Glossary of terms

HomeTools & ResourcesGlossary of terms
@At
Ab initio (Lat)From the beginning
Abandonment:The surrender of the property, and any rights and liabilities attaching to it, by the insured to the insurers when a claim for total loss is to be made.
ACAAirCargo Automation. The term applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import aircargo in Australia.
ACA FeeA charge applied by Forwarders and Consolidators in Australia to cover the costs associated with the operation of the AirCargo Automation System.
Act of God:An event caused by natural forces, which arose without human intervention, and could not be provided for nor foreseen.
Actual Total LossInsurance term. An actual total loss occurs when: 1 The insured property is damaged to an extent where it is no longer recognisable as the property originally insured. 2 The assured has been irretrievably deprived of the insured property. 3 The insured property is destroyed.
Ad Valorem (Lat)According to the value. ie. a percentage of the value.
AFIFThe Australian Federation of International Forwarders
AffreightmentA contract to carry goods by ship or aircraft. Contracts of Affreightment are evidenced in the form of Bills of Lading, Charter-parties, and Air Waybills.
Agency Fee1. A fee charged by forwarders and brokers for arranging and handling a shipment. 2 The fees charged by an agent of a ship’s owner for attending to the business of the ship whilst in port.
Air WaybillAn air transport document which is non-negotiable.
Aircraft ContainerA unit load device (ULD) which links directly with the aircraft cargo handling and restraint system. (See Aircraft Unit Load Device.)
Aircraft PalletAn item of equipment consisting of a flat platform with a flat undersurface of standard dimensions on which goods are assembled and secured before being loaded as a unit onto the aircraft. (See Aircraft Unit Load Device.)
Aircraft Unit Load DeviceAn assembly of components consisting of any of the following: 1. Aircraft pallet and pallet net 2. Aircraft pallet and pallet net over an igloo 3 Aircraft container
All RisksThe widest form of transportation insurance cover available. However, contrary to the term itself, it does not cover every risk. The loss or damage must be accidental in nature, and the term “all risks” excludes any loss and/or damage which is inevitable; such as caused by delay, inherent vice or insufficient packing.
APCA‘Australian Port Charge Additional’ – Means the same as BSRA, THC and PSC. A charge for loading or unloading containers on or off vessels.
AQISThe Australian Quarantine Inspection Service
AssessorOne who assesses the loss, its causes, and the sum to be settled under an insurance policy claim.
AssignmentA legal concept whereby one party transfers a right to another. (1) Insurance: In transportation insurance, where the shipper assigns the Certificate of Insurance over to the consignee. This assignment process is usually done by the shipper signing the back of the Insurance Certificate over a Company Stamp. (2) In shipping: The transfer of title ( assignment) to a shipment of goods can be accomplished by correctly endorsing a negotiable Bill of Lading.
ATFAirline Terminal Fee. Same as ATO Fee. A charge applied by Airline Terminal Operators for the physical handling, at the airline bond store, of import and export cargo.
ATO FeeSee ATF above.
AverageIn marine insurance, means loss or damage.
Average (General)See General Average
Average (Particular)See Particular Average
Average AdjusterIn marine insurance, a person who assesses and apportions losses and the consequent contributions in general average losses.
Average BondAlso known as a general average agreement. It is a written agreement signed by a consignee wherein he undertakes to accept liability for the general average contribution as determined by the Average Adjuster. After a general average has been declared, a consignee, in order to secure the release of his cargo, would have to provide this bond, together with a deposit or insurer’s guarantee, to the shipowner.
AWBSee Air Waybill
AWB feeA fee for preparing an AWB
B/LSee Bill of Lading
BAFSee Bunker Adjustment Factor
Bill of ExchangeA unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a certain sum to or to the order of a specified person, or to the bearer.
Bill of LadingA transport document which is also a negotiable Document of Title. See the chapter on Contracts of Affreightment for a full explanation of its functions.
Bonded GoodsGoods on which the duty has not yet been paid, and which therefore, are under the control of customs; usually in a Bonded warehouse.
Bonded warehouseA depository for goods on which duty has not been paid. The warehouse proprietor must provide a bond to the customs authorities as a security for any duties which may become payable.
BookingA reservation, allocation or allotment,
BoxA colloquial name for a container
Break Bulk cargoMeans “non-containerised” cargo; ie. shipped loose in the vessel’s hold.
Break Bulk depotA depot where containers are unpacked, and cargo is sorted.
Break Bulk FeeThe fee charged by a Breakbulk depot for unpackng, sorting and stacking cargo, either air or sea.
Breaking Bulk1. In the container and airfreight trade: The action of unpacking a groupage or FAK container. 2. As a traditional shipping term: To open the ship’s hatches and commence discharge of the cargo.
BSRBasic Service Rate. An ocean container shipping term which actually means the base ocean freight rate for the port-to-port segment of the transit. It may have several surcharge factors applied to it.
BSRA‘Basic Service Rate Additional’ – Means the same as APCA, THC and PSC. A charge for loading or unloading containers on or off vessels.
BulkheadTraditionally applied to the vertical partition walls inside a ship, but is also used to denote the front wall of a container.
Bunker Adjustment FactorA surcharge applied by an ocean carrier to ocean freight rates to recover costs associated with Bunker fuel.
Bunker SurchargeSee Bunker Adjustment Factor
C & FCost and Freight ( Old INCOTERM – now called CFR)
C & ICost and Insurance
CABAFCombined Currency Adjustment Factor and Bunker Adjustment Factor. See Bunker Adjustment Factor and Currency Adjustment Factor)
CabotageA law, in some countries, which prevents foreign owned ships from participating in the coastal shipping trade.
CAFSee Currency Adjustment Factor.
Cargo Agents(An IATA term) IATA cargo agents (air freight forwarders) perform the air cargo sales, documentation, and cargo preparation for carriage functions on behalf of airlines. In return, the agent receives commissions or discounted freight rates from the airlines.
Carrier1. Anyone who carries cargo or passengers by road, rail, sea or air. 2 (Air) The air carrier issuing the Air Waybill and all air carriers who carry or undertake to carry cargo. 3 Under INCOTERMS can be defined as any body [eg. Forwarder] taking responsibility for the movement of the cargo).
Carrier’s LienThe right of a carrier to hold cargo pending payment of freight charges, or of general average deposits and guarantees..
CASSCargo Agent’s Settlement System – A division of IATA
CBFCACustoms Brokers & Forwarders Council of Australia
CC FeeCharges Collect Fee. See Collection Fee
Cellular VesselA ship specially designed for carrying containers. The holds are fitted with vertical guides within which the containers are stacked and horizontally restrained.
CFRCost and Freight (INCOTERM)
CFSContainer Freight Station. A place where LCL cargo is consolidated and/or de- consolidated; also known as Depot, Consolidation Depot, or Container Base.
Chargeable Weight(Airfreight) The greater of either the actual weight of the cargo or its ‘volume
Charges Forward(IATA) Also called “freight collect”, or in other words - ‘freight payable at destination’. The movement of ‘charges forward’ shipments to some countries is either restricted or in some cases not at all possible. It is wise to always ascertain the regulations and facilities of destination countries before shipment. Additionally, IATA airlines charge TACT freight rates for shipments sent on a freight collect basis.
Charter-partyA contract under which a shipowner agrees to hire his vessel to a charterer for the carriage of cargo. The term is also used in Air Transport.
CIFCost, Insurance and Freight ( INCOTERM)
CIF & ECost, Insurance, Freight & Exchange (A variant of an INCOTERM)
CIMInternational Convention on the carriage of goods by Rail
CIPCarriage and Insurance Paid To.. ( INCOTERM)
CLContainer Load. See FCL
Classification ClauseIn marine insurance, a clause in a cargo policy which stipulates the minimum standard of vessel, as classified by a recognised classification society, required to carry the insured cargo. An additional premium may be charged by the underwriters for the additional risk involved if the vessel is not up to the stipulated standard.
Claused Bill of LadingSee Unclean Bill of Lading.
Clean Bill of LadingOne in which there is no clause to say that the goods are other than in good order and condition.
Clip-on-Unit(COU)A portable refrigeration unit which can be clipped on to the porthole vents of an insulated container.
CMRInternational convention on the carriage of goods by road
CNFCost & Freight. A common, but incorrect way of writing the INCOTERM, C & F.
Collapsible ContainerA container with hinged or removable walls and top.
Collection Fee (CC Fee)A percentage surcharge, usually between 2% and 6%, of the total freight bill, charged by carriers and forwarders on collect freight amounts. The charge is applied to recover interest on funds payable at the time of shipment; also to cover fluctuation of exchange rates.
Combi AircraftAn aircraft designed to carry both passengers and cargo on the main deck.
Combi ShipA ship designed to carry both conventional and containerised cargo.
Combined TransportThe carriage of goods by at least two modes of transport, such as road/sea/road or road/rail/sea.
ConferenceAlso known as “Consortium”. An association of shipping lines who have pooled their vessels to offer a regular, scheduled liner service under common rules and tariffs.
Conference VesselA vessel operating in a conference shipping service.
Confiscation InsuranceThe risk of confiscation of cargo in foreign countries or waters may be insured against. War risks insurance covers confiscation resulting from war. Any other confiscation risks may also be insured against.
ConsigneeThe party to whom the cargo is consigned.
Consolsee Consolidation
ConsolidationA grouping of different shipments into one combined shipment.
ConsolidatorA company, usually a freight forwarder or NVOCC, that undertakes the consolidation of loose cargo into air or sea containers for transportation.
ConsortiumSee Conference.
Constructed RateA construction of published IATA rates that are eligible for combination.
Constructive Total LossA constructive total loss occurs when: 1 The insured property has been reasonably abandoned because an actual total loss appears to be unavoidable. 2 To prevent an actual total loss it would be necessary to incur expenditure which would exceed the total value of property after the expenditure. In marine insurance, to establish a claim for constructive total loss the assured must give notice of abandonment, and surrender rights to the remaining property, to the underwriters. Failure to do so would result in the claim being treated as a partial loss only.
Container BaseSee Container Freight Station
Container Freight Station (CFS)Other names: container base; consolidation depot; depot; also Break Bulk depot for import cargo. It is a facility where the carrier receives and groups parcels of compatible loose cargo and packs it into containers; or, for import cargo, a
facility where goods are unpacked from containers.
Container Load (CL)See FCL. A shipment which fully utilises a container’s capacity, either by cubic measurement or weight. It is more loosely applied to any shipment which is moving in a container alone.
Container SealSee Seal
Container ShipVessel designed and fitted to carry containers. See Cellular Vessel.
Container Terminal(CT) orA facility where full and/or empty containers are received, delivered, and
Container Yard (CY)transferred from one mode of transport to another.
Container YardSee Container Terminal
Container, Non-StructuralAn airfreight term. A bottomless, rigid shell made of fibreglass, metal or other suitable material used in combination with an aircraft pallet and net assembly. (IATA)
Container, StructuralAn airfreight term. A rigid structure that performs the function of a ULD without the use of a restraining net. (IATA)
COU (Clip-on unit)See Clip-on-unit.
CPTCarriage Paid To.. ( INCOTERM)
CRNCustoms Registered Number. Used in Australia by exporters who have been granted “Confirming Exporter Status” by Customs, instead of the standard ECN.
CTContainer Terminal - see Container Terminal
CTOContainer Terminal Operator
CTO FeeA charge imposed by a Container Terminal Operator for handling cargo.
Currency AdjustmentA surcharge or a discount on the freight amount, by the ‘Ocean Carrier’, to
Factor (CAF)provide for fluctuations in exchange rates.
Currency Collect FeeSee Collection Fee
Cut-off date or timeThe last date or time at which export cargo will be received for a particular vessel or aircraft
CYContainer Yard - see Container Terminal
D/OSee Delivery Order
DAFDelivered At Frontier (INCOTERM)
DDPDelivered Duty Paid (INCOTERM)
DDUDelivered Duty Unpaid (INCOTERM)
Deadweight Tonnage (DWT)Deadweight or Carrying capacity of a vessel. It is the sum total weight in tonnes of all the cargo, provisions, fuel, passengers, crew, fresh water, and dunnage that the vessel can carry when loaded down to her maximum draught marks.
Declared Value forAn Air freight term. The value of goods declared to the carrier by the consignor.
CarriageThis declaration may have consequences in relation to the carrier’s limits of liability.(See Valuation).
Deductible (also known asThe amount, under an Insurance Policy, that the Insurer deducts from the claim
“Excess”)amount when making the remittance to the claimant.
Delivery CarrierAn Air freight term. The carrier who effects delivery at final destination in accordance with the Air Waybill. n.b. Commonly, all are same carrier except where an agent is involved or where a transhipment has been effected.(IATA)
Delivery Order (D/O)A document, issued in exchange for the Bill of Lading, by the shipping line, Forwarder or NVOCC, authorising delivery of the shipment.
DemurrageLiterally means compensation for delay of a vessel, container, rail wagon, etc. In Australia, it is used to describe the penalty charges applied for detention beyond the free period of: 1 containers, 2 postal articles at the int’l mail centre, and 3 chartered vessels See also: Detention, Storage
DEQDelivered Ex Quay (INCOTERM)
DESDelivered Ex Ship (INCOTERM)
DestuffingSee Devanning
DetentionCharges applied for detaining a vessel, wagon, truck, or cargo. It has had common application by wharf cartage contractors in Australia throughout the latter half of the 20th century ,where frequent delays beyond the agreed time period for loading and unloading of trucks have occurred. See also: Demurrage
DevanningThe removal of contents from a container. Also called stripping, destuffing, unstuffing, unpacking, breaking-bulk or discharging.(ICHCA)
Documentary Credit(see Letter of Credit)
Door-to-DoorThis expression has a number of uses and therefore meanings. As the term implies, all uses have the same common base which is: The transportation and delivery of cargo from the consignor’s premises to the premises of the consignee.
The term may be used to describe a delivery from door to door, by one carrier,
using different transport modes, or by one contractor using a number of carriers,
in a sealed container, and variations of these.
DrawbackA repayment of duty upon the exportation of goods previously imported. The Australian Government is a signatory to an International Convention relating to Drawbacks of Duty.
DWTSee Dead Weight Tonnage (of a vessel)
ECNExport Clearance Number, issued by Australian Customs as the authority for the clearance of export cargo. See Chapter on Export Controls and the EXIT system
EDFExport Document Fee. A charge levied by airlines in Australia for handling the documents for each shipment they carry. In 1997 this charge was A$20.00 per Master Air Waybill. SEE also IDF
EDIElectronic Data Interchange. The transfer of structured data from one computer to another.
EDIFACTEDI for Administration, Commerce and Transport.
E.I.MSee E.I.S and Equipment Imbalance Surcharge
E.I.SSee ‘Equipment Imbalance Surcharge’
Emergency Fuel SurchargeThis charge, imposed by airlines and shipping lines, has been introduced in the years 1999-2000 to recover the increasing costs of fuel for aircraft and ships. The airline charge is usually a ‘per kg’ cost over the basic per kg freight rate, and in the ocean trades, is either a flat charge per container, or a percentage surcharge applied to the base freight rate.
Equipment Imbalance SurchargeA surcharge on an ocean freight rate, imposed by shipping lines, to recover costs related to removing large quantities of empty containers from a country or countries where there is no export use for those containers that had been previously imported into those places. The charge is usually a flat rate per container, and it is not necessarily applied in all trades or at all times, rather it is only applied when such trade imbalances necessitate large expenditure on shifting empty containers from one place to another.
ERAExport Receival Advice form used to detail the information required for the admission of cargo into the wharf area for loading onto ships.
ETAEstimated Time of Arrival
ETDEstimated Time of Departure
ExcessSee Deductible
Excl. R.O.Dexcluding rust, oxidization and discolouration
EXWEx Works ( INCOTERM)
FAK ( Freight all Kinds)A term used in sea and air freight business. (1)FAK Rate: A flat rate per container, or per unit of weight/measurement, regardless of the type of cargo. (2)FAK Container: A groupage or consolidated container, containing an assembly of compatible cargo belonging to different parties.
FASFree Alongside Ship (INCOTERM)
FAVFirst Available Vessel
FBLForwarder’s Bill of Lading (see House Bill of Lading)
FC and SFree of Capture and Seizure, ie. excluding war risks
FCAFree Carrier (INCOTERM)
FCLFull Container Load. Usually applies to a container which contains the cargo of one shipper only.
FCL/FCLFull Container Load/ Full Container Load. Also called House/House movement. A term used to describe a delivery whereby a container is packed by the exporter or forwarder and unpacked by the consignee. The shipping line receives and delivers the cargo as a sealed container unit.
FCL/LCLFull Container Load/ Less than Container Load. Also called House/Pier movement. This term describes a delivery where a container is packed by exporter or forwarder and is delivered to ship’s terminal as a sealed container load. At the destination port the container is unpacked by the shipping line at their depot, from which the cargo will be collected.
Feeder ShipVessel used in short haul sea trade to serve ports at which deep-sea vessels either do not, or cannot due to size limitations, call.
FEUForty Foot Equivalent unit. The acronym of the measurement unit used to describe the space occupied by a 40’ container in a container vessel.
FISFree into Store (see DDP) not a current Incoterm
Flash PointThe lowest temperature at which vapour from a liquid may ignite.
Flat rack containerA container with open sides and collapsible ends. Some can be fitted with side gates and roof tarpaulins.
FlotsamCargo which floats after being lost or cast overboard.
FMCThe U.S.A Federal Maritime Commission, which governs maritime transport.
F.O.A.See FOB Airport
FOBAn INCOTERM meaning Free On Board. Goods delivered on board the vessel, free; ie, with all charges paid to that point. Under an FOB contract, the ownership of the good passes from seller to buyer as the goods pass over the ships rail.
FOB AirportA 1976 Incoterm –now obsolete – was replaced by the term FCA
FOB’sThis term is used widely in the internatonal freight industry to describe the variety of costs and charges that arise in moving cargo from the Ex-Works point up to the ‘Free-On-Board the vessel or aircraft point’. FOB’s therefore will include such costs as cartage from Factory door to export depot or vessel/aircraft; export clearance and hasndling costs, export document fees and other costs incurred to load the goods on board the vessel or aircraft.
FOD Abs.Free of damage absolutely
FORFree on Rail (An obsolete Incoterm)
Force MajeureLiterally, an irresistible force, or an event beyond control. It is a clause used in contracts of sale to stipulate which events shall not be deemed as events causing frustation, and as such these listed events shall cause postponement of the contract, rather than outright termination.
FortuitousAccidental; Produced by chance or fortune
FOTFree on Truck (An obsolete Incoterm)
Foul BillSee Unclean Bill of Lading.
FPAFree of Particular Average. In marine insurance, means that the insurer is not responsible for partial losses other than a general average partial loss.
Free Carrier (FCA)INCOTERM- Goods are delivered free, cleared for export, to a named carrier at a named point.
Free on board (FOB)(Incoterm) See FOB
Freight TonneIn Ocean shipping, the base tonne (ie. 1000kg = 1 m3)to which the freight rate is applied and from which the freight amount is calculated. Also called w/m tonne, meaning weight or measurement tonne. Example: A shipment has a weight of 2500kg and a volume of 3.50m3. It will be rated as 3.50 freight tonnes, or 3.50 w/m tonnes; ie. the higher of the weight or measurement.
Full Container LoadSee FCL
General AverageA principle of Maritime Law that arises when an extraordinary sacrifice or expenditure is voluntarily made to save a common venture. The principle requires all parties to the venture to contribute to the losses and expenses incurred. The contributions are determined by each party’s share of the value of the whole venture.
General AverageSee Average Bond.
Agreement
General Average DepositA security deposit payable, when cargo is liable for a general average contribution, to the shipowner to obtain release of the cargo. See General Average Guarantee
General Average GuaranteeA guarantee given in lieu of a monetary deposit, to the shipowner by an underwriter, to: (1) remove the lien and obtain release of the cargo; and (2) as security for the payment of the general average contribution. See also Average Bond
General Cargo(As used in Airfreight).Any cargo other than one containing valuable cargo, livestock, or any other cargo covered by a specific commodity rate or classification rate.
GroupageAlso called Consolidation. The consolidation (grouping) of LCL consignments into a container.
Groupage AgentAn agent who consolidates LCL cargo into containers for subsequent presentation to the shipping lines as FCL’s.
Hague RulesA code of rules, adopted under international convention in 1924, for the carriage of goods by sea. The rules specify the responsibilities,liabilities, rights and immunities of ocean carriers.
Hague-Visby RulesThe amended Hague rules, altered by the Brussels protocol of 1968.The amendments arose because it was considered that the original Hague rules were too advantageous to the ocean carrier. Australia’s Carriage of Goods by Sea Act embodies the international convention of the Hague-Visby Rules.
Hamburg RulesThe Hamburg Rules are a revision of the Hague-Visby Rules. They were established at a United Nations Conference in Hamburg in 1978, and have the effect of increasing the liability of ocean carriers. These rules have been surrounded by controversy, and have not yet been adopted by Australia.
HAWBHouse Air Waybill ie. A Waybill issued by a Forwarder or Consolidator, as distinct from a Master Air Waybill issued by an airline.
HBLSee House Bill of Lading
High CubeLiterally ‘ High Cube Container’. A term used to denote an ocean shipping container that is taller, and therefore has a higher cubic capacity, than a standard shipping container.
House Bill of LadingA Forwarder’s bill of Lading (as distinct from a shipping line’s Bill of Lading).
House/HouseSee FCL/FCL. A shipment of goods from the shippers premises through to the consignee’s premises
House/PierSee FCL/LCL
I.A.T.A.International Air Transport Association. The international organisation of airlines that regulates conditions of operation, safety, schedules, and pricing for international air transport.
ICCThe International Chambers of Commerce
IDFImport Document Fee. A charge levied by airlines in Australia for handling the documents for each shipment they carry. In 1997 this charge was A$20.00 per Master Air Waybill. SEE also EDF
IglooAn aircraft container which has a shape that is contoured to fit the shape and dimensions of an aircraft cargo hold.
IMDG CodeInternational Maritime Dangerous Goods Code, which is the code for the carriage of dangerous goods by sea
IMOThe International Maritime Organisation, which is the United Nations body responsible for making safety and anti-pollution conventions and recommendations for sea transport.
INCOTERMSThe International Rules for the Interpretation of Trade Terms. A list of 13 standard terms for international contracts of sale, issued by the ICC. The current edition is INCOTERMS 2000.
Inherent ViceAn inherent quality of goods or packaging which renders it liable to loss or damage without any outside peril or force. The rusting of steel, or the rotting of fruit are examples of inherent vice qualities.
Institute ClausesThe standard clauses of Insurance cover for use in Marine Insurance, on a worldwide basis. Institute Cargo Clauses, A, B, & C stipulate the 3 basic forms of cover; whilst the Institute Extension and other specific Clauses stipulate covers for particular goods and/or circumstances.
Insurable InterestFor an insurance policy to be valid, the assured must have an ‘insurable interest’ in the goods. This is defined as the insured being so related to the goods that he will benefit from their survival, or suffer loss or liability if they are damaged or lost.
Insurable ValueIn marine and transit insurance - generally 110% of the CIF value of the goods.
Inter Alia (Latin)Amongst other things
IntermodalThe movement of cargo by more than one mode of transport. Eg. Road - Sea – Road
ISOThe International Standards Organisation
Issuing Carrier(IATA) The carrier who issues the Air Waybill.
ITFInternational Terminal Fee. A charge applied at Australian Airports by Air Freight Forwarders to cover the cost of handling cargo and documents.
JetsamCargo thrown overboard (jettisoned) to lighten a vessel and which is later washed ashore.
JettisonThe action of throwing cargo/ other items overboard in order to save the vessel.
L/CSee Letter of Credit.
LaganCargo jettisoned and buoyed so that it may float and be recovered.
LASHLighter (barge) aboard a ship.
LCLLess Than Container Load, ie. not a Full Container Load. A consignment which does not fill a container, and will therefore be grouped and shipped in a container with other part-loads.
LCL/FCLAlso called Pier/House movement. Exporters or forwarders deliver loose cargo to the ship’s depot (container base or container freight stations). The ocean carrier packs all the loose cargo into a container and loads onto ship. At destination, the full container is delivered to the consignee for unpacking at his premises.
LCL/LCLAlso called Pier/Pier movement. Cargo is delivered ‘loose’ to Container Freight Station (CFS) and packed for shipment by ocean carrier. At destination, the cargo is then unpacked from the container at the ocean carrier’s unpacking facility.
Letter of CreditThe full definition of this term is provided by the ICC in their booklet ‘Uniform Customs and Practice for Documentary Credits’. It reads: For the purposes of these articles, the expressions “documentary credits” and “standby letter(s) of credit” used herein (hereinafter referred to as “credit(s)”), mean any arrangement, however named or described, whereby a bank (the issuing bank), acting at the request and on the instructions of a customer (the applicant for the credit), (I) is to make a payment to or to the order of a third party (the beneficiary), or is to pay or accept bills of exchange (drafts) drawn by the beneficiary, or (ii) authorises another bank to effect such payment, or to pay, accept or negotiate such bills of exchange (drafts), against stipulated documents, provided that the terms and conditions of the credit are complied with.
Letter of IndemnityA Guarantee document, usually countersigned by a bank, which indemnifies the
Lift On/Lift Off (LO/LO)Charge by the carrier for lifting of an FCL from the truck upon receipt at a depot
LiftvanA specialised, large packing case used for personal effects.
LinerA ship on a regular schedule, loading and discharging at specified ports of call.
Lower DeckOn an aircraft, the deck (or compartment) below the main deck. Also called lower hold or lower lobe
Lower Deck ContainerAn aircraft container (ULD) that is shaped to fit the contours and/or dimensions of the aircraft’s lower hold. These ULD’s, as with main deck containers come in a variety of sizes and configurations.
Main DeckOn an aircraft, the upper, and larger cargo hold. In a passenger aircraft, the passengers sit on the main deck.
ManifestThe list (inventory) of cargo (or passengers) being carried on a vessel or aircraft.
Material CircumstanceAny circumstance or fact that a prudent underwriter would be affected by in determining risk acceptance and premium level.
MAWBMaster Air Waybill (ie. An Air Waybill issued by an airline, either directly to an exporter, or to a forwarder)
Minimum ChargeThis charge is applied in nearly all modes of transport, and is the lowest amount that will be charged for transporting a consignment between two ports.
Mutatis Mutandis (Latin)With the necessary changes
N.R.A.Dno risk after discharge
N.R.A.S.no risk after shipment
Non-conference lineAn independent shipping line that is not a member of a conference or consortium.
NORNon-Operating Refrigerated Container.
NVO(C)CNon Vessel Owning/Operating (Common) Carrier. A Carrier (may be a Forwarder or Consolidator) who issues Bills of Lading for the carriage of cargo on vessels which he/she neither operates or owns.
OBLOriginal Bill of Lading
Open sided ContainerA container with either a grille, shutters, or tarpaulin side(s).
Open Top ContainerA container with solid walls and either a tarpaulin roof or detachable hard roof.
Outsider LineAn independent shipping line. One that is not a member of a shipping conference
OutturnAs a verb - to outturn: to discharge the cargo. As a noun - The outturn: the actual list of cargo discharged from a ship or from a container. Outturn reports of import cargo must be furnished by shipping lines, airlines and break bulk operators to the customs officials.
Particular AverageIn marine insurance, a partial loss or damage, caused by an insured peril and which is not a general average loss.
Pier/HouseSee LCL/FCL
Pier/PierSee LCL/LCL
Pivot WeightMinimum chargeable U.L.D. weight.
POD(1) Proof of Delivery; a signed receipt proving that delivery was effected. (2)Place of Delivery; The place where delivery is effected and the Carrier’s liability ceases.
Proximate CauseAn insurance term. The immediate, or most effective cause of a loss. In insurance contracts, underwriters are not liable for losses unless such loss is proximately caused by an insured peril.
PSCPort Service Charge – A charge for loading containers on and off vessels at wharf terminals. See also BSRA, APCA, THC.
Received BillA Bill of Lading that indicates only that the cargo has been received into the custody of the ocean carrier; not that it has actually been shipped.
Reefer containerA container that is temperature controlled, and can therefore carry refrigerated cargo. As a generic term, it may apply to several different types of containers; including those which have their own integral cooling units, those which carry ‘clip-on’ units and those requiring external liquid gas.
RO-RORoll-on Roll off.
RO-RO VesselA ship, equipped with a loading ramp, onto which vehicles and cargo can be driven.
Scsalvage charges
SCASea Cargo Automation. The term applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import seacargo in Australia.
SCA FeeA charge applied by Forwarders and Consolidators in Australia to cover the costs associated with the operation of the Sea Cargo Automation System.
SCRSee Specific Commodity Rate
SDRSee Special Drawing Rights.
Seal (container seal)Usually a numbered or coded metal rod or metal band, used to seal the doors of containers after they have been packed. The seal number is usually recorded on The Bill of Lading, but may also be required by the consignee on other documents. Some types of seals provide better security than others. When shipping FCL loads of cargo which may be subject to pilferage, it may be better to use a good quality padlock.
Shipped on Board Bill of LadingA ‘Shipped on Board’ Bill of Lading evidences the fact that the cargo has actually been loaded on board the vessel. A ‘shipped’ Bill is not issued unless the cargo is so loaded on board. This is in stark contrast to a Received Bill of Lading which evidences only that the cargo has been received at the ship’s terminal.
Shipper’s Letter ofA document containing instructions by shipper (consignor) relating to the
Instruction (SLI)preparation of documents and movement of the shipment.
Shipping ConferenceSee Conference
Short LandedWhen part or all of a consignment, which has been completely shipped, has not arrived at destination. It may have a different meaning to the term “short shipment”
Short ShipmentIs used to denote not only the fact that goods manifested or invoiced as being shipped, have, in reality not been shipped; but also (perhaps erroneously, if one literally defines the word ‘shipped’) the fact that goods shipped have not arrived at destination. See also Short landed.
SLI SlotSee Shippers Letter of Instruction (1)Is the space in a container vessel which can be taken up by one standard twenty foot container. (2)Also used to describe the appointed time to collect or deliver a container from or into the ship’s container terminal yard, (see Time Slot).
Special Drawing Rights (SDR)Special Drawing Rights. The official account unit of the International Monetary Fund. Based on a basket of real currencies, it is used as a standard accounting unit in international transactions. Under the Hague Visby Rules, SDR’s are used to stipulate the value of the limit of an Ocean Carriers Liability. In 1997, that limit is defined as the greater of 666.67 SDR’s per package or 2 SDR’s per kg. One SDR unit is equal (approximately) to US$2.00.
Specific Commodity Rate (SCR)A rate applicable to the carriage of a specific commodity between specific places.
SRCCstrikes, riots and civil commotions
StuffingThe loading of goods into a container.
SubrogationA legal principle whereby an Insurance Company can inherit the rights and liabilities of the assured, and counter-claim against the Carrier who caused the loss or damage. The subrogation process can begin once the Insurer has paid out the assured under the terms of the policy.
TACTThe Air Cargo Tariff book, issued by IATA.
TACT RateThe IATA Tariff rate as listed in the TACT books. See Chapter on Freight rates for a full explanation of TACT rates.
Tank ContainerA container designed for the carriage of bulk gases, liquids and powders.
TEUTwenty Foot Equivalent unit. The acronym used to describe the space occupied by a 20’ container. ie. 1 x 20’ container = 1 TEU 1 x 40’ container = 2 TEU Used as measurement unit to describe the carrying capacity of a container vessel.
THCTerminal Handling Charge. A charge for handling containers and goods at Container Terminals
Through Bill of LadingUsed frequently in modern commerce. It is a Bill of Lading covering transport of the goods by more than one carrier or by more than one means of transport. The carrier who issues the bill will be responsible for the transhipping and/or on- forwarding.
Time SlotUsed to describe the appointed time to collect or deliver a container from or into the ship’s container terminal or wharf .
TPNDTheft, pilferage and non-delivery
Transferring CarrierThe carrier who transfers the cargo to another carrier at a transfer point.(IATA)
TranshipmentThe transferring of goods from one vessel, or mode of transport, to another.
TRCTerminal Receiving Charge. A charge for handling containers and goods at Container Terminals
U.L.D.Unit Load Device.The collective term used to describe the specialised containers and pallet bases used with cargo aircraft. See also Aircraft Unit Load Device
U.L.D. RateA rate charged by an airline for carrying a ULD. See chapter on freight rates for an explanation.
Unclean BillAlso, Claused Bill and Foul Bill. A Bill of Lading that has been endorsed by the carrier to record the fact that the goods, as received for shipment, do not conform to their description, eg. Rust visible, package wet, item missing, etc.
UnderbondUnder the control of customs.
UnstuffingSee Devanning
Valuable Cargo(IATA). Air Cargo having an actual value of US $1,000 (or equivalent) or more per gross kg or which contains precious metals, banknotes, pearls (including cultured pearls) and precious stones. In consequence of the greater responsibility, and also the higher level of liability borne by the airline, a freight surcharge of 200% of the normal rate is applied to the carriage of such goods.
Valuation surchargeAn IATA term. A surcharge on an airfreight rate, charged under IATA rules and applied to the cost of carriage of valuable cargo. The airlines’ normal liability level is increased upon payment of the surcharge.
Volume ChargeCharges based on volume
W/MWeight/Measurement, (See Freight Tonne).
Warehouse To WarehouseThis phrase refers to the so-called “warehouse to warehouse clause” which is incorporated into many modern transportation insurance policies. The Clause confirms where coverage begins and where it ends. In terms of the Clause, insurers go on risk when the traffic being insured leaves the Shipper’s warehouse in the Country of Origin and they come off risk when one of three events occur:- either (a) the goods arrive at final intended destination, or (b) a period of 60 days elapses after the goods are discharged from the last overseas vessel (in the case of airfreight consignments, the period comes down to 30 days),or (c) the goods go into a warehouse along the way for distribution purposes. It is important to remember that Insurers come off risk when either of (a), (b) or (c) FIRST occurs. n.b. The above provisions can usually be extended by agreement with the underwriter.
WaybillAs distinct from a Bill of Lading, the Waybill serves as a receipt for the cargo and evidence of a contract of carriage, but is not a negotiable document of title
YORK ANTWERP RulesThe international rules that govern General Average.
Zone Charges:Charges in an ocean carrier’s tariff for cartage (either pre or post- shipment) of LCL or FCL cargo.