A
Ad Valorem
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.
Air Waybill
A non-negotiable contract for carriage of air transportation between an air carrier and a shipper.
All-Risk Insurance
The broadest form of coverage available, providing protection against all risk of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, inadequate packaging, or loss of market.

B
Barrel (BBL) A term of measure referring to 42 gallons of liquid at 60o F.

BAF (Bunker Adjustment Factor)
An adjustment in shipping charges to offset price fluctuations in the cost of fuel. Also known as a Bunker Surcharge (B/S). The word Bunker refers to fuel storage containers on a vessel.

Break Bulk

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

Bill of Lading (B/L)
A document issued by a common carrier to a shipper that serves as:
1. A receipt for the goods delivered to the carrier for shipment.
2. A definition of the contract of carriage of the goods.
3. A Document of Title to the goods described therein.
This document is generally not negotiable unless consigned to order.
 - Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.
- Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
- House B/L: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.

C
CAD (Cash Against Documents)
A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
CAF (Currency Adjustment Factor)
A surcharge on freight charges by a carrier to offset foreign currency fluctuations.
Cargo
Merchandise/commodities carried by means of transportation.
Carrier
Any person who, through a contract of carriage, undertakes to perform or procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of modes.
Carrier Container/Shipper 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.
Certificate of Analysis
A certificate issued by a recognized organization or government authority confirming the quality and composition of goods. This is often required in importing countries for animal and plant products for consumption as well as pharmaceuticals.
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.
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.
CFS (Container Freight Station)
The term CFS at loading port means the location designated by carriers for the receiving of cargo to be loaded into containers by the carrier. At discharge or destination ports, the term CFS means the bonded location designated by carriers for devanning of containerized cargo.
CFS/CFS (Pier to Pier)
The term CFS/CFS refers to cargo delivered at origin in less-than-containerload quantities to a container freight station (CFS) to be loaded into containers and to be unloaded from the container at destination CFS.
CFS/CY (Pier to House)
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 Charge (Container Freight Charge)
The charge assessed for services performed at the loading or discharging port in the packing or unpacking of cargo into/from containers at CFS.
Chargeable Weight
Rate for airfreight goods where dimensional weight factor exceeds the actual weight of the cargo.
Charter
Originally meant a flight where a shipper contracted hire of an aircraft from an airline, but has usually come to mean any non-scheduled commercial service.
Chassis
A rectangular steel frame, supported by springs and wheeled axles constructed to accept mounting of containers for over-the-road transport.
CIA (Cash in Advance)
A method of payment for goods whereby the buyer pays the seller prior to shipping the goods.
CIF (Cost, insurance & freight )
An INCOTERM.
Classification
A term for the determination of the correct tariff number in a Customs tariff for admissibility and duty purposes.
Commercial Invoice
Receipt for a transaction and or goods purchased (invoice) indicating the sender or seller and the receiver or purchaser. A commercial invoice should contain an itemized list of the merchandise with the complete description of goods with their unit value and extended total value. Depending on the Customs requirements of the destination country, there may be additional requirements, statement or clauses that must appear as well.
Common Carrier
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.
Consignee
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.
 Consignor
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.
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) who acts as a selling agent. Only if there is a subsequent sale does the seller receive any payment.          
CTU: Cargo Transport Unit                                                                                                                                          
Guidelines for the packing of loads except bulk goods either in or on CTUs for transport by means of any method of land-based or water-based transportation.                                                                                                                           
Cargo Manifest                                                                                                                                                                                                            
A manifest that lists all cargo carried on a specific vessel voyage.                                                                                     

CM                                                                                                                                                                                                                         

Abbreviation for "Cubic Meter" (capital letters).

D
DGR (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.
DDC
Destination Delivery Charge.
DDP (Delivered Duty Paid)
Also known as free domicile.
DDU (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.
Deck Cargo
Cargo carried on deck rather than stowed under deck. On-deck carriage is required for certain commodities, such as explosives.
Deferred Rebate
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 which 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.
Demurrage
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.
DEQ
Delivered Ex Quay (duty paid).
DO
Delivery Order.
Dock Receipt
When cargo is delivered to a steamship company at the pier, the receiving clerk issues a dock receipt.
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.

 

E
EAON
Except As Otherwise Noted.
EDI or EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport)
From the United Nations-backed electronic data interchange standards body, this is a set of standards that are used to define data sets in certain documents to standardize them for electronic transmission from one format to another.
Export License
A document secured from a government, authorizing a shipper to export a specific quantity of a particular commodity to a certain country. An export license is often required when a government places restrictions upon exports.
Export Trading Company - A corporation or other business entity organized and operated primarily for the purpose of exporting goods and services, or of providing export-related services to other companies.
EXW (Ex-Works)
An INCOTERM.

F
F&D
Freight and Demurrage.
F.i.b.
Free in bunkers; free into barge
F.o.d.
Free of damage.
 FAS (Free Alongside Ship)
An INCOTERM.
 FCL
Full Container Load, Full Car Load.
 Feeder Vessel
 freight forwarder                                                                                                                                                                                                               
is the party who ensures that internationally traded goods move from point of origin to point of destination to arrive: At the right place, At the right time, In good order and condition, At the most economic cost.

G
 Gateway
A port of entry into a country or region.
GATT (General Agreement on Tariffs and Trade)
 - A multilateral treaty intended to help reduce trade barriers and promote tariff concessions.
GCR (General Cargo Rate)
The basic tariff category which was originally introduced to cover most air cargo. It now covers only a minority, the remainder being under SCR or class rates.
General Export License
Any of various export licenses covering export commodities for which validated export licenses are not required.
General Order Warehouse
A government contract warehouse for the storage of cargoes left unclaimed for a designated number of days after availability. Unclaimed cargoes may later be auctioned publicly.
GRI

Abbreviation for "General Rate Increase." Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.
GR Wt./GW
Abbreviation for "Gross Weight". The full weight of a shipment, including containers and packaging materials.

H
Hazardous Materials
(See DGR)
Heavy Lift Vessel
A vessel specifically designed to be self-sustaining with heavy lift cranes to handle unusually heavy or outsized cargoes.
Heavy Lifts
Freight too heavy to be handled by regular ships tackle.
Hi (or High) Cube
Any container exceeding 102 inches in height.                                                                                                                                                                 
House Air Waybill
An air waybill issued by a freight consolidator. (See also Air Waybill)
 Hub
A central location to which traffic from many cities is directed and from which traffic is fed to other areas.

I
IATA
International Air Transport Association.
ICAO (International Civil Aviation Organization)
A specialized agency of the United Nations headquartered in Montreal. It promotes general development of civil aviation such as aircraft design and operation, safety procedures, and contractual agreements.
ICC (International Chamber of Commerce)
A non-governmental organization serving as a policy advocate on world business.
ICTF (Intermodal Container Transfer Facility)
An on-dock facility for moving containers from ship to rail or truck.
Import License
A certificate issued by countries exercising import controls that permits importation of the articles stated in the license and often authorizes and/or releases the funds in payment of the importation.
In-Bond
A term use to describe cargo that has not been cleared by Customs to enter the commerce of a country.
INCOTERMS
The set of international standards for the uniform interpretation of common contract clauses in international trade. INCOTERMS 2000, formulated in concert with many international entities, comprises the latest revisions and should now be used exclusively.
Inland Carrier
A transportation line which hauls export or import cargo between ports and inland points.
Inspection Certificate
A document certifying that merchandise was in good condition, or in accordance with certain specifications immediately prior to shipment.

L
L&D - Loss and Damage.
LCL
Less than Container Load; Less than Car load.
Legal Weight
The weight of the goods plus any immediate wrappings or packagings that are sold along with the goods, e.g., the weight of a tin can as well as its contents. (See also Gross Weight)
Less than Truckload (LTL)
Rates applicable when the quantity of freight is less than the volume or truckload minimum weight.
Letter of Credit (L/C)
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. Issued as revocable or irrevocable.
Letter of Credit, Confirmed
A letter of credit containing a guarantee on the part of both the issuing and advising banks of payment to the seller, provided the seller’s documentation is in order and the terms of the letter of credit are met.
Liquidation
The finalization of a customs entry.
Lo/Lo (Lift-On/Lift-Off)
Denotes the method by which cargo is loaded onto and discharged from an ocean vessel, which in this case is by the use of a crane.

M
M/T
Metric Ton (2204 Ibs).
Manifest
A list of the goods being transported by a carrier.
Mark
(See Consignee Mark, Markings, Port Marks)
Markings
The physical markings on a product indicating the country of origin where the article was produced.
Mates Receipt
Receipt of cargo by the vessel, signed by the mate (similar to a dock receipt).
M/T (Metric Ton)
1000 Kilos

O
 O/o
Order of.
Off-Line
An airline that sells in a market to which it does not operate. An off-line carrier will use another operator to link with its network.
Open Account
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment such as a note, mortgage, or other formal written evidence of indebtedness.
Open Policy
A cargo insurance policy that is an open contract; e.g., it provides protection for all of an exporters shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is open because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate.
O/R
Owner’s Risk.

P
Pallet
A load-carrying platform to which loose cargo is secured before placing aboard the aircraft.
Part Charter
Where part of an airline’s scheduled flight is sold as if it were a charter in its own right. Often incorrectly used as a synonym for split charter.
Part Load Charter
Where a part of an aircraft’s load is discharged at one destination and a part of it at another. This is distinct from a split charter where a number of consignments are carried to the same destination. Inbound, part loads are treated as single entity charters under the regulations in most countries.
Pivot Weights
That weight of a ULD above which a higher tariff applies. In effect, it is an incentive to maximize cargo density.
Point
A particular city, town, village, or other community or area which is treated as a unit for the application of rates.
Port Authority
A government body (city, county, or state) which in international shipping maintains various airports and/or ocean cargo pier facilities, transit sheds, loading equipment, or warehouses for air cargo. It has the power to levy dockage and wharfage charges, landing fees, and other costs.

R
Rebate
A deduction taken from a set payment or charge. Because a rebate is given after payment of the full amount has been made, it differs from a discount which is deducted in advance of the payment. In foreign trade, a full or partial rebate may be given on import duties paid on goods which are later reexported.
Reefer
A refrigerated container, trailer or railcar for transporting perishables.
Ro/Ro (Roll-on/Roll-Off) Vessel
A ship designed to accommodate cargo that is rolled on and rolled off. Many Ro/Ro vessels can also accommodate containers and/or break-bulk cargo.

S
S/N
Shipping Note.
Salvage
The rescue of goods from loss at sea or by fire. Also, goods so saved, or payment made or due for their rescue.
Scheduled Flight
Any service that operates under a set timetable.
SCR (Specified Commodity Rate)
A rate applied to narrowly specified commodities and usually granted on relatively large shipments. Theoretically, it is of limited time duration.
Ship’s Manifest
An instrument in writing containing a list of the shipments constituting the ship’s cargo.
Shipment
Freight tendered to a carrier by one consignor at one place at one time for delivery to one consignee at one place on one bill of lading.
Shipper
Term used to describe an exporter (usually the seller).
SL&C
Shippers Load and Count.
Split Charter
Where a number of consignments from different shippers are carried on the same non-scheduled aircraft. Under U.K. regulations a non-scheduled flight chartered by a single forwarder or agent on behalf of a number of shippers is still classified as a split charter. Under U.S. regulations, a forwarder-chartered flight is classified as a single entity although it can consolidate.

T
Tare Weight
The weight of packing and containers without the goods to be shipped.
Tariff
A general term for any listing of rates or charges. The tariffs most frequently encountered in foreign trade are: tariffs of international transportation companies operating on sea, land, and in the air; tariffs of international cable, radio, and telephone companies; and the customs tariffs of the various countries that list goods that are duty free and those subject to import duty, giving the rate of duty in each case. There are various classes of customs duties.
Temperature Controlled Cargo
Any cargo requiring carriage under controlled temperature.
TEU
A twenty-foot equivalent unit (6.1m). A standard unit for counting containers of various lengths and for describing container ship or terminal capacity. A standard 40’ container (FEU) equals 2 TEUs.
THC (Terminal Handling Charge)
A charge for handling services performed at terminals.
TL
Truckload.
Ton
A system of recording movement intervals of shipments from origin to destination.
Transshipment
The transfer of a shipment from one carrier to another in international trade, most frequently from one ship to another. Because the unloading and reloading of delicate merchandise may cause damage, transshipments are avoided whenever possible.
Truckload
Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be at the truckload minimum weight unless weight is higher.
Transit Time (TT)

The time that takes a vessel to arrive from the POL to the POD.

V
Valuation Charges
Additional transportation charges assessed shippers who declare a value of goods higher than the value of carriers’ limits of liability.
Volume Weight
An international airfreight term used to describe the results of computing the chargeable weight from the cubic measurement of a shipment.

W
W/M
Weight and/or Measurement.
War Risk (WR)
The possible aggressive actions against a ship and its cargo by a belligerent government. This risk can be insured by a marine policy with a risk clause.
Warehouse Receipt
A receipt of commodities deposited in a warehouse identifying the commodities deposited. It is non-negotiable if permitting delivery only to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.
Warehouse-to-Warehouse
A clause in marine insurance policy whereby the underwriter agrees to cover the goods while in transit between the initial point of shipment and the point of destination with certain limitations, and also subject to the law of insurable interest. The warehouse-to-warehouse clause was once extremely important, but marine extension clauses now often override its provisions.
Warranties
1. Expressed Warranty: An agreement written in a marine underwriters insurance policy which must be strictly and literally complied with. A violation voids the insurance, e.g., trading warranties.
2. Implied Warranty: Fundamental conditions implied in a contract of marine insurance are seaworthiness of the vessel and the legality of the venture.
Weight
1. Gross : The weight of the goods including packing, wrappers, or containers, both internal and external. The total weight as shipped.
2. Net: The weight of the goods themselves without the inclusion of any wrapper.
3. Tare : The weight of the packaging or container.
4. Weight/Measurement Ton: In many cases, a rate is shown per weight/measurement ton, carrier’s option. This means that the rate will be assessed on either a weight ton or measurement ton basis, whichever will yield the carrier the greater revenue.
5. Weight Ton: Metric measure equals 1000 Kilograms; in English measure a short ton is 2000 pounds, a long ton is 2240 pounds.
Wharfage
A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock.
WR
War Risk.

X
X HEAVY
Extra Heavy.
X STRONG
Extra Strong.
XX HEAVY
Double Extra Heavy.
XX STRONG
Double Extra Strong.

Y
Y/A (York-Antwerp Rules)
A code of rules adopted by an international convention in 1890, amended in 1924 and again in 1950, for the purpose of establishing a uniform basis for adjusting general average. Certain nationalities decline to observe some of the rules adopted. U.S. shipping interests generally abide by general rule F and numbered rules 1 to 15 and 17 to 22, inclusive, and specifically set this forth in a bill of lading clause.
Yield
Revenue, not necessarily profitable, per unit of traffic.