Professional Documents
Culture Documents
acceptance letter A letter of credit that requires presentation of a time draft drawn by
of credit the bearer upon the issuing bank or another bank.
advised credit A letter of credit whose terms and conditions have been notified to
the beneficiary by an advising bank on behalf of the issuing bank.
The advising bank does not thereby commit itself to pay or
guarantee the payment of the letter of credit.
aft In, toward, or close to the stern (rear) of a vessel or the rear of an
aircraft or spacecraft.
air cargo Property of any kind, excluding passenger baggage and mail, that
is transported by aircraft.
air parcel post Parcels shipped through the mails to be transported by air.
airway bill The shipping document used for the transportation of air freight,
which includes: conditions, limitations of liability, shipping
instructions, description of commodity, and applicable
transportation charges. It is similar to a straight non-negotiable bill
of lading and is used for similar purposes.
all-cargo aircraft Aircraft used for the sole purpose of transporting cargo or mail.
amidships The area of an ocean vessel midway between the bow (the front)
and the stern (the rear). When the term applies to an airplane, it is
midway between the nose and the tail.
any quantity A cargo freight rate that applies to an article without regard to the
weight or quantity shipped.
apron 1. Area of the airport where planes are parked. May be used for
loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used
for loading and unloading of vessels.
B
bank acceptance A draft drawn on and accepted by a bank
bank guarantee An indemnity letter in which the bank commits itself to pay a
certain sum if a third party fails to perform or if any other form of
default occurs.
Example: Used when a bank wants a carrier to release a
shipment that it has financed, but the original bills of lading is not
yet available for surrender to the carrier.
banker's draft A draft payable on demand and drawn by, or on behalf of, a bank
upon itself or upon another bank such as a foreign bank, where it
maintains an account or a relationship.
bank acceptance A draft or bill of exchange drawn upon and accepted by a bank.
bareboat charter The charter of a vessel in which the charter party has the right to
use his own master and crew on the vessel and pays all operating
expenses.
basing rate A freight rate used for the sole purpose of determining other
freight rates.
billed weight Designated weight shown on the freight bill used to calculate the
freight charges.
blanket rate A rate of premium for insurance applied across the board where
there is more than one kind of property to be insured.
break bulk 1. Description of a ship that transports cargo carried in its hold
that is usually packed in cases, bales, cartons, drums, carboys,
etc. rather than in containers.
2. Unload packaged cargo from a 'break bulk ship' or from a
container and distribute it.
break bulk cargo Cargo that is shipped in packing units such as cartons, cases,
crates, bales, or drums, but not containerized.
clean bill of lading A bill of lading issued by a carrier for goods delivered in "apparent
good order and condition" that bears no notations or added
clauses that may limit the liability of the carrier.
closed-end
A credit transaction with a fixed amount of time for repayment.
transaction
combined bill of A bill of lading covering a shipment of goods by more than one
lading mode of transportation.
connecting carrier A carrier that has a physical connection with another carrier or
forms a connecting link between two or more carriers.
consolidated A shipping container that contains cargo from various shippers for
container delivery to various consignees.
consular invoice An invoice for a shipment of goods that is certified by the counsel
of the country for which the merchandise is destined and which
may require a special form and be subject to special fees.
contract carrier Excluding common carriers, any person who under contract will
transport passengers or goods for an agreed compensation.
D
dangerous goods Goods that can pose a health or safety risk.
date draft A draft which matures after a specified number of days from the
date it is issued.
deadweight 1. The maximum weight that a ship can carry so that it settles in
the water to its Plimsoll mark; also measurable by the weight of
the water the vessel displaces when fully loaded less the
displacement when it was unloaded.
2. Cargo of such high density that a long ton (2240 lbs.) can be
stowed in less than 70 cubic feet.
deck cargo Cargo shipped on the deck of a vessel rather than in its hold.
declared value for The value of goods declared to the carrier by the shipper for the
carriage purposes of determining charges and establishing the liability of
the carrier.
declared value for The value of a shipment according to the customs laws of the
customs destination country that is required to be declared by the shipper
on the shipping documents or by the importer when he presents
the goods for customs clearance.
deferred air Less urgent freight that can be delivered on later flights more
freight convenient for the airline at lower tariffs.
deferred payment A letter of credit that allows the buyer to take possession of goods
letter of credit by agreeing to pay the issuing bank or the confirming bank at a
fixed future date.
dock receipt A receipt issued by a vessel agent that certifies that goods have
been received.
drayage The charge made for hauling freight via carts, drays, or trucks.
dry cargo Cargo of solid, dry material, not liquid or gas. Usually, the term
excludes cargo requiring special temperature controls.
dumping The sale of goods in a foreign country at less than" fair value" (a
price lower than that at which it is sold within the exporting country
or to third countries), which materially injures, or threatens to
materially injure, that industry in the foreign country.
duty Government tax levied on the import or export of goods. The U.S.
Constitution forbids the levying of taxes by the U.S. on exports.
However, most foreign governments do not have this restriction.
E
embargo Government prohibition of exports or imports with respect to
specific products or specific foreign countries.
entrepot trade The import and export of goods that receive no further processing
but are distributed from the entrepot facility, which is usually
chosen for its location and lack of restrictions on trade.
Ex Factory A sale term where the title to goods passes from the vendor to the
buyer when they leave the vendor's dock, as does the liability for
loss or damage and the expenses of shipment. Is still widely used,
but is being replaced by the Incoterm EXW (Ex Works). See
Incoterms.
F
feeder vessel 1. A short-sea vessel that is part of a cargo network that transfers
cargo from smaller ports to major ports where larger vessels dock.
This spares larger vessels the expense and loss of time loading
and unloading at smaller ports.
free in and out A pricing term indicating that the vessel operator is responsible for
(FIO) the cost of loading and unloading.
free market A market with unrestricted trading of goods, where the prices of
goods are determined by supply and demand. Internationally, an
unrestricted movement of goods, unhampered by the existence of
tariffs or other trade barriers.
free time That length of time that a carrier's equipment can be used without
incurring additional charges. (See Storage, Demurrage, or Per
Diem.)
free zone A designated area at a port or city where goods may be received
and held without the payment of duty.
G
gateway A location at which freight moving from one territory to another is
interchanged between transportation lines.
GBL Government Bill of Lading.
general cargo A vessel that carries break-bulk cargo such as bags, cartons,
vessels cases, crates and drums, either individually or in unitized or
palletized loads.
go-down (Far
A warehouse where goods are stored and delivered.
East)
gross tonnage Applies only to vessel (0.2+0.02 log10V) where V is the volume in
cubic meters of all enclosed spaces on the vessel.
gross weight Total weight of goods prepared for shipping, including packaging
and freight car or container.
H
Hague Rules, The A multilateral, maritime treaty adopted in 1921 at The Hague,
Netherlands, which standardizes liability of an international carrier
under the Ocean Bill of Lading and establishes a legal basis for
the bill of lading.
Harmonized Tariff
An international goods-classification system for describing cargo
Schedule of the
in international trade under a single commodity-coding scheme.
United States
For more information, go to http://www.usitc.gov/taffairs.htm
(HTSUS)
heavy lift (HL) Any article deemed by rules in a vessel's tariff to be beyond a
certain weight. It may be too heavy for the ship's tackle and
require special equipment such as a floating crane.
heavy lift charge In a maritime tariff, a charge made for lifting heavy articles to load
or unload them.
heavy lift vessel A vessel with heavy lift cranes and other equipment designated to
be self-sustaining in the handling of heavy cargo.
HTSUS See Harmonized Tariff Schedule of the United States.
I
IATA International Air Transport Association
in bond shipment An import or export shipment that has not been cleared by
Customs and is transported, stored, or handled with security to
the government provided by indemnity bonds.
inherent vice The inherent physical properties of goods which may cause them
to suffer deterioration or damage without outside influence. (For
example: spontaneous combustion, rust etc.)
inland bill of
A bill of lading used in transporting goods overland.
lading
inland carrier A transportation line which hauls cargo inland by: truck, rail,
barge, inland waterways, or domestic airline flights.
joint rate A single freight rate on cargo moving by means of two or more
carriers who share the income.
K
knocked down An article disassembled, unassembled, folded, or telescoped to
reduce its bulk; subject to easy assembly. This is usually done to
reduce the dimensions of the shipping package to save
transportation and storage costs.
L
landbridge A system of through rates and service offered by a carrier for
cargo shipments from a foreign port by ocean vessel, transiting
another country across land, and then again being loaded aboard
an ocean vessel for delivery to the destination country. The
movement across a country's land from port-to-port is the
"landbridge" portion of the transportation. See also microbridge
and minibridge.
lane metre A method of measuring the space capacity of roll on/roll off (Ro
Ro) ships whereby each unit of space (linear metre) is
represented by an area of deck 1m in length by 2.5m in width.
laytime/laydays Time given by the ship owner to allow a chartered vessel to load
and discharge cargo.
less than a
A container with cargos from/for different shipper/receivers (i.e.,
container load
contains more than one ships cargo).
(LCL)
less-than- A shipment which does not completely fill a truck or which weighs
truckload less than the weight required for the application of the truck load
freight rate (which is usually a lower freight rate than applied to
less-than-truckload cargo.)
liner in liner out Full liner terms. Qualification to a freight rate that signifies that it
(LILO) consists of the ocean carriage and the cost of cargo handling at
the loading and discharging ports (to ship's rail) according to the
custom of a particular set of ports.
Limited Liability Limitation of Liability Act. A U.S. statute which permits a ship-
(USA) owner to restrict his liability to whatever value his ship has after an
event such as a sinking or collision.
line haul The direct movement of freight between two major ports by a
single ship.
line haul vessel A vessel which is on a regularly defined schedule between ports.
liner terms Conditions under which a shipping company will transport goods,
including in the amount payable for freight the cost both for
loading and discharge of the cargo from the vessel.
longshoreman A laborer who loads and unloads ships, handles cargo and
containers at shipping terminals, and loads and unloads
containers at shipping terminals.
M
mafi See roll trailer.
minibridge The process of taking inland cargo bound for export to the coast
by rail and loading it directly to a ship.
minimum charge The lowest amount that will be charged regardless of the amount
of service rendered.
N
NAFTA North American Free Trade Agreement.
nested Packed one within another; for example, the way paper cups are
stacked as a way of saving space.
net weight The weight of goods without packaging. The weight of the
contents of a package.
O
ocean bill of A receipt for the cargo and a contract for transportation issued by
lading an ocean carrier. When issued in negotiable form, it is also an
instrument of title.
on board Notation on a bill of lading indicating that the goods have been
loaded on board a named ship.
on deck bill of An ocean bill of lading containing the notation that the goods have
lading been loaded on the deck of the vessel.
port of discharge The port at which a shipment is off loaded by a transportation line.
priority air freight Reserved air freight or air express service where a shipment has
a priority after mail and the small package services.
Q
quay A structure attached to land to which a vessel is moored.
R
rail waybill A document used to control the transportation of a shipment of
goods via rail.
reach stacker A container-handling truck that can stack containers and reach
behind two rows of containers.
received for A bill of lading that confirms the receipt of goods by the carrier for
shipment bill of transportation on a particular vessel, but neither their actual
lading loading on board the vessel nor their actual shipment.
reserved freight A service by some airlines and ship lines that allow shippers to
space reserve freight space on designated voyages.
restricted letter of A letter of credit which restricts negotiation to the bank that the
credit issuing bank has nominated in the credit.
roll on, roll off 1. Freight ship or ferry that allow vehicles to drive on and off (roll-
(RoRo) on roll-off).
2. Carriers equipped with large openings at bow and stern and sometimes
also in the side with hydraulically operated ramps providing easy access,
which permits rapid loading and discharge. Fully loaded trucks or trailers
carrying containers are accommodated on the deck.
roll trailer A wheeled trailer (also called mafi) used to load (or unload) cargo
aboard ship, which can remain board throughout the voyage.
Usually it is attached to a tugmaster, with a gooseneck.
S
seafreight Charges for sea transport only.
shipped on deck Goods shipped on the deck of a vessel. The bill of lading covering
goods shipped on deck must be annotated to that effect.
ship's manifest Captain's statement providing details of the ship, crew, cargo, and
ports of destination.
short form bill of A bill of lading on which does not list the detailed conditions of
lading transportation, but instead there is a statement which declares
them to be incorporated by reference and states the place where
they are available.
short shipped Cargo not loaded and left on key, either by accident or design.
SO Seller's option.
spot rate The rate (price per unit) for purchase or sale of a commodity or
foreign exchange for immediate delivery.
standby letter of A letter of credit that a bank issues on behalf of its customer to
credit serve as a guarantee to the beneficiary of the letter of credit that
the bank's customer will perform a specified contract with the
beneficiary. If the customer defaults, the beneficiary can draw
funds against the letter of credit as penalties or as payments.
starboard Right side of a ship when facing the front or forward end.
steamship (or Vessels powered by steam engines. However, the term is often
steamer) used as an anachronism to describe powered vessels in general,
and companies who operate ocean-going cargo vessels are often
called "steamship companies" despite the fact that the use of
steam power for ocean going vessels is obsolete, the modern
standard being diesel engines fueled by oil.
2. Longshoreman.
storage in transit The stopping of freight traffic at a point located between the point
of origin and destination to be stored and re-forwarded at a later
date.
stowage order An order from the ship owner determining how certain classes of
goods (i.e., fragile, valuable, dangerous) are sent to the dock and
how and where they are stowed. The stowage order must
accompany the goods to the dock.
T
tank Carries liquids or powder.
tare The weight of a container or wrapper apart from the goods they
carry.
tariff escalation When customs tariffs on raw materials are nonexistent or very
low; tariffs on semi-processed goods are moderate; and tariffs on
manufactured goods are relatively high.
tariff war (Customs) When one nation increases the tariffs on goods
imported or exported from another country and the other country
raises its tariffs in retaliation.
terminal An facility that is used by a rail, ship, air, or truck line as a place
for receiving and delivering cargo, loading and unloading,
transferring, temporarily storing, recoupering, and similarly
handling freight, as well as repairing and servicing equipment.
through bill of A single bill of lading covering receipt of cargo at a point of origin
lading for delivery to an ultimate consignee, usually involving multiple
carriers and multiple modes of transport.
transmittal letter In international commerce, a letter from the shipper or its agent to
transmit documents relative to a shipment, which usually includes
a list of the documents enclosed and details covering the
transportation of the shipment.
U
Unconfirmed A type of letter of credit bearing the obligation of the issuing bank
Letter Of Credit only, not of any other bank.
Unit Load Various cargo carrying devices, or sizes of containers, which carry
several smaller shipping packages, including the banding together
of a number of individual packages on a pallet to create a single
unit.
Unloading 1. Removing cargo from a vessel, truck, airplane, or railroad car.
2. Removing cargo from a container; also called devanning.
Unrestricted A letter of credit that can be negotiated through any bank of the
Letter Of Credit beneficiary's choice.
V
VAT Value Added Tax.
W
war clause A marine insurance provision excluding the liability of an insurer if
a loss is caused by war or hostile action. Bills of lading and
charter parties may contain a "War Clause" giving the vessel
options to maintain its safety in case of hostilities.
war risk insurance Insurance covering loss or damage caused by war or other hostile
actions. Usually a separate policy from a marine insurance policy
or a special attachment to it.
warehouseUSA A privately owned and operated warehouse that has posted bond
Customs Bonded and has been approved by U. S. Customs where goods remain
until duty has been collected from the importer.
weight break The point at which the weight of a shipment is large enough to be
assessed the lower freight rates that are applicable to larger
shipments, as per the carrier's tariff.