AA

Always Afloat (In some ports the ship aground when approaching, or at berth.)

Agency Tariff A tariff published by an agent on behalf of several carriers.

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

AWWL Always within Institute Warranties Limits (Insurance purpose).B/L Abbreviation for "Bill of Lading." BAF Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF. Bank Guarantee Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.Bill of Lading (B/L) A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.

- Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.

- B/L Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier's liabilities and contractual agreements.

- B/L's Status: represents whether the bill of lading has been input, rated, reconciled, printed, or released to the customer.

- B/L's Type: refers to the type of B/L being issued. Some examples are: a Memo (ME), Original (OBL), Nonnegotiable, Corrected (CBL) or Amended (AM) B/L.

- Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper's request; different from voided B/L.

- Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.

- Combined B/L: B/L that covers cargo moving over various transports.

- Consolidated B/L: B/L combined or consolidated from two or more B/L's.

- Corrected B/L: B/L requiring any update which results in money  or other financially related changes.

- Domestic B/L: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders.

- Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L.

- Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.

- Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.

- Government B/L (GBL): A bill of lading issued by the U.S. government.

- Hitchment B/L: 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.

- House B/L: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.

- Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.

- Long Form B/L: 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.

- Memo B/L: Unfreighted B/L with no charges listed.

- Military B/L: B/L issued by the U.S. military; also known as GBL, or Form DD1252.

- B/L Numbers: U.S. Customs' standardized B/L numbering format to facilitate electronic communications and to make each B/L number unique.

- Negotiable B/L: The B/L is a title document to the goods, issued "to the order of" a party, usually the shipper, whose endorsement is required to effect is negotiation.  Thus, a shipper's order (negotiable) B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions.   The buyer must submit the original B/L to the carrier in order to take possession of the goods.- Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L.

- "Onboard" B/L: B/L validated at the time of loading to transport. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types.

- Optional Discharge B/L: B/L covering cargo with more than one discharge point option possibility.

- "Order" B/L: See Negotiable B/L.

- Original B/L: The part of the B/L set that has value, especially when negotiable; rest of set are only informational file copies. Abbreviated as OBL.

- Received for Shipment B/L: Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard".

- Reconciled B/L: 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.

- Short Term B/L: 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.

- Split B/L: One of two or more B/L's which have been split from a single B/L.

- Stale B/L: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void.

- Straight (Consignment) B/L: 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.

- "To Order" B/L: See Negotiable B/L.

- Unique B/L 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.

- Voided B/L: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L.

 

Bill of Lading Port of Discharge

Port where cargo is discharged from means of transport.

Bonded Warehouse

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

Booking Number

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

Break Bulk

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

Bulk Cargo

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

Bulk-Freight Container

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

Bunker Charge

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

C&F Terms of Sale, or 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.

CAF

Abbreviation for "Currency Adjustment Factor." A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.

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.)

CBM (CM)

Abbreviation for "Cubic Meter."

Certificate of Origin

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

CFS

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

CIF

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

CIF&C

Price includes commission as well as CIF.

CIF&E

Abbreviation for "Cost, Insurance, Freight And Exchange."

CIFCI

Abbreviation for "Cost, Insurance, Freight, Collection And Interest."

CIFI&E

Cost, Insurance, Freight, Interest and Exchange.

COD

Abbreviation for: - Collect (cash) on Delivery. - Carried on Docket (pricing).

Commercial Invoice

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

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.

Container

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

CY

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

D&H

Abbreviation for "Dangerous and Hazardous" cargo.

Devanning

The unloading of a container or cargo van.

Documents Against Acceptance (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.

Documents Against Payment (D/P)

An indication on a draft that the documents attached are to be released to the drawee only on payment.

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.

ETA

- Estimated Time of Availability. That time when a tractor/partner carrier is available for dispatch. - Estimated time of arrival.

EXIM Bank

Abbreviation for Export-Import Bank of the United States. An independent U.S. Government Agency which facilitates exports of U.S. goods by providing loan guarantees and insurance for repayment of bank-provided export credit.

Export Declaration

A government document declaring designated goods to be shipped out of the country. To  be completed by the exporter and filed with the U.S. Government.

Export License

A government document which permits the "Licensee" to engage in the export of designated goods to certain destinations

FAS

Abbreviation for "Free Alongside Ship."

FCL

Abbreviation for "Full Container Load."

Feeder Vessel

A short-sea vessel which transfers cargo between a central   "hub" port and smaller "spoke" ports.

FEU

Abbreviation for "Forty-Foot Equivalent Units." Refers to container size standard of forty feet. Two twenty-foot containers or TEU's equal one FEU.

Flat Rack/Flat Bed Container

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

FOB

See Free On Board. See also Terms of Sale, FOB.

Force Majeure

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

Free Alongside (FAS)

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

Free on Board (FOB - U.S. Domestic Use)

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

- FOB Freight Allowed: The same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by a like amount.

- FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the freight charges of the inland carrier.

- FOB Named Point of Exportation: Seller is responsible for the cost of placing the goods at a named point of exportation. Some European buyers use this form when they actually mean FOB vessel.

- FOB Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

Freight Bill

A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially.  An Invoice.

Freight Forwarder

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

n-Transit Entry (I.T.)

Allows foreign merchandise arriving at one port to be transported in bond to another port, where a superseding entry is filed.

Import License

A document required and issued by some national governments authorizing the importation of goods.

In Bond

Cargo moving under Customs control where duty has not yet been paid.

Inland Carrier

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

Inspection Certificate

A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.

Insurance, All-risk

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

Inward Foreign Manifest (IFM)

A complete listing of all cargo entering the country of discharge. Required at all world ports and is the primary source of cargo control, against which duty is assessed by the receiving country.

Irrevocable Letter of Credit

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

Issuing Bank

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

L/C

Abbreviation for "Letter of Credit."

Lading

Refers to the freight shipped; the contents of a shipment.

LCL

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

Letter of Credit (LC)

A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are:

- Back-to-Back: A new letter of credit issued to another beneficiary on the strength of a primary credit. The second L/C uses the first L/C as collateral for the bank. Used in a three-party transaction.

- Clean: A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment.

- Confirmed: An L/C guaranteed by both the issuing and advising banks of payment so long as seller's documents are in order, and the L/C terms are met.  Only applied to irrevocable L/C's. The confirming bank assumes the credit risk of the issuing bank.

- Deferred Payment: A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis.

- Irrevocable: An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned.

- Non cumulative: A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards.

- Restricted: A condition within the letter of credit which restricts its negotiation to a named bank.

- Revocable: An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller.

- Revolving: An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period.

- Straight: A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank.

- Transferable: A letter of credit that allows the beneficiary to transfer in whole or in part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit.  Used by middlemen.

- Unconfirmed: A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.

Letter of Indemnity

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

Negotiable Instruments

A document of title (such as a draft, promissory note, check, or bill of lading) transferable from one person to another in good faith for a consideration. Non-negotiable bills of lading are known as "straight consignment." Negotiable bills are known as "order b/l's."

Ocean Bill of Lading (Ocean B/L)

A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.

On Board

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

Order-Notify (O/N)

A bill of lading term to provide surrender of the original bill of lading before freight is released; usually associated with a shipment covered under a letter of credit.

Original Bill of Lading (OBL)

A document which requires proper signatures for consummating carriage of contract. Must be marked as "original" by the issuing carrier.

Packing List

Itemized list of commodities with marks/numbers but no cost values indicated.

Pro Forma Invoice

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and specifications (weight, size, etc.).

Pro Rata

A Latin term meaning "In proportion."

 

Quarantine

A restraint placed on an operation to protect the public against a health hazard. A ship may be quarantined so that it cannot leave a protected point. During the quarantine period, the Q flag is hoisted.

Thailand directory and Thailands No1 original Trading Post

 

 

Quota

The quantity of goods that may be imported without restriction during a set period of time.

Reefer

Refrigerated container.

"Ro/Ro"

A shortening of the term, "Roll On/Roll Off." A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes.

S/D

Abbreviation for: - Sight draft. - Sea damage.

Sea Waybill

Document indicating the goods were loaded onboard when a document of title (b/L) is not needed.  Typically used when a company is shipping goods to itself.

Ships

- Bulk Carriers: All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

- Combination Passenger and Cargo Ships: Ships with a capacity for 13 or more passengers.

- Freighters: Breakbulk vessels both refrigerated and unrefrigerated, containerships, partial containerships, rollon/rolloff vessels, and barge carriers.

- Barge Carriers: Ships designed to carry barges; some are fitted to act as full containerships and can carry a varying number of barges and containers at the same time. At present this class includes two types of vessels LASH and Sea-Bee.

- General Cargo Carriers: Breakbulk freighters, car carriers, cattle carriers, pallet carriers and timber carriers.

- Full Containerships: Ships equipped with permanent container cells, with little or no space for other types of cargo.

- Partial Containerships: Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.

- Roll-on/Roll-off vessels: Ships specially designed to carry wheeled containers or trailers using interior ramps.

- Tankers: Ships fitted with tanks to carry liquid cargo such as: crude petroleum and petroleum products; chemicals, Liquefied gasses(LNG and LPG), wine, molasses, and similar product tankers.

Store-Door Pick-up Delivery

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

Stuffing

Putting cargo into a container.

T.&E.

Abbreviation for "Transportation and Exportation." Customs form used to control cargo movement from port of entry to port of exit, meaning that the cargo is moving from one country, through the United States, to another country.

Tariff (Trf.)

A publication setting forth the charges, rates and rules of transportation companies.

Terminal Charge

A charge made for a service performed in a carrier's terminal area.

Terms of Sale

The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods. Following, are the thirteen terms of sale in international trade as Terms of Sale reflected in the recent amendment to the International chamber of Commerce Terms of Trade (INCOTERMS), effective July 1990: exw, fca, fas, fob, cfr, cif, cpt, cip, daf, des, deq, ddu and ddp.

- EXW (Ex Works) (...Named Place): A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller.

- FCA (Free Carrier) (... Named Place): A Term of Sale which means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.

- FAS (Free Alongside Ship) (...Named Port of Shipment): A Term of Sale which means the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment.This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

- FOB (Free On Board) (...Named Port of Shipment): An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

- CFR (Cost and Freight) (...Named Port of Destination): A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

- CIF (Cost, Insurance and Freight) (...Named Place of Destination): A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

- CPT (Carriage Paid To) (...Named Place of Destination): A Term of Sale which means 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. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.

- CIP (Carriage and Insurance Paid To) (...Named Place of Destination): A Term of Sale which means 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 contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.

- DAF (Delivered At Frontier) (...Named Place): A Term of Sale which means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country. (continued)

- DDU (Delivered Duty Unpaid) (...Named Port of Destination): A Term of Sale where the seller fulfills 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 to bear any risks caused by failure to clear the goods for in time.

- DDP (Delivered Duty paid) (...Named Port of Destination): "Delivered Duty Paid" means that the seller fulfills 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, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.

- DES (Delivered Ex Ship) (...Named Port of Destination): A Term of Sale where the seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.

- DEQ (Delivered Ex Quay, [Duty Paid]) (...Named Port of Destination): A Term of Sale which means the DDU term has been fulfilled when the goods have been 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.