You are on page 1of 28

INDIAN SHIPPING INDUSTRY

Strengths
India has access to two major shipping
routes
ore than !"## $m coast%ine inc%uding the
is%and territories
&idespread ports and wor$a'%e merchant
(%eet
)%eet e*pansion '+ major domestic shipping
companies
Sustained rise in the ,o%ume o( e*ports with
re,i,a% growth in the manu(acturing sector
-arge num'er o( Indian sea (arers
ore than . 'i%%ion citi/ens to dri,e the
import demand
&ea$nesses
The underin,estment in the India0s
maritime sector has a((ected the de,e%opment
o( ports in the countr+
Ine((icient judiciar+ s+stem s%ow
de,e%opment o( new port in(rastructure
High %e,e%s o( 'ureaucrac+ pre,ents the
go,ernment (unding (rom de,e%oping new
port projects in the countr+
Ta* structure not a%%owing the Indian
manu(acturers to 'e competiti,e 1Thin$ this
is an argument Indian e*porters are using in
%o''+ing rather than 'eing a (act2
3pportunities
Indian shipping companies ha,ing
ac4uisitions with (oreign shipping companies
ore than USD 56'n is e*pected to 'e
in,ested in India7s port sector8
New major container termina%s 'eing
de,e%oped at the port o( 9hennai and
um'ai
9argo ,o%umes are e*pected to grow with an
a,erage o( .:8"; +ear on +ear in the coming
"<.# +ears8
Threats
ajor de,e%opments ta$ing p%ace in Sri
-an$a7s port sector ma+ reduce demand (or
transshipment ser,ices at Southern Indian
ports8
A go,ernment ta* on iron ore e*ports ma+
%ead to a (a%% in 'u%$ shipments at major
e*port termina%s8
India7s ports ha,e su((ered (rom congestion
during =#..> potentia%%+ s%owing the countr+7s
growth trajector+8
ICD AND CFS
&hi%e ports are essentia% (or sea'orne trade> supporting in(rastructure> especia%%+ hinter%and
in(rastructure (orms the 'ac$'one o( competiti,e trade practices8 In%and 9ontainer Depots
1I9Ds2 and 9ontainer )reight Stations 19)Ss2 pro,ide e*porters and importers with ,a%ue
added ser,ices which (aci%itate mo,ement o( containerised goods (rom and to the ports8
I9Ds ma+ 'e ,iewed as e*tensions to the port and are common%+ re(erred to dr+ ports> since
the+ pro,ide a simi%ar (unction as a port (or receipt?de%i,er+ o( containers 'etween carriers
and cargo owners8 These (aci%ities are e4uipped (or hand%ing and temporar+ storage o(
containerised cargo as we%% as empt+ containers8
In India> the en,isaged ro%e o( I9Ds is paramount in (aci%itating cost e((ecti,e and time%+
%in$s to the ,ast hinter%and> especia%%+ the Northern Hinter%and co,ering the Nationa% 9apita%
Region and adjoining states which are hu' to $e+ industria% /ones and agricu%tura% 'e%t8
Drewr+ estimates these I9Ds put together hand%ed we%% o,er a .8@ mi%%ion teu in =#.=8 Aut>
this is much %ower than the tota% potentia%8
Distinction 'etween I9Ds and 9)Ss
The terms I9Ds and 9)Ss are (re4uent%+ used interchangea'%+ or inaccurate%+ owing to an
o,er%ap o( acti,ities per(ormed8 Howe,er> the (o%%owing primar+ acti,ities di((erentiate the
ro%e o( an I9D (rom that o( a 9)S B
I9Ds ser,e primari%+ as an e*tension o( port as a c%earing point pro,iding %ast mi%e
connecti,it+ (rom in%and %ocation< t+pica%%+ '+ rai%8 Howe,er> some I9D0s do not ha,e a
rai% head8 At the same time man+ o( the I9D0s now pro,ide stu((ing?stripping> warehousing
and other ,a%ue added ser,ices to o((er a sing%e point c%earance8
A 9)S> on the other hand> is a (aci%it+ (or conso%idation o( cargo as we%% as a stu((ing?
stripping point (or containerised goods under custom super,ision with warehousing and
specia%ised storage as ,a%ue added ser,ices8
I9Ds are %ocated in%and and in pro*imit+ to cargo centres whi%e 9)Ss are t+pica%%+ c%oser
to the port8
9onsidering the re4uirements o( the 9ustoms Act> and need to introduce c%arit+ in
nomenc%ature> a%% containers termina% (aci%ities in the hinter%and are designated as CI9DsD8
INDIAN SHIPPING INDUSTRY
Size of the Industry 515 vessels with a grt of 7.06 million
Geographical
distribution
The major ports are located at
Calcutta/ Haldia Chennai Cochin
!nnore "awaharlal #ehru $ort at
#hava %heva &andla 'ormugao
'um(ai #ew 'angalore $aradip
Tuticorin and )isha*hapatnam.
Output per annum +,- of total .ndian tonnage
Percentage in world
market
/- of entire world trade
History
The .ndian shipping .ndustr0 pla0s a crucial role in .ndian econom0. 1s 20- of the #ations trade (0
volume is done via sea. .ndia has (een the largest merchant shipping fleet among the developing
nations. The .ndian %hipping .ndustr0 supports transportation of national and international cargoes and
also provides various other facilities such as ship (uilding ship repairing lighthouse facilities freight
forwarding etc. .ndian %hipping .ndustr0 with emergence of glo(alisation and li(eralisation is firml0
read0 to ac3uire new dimensions in terms of demand and infrastructural development.
.n order to sustain itself with the stiff competition posed (0 foreign companies the .ndian industr0 is
striving hard to (ring a(out rapid transformation. 4ver the 0ears the wa0 cargo traffic was handled has
changed. .nitiall0 it was (0 the protected environment (0 the tonnage committee who decided as to
what t0pe and si5e of ships the companies should (e given a chance. 6overnment su(sid0 vessels
were onl0 assured for the Cargo was assured.
7ecentl0 after a long period of decline (oth tonnage and fleet si5e have grown with the addition of
ships 8 tugs surve0 vessels towing vessels as well as pilot vessels (elonging to ports and maritime
(oards. 9uring 1pril ,00, : 'arch ,00; these were added. There are as man0 as 55 shipping
companies in the .ndustr0 out of which 12 deal with coastal trade and ,2 are engaged in overseas
trade. The rest operate in (oth t0pes of trade.
The .ndian %hipping industr0 is governed (0 ; separate 1cts such as The 'erchant %hipping 1ct in 125/ The
.nland )essels 1ct in 1217 : The Coasting )essels 1ct in 1/;/. 'ost of the vessels are registered under
'erchant %hipping 1ct and are dealt within the sector smaller (arges and coastal vessels are governed (0 the
other two 1cts.
Brief Introduction
Historically Shipping industry has catered to only domestic shipping requirements while the pri!ate
sector companies like Great "astern Shipping #ompany and "ssar Shipping are increasingly getting
in!ol!ed in international cross trade$
Terms and in value terms it is much lower to a meager 1,- of .ndia<s total overseas shipping (ill of =%9 5.0
(illion. .t is due to the negligi(le share of shipowners in the .ndian trade of high value goods li*e general cargo
and containers. The focus is on .ndian trade and shipowners< share in the countr0<s overseas trade is hardl0
;0- in volume.
%hipping .ndustr0 is meaning not onl0 just vessels and tonnage. %hipping capa(ilities of an0 countr0 are not
solel0 measured in terms of the 3uantum of tonnage under control. >hile in *nowledge (ased econom0 soft
intangi(le parameters li*e human capital information technolog0 and e?pertise are (ecoming increasingl0
important for increasing innumera(le opportunities. Toda0 .ndia has (ecome the source of 3ualit0 seafarers to
glo(al shipowners. .ndian shipping firms normall0 rel0 on the inherent .T s*ills of .ndians to pla0 a pivotal role in
.T activit0 involved in international shipping and the countr0 can come up with a (usiness center for information
processing re3uirements of the international ship owners.
=sage of sea transport for the (ul* cargo transport is the natural advantage of a vast coastline of .ndia. 9ue to
the polic0 of li(erali5ation the .ndian shipping industr0 major ports as road wa0s have (een given to the
private sector. The categories of ships are crude tan*er product tan*er (ul* carriers etc. 1ll these are (rought
under the 4pen 6eneral @icense A46@B to facilitate ac3uisition at competitive price.
Cor ac3uisition of such companies the 1utomatic approval is also availa(le even for the categories which are
not covered under 46@ i.e. (arges tugs and (oats etc. %hipping companies have (een given li(ert0 to retain
sale proceeds of their ships a(road and utili5e them for fresh ac3uisition.
1pproval for Coreign direct investment up to 7+- is also provided (0 the Time Charter of ships (0 .ndian
%hipping Companies. 1+0 shipping companies were in operation in .ndia at the end of 'arch ,00; with the
%hipping Corporation of .ndia (eing the (iggest in the countr0 claiming a +,- share of the total .ndian tonnage.
The countr0 presentl0 has 1, major ports 1/+ other ports nine ship0ards and a coastline of 7517 *m.
Size Of the Industry
Indian shipping Industry has become the %&th largest fleet in the world as per deadweight tonnage$ 'he
shipping fleet of India consists of around (%( !essels with a grt of )$*+ million and dwt of %%$( million
ones$ It has about +%+ ships with a total capacity of +$+, million tons Gross -egistered 'onnage .G-'/$
Out of which about ,(0 ships are engaged in o!erseas trade and the rest ply inland routes$
India has %1 ma2or ports and about ,** non3ma2or ports$ #argo traffic in ,*%, was 4%%$( million metric
tonnes .55'/ and is e6pected to reach %)(0 55' by ,*%)$
Cargo traffic increased at a compound annual growth rate AC167B of ,./ per cent during CD 07E1;. .ndiaFs total
e?ternal trade is estimated to have grown to =%G 721 (illion in CD 1; impl0ing a C167 of 17.7 per cent since
CD 06.
The government has allowed foreign direct investment AC9.B of up to 100 per cent under the automatic route for
projects related to the construction and maintenance of ports and har(ours. .t has also allowed a 1080ear ta?
holida0 to enterprises engaged in the (usiness of developing maintaining and operating ports inland
waterwa0s and inland ports.
.ncreasing investments and cargo traffic point to a health0 outloo* for port support services. Currentl0 limited
pla0ers provide port 4peration and 'aintenance A4:'B services ensuring an opportunit0 for domestic and
overseas pla0ers in that segment.
Ports are an important form of infrastructure in Indian economy. They play a vital role in facilitating international
trade and commerce by providing an interface between the ocean transport and land-based transport. India has an
extensive coastline of about 7517 m spreading on the !estern and "astern shelves of the mainland as well as
along the Islands. It has a well-established port infrastructure covering 1# ma$or ports and 200
minor/intermediate ports (non-major ports)% spreading across & coastal 'tates. These ma$or ports come
under the purview of the (entral )overnment% while non-ma$or ports *minor+ intermediate ports, come under the
$urisdiction of the respective 'tate )overnments.
In India% the concerned authority is the Department of Shipping% in the -inistry of 'hipping% .oad Transport and
/ighways% which has been entrusted with the responsibility of formulating and implementing policies and
programmes on port sector. The 0epartment has formulated the 1National Maritime Development Programme
(NMDP)1 which aims to create world-class infrastructure in ports. Total investment envisaged in the programme
is Rs. 1%22%33& crores% out of which Rs. 55%425 crores is for ma$or ports. 6 total of #77 pro$ects *involving
investment of 8'0 1#.52 billion, relating to ports sector have been identified under the programme for
implementation by #211-1#. These include berth development% deepening of channels% port connectivity pro$ects%
upgradation+ modernisation of cargo handling e9uipment and other support services. 6 ma$or portion of the
investment is expected to come from the private sector% mainly in commercially viable pro$ects lie construction of
berths and operation of berths and terminals. !hile% public funds will be used% where necessary% for provision of
common user infrastructure facilities.
The 12 major ports serve as the gateways to India1s international trade by sea% handling over &2: of foreign
trade. They are spread e9ually on the east coast and west coast of India. ;olata port *including 0oc complex at
/aldia,< Paradip port< =isahapatnam port< (hennai port< "nnore port< and Tuticorin port are on the east coast.
!hile% (ochin port< >ew -angalore port< -ormugao port< ?awaharlal >ehru port< -umbai port< and ;andla port
are on the west coast. 6ll the ma$or ports are administered by the 1Port Trusts1 governed by the provisions of -a$or
Port Trust 6ct% 1&73 which are autonomous bodies% except the newly 1 "nnore Port1 which is run by 1 "nnore Port
@imited1 *registered under the (ompanies 6ct% 1&57,.
The total #22 non-ma$or ports are in the following 'tatesA- )u$arat *5#,< -aharashtra *54,< Tamil >adu *15,<
;arnataa *12,< ;erala *17,< 6ndhra Pradesh *1#,< Bdisha *13,< )oa *5,< !est Cengal *1,< 0aman and 0iu *#,<
@ashadweep *12,< Pondicherry *#,< and 6ndaman D >icobar *#3,.
There has been a phenomenal growth in the cargo handled at the ports% which has increased from 1&.34 million
tonnes *ma$or ports, in 1&52-51 to around 75&.34 million tonnes *ma$or and non-ma$or ports, by #227-27. 6t the
beginning of the Tenth Plan% the capacity of ma$or ports was about 355 -T. The aggregate capacity as on
31.3.#227 has been 525.75 million tonnes per annum *-TP6,. (ontainer traffic handled at ma$or ports is also fast
increasing. 6bout 75 per cent of the cargo handled normally at these ports is for overseas trade.
The ma$or ports have handled a total traffic of 573.45 million tonnes during the year #227-27 and 5#3.&& million
tonnes in the year #227-24 for the period upto 31.1.#224. Traffic in these ports is pro$ected to go upto 722 -T by
the year #211-1#. It is% therefore% planned to augment the capacities in the ma$or ports to about 1222 -TP6 by
that period so as to ensure smooth flow of traffic. Cesides% the average output per ship per day for all ma$or ports
taen together has improved from &#77 tonnes in #225-27 to &755 tonnes in #227-27. 6verage turnaround time
has marginally increased from 3.52 days to 3.7# days over the same period primarily on account of increase in the
number of ships handled at the ports.
In order to improve efficiency% productivity and 9uality of services as well as to bring in competitiveness in port
services% the port sector has been thrown open to private sector participation. 'uch private investments are mainly
on the Cuild% Bperate and Transfer *CBT, basis and include various areas of port functioning% such as leasing out
existing assets of the port% construction+ creation of additional assets% construction of cargo handling berths%
container terminals and warehousing facilities% installation of cargo handling e9uipments% construction of dry docs
and ship-repair facilities% leasing of floating crafts% pilotage and captive facilities for port based industries% etc.
Eoreign direct investment *E0I, upto 122 per cent is permitted for construction and maintenance of ports and
harbours.
?oint venture formations between a ma$or port and a foreign port% between ma$or port and minor port*s, without
tender% as well as between ma$or port and company*ies, following tender route are permitted by the )overnment.
The measure is aimed at facilitating port trusts to attract new technology% introduce better managerial process%
expedite implementation of schemes% foster strategic alliance with minor ports for creation of optimal port
infrastructure and enhance confidence of private sector in funding ports. 'o far% 15 private sector pro$ects involving
an investment of Rs. 5#5# crores have become operational. !hile% one pro$ect% that is% I(TT at (ochin is partly
operational. Eive pro$ects are under implementation and 17 pro$ects are in the pipeline.
-a$or investment and development pro$ects in the port sector areA-
.e-development of Cul Terminal as a (ontainer Terminal pro$ect at ?awaharlal >ehru Port developed on
CBT basis by -aers 6+' and (B>(B..
International (ontainer Transhipment Terminal at (ochin Port developed on CBT basis by -+s 0ubai Ports
International *0PI,.
(ontainer Terminal Pro$ect at ;andla Port on CBT basis by -+s. 6C) /eavy Industries.
0evelopment of (ontainer Terminal at ;andla Port on CBT basis.
'tage I of the Inner /arbour 0eepening pro$ect at =isahapatnam Port.
0eepening Pro$ects at ?>PT% -umbai% "nnore% Tuticorin and Paradip Ports< etc.
Thus% Indian ports are indispensable in the development of countryFs maritime trade and economy% owing to IndiaFs
current share in global merchandise trade at around 2.42:. They are not only considered as trade gateways% but
also integral components of the global logistics and transportation chain.
9)S STU))ING
CFS Stufng, Factory Stufng and Direct Stufng are used at an export CFS stations /
Inland Container Depot in related to stufng of goods in to container. These terms
are dierent types of loading at ICD/CFS. These terms CFS Stufng, Direct Stufng
and Factory stufng are used to account dierent types of stufng goods.
Factory Stufng, Direct Stufng and CFS stufng are the general terms used !y
Container Freight Stations in terms of loading goods in to the container. The CFS
authorities handling "o! #aries in all the three in turn, their charges to exporters also.
$lso read Custodian of Cargo at customs bonded CFS

%hat is CFS stufng& 'o( does CFS Stufng (or) in *xport at a CFS/ICD&

+nce the cargo unloaded in to Container Freight Station for stufng, the customs
house agents ,le documents (ith customs to complete customs procedures. $fter
o!taining -*+ . /let export order0 from customs ofcial, as last procedure of customs
clearance under export, the customs house agents deli#ers the re1uired documents
to carrier. Carrier ,les necessary documents (ith CFS to load the container. $fter
o!taining necessary permission, cargo (ill !e loaded in to container.

Direct stufng 2 'o( does Direct Stufng of goods (or) in *xport at a CFS&

'ere, the truc) carrying goods to export enters in the area of Container Freight
Station (hich is a customs !onded area. The customs ofcial can inspects the cargo
and after necessary completion of customs procedures and CFS procedures, cargo is
directly loaded in to container. This is called direct stufng of cargo in Container
Freight Station.

Factory stufng 2 %hat does Factory Stufng (or) at a CFS/ICD&

The exporter can o!tain necessary permission to mo#e the empty container from
Container Freight Station 3CFS4 (hich is a customs !onded area to the exporter0s
factory. The stufng of cargo (ill !e underta)en under the customs ofcial0s
super#ision at factory premises. +nce after completion of stufng cargo, the
container is unloaded !ac) to the container freight station to mo#e the cargo to ,nal
destination.
C5ST+6S 7*R6ISSI+8 F+R TR$8S'I76*8T +F
9++DS/C+8T$I8*RS FR+6 $ 9$T*%$: 7+RT T+ $ C+8T$I8*R
FR*I9'T ST$TI+8 3CFS4 +F $8+T'*R C5ST+6S ST$TI+8
The ;oard disallo(s direct mo#ement of consignments from
9ate(ay 7ort to CFS of another Customs Station. It is only in
exceptional circumstances on account of congestion etc, the
"urisdictional Commissioners are empo(ered to allo( the
mo#ement of consignments from 9ate(ay 7ort directly to a CFS of
another Customs Station. Therefore, (hen goods consigned for an
Inland Container Depot 3ICD4 are imported at a 9ate(ay 7ort, these
are transported ,rst to the ICD and then to the connected CFS for
physical clearance 3they may also !e cleared from the ICD itself4.
Representations ha#e !een recei#ed highlighting that insisting that
the goods should !e recei#ed ,rst in an ICD !efore !eing ta)en to
one of its attached CFSs increases the d(ell time and
transaction cost for the importers. This is particularly true (hen the
CFS is located en route to an ICD (herein the goods ha#e to cross
the CFS to go to the ICD and then return to the said CFS for
(arehousing and clearance.
Diference between IHC and THC in export and import.

I'C means Inland 'aulage charges and T'C Terminal 'andling Charges. The
transportation cost to mo#e goods from inland container freight stations to sea port
of loading or #ice #ersa is called Inland 'aulage Charges I'C. Terminal handling
charges is the charges paya!le to port terminals against handling e1uipments.

The term I'C . Inland 'aulage Charges means the transportation charges from
inland container freight station to sea port of loading or #ice #ersa. If Cargo freight
station is a(ay from sea port of loading, the shipper completes customs formalities
at such container freight station and arranges to mo#e cargo to port of loading either
!y rail or road. 8ormally, most of cargo in such locations is mo#ed !y rail. If mo#ed
!y rail, the charges of mo#ing goods from such location to port of loading or
mo#ement charges from port to inland freight station is )no(n as Inland 'aulage
Charges. Inland haulage charges #ary CFS to CFS, as the distance from CFS to port
of loading #aries one to another. Inland 'aulage Charges 2 I'C 2 is collected !y
shipping line (hen releasing ;ill of lading for export shipments, and (hen issuing
Deli#ery +rder in case of import.
Terminal 'andling Charges 3T'C4 is the charges collected !y terminal authorities at
each port against handling e1uipments and maintenance. T'C #aries port to port of
each country, as the cost of handling at each port diers one to another port,
depends up on the total cost of port terminal handling at each location. 8ormally,
Terminal handling charges 3T'C4 for exports is collected from shipper !y shipping
lines (hile releasing ;ill of -ading after completion of export customs clearance
procedures. In the case of shipments mo#ed from inland destinations other than sea
port, the said T'C is collected at same location (hile releasing !ill of lading !y
carrier. The import terminal handling charges is collected !y shipping carriers at the
time of issuing deli#ery order to consignee to ta)e deli#ery of goods
SHIPPING AND PAYENT TERS
CFR Cost and Freight
seller pays the costs necessary to bring the goods to named port of
destination
CIF
Cost, Insurance and
Freight
same as CFR but in addition the seller includes marine insurance loss
or damage to goods during shipment
CIP
Carriage and
Insurance Paid To
same as CPT, but in addition the seller includes insurance loss of or
damage to the goods during carriage
CPT Carriage Paid To seller pays freight to named destination
DAF
Deliered At
Frontier
seller cleares the goods for e!port at named destination " but before the
customs
DDP
Deliered Duty
paid
seller delieres the goods at named destination " pays charges of
deliering the goods to be cleared at custom
DD#
Deliered Duty
#npaid
seller delieres the goods at named destination
D$S Deliered $! Ship
seller delieres the goods on board the ship, uncleared for import at
named destination " seller pays to bring the goods to named destination
D$%
Deliered $! %uay,
&Duty Paid'
seller delieres the goods at named destination " cleared for
importation
$(
)
$! )or*s seller ma*es the goods aailable at his premises
FAS
Free Alongside
Ship
seller sends the goods to alongside the essel " or in the named port of
shipment
FCA Free Carrier
seller hands oer the goods cleared for e!port to the charge of the
carrier named by the buyer at named place
F+, Free +n ,oard seller cleares the goods for e!port at named port of shipment
-P.-rd Party
.ogistics
A third party, /ho
ta*es care of the
logistics alue chain0
10 ,AF ,un*er Ad2ustment
Factor
A *ind of fuel surcharge added to the freigt rates0
-0 ,arge A *ind of small ship Flat ,ottomed cargo carrying boat0 It is used for moement
of small 3uantity cargo0 4ainly used for coastal or rier
moements0
50 ,. ,ill of .ading ,. is issued by the carrier 6Shipping .ine789+CC:0 This is
the document /hich is presented to the shipping line at
P+D, and then only cargo can be cleared0
;0 ,rea* ,ul* ,rea* ,ul* Cargo The cargo /hich can be counted 6+ther than Containers:0 It
includes Steel coils, 9ehicles etc0
<0 ,ul* Cargo ,ul* Cargo The cargo li*e coal, limestone etc0 These are loaded in the
hatches of the ships /ith the help of cranes haing grabs0
=0 CAF Currency Ad2ustment
Factor
A *ind of surcharge added to freight rates, to mitigate the
currency ris*0
>0 CA8 Cargo Arrial 8otice A document issued by carrier7agent to the importer,
notifying him about the arrial of cargo0
?0 C,# Completely ,uilt
#nit
9ehicles being shipped in fully built form0
@A0 CFS Container Freight
Station
CFS is a *ind of customs bound /arehouse, /here stuffing
and destuffing of containers are done0 These are near to the
ports0
@@0 CBD Completely Bnoc*ed
Do/n
9ehicles being shipped in parts0 +ne ehicle is *noc*ed
do/n in many small small parts and these parts are shipped
in containers0
@10 CoC Carrier +/ned
Container
The containers o/ned by the carriers0
@-0 CC Container Cards These are genaral purpose yards, /here generally empty
containers are stac*ed0
@50 D,. Draft ,ill of .ading The ,7. issued by the Carrier to Freight For/arder0 This is
2ust to chec* the actual format of the ,7. as per .C0 4aster
,7. is issued on the basis of D,. and after 4,. is issued,
this remains null and oid0
@;0 DC Dangerous Cargo Cargos li*e petroleum, chemical etc0 Special e3uipments are
re3uired to handle these0
@<0 Demurrage Demurrage The penalty paid by the charterar to the o/ner of the ship
for delay in completing the oyage0
@=0 Dispatch Dispatch The money paid by the o/ner of the ship to the charterar for
completing the oyage in adance0 Denarally the rate /ill
be half of demurrage rate0
@>0 D+ Deliery +rder A document issued by carrier7agent to the importer, giing
him the authority to collect the cargo0 This is issued after
,7. is surrendered to the carrier7agent0
@?0 $D4 $!port Deneral
4anifest
A document issued by carrier7agent to the port authorities
stating that a container is going for e!port0
1A0 FAB Freight of all Bind Freight charged by linear operators0 %uoted in terms of per
T$#0
1@0 FC. Full Container .oad )hen one container contains cargo for only one consignee0
110 Feeder Feeder Serice A *ind of shipping serice in /hich ships ply bet/een a
distant port and some port haing linear serice0 For $!"
serice bet/een Ealdia and Colombo0 In this case Ealdia is
a distant port /hereas many linear routes pass through
Colombo0
1-0 F$# Forty Feet $3uialent
#nit
A container of 5AF length0 +ne F$# is e3ual to 1 T$#0
150 FR Flat Rac* A *ind of container /hich has 2ust the bottom, li*e a rac*0
Denerally used for oersiGed cargo0 Freight is more0
1;0 Freight Freight 4oney charged by shipping lines to ta*e the cargo from one
port to another0
1<0 E,. Eouse ,ill of .ading The ,7. issued by Freight For/arder to the Shipper0 In this
,7. the name of actual importer /ill reflect as consignee0
1=0 IATA International Air
Transport
An organisation of all the air transporters across the /orld0
Any ne/ air transporter needs an IATA license to operate0
+rganisation
1>0 ICD Inland Container
Depot
ICDsF are a *ind of CFS only0 The only difference is that
ICDsF are far from the ports0 These are generally called Dry
Ports0
1?0 ID4 Import Deneral
4anifest
A document issued by carrier7agent to the port authorities
stating that a container is coming for imports0
-A0 .C .etter of Credit .C is the master document0 It is opened by the ban* of
consignee in faour of the shipper0 All the terms H
conditions of the trade are mentioned in this document0
-@0 .C. .ess than Container
.oad
)hen one container contains cargo for more than one
consignee0
-10 .o".o .ift +n .ift +ff It is generally used to describe the *ind of terminals /here
ehicles7containers or any cargo are lifted through lifts and
put onto the ship0
--0 4ateFs
Receipt
4ateFs Receipt A declaration gien by the captain of the ship about the
cargo0 ,7. is issued based on this0
-50 4,. 4aster ,ill of .ading The ,7. issued by Carrier to the Freight For/arder0 In this
,7. Freight For/arder /ill be sho/n as consignee0 This is
done to hide the actual importers details from the Carrier0
-;0 4.+ 4ain .ine +perator The shipping lines, haing linear serices0
-<0 4T+ 4ultimodal Transport
+perator
A Bind of license issued by DD"Shipping0 It authorises
carriers to issue multimodal ,7.0
-=0 +T +pen Top A *ind of container /hich has no ceiling0 #sed for
oersiGed cargo0 Freight is more than general container0
->0 P+D Port of Discharge The port /here cargo is to be discharged0
-?0 P+. Port of .oading The port /here cargo has been loaded on the ship0
5A0 Reefer Refrigerated
Container
The containers haing refrigeration units0 They hae a
battery to operate on and are connected to e!ternal po/er at
ports and on ships0 #sed for shipping meats, fruits etc0
5@0 R4% Rail 4ounted %uay A *ind of crane used at container terminals0
510 Ro"Ro Roll +n Roll +ff It is a *ind of terminal used to ship the ehicles in C,#
forms0 9ehicles are 2ust drien through the terminal and
par*ed in the ship0
5-0 SBD Semi Bnoc*ed Do/n 9ehicles being shipped in parts0 +ne ehicle is *noc*ed
do/n into 5"; ma2or parts and these parts are shipped0
550 Slot Slot 4oney charged by shipping lines from 89+CC operators to
ta*e containers from one port to another0
5;0 SoC Shipper +/ned
Container
The containers /hich hae been arranged by the
shipper7agent and not by the shipping line0
5<0 TA4P Tariff Authority of
4a2or Ports
A statutory body formed by DoI0 It regulates the tariffs
charged at all the @1 ma2or ports in India0
5=0 T$# T/enty Feet
$3uialent #nit
Represents a unit for containers0 +ne T$# is e3ual to one
container of 1AF length0
5>0 TEC Terminal Eandling
Charges
Charges to be paid to terminal operator 64ost of the cases"
Ports:0 It includes loading charges and charges paid to the
steedores0
.= Pin " Chassis /ith @1 loc*ing points0
Act o( God " An act occasioned by iolence of nature /hich no reasonable human
foresight, care, or diligence can anticipate or preent0
Ad Fa%orem " An additional charge /hen a shipper desires to be coered for a
aluation in e!cess of that allo/ed by the carrierIs regular bill of lading0
Add<3ns " Additional charges0
Agenc+ " An organiGation /or*ing on behalf of a principal0 Company /ho
represents7acts on behalf of another entity0
AI " All Inclusie0
A%%<&ater " Serice rendered by carriers on a port to port basisJ cargo moing ia
ocean carrier only0
AS " Automated 4anifest Systems0
Anti<Re'ating " Document signed by shipping companies and filed /ith Federal
4aritime Certification Commission and in ocean tariffs attesting that rebates are not
allo/ed and /ill not be paid by a company0
AG " Any 3uantities0
AGI " Agriculture %uarantine Inspection
Arri,a% Notice " Documentation that notifies consignee of arrial information and
freight charges due0 Form produced by carrier for adanced notification to consignee
of cargo arrial0
As )reighted " All cargoes freighted on same unitJ )eight or 4easure0
Assignment " An act /hich inoles transfer of rights, title, and interest for the
purpose of assigning goods by endorsement of the bill of lading0
Aac$ Hau% " The return leg of a round trip0
Aanding " Securing of cargo on a pallet generally by a steel7metal stripping0
Aan$ Dra(t " A ban* instrument /herein payment of funds is guaranteed0
Aan$ Guarantee " Accepted in lieu of original bill of lading to release cargo0
Aarges " Coneyance used to carry loose cargo or containers in smaller olumes than
mother essels0
Aase Port " Port from /hich standard tariff rate applies normally sericed directly by
members0
Aa+ " Section of a essel /here containers or cargo is stored0
Aa+ P%an " Section by section brea*do/n of a essel to indicate /here cargo is
sto/ed0
Aerth " )here the essel doc*s0
Aerth Terms " Carrier proides steedoring0
Ai%% o( E*change " See Draft0
Ai%% o( -ading 1A?-2 " +fficial legal document representing o/nership of cargoJ
negotiable document to receie cargoJ contract for cargo bet/een shipper and carrier0
Ai%% o( -ading Num'er " CarrierIs reference number assigned to bill of lading0
Ai%% o( -ading Terms " All details releant to shipment0
Ao%ster " ,racing of a commodity in a container0
Aonded &arehouse " A secured Customs approed facility /here cargo and
containers are stored under close sureillance0
Aoo$ing " Cargo commitment made to carrier 6i0e0 a reseration:0
Ao* Rate " A lump sum charge to moe cargo in arious siGe containers from origin
to destination0
Ao+cott 9erti(icates " Re3uired by certain countries restricting carriage to certain
flag essels0
Area$'u%$ " .oose cargo containers and non"containeriGed cargoJ essel /hose
hatch is built to accommodate arious bul* commodities0
Area$'u%$ Fesse% " Carries containers and non"containeriGed cargoJ essel /hose
hatch is 9essel built to accommodate arious bul* commodities0
Au%$ 9arrier " 9essel specifically built to carry ra/ materials0
Au%$ 9ontainers " Containers used specifically for ra/ materials0
Au%% Rings " Rings for lashing the cargo in containers0
Aun$er Adjustment )actor " Surcharge assessed by carrier applied to freight rates
to supplement fuel Factor 6,AF: costs0
Aun$er Surcharge " See ,un*er Ad2ustment Factor0
Aun$ers " Fuel used by essel0
9 H ) " Cost and Freight0 Terms of sale0 Seller 3uotes price including the cost of
goods and all transportation charges to the named point of destination0
9a'otage " Shipments bet/een ports of the same nation0 4any countries, li*e the
#0S0, hae la/s re3uiring domestic"o/ned essels to perform domestic interport
/ater transportation serices0
9argo Aa+s " Doors at cargo /arehouse /here ehicles bac* in to load7unload cargo0
9arrier " +ne /ho o/ns, operates or charters ehicles of transportation for
moement of cargo0
9arrier0s 9erti(icate " #0S0 Customs form used in lieu of bill of lading0
9A " @ Cubic 4eter K -;0-@5 cubic feet0
9e%% " Container slot /here container fits into place on essel0
9e%% Guides " A guide for each container slot0
9erti(icate o( 3rigin " Formal document 6re3uired at destinations: stating origin of
cargo and releant cargo details0
9)S " Container Freight Station0 Storage7/arehouse facilities for loading7unloading
less than full container orders0
9)S 9argo " .oose containeriGable cargo handled in a container freight station
6/arehouse:0
9)S?9)S " Cargo receied and stuffed by carrier at origin and deanned by carrier at
destination0
9)S?9Y " Cargo receied and stuffed by carrier at origin then deliered intact at
destination0
9hains and Ainders " #sed to secure 6brace H choc*: oersiGe cargo to e3uipment0
9harter FS9 " 9essel /hose o/ner ma*es essels aailable on bid basis0
9harterer " An organiGation7company /ho enters an agreement /ith a principal to
use their essels for a specified time0
9hassis " Trailer or /heeled unit on /hich a container is placed in order to moe
container oer the road0
9HA " See Custom Eouse ,ro*er0
9%aim " A re3uest for payment by a customer due to a shortage or damage to cargo0
9%ear 19%ean2 on Aoard " ,ill of lading issued /ithout e!ceptions0
93)9 " Container on a Flat Car0 Containers moing on articulated flat rail cars
/ithout chassis0
9o%%ect " 4oney to be paid at destination prior to release of bills of lading0
9om'ined Transport Ai%% o( -ading " Proides a combined transport by at least t/o
different modes of transportation from a place at /hich the goods are ta*en to a place
designated for deliery0
9ommercia% In,oice " A document on shipperIs letterhead that contains an accurate
description of the merchandise and sho/ country or origin0 All items must be
itemiGed0
9ommodit+ Description " Description of goods being shipped0
9ompan+ Guarantee " A letter of guarantee from a company identifying the carrier
of responsibility associated in the release of goods in lieu of bill of lading0 Protection
in /riting to carrier by priate company0
9on(erence " Droup of carriers allo/ed by F4C to determine a leel of rates,
serices and rules of a gien trade route bound together by a common tariff or certain
geographic area0
9on(erence " A group of steamship companies offering e3uitable freight rates,
standardiGed shipping practices and regularly scheduled serice bet/een designated
ports0 These arrangements are gien anti"trust immunity as authoriGed by the
Shipping Act of @?>50
9on(erence 9arrier " Carrier that belongs to the conference0
9on(erence 9erti(icate " Certificate declaring that the carrier is a member of the
conference0
9onnecting 9arrier " An intermediary carrier utiliGed to connect cargo to7from
mother essel 6SeeFeeder:0
9onsignee?Importer " #ltimate receier of cargo designated on the original bill of
lading0
9onsignor " Person or firm by /hom articles are shipped 6i0e0 shipper:0
9onso%idation " $ffort e!tended to put same destination cargo together in same
container for ease of deliery0
9onsortium " Droup of carriers pooling resources in a trade lane to ma!imiGe their
resources efficiently0
9onsu%ar In,oice " Document re3uired by some foreign countries sho/ing e!act
information as to consignor, consignee, alue description, etc0 for a shipment0
9onsu%ate 9op+ " Copy of the ,7. signed for consulate purpose0
9onsu%ate -ega%i/ation " Shipping documents must be presented to the Consul for
legaliGation, either prior to or right after sailing0
9ontainer " A truc* trailer body that can be detached from the chassis for loading
into a essel, a rail car or stac*ed in a container depot0 Containers may be entilated,
insulated, refrigerated, flat rac*, ehicle rac*, open top, bul* li3uid or e3uipped /ith
interior deices0 A container may be 1A feet, 5A feet, 5; feet, 5> feet or ;- feet in
length, >FAL or >F<L in /idth, and >F<L or ?F<L in height0
9ontainer -oad P%an 19-P2 " Describes ho/ the inside of container is sto/ed /ith
cargo0
9ontainer Num'er " Identification number assigned to each container0
9ontainer Poo% ? Depot " )here containers are stored usually inland for container
aailability to shippers or consignees0 Carrier location to hold empty containers,
arious points for shipperFs utiliGationJ an area designated for storage of empty 0
9ontainer Ship " 9essel built to accommodate ocean containers0
9ontainer Stu((ing -ist 19S-2 " .ist sho/ing ho/ cargo is sto/ed in each
container0
9ontainer Yard " Facility /here full and empty containers are stored0
9ontaineri/ed " All cargo loaded into a container0
9ooper " )arehouse /or*er assigned to reconstruct or repair cartons, crates, bo!es,
etc0
9orner 9asting " Deise on each corner 6top and bottom: of a container for lifting
up or securing do/n of unit0 SynonymM Corner Fitting
9orner Posts " Steel reinforcements at corner of each container0
9orporate Guarantee " See Company Duarantee0
9ost Insurance " Terms of sale0 Seller 3uotes a price including cost of goods,
insurance Freight 6CIF:and transportation charges to point of destination0
9redit Agreement " Agreement bet/een carrier and shipper for release of cargo /ith
promise to pay ocean freight /ithin specified time0 Document signed by the shipper
/hich binds shipper to credit terms of the conference or agreement body0
9ross Doc$ing " The process of moing merchandise directly from the receiing
doc* to the shipping doc*, eliminating the need to place the merchandise in storage0
9u'ic )oot " @ Cubic Foot K @=1> Cubic Inches0
9urrenc+ Adjustment )actor 19A)2 " Percentage of money used to e3ualiGe a
difference in currency alues0 A percent of the base ocean freight0
9ustoms " Doernment agency /hich inspects cargo, insures proper cargo clearance,
proper forms are filed, and correct duties7fees are paid0
9ustoms 9%earance " Shipment cleared by Customs for moement0
9ustoms Dut+ " 4onies paid to #0S0 Customs for goods entered into #0S0 from
foreign countries0
9ustoms House Aro$er 19HA2 " Agent representatie licensed by F4C /ho
negotiates customs clearance ,ro*er 6CE,:for import cargo on behalf of the
consignee through #0S0 Customs0
9ustoms Station " Area /here containers are brought for Customs inspection0
9ustoms &arehouse " )here cargo is temporarily stored a/aiting inspection or
/here cargo is stored /hen seiGed by Customs due to lac* of permit7entry0
9ut 3(( " .ast possible date cargoes may be deliered to a ship or designated point0
9Y " Container Card0 Container yard /here full containers are receied and pic*ed
up0 Storage area for container0
9Y?9)S " Cargo loaded in a full container by a shipper at origin and deliered to a
pier facility at destination /here it is deanned for deliery0
9Y?9Y " Cargo loaded in a full container by a shipper at origin and deliered to
carrierIs terminal for essel loading and discharged at destination terminal for pic* up
intact by consignee0
DAD " Deliery AuthoriGed Documents 6See Deliery +rder:0
Dangerous 9argo " Cargo of a haGardous nature as classified under Coast Duard
regulations0
DD9 " Destination Deliery Charge0 A charge assessed by the carrier for handling
positioning of a full container /ithin the container yard0
Deconso%idation " ,rea*do/n for distribution of arious importers .T. cargo for
moement to ultimate destination0
De%i,er+ 3rder 1D32 " Document authoriGing domestic carrier to pic* up cargo0
Demurrage " Storage charges assessed on cargo left on pier beyond free time0
Detention " See Per Diem0
Direct 9onsignment " +ne company shipping directly to another /ithout a third
party0
Discharge Port " Port terminal /here cargo is unloaded from essel0
DIT " Destination Interchange Terminal " The facility operated by the ocean carrier or
his agent at /hich containers are interchanged /ith the deliering motor carrier0
Di,ersion " A change made either in the route of a shipment in transit or of the entire
ship0
Doc$ " )here essel positions itself to load7unload cargo0
Doc$ Receipt " Document used to transfer cargo from drayman acting on shipper
behalf of steamship line0
Dou'%e Stac$ 9ar " Rail car capable of carrying t/o containers stac*ed one on top
of each other0
Dra(t 1Ai%% o( E*change2 " A /ritten order for a certain sum of money to be
transferred on a certain date0
Dra(t Sight and Time " Sight Draft 6S7D:M A draft so dra/n as to be payable upon
presentation or acceptance0
Draw'ac$ " ??N refund of imported, duty paid materials, /hich are to be e!ported0
Dra+age " Eaulage of containers oer the road ia truc*0
Dr+ Ao* " See Container0
Dr+ 9ontainer " See Container0
Dr+doc$ " #sed to lay up essels for repair0
Dunnage " 4aterial used around cargo to preent brea*age or shifting, normally
proided by shipper0 Its /eight is included in the rating0
Dut+ Draw'ac$ " Payment returned for cargoes re"e!ported or trade sho/ material
returned0 A customs refund on re"e!ported cargo0
EDI " $lectronic Data Interchange0
EIR " $3uipment Interchange Receipt0 Documents used to receie or delier a full or
empty container7chassis at any terminal or inland container pool0
E%cee " See .etter of Credit0
E%ectronic Data Interchange " Communications by computer to computer from one
company to another0
E4ua%i/ation " Compensation for additional charges incurred by shipper for
deliering cargo to port designated by the carrier other than the closest port to the
supplier0
ETA " $stimated Time of Arrial0
ETD " $stimated Time of Departure0
E*port Dec%aration " $!port Declaration 6Shippers0: ,ureau of Census document
/hich spells out shipment details for entry to goernment statistical system0
Documents for e!port shipping declaring alue of cargo to #0S0 Customs0
E*port Documents " These documents re3uired to e!port a shipment0
E*<&or$s " ,uyer receies the cargo directly from the factory and thereafter
arranges shipment, insurance and other related serices themseles0
)AI " Freight All Binds0 #sually refers to consolidated cargo0
)AS " Free Along Side0 Seller 3uotes a price including deliery of the goods
alongside the essel0
)9- " Full Container .oad0
)edera% aritime 9ommission " Doernment agency responsible for oerseeing
regulatory aspects of the Shipping Act0
)eeder " The transportation ehicle utiliGed to relay cargo from mother essel to
ultimate destination0
)EG " Forty"foot $3uialent0
)EU " Forty"foot $3uialent #nit0
)) " See Freight For/arder0
))E " Forty"foot $3uialent0
)I)3 " First In First +ut0
)I3 " Free In and +ut0 A party other than the steamship line proides for the
steedoring0
)%ag Fesse% " $ery essel has a flag distinguishing nationality0
)%ag &ai,er " Permission from goernment to carry cargo other/ise labeled for flag
recipient0
)%at Aed " Truc* designed to haul heay or oersiGed non"containeriGable cargo0
)%at 9ar " Railroad car on /hich container or container7chassis is placed0
)%at Rac$ " 1AF H 5AF metal platform /ith open sides, /ith bul* heads 6i0e0, no roof
or side /alls:0
)%oating 9ranes " Eeay duty cranes brought in to handle cargo /hen unable to use
gantry crane0
)9 " Federal 4aritime Commission0 #0S0 regulatory body affecting ocean"going
carriers0 A #0S0 goernment body that oerseas all maritime rules and regulations0
)9 Num'er " 8umber assigned by a goernment agency authoriGing a freight
for/arder to operate0
)3A " Free +n ,oard0 A pricing term under /hich the seller must delier the goods
on board the ship at the point named at his o/n e!pense0
)orce ajeure " State of emergencyJ all tariff rules can be altered to ad2ust
shipperIs7carrierIs needs0
)oreign Trade Jone " Designed location proiding duty"free storage area0
)or$ -i(t " Truc* used for loading7unloading cargo into container0
)orwarder7s 9argo Receipt " A negotiable document issued by a for/arder /hich
/ill satisfy legal re3uirements for a letter"of"credit0 Since a for/arder is not an
89+CC it cannot issue actual ,ills of .ading0 The FCR is a legally binding
substitute for the ,7. /hich /as pioneered by Sea".and and is no/ an industry
standard0
)ree Time " Storage allo/ed at carrier facility /ithout penalties assessed0
)reight 9%aim " Formal letter /ith supporting documents, i0e0, ,7., D7R, temperature
chart, etc0, ma*ing claim against carrier for lost or damaged cargo0
)reight 9o%%ect " Payment due at destination 6consignee0:
)reight )orwarder " Federally licensed 6by F4C: company that arranges the
carriage of goods including connected serices and7or associated formalities on
behalf of a shipper or consignee0
)reight Re%ease " $idence that the freight charges for the cargo hae been paid0 If in
/riting, it may be presented at the pier to obtain release of the cargo0 8ormally, once
the freight is paid freight releases are arranged /ithout additional documentation0 a*a
Freight ,ill Receipt0
)reighted A?- " A bill of lading that lists all charges releant to cargo moement
from origin to destination0
)u%% 9e%%u%ar Fesse% " Fully containeriGed essel0
Gantr+ 9rane " Port crane to load and discharge containers from essel, able to be
positioned by moing along rail trac*s0
Gear H Tac$%e " ShipIs e3uipment used to leel, secure and brace cargo for
loading7unloading from essel0
Genera% A,erage " Declared upon essel damage, /hereupon shippers pay a certain
percentage of damage incurredJ carrier declares percentage of responsibility by all
participants0
Genset " Denerator used to regulate temperature in a reefer containerJ can be run on
its o/n po/er or plugs proided on pier7essel0
G3 " Deneral +rder0 Cargo seiGed by Customs due to failure on part of consignee to
ma*e Customs entry /ithin allotted free time0
G3 &arehouse " A Customs /arehouse utiliGed /hen cargo goes into Deneral +rder
due to lac* of permit7entry filed0
Goose Nec$ " SpecialiGed chassis0 Eas hoo*"up higher than bed of chassis0
GRI " Deneral Rate Increase0
Hatches " )here cargo is placed in conentional essels0
HAD " Earbor Dues0 Assessment /hen essels enter harbor0
Heated Storage " )arehouse specifically heated to protect bottle cargo0
Hea,+ -i(t " Single commodity e!ceeding the capacity of normal loading e3uipment
and re3uiring special e3uipment and rigging methods for handling0
High 9u'e 9ontainer " Container 5AF in length, ?I<L in height0
Ho%ds " Sections of a esselJ bays0
House to House " Another term for CC7CC0
House to Pier " Shipper loaded container that /ill be deconsolidated at destination
terminal for distribution0
Humping " 4a*ing up a train, 2oining of railcars by use of an inclined plain
6graity:0
Hust%er " Tractor that pulls containers around pier for positioning0
IA ? Independent Action " Independent Action0 A carrier can ta*e an independent
action in a conference resulting in a uni3ue rate for that carrier /ithin a conferenceJ
ability to file a rate independently of other carriersI action0
I99 " Interstate Commerce Commission0 International Chamber of Commerce0
IH9 " Inland Eaulage Charge0 Cost to moe a container to an inland destination0
I-A " International .ongshoremen Association0
I-3 " International .abour +rganiGation0 An #nited 8ations agency, dealing /ith
employment rights and /or*ing conditions, coering /or* at sea and in ports0
I-&U " International .ongshoremen )or*ers #nion0
I93 9%assi(ication " International 4aritime Control +rganiGation Classification0
Classification for haGardous cargo0 See I4+0
IDG " International 4aritime Dangerous Doods Code0 A code, representing the
classification of dangerous goods as defined by the International 4aritime
+rganiGation 6I4+: in compliance /ith international legal re3uirements0
I3 " International 4aritime +rganiGation0 An #nited 8ations agency concerned
/ith safety at sea0 Its /or* includes codes and rules relating to tonnage measurement
of essels, load lines, pollution and the carriage of dangerous goods0 Its preious
name /as the Inter"Doernmental 4aritime Consultatie +rganiGation 6I4C+:0
Importer " Receier of goods from an oerseas origin0
In Aond " Cargo that has not cleared customs, moing to destination under carrierIs
control0
In%and Point " City /ith no portJ landloc*ed city0
Insurance 9erti(icate " Document /hich assures the consignee that insurance is
proided to coer loss or damage to the cargo /hile in transit0
Interchange " Transfer of a container from one party
Interchange Agreement " Contract bet/een steamship company and truc*man that
legally permits interchange of e3uipment0
Intermoda% " 4oement of cargo inoling more than one form of transportation0
IPI " Inland Points Intermodal0
IT " 6In"Transit: Type of customs document goerning moement of in"transit
6bonded: cargo0
KIT " Oust In Time0
Kones Act " Section 1= of the 4erchant 4arine Act of @?1A, re3uiring that all
shipments by /ater bet/een ports in the #nited States 6including Puerto Rico: be
carried by #0S0 " flag, #0S0 " built, and #0S0 " cre/ed essels0
IGS " @ Bilogram K 101A; lbs0
Inot " Speed of @ nautical mile per hour0 8autical mileM <A>10<< feet, @0@;1 statute
miles, @0>;1 *ilometers0
-a'e% 9argo " See Dangerous Cargo0
-aden on Aoard " A bill of lading that indicates a shipment has been loaded on board
a essel0
-and<'ridge " Cross country rail serice connecting t/o ocean ports0
-ash Aarge " Type of container utiliGing barges instead of container0
-ash Fesse% " Acronym for .ighter Along Ship0 9essel able to carry multiple barges0
-ashed " ,arge systemJ barges loaded on a essel instead of a container0
-ashing E4uipment " 9arious types of e3uipment used to secure containers7cargo on
board essel0
-etter o( 9redit " ,an*"issued document authoriGing transfer of funds from buyer to
seller 6.7C, $lcee:under established terms and conditions in international
transactions0
-etter o( Guarantee8 " .etter proided to carrier in lieu of surrender of original bill
of lading0
-etter o( Indemnit+ " Frees one from any responsibilities0 Protection in /riting to
carrier from performing a deiation to normal business0
-icense 9argo " Cargo necessitating license to moe0
-iner Ser,ice " Carrier adertises fi!ed schedule of sericesJ port calls not made on
inducement basis0
-iner Train " Specially designed rail line for regular moement of
liner7containeriGed cargo for one carrier0
-NG 9arrier " .i3uefied 8atural Das Carrier0
-oad -ength " Any piece of cargo e!ceeding 5AF in length0
-oad -ist " See Container Stuffing .ist 6CS.:0
-oad Port " Port /here cargo is actually loaded on essel0
-ow Ao+ " Special trailer used to accommodate oer height cargo /ith flat bed,
appro!imately @1F aboe ground0
-S or - " .ump Sum0 A local freight rate /hich is inclusie of all charges0
-T " @ .ong Ton K 1,15A lbs0
ani(est " An inoice of all cargo loaded on board a essel0 $ntire listing of all cargo
on board a essel re3uired by line, customs, Coast Duard0
ar$s H Num'ers " The identifying detail on a pac*age0 Actual mar*ings /hich
appear on pac*ages0
emo A?- " A bill of lading issued for in house purposes for cargo short shipped or
loaded in adance of issuance of full bill of lading0
erchant Hau%age " Inland transportation performed by an inland carrier contracted
by and for the account of the shipper0
icro<Aridge " Cargo moes ia land from7to inland pointJ another term for IPI0
inimum A?- " The least amount you can charge per indiidual bill of lading0
-A " 4iniland ,ridge0 Cargo moes port to port ia landJ port to port ia railJ port
destination sered oerland by rail0
T " @ 4etric Ton K 1,1A50<1 lbs or -;0-@5 cft0
Negotia'%e A?- " +riginal bill of lading endorsed by shipper that is used for
negotiating documents /ith ban*0
Negotiating Aan$ " ,an* /here shipper negotiates documents or /here documents
are first presented usually at country of origin0
Neutra% Aod+ " Inestigating body designated by conference carriers to insure that
rules are adhered to0
No Show " Cargo that fails to appear for essel that is originally boo*ed for0
Non<Negotia'%e A?- " Copy of original ,7. /hich cannot be negotiated /ith ban*0
N3S " 8ot +ther/ise Specified 6in Tariff:0
Noti(+ Part+ " Company7person /ho appears on the bill of lading to be notified /hen
cargo arries0 Could be different from consignee P usually actual receier of goods0
NF399 1NF32 " 8on 9essel +perating Common Carrier0 Company /ho charters
space aboard essels, then sells that space to prospectie shippers0
3A " +n ,oard0
3A- " +riginal ,ill of .ading0 See 8egotiable ,7.0
39P " +erland Common Point0
3(( Doc$ -ocation " Depot a/ay from main terminal used to load7unload cargo"
truc*7rail0
3n Aoard A?- " A ,ill of .ading in /hich a carrier ac*no/ledges that goods hae
been placed on board a certain essel0
3n 9arriage " 4oement of cargo by connecting carrier to ultimate destination0
3n Dec$ Stowage " Cargo sto/ed on dec* of essel0
3pen Side?3pen Top 9ontainer " Container open on top and sides /ith frame0
3pen Top 9ontainer " Container /ith open top and tarp proided0
3pening Aan$ " ,an* letters of credit are opened usually at destination0
3SHD " Abbreiation for L+er, Short or DamagedL0 #sually discoered at cargo
unloading0
3ut o( Gauge " Cargo /hich e!ceeds the internal dimensions of the container in
/idth, length, or height0
3ut'ound " $!port shipments0
3,er -anded " Cargo ta*en beyond originalJ port of discharge0
3,er the Road -imitations " State or country regulations for /eight limits allo/ed
per container7truc*load0
Pac$ing -ist " .ist of pac*ages for each shipment sho/ing indiidual brea*do/n in
/eights7measures0
Pa%%et " )ooden structure generally 5> ! 5> used to support cargo and ease
moement by for*lifts0
Particu%ar A,erage " Carrier determines responsibility by specific participant0
Pent%e Hoo$ " Steel piot upon /hich chassis and cab are connected0
Per Diem " Cost per day0 Charge on container held by customers for an e!tended
timeJ charges leied upon a truc*er due to late return of e3uipment0
Pier " )here essels pull alongside for loading7discharging0
Pier to House " Cargo receied at pier loaded in a container and pic*ed up at
destination terminal intact by consignee0
Pier to Pier " Cargo moement deliered loose to pier at origin point and pic*ed up
loose at destination terminal0
Pigg+'ac$ " Point"to"point moement of one transportation ehicle on another0
Pi%(erage " Cargo stolen from container or terminal0
Pi%ot Aoat " Coneys pilot to ocean essel0
P%ace o( De%i,er+ " Actual final destination of cargo could be /ater or inland0
P%imso%% ar$ " Depth to /hich a essel may safely load, identified by a horiGontal
line around the ships hull0
Poo% -ocation " See Container Pools0
Positioning " 4oing of empty e3uipment from surplus areas to deficient areas0
Prepaid " Shipper responsible for ocean freight charges prepaid at destination0
Prepaid Ai%% o( -ading " Freight paid prior to moement0 4oney to be paid prior to
issuance of bill of lading0
Product 9arrier " Caters to specialty commodities0
Project Rates " Rates established for specific pro2ect0
PTI " Pre Trip Inspection0
Purchase 3rder " Common grouping of orders for goods7serices0 Seeral SB#
categories may be listed on one purchase order0 4ost customers group their orders in
a particular /ay to facilitate distribution at the other end0 For e!ample, one purchase
order for an apparel importer might encompass 1 doGen green s/eaters and 1 doGen
red s/eaters0 If those P0+0s originated from the same store, it is simple for the store to
put all items under that P0+0 onto the right truc*0
Rai% Pig " A railroad o/ned container 6trailer:0
Rai% Ramp " #sed to unload rail cars or trailers0
Rai% Termina% " Place /here railroad cars terminate and7or turn around0
Rai% Yard " .ocation /here rail cars are concentrated for loading and unloading of
containers0
Rai%head " .ocation for loading and unloading containers at railroad terminal0
Rates " Charge for moing cargo bet/een t/o points 6i0e0 +cean Freight:0
Recei,ed (or Shipment A?- " Issued on receipt of cargoJ cargo not necessarily
loaded yet0
Ree(er " #nit e3uipped to carry refrigerated cargo0
Ree(er P%ug " $lectrical outlet on ship for maintaining temperature0
Return 9argo " Cargo to be returned to original place of receipt0
Re,enue Ton " 8umber of tons /hich freight is paid forJ per ton0
R3?R3 Fesse% " Roll"on7Roll"off 9essel0 9essel /ith dual cargo handling capability
including a ramp /here /heeled cargo can be drien into ship0
R3E " Rate of $!change0
Sai%ing Schedu%e " Published schedule of sailing dates of essels departures and
arrials0
Schedu%e A " Doernment listing to properly declare cargoJ seen digit number
assigned by the ,ureau of Census to identify types of Cargo0
S9 " Supply Chain 4anagement0
Sea &a+ Ai%% " ,ill of lading used for through consignmentJ no original bill of lading
re3uired, I0D0 only0
Sea<Air " Container moing both modes0 4oement of cargo by sea to connecting
discharge port, then air freighted to ultimate destination0
Sea%s " Attached to loc*ing deice to preent pilferage and certify no tampering,
made of plastic or aluminum attached by Customs or carrier0
Se%( Sustained Fesse% " 9essel that doesnIt re3uire shore e3uipment to load7unload
cargo0
Set Point " Specific temperature that a refrigerated container has been set to *eep0
Ideally the set point and the actual temperature should be identical throughout the
oyage0
Shed " Small building that holds .T. cargo for loading essel0
Ship0s 9hand%ers " Suppliers of arious items to the essel0
Shipper " Droup, company, person designated on +,. /ho sold cargo to ultimate
receier of goods0
Ser,ice 9ontract " A rate negotiable and agreed to bet/een t/o parties allo/ing for
a particular rate based on olumeJ /ritten agreement bet/een carrier and customer
for specified rate, olume, and serice leel by carrier oer an agreed time0
Shipper Poo% " )here containers belonging to shipper are stored0
Shipper0s -oad Stow H 9ount " Contents of a container as sto/ed and counted by
shipper0 Cargo loaded and sto/ed by shipper in containerJ CC load0
Shipper0s Re(erence Num'er " A shipperIs ID number for a shipment0
Shipping Act o( .LM6 " Congressional legislation establishing #0S0 regulations for
the ocean transportation industry0
Ships 9hand%ers " Suppliers of arious items to the essel0
Shipside " Cargo located alongside essel0
Short -anded " Cargo olume count less than originally shipped0
Short Shipped " Cargo missing a essel that originally intended for due to carrierIs
option0
S%eepsheet " 4ethod of loading pac*ages in a container ia a thin liner board and
for*lift0
S%ot " Compartment for containersJ space on essel for container0
S%ot 9harter " Carrier charters slot space on other carrierIs essel0
SS " Steamship0
ST " @ Short Ton K 1,AAA lbs0
Stac$ Train " Containers placed t/o high on rail car0
Stac$ing 9one " 4etal cone for stac*ing containers0
Statutor+ Notice " Specific time period before a rate regulation can become
effectie0
ST9 " Said to Contain0 Amount and description of cargo /ith container0
Ste,edore " Terminal operator /ho is designated to facilitate the operation of loading
and discharging essels and arious terminal actiities0
Storage 9harge " Charge for goods held in railroad or other /arehouses under fi!ed
agreement for periods of time, and /hich is not included in other serice
arrangement0
Store Door De%i,er+ " 4oement of goods to the consigneeQs place of business,
customarily applied to moement by truc*0
Stowage " Space in essel /here cargo is sto/ed0
Stradd%e 9arrier " 4achine used for positioning containers in yard0
Straight )rame " Type of chassis used to moe containers0
Stripping " Physical remoal of cargo from the carrierQs container 6#nstuffing:0
Stu((ing " Physical loading of cargo into carrierQs container0
Su((erance &arehouse " ,onded Customs /arehouse in Canada0
Supp%ier " Person supplying materials to e!porter7shipper7consignee7importers0
Supp%+ Fesse% " 9essel that carries supplies from shore to platform0
Surcharges " Additional charges aboe ocean freight 6See Add +ns:0
Sur,e+or " +ne /ho is hired to erify damages0
T H E " Transfer and $!port0 A Customs Document0
Tan$er " Carries li3uid commodities 6oil, etc0:0
Tan$er Tainer " Container used to transport li3uid commodities0
Tare &eight " )eight of an empty container0 Dross /eight K net /eight R tare
/eight0
Tari(( " .ist of rules, regulations and rates applicable to specific trade lanes0
Document /ith regulations and rates applicable to specific trade lanes0 A schedule of
charges to moe commodities bet/een t/o areas0
Termina% " ,uilding closely aligned to doc* used to collect, store and dispatch cargo0
TEU " T/enty Foot #nit0 T/enty Foot $3uialent container0
TH9 " Terminal Eandling Charge0 Charge assessed by the terminal for the
positioning of cargo /ithin the terminal7yard0
Tiers " A horiGontal diision of a essel from bottom to top0 The numbers run from
bottom to dec* and from dec* up/ards and are used as a part of the indication of a
sto/age place for containers0
To 3rder o( " Shipper is o/ner of goods until endorsed ,7. is presented to carrier by
Shipper7receier0
T3)9 " Trailer on a Flat Car0
Top Hand%ers " $3uipment that unloads7loads containers at container yard0
TIR " Transport International des 4erchandises par la RouteJ Trailer Interchange
ReceiptJ Terminal Interchange ReceiptJ Transport Internationale RouteJ Interchange
receipt bet/een truc*er and ocean carrierJ certificate of container7e3uipment
condition at time of interchange0 Document used for the interchange of containers
sho/ing condition of container /hen pic*ed up at the terminal0
T3S " Terms of Sale 6i0e0, F+,7CIF7FAS:0
Trading House " Consortium of buyers7sellers of arious commodities at high
olume0
Trai%er " Container and chassis as one unit0
Tramp Fesse% " 8on"liner serice /here o/ner sends essel /hereer he can arrange
business0
Trans%oading " Ta*ing cargo loaded on one essel and deliered on another essel by
another line0 +ne carrier utiliGing another carrierIs essel to transport cargo to final
destination0
TR9 " Terminal Receiing Charge0 Charge assessed by the terminal for cargo being
deliered for e!port0
Tri<A*%e " A third a!le used for supporting additional /eight0
Truc$er0s Depot " )here truc*s load7unload cargo0
Tug Aoats " ,oats used to guide essels in7out port0
Underdec$ Stowage " Cargo7container that is sto/ed belo/ main dec*0 Sto/ed
under dec*0
Unit Train " Train comprised of containers from one container company0
USDA " #nited States Department of Agriculture0
Fenti%ated 9ontainer " Container used for cargo needing entilation0
Fesse% Ton " @AA cubic feet0
FIAP " 9essel Insurance Additional Premium0
F399 " 9essel +perating Common Carrier0
Fo+age " 4oement of essel from one point to destination0
&? 1&3R2 " )eight or 4easurement0
&ai,er " Document used to allo/ cargo carriage by different flag essels than
original destination country essels0 Also on goernment cargoes /here cargo flag
cannot carry the shipments0
&ar Ris$ " Surcharge coering additional insurance premium incurred by a essel
entering a /ar Gone0
&arehouse " ,uilding usually located in bac* up areas or inland /here cargo is
stored0
&ater )eeder " Transports cargo to non"direct ports of call0
&eight " Dross 7 .ong TonM @,A@< *g 61,15A lbs:0 8et 7 Short TonM ?A=0@? *g 61,AAA
lbs:0 4etric 7 Bilo TonM @,AAA *g 61,1A50< lbs:0
&har(age " A port surcharge assessed /hen essel comes alongside0
&ire Trans(er " $lectronic transfer of funds0
YTD " Cear To Date0
Eporters !mporters "ode ( !E" "#DE )

0efinition A 6 12 digit code that is issued to the companies by the 0irector )eneral of Eoreign
Trade% )overnment of India% -inistry of (ommerce. It is mandatory for any person or entity to
carry on with the export and import business.
Eull form A It stands for GImporter "xporter (odeG.
I"( (ode >umber >otification A The Importer "xporter (ode >umber is issued by the policy
circular no.15 which in turn is issued by the 0)ET.
"ligibility A The entire list of eligibility criteria% legal provisions and conditions to avail the I"(
code is found in Eoreign Trade *.egulation, .ules% >otification >o. )'. 7&1 *",% dated 32-1#-
1&&3 issued by the -inistry of (ommerce in 1&&3.
H/@ Hill of @adingA7eceipt for shipment : Title of goodsB
H1! Hun*er 1djustment Cactor
H=@@!T %!1@ 1s tin0 I%teel @oc*ing 9eviceI use to loc* the container doors
C : C or CC7 Cost and CreightA.nsotermsB
CC% Container Creight %tation
C.C Cost .nsurance and CreightA.ncotermsB
C4#%.6#!!
The Hu0er to whom the goods have to (e delivered against surrender of a dul0
accomplished I(ill of ladingI
C4#T1.#!7 1 %pecial steel (o? used for the transportation of cargoes
CD Container Dard
9/C 9r0 ContainerAstandard .%4 containerB
96 9angerous 6oodsAHa5ardous CargoB
9=##16! 'aterial used to prevent shifting of cargo within a container
C/7 Clat 7ac* Conrtainer
C1& Creight 1ll &inds
C4H Cree on HoardA.ncotermsB
H1J'1T Ha5ardous material
H9C Heav0 9ut0 ContainerA1 container which has an average pa0load of ;0 tons.B
H.6H C=H! 1 container which is2.6 feet in height
.CC .nternational Cham(er of Commerce
.C9 .nland Container 9epot
.HC .nland Haulage Charges
.'C4 .nternational maritime consultative 4rganisation
.'96 .nternational maritime consultative 9angerous 6oods Code
.#C4T!7'% .nternational commercial terms as specified (0 the .CC
.%4 .nternational 4rgani5ation for %tandadi5ation
@1%H.#6 The process of securing the cargo within a container with ropes/ wires
'T4 'ultimodal Transport 4peraror
#4T.CD $17TD The part0 who has to (e notified once the cargo arrives at the destination
#)4CC #on vessel 4wing Common/container carrier
4/T 4pen Top Container
4C!1# C7!.6HT The consideration for the carriageof cargoes (0 sea
494 4ne 9oor 4penA4n 9ec& CargoB
7!!C!7 Container e3uipped with refrigeration machiner0
%H.$$!7 The seller who holds the title of the goods (eing shipped
%H.$$.#6 '17&% .dentification mar*s normall0 affi?ed on each unit of cargo
%T7.$$.#6 / 9!8
)1##.#6
The process of removing cargo from a container
%T=CC.#6 / )1##.#6 The process of stowing cargo within a container
T.T.C@=H Through Transport clu(8@ondonA.nsurance clu(B
T!= / C!= Twent0 !3uivalent =nit / Cort0 !3uivalent =nit
THC Terminal Handling Charges

You might also like