.
1 Register Ton = 100 cubic feet or 2,832 cubic metres.
Also known as vessel ton.

Relay

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

Replenishment

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

Return Cargo

Cargo to be returned to original place of receipt.

Revenue Ton

Number of tonnes which freight is paid for per ton.

Reverse Logistics

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

Ro-Ro

Roll on/Roll off
Vessel used for carrying cars and light trucks. Vehicles are driven on and driven off, as opposed to being loaded with cranes or other external equipment.

Seawaybill

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

Service Agreement

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

Set Point

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

Ship's Chandlers

Suppliers of various items to the vessel.

Shipper

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

Also known as consignor.

Shipper Packed

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

Shipping Order

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

Short Landed

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

Short Shipped

Cargo missing a vessel that it was originally intended for.

Slot Charter

A carrier's chartering of slots/spaces on other carrier's vessels.

SMDG

User Group for Shipping Lines and Container Terminals.
SMDG develops and promotes UN/EDIFACT EDI messages for the maritime industry and is an official Pan European User Group recognised by the UN/EDIFACT Board.

Special Customs Invoice

An official form usually required by U.S. Customs if the rate of duty is based upon the value, and the value of the shipment exceeds USD 500. This document is usually prepared by the foreign exporter or his forwarder and is used by customs in determining the value of the shipment. The exporter or his agent must attest to the authenticity of the data furnished.

Special Rate

Rate established for a specified commodity for a specific period of time.

SS

Steamship.

ST

1 Short Ton = 2 000 lbs.

STC

Abbreviation for Said To Contain.

Stevedore

Terminal operator who is designated to facilitate the operation of loading and discharging vessels and various terminal activities.
Also known as longshoreman.

Stock Keeping Unit [SKU]

Smallest unit grouping for goods, normally indicating a single retail item. Usually, several SKUs will be under one purchase order.

Storage Charge

Charge for goods held in storage facilities (warehouses) under a fixed agreement for periods of time, and which is not included in other arrangement.

Store-Door Delivery

Movement of goods to the consignee's place of business, customarily applied to movement by truck.

Stripping

Also known as unstuffing.
Physical removal of goods from the (carrier's) container(s).

Stuffing

Physical loading of goods into the (carrier's) container.

Supply Chain

The movement of materials and information through the logistics process from acquisition of raw materials to delivery to end-user. The supply chain includes all vendors, service providers and customers.

Supply Chain Management

The management and control of all materials and information in the logistics process from acquisition of raw materials to delivery to end-user.

Surcharges

Additional charges above ocean freight.
See also Add-Ons.

SWIFT

Society for Worldwide Interbank Financial Telecommunication
A cooperative organised under Belgian law providing the following services to participating financial institutions: Letters of credit (opening and transmission), money transfers, payment security settlements.
Other businesses participating in SWIFT are: Security brokers and dealers, clearing and depository institutions, security exchanges and travellers cheques issuers.

Switch Bill of Lading

Often called "the trader's second set" and intended to replace the first set of bills of lading issued. Usually used where a seller/trader wishes to keep the name of his supplier, named as the shipper, secret from the ultimate buyer of goods. Due care and consideration must be exercised when issuing such bills of lading because of inherent exposure to fraud/conversion of factual data.

Tare Weight

Weight of an empty container. Gross weight = net weight + tare weight.

Tariff

List of published rates, rules and regulations applicable to the transportation of goods in specified trade lanes or between two areas.

Terminal Handling Charge (THC)

The charge assessed by the terminal for the positioning of containers within the terminal/yard.

TEU

Twenty-foot Equivalent Unit
A measure of container capacity still used by some institutions
1 FFE = 2 TEU

Third Party Providers

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

Through Rates

A rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates.

TIR Carnet

A document which can be issued to ease border crossings in Europe. Customs at a European location places a seal on a container and issues the TIR Carnet. The document and seal allow the container to cross borders without inspection to the consignee's door, where destination customs will then inspect the cargo.

To order of Shipper

The shipper, by way of endorsement and passing of the document, allows a transfer of the rights to take delivery of the goods in the document e.g. a bill of lading.

TOFC

Trailer on Flat Car Rail
Service in which a container is loaded on a rail car with chassis, bogies or wheels.

TOS

Terms of Sale (i.e. FOB/CIF/FAS).

Total Average Inventory

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

Total Cost of Distribution

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

Total Quality Management

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

Tracer

A request on a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery. Common usage of this term has been simplified to mean any request for status of a shipment.

Transloading

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

Transmittal Letter

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

TRC

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