An abbreviation for an insurance clause, Against All Risks.
A proceeding whereby a shipper or consignee seeks permission to abandon part or all of their cargo.
A Latin term which means “according to value.”
A natural disaster which is outside human intervention, for example, lightning, floods or earthquakes.
A bank in the seller’s country, which can handle letters of credit from foreign banks referred by the buyer.
A notice advising a buyer that the shipment has moved ahead, containing details of the packing, route, etc. Often enclosed are copies of the invoice and the bill of lading.
A contract that binds an ocean carrier to provide cargo space to an importer or exporter at a determined time and price.
The side of a ship; goods to be delivered “alongside” entails that they are to be placed along the dock or barge, within reach of the transport ship’s tackle for loading.
The temperature of the atmosphere that surrounds a body, and different the temperature of the body itself. The ambient temperature of a container, for example, is the atmospheric temperature to which it is exposed during storage or freight.
In the logistics supply chain, the types of agents include:
i Brokers
ii Commission merchants
iii Resident buyers
iv Sales agents
v Manufacturer’s representatives
The non-negotiable Forwarding or Carrying Agreement between the shipper and the air carrier.
An abbreviation for Automated Manifest System, the multi-modular cargo inventory control system of the U.S. Customs.
A tariff imposed on the sale of subsidized foreign goods. The tariff serves to discourage sale of foreign goods at low prices, which is detrimental to domestic manufacturers.
See insurance.
A notification by the carrier, informing of theship’s arrival to the consignee, the “Notify Party,” and – when applicable – the “Also Notify Party.” These parties in interest are listed in the Bill of Lading in blocks 3, 4 and 10, respectively.
An abbreviation for “Bill of Lading.”
An abbreviation for “Bunker Adjustment Factor.” This is a factor used to calculate the compensation for steamship lines adjusting for fluctuating fuel costs. It is also known as Bunker Charge, “Fuel Adjustment Factor” or FAF.
The guarantee issued by a bank to a carrier. to be used in lieu of the original, negotiable bill-of-lading which has been lost or misplaced.
An unlawful or fraudulent act committed by the master or mariners of a vessel, contrary to their duty to the owners and wherein the latter sustain injury.
The base tariff rate, or the ocean rate less accessorial charges, chargeable for the transportation of goods.
– Entity to whom money is payable.
– Entity to whom a letter of credit is issued.
– The seller and the drawer of a draft.
A two-way contract, affecting and binding any two parties.
An order issued by an individual or business, directing the recipient to pay money to a third party at a fixed future date.
A document that establishes the terms of the contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.
B/L requiring updates that do not change financial status. Slightly different from corrected B/L.
Defines what the carrier can and cannot do, including the carrier’s liabilities and contractual agreements.
States whether the Bill of Lading has been rated, reconciled, printed, or released to the customer.
Refers to the type of B/L being issued. Some examples are: Memo (ME), Original (OBL), Non-negotiable, Corrected (CBL) or Amended (AM) B/L.
Signifies a processed B/L that has been cancelled, usually on the shipper’s request. Different from voided B/L.
A B/L which has no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.
B/L that covers cargo moving over various transports.
B/L combined or consolidated from two or more B/L.
Updated B/L resulting in financially-related changes.
Non-negotiable B/L, primarily containing routing details. Usually used by truckers and freight forwarders.
Another original Bill of Lading set if first set is lost. Also known as re-issued B/L.
Non-negotiable B/L where there are no hard copies of originals printed.
A contract of carriage between a shipper and forwarder (who is usually a NVOCC). A non-negotiable document.
B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.
B/L covers cargo that is moved via multimodal means. Also called Multimodal B/L, Combined Transport B/L, or Multimodal B/L.
All Terms and Conditions printed on the B/L form. The majority of B/L forms are short forms that include the referenced long form clauses.
Unfreighted B/L with no charges listed.
U.S. Customs has developed a standard B/L numbering format for electronic communication and each B/L number is unique.
A negotiable/bill is a title document that is issued to the shipper. This endorsement is necessary to facilitate a negotiation. A shipper’s negotiable B/L is a title document that can be sold, bought, or traded while goods in transit. It is often used for letter-of credit transactions. To take possession of the goods, the buyer must provide the original B/L to carrier.
See Straight B/L. Also referred to a as a file copy of a B/L.
B/L validated at the time of loading for transportation. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types.
B/L covering cargo with more than one discharge point option possibility.
See Negotiable B/L.
The part of the B/L that has value, especially when negotiable.
Validated when the cargo is received by ocean carrier to commence movement but before being validated as ‘Onboard’.
A B/L set that has been edited according to the shipper’s instructions. This is in addition to the actual shipment. This results in a very precise B/L.
A form of B/L without the Terms & Conditions written on it. The terms are incorporated by reference to the long form B/L.
A One of two or more B/L’s which have been split from a single B/L.
A B/L which has passed the time deadline of the L/C and is void.
It indicates that the shipper will deliver goods to the consignee. It does not convey title (non negotiable). It is most commonly used when goods are pre-paid.
See Negotiable B/L.
U.S. Customs standardization: Four-alpha code unique for each carrier placed in front nine digits B/L number. APL’s unique, B/L Identifier (APLU) is ‘APLU; Sea-land uses the ‘SEAU’. These prefixes can also be used to identify the container.
Related to Consolidated B/L. The B/Ls’ absorbed in the combining process. Different from Cancelled B/L.
Confirmation of transfer of ownership for certain goods to another person.
Wood or metal supports (Dunnage) that serve to keep cargo shipments in place.
To gain access to a vessel.
Freight transport under a bond can only be delivered if the conditions are met.
An authorized warehouse for goods storage, where the payment of duties may be delayed.
– The process of unloading and distributing a part or all of the contents of a rail car, container, or trailer.
– Loose, non-containerized cargo.
Cargo that is unmarked or counted and shipped in its entirety to a ship’s hold. This category includes cargo such as grain, coal, and sulphur.
Container that can be used to transport bulk commodities, with a discharge hatch built into the front wall.
See BAF
A maritime term used to refer to the fuel used aboard the ship.
The port where the cargo is unloaded by the ocean carrier, and moved to another vessel.
A term used for water transportation between ports of a nation, and often referring to coast-wise navigation or trade.
Abbreviation for the “Currency Addition Factor”, a charge expressed as a percentage from the base rate. It is used to compensate ocean carriers for currency fluctuations.
– A Customs document permitting the holder to temporarily send goods to specified foreign countries, without paying duties or posting bonds for these goods.
– Any of various Customs documents required while crossing certain international borders.
A manifest that lists the details of all the cargo carried on a specific carrier.
In a contract of carriage, any person or organization that agrees to provide carriage services by rail, road or sea.
A certificate required by Customs to release cargo to the correct party.
A term that refers to inland hauling by drays or trucks.
This is a method of payment in which the documents that transfer title to goods are given to the buyer upon receipt of cash to an intermediary, usually a commission-house.
A certified document showing the origin of goods, used for international commerce.
An abbreviation for ‘Container Freight Station’; a shipping dock or storage area, where cargo is loaded to or unloaded from containers.
A demand made for payment to compensate a loss sustained through alleged negligence in transportation.
A receipt for goods issued to a carrier indicating that the goods were received in good condition and order. The B/L will be considered clean if it is not noted or made exception to.
The Carriage of Goods by Sea Act (COGSA) is an act that standardizes the carrier’s liability through the Bill of Lading.
It is a complete record of all transactions between the importer and exporter, including the sale of goods. It contains the contents of the shipment and is used as a basis for all other documents.
The article to be shipped. For dangerous and hazardous cargo, correct commodity identification is critical.
A transportation company which provides service at fixed rates to the general public.
The type of law based on precedent, custom and usage rather than statutes, particularly the laws of India, England and the United States.
An association of ship owners operating under collective conditions and agreed tariff rates in the same trade route.
Confirmation by a domestic banking institution of the validity of a letter credit issued by a foreign lender. A confirmed letter of credit from a domestic seller is guaranteed payment, regardless of default by the foreign buyer.
The bank that adds its confirmation to the issuing bank’s letter of credit, and promises to pay the beneficiary upon presentation of specified documents.
A person or organisation to whom the cargo is sent.
(1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
(2) A shipment of goods to a consignee.
A person or company shown on the Bill of Lading as the shipper.
Cargo containing shipments of two or more shippers or suppliers. Container-load shipments may be consolidated for one or more consignees.
An individual or company performing a consolidation service for others, wherein the consolidator takes advantage of lower full cargo load (FCL) rates, and passes these savings on to its customers.
The receptacle used for transporting cargo, inland or by air and sea.
See CFS.
A document listing all the contents, and specifying the loading and unloading sequence of a container.
An legally binding agreement between two or three persons or organisations, in which they are required to perform reciprocal value actions.
A domestic bank that handles the business of a foreign bank.
A government agency that enforces the rules for its country’s import and export laws.
See Bonded Warehouse.
A unit for measuring volume; the basic unit being the space contained by one foot of height, width and length.
The process whereby a declaration is made by the importer on incoming foreign goods, and entails a duty paid by the importer on the merchandise.
A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries, it serves as a seller’s commercial invoice.
A penalty charge against shippers or consignees when the cargo is delayed beyond the allowed period. The charge is set forth in the charter party or freight tariff.
– See also, Detention and Per Diem.
The weight of cargo per cubic foot or measured by any other unit.
Shippers and consignees can be subject to a penalty for delaying the delivery of carrier equipment beyond the time limit. Demurrage is for cargo, detention is for equipment. See Per Diem.
The process of unloading a container, or cargo van.
A ‘discrepancy’ is when documents are not in compliance with the requirements of the letter credit (L/C). Discrepancies in L/Cs will be refused by banks. They will refer the matter back to the seller or buyer and wait for further instructions.
A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean Bill of Lading.
A shipper’s instructions to a bank stating that title-transfer documents for the goods must be delivered to the buyer after the buyer accepts the draft.
An indication on a draft that, on payment, the documents attached can be released to the drawee.
Through transportation of a container and its contents from consignor to consignee. Also known as House-to-House. Not necessarily a through rate.
A seller issues an order against a buyer that directs payment through an intermediary banking institution. Bank drafts are usually negotiable instruments that are very similar to checks on bank checking accounts.
A draft without any documents attached.
A draft that regardless of the time of acceptance, matures on a fixed date.
A discounted time draft under a letter of credit that has been accepted by a bank.
A draft payable on demand, i.e. upon its presentation to the bank.
A draft that matures at a fixed time period after its presentation or acceptance.
Re-export fees can be partially refunded if the goods are exported again from the country.
The individual or organisation that issues a draft to the buyer, and thus stands to receive payment.
Charge made for inward haulage by dray or truck. Same as Cartage.
Abbreviation for ‘Electronic Data Interface’; a generic term used for transmission of data between two or more computer systems.
The customs documents required to clear an import shipment for entry into a country.
When used in pricing terms, it signifies that the price quoted applies only at the point of origin. e.g. “Ex Factory” or “Ex Dock.”
The bill of lading will include any notations that indicate any packaging or damage made to cargo when it is received at the carrier’s terminal or loaded onto a vessel.
Referred to documents that have a specific time period, such as tariffs or letters of credit. Notify that the provisions are subject to expiration after a specified time.”
An exporter must complete a government document and file it with the government. It declares the goods that are to be exported.
A government document permitting the holder of the license to engage in the export of designated goods to certain destinations.
Abbreviation of ‘Full Container Load. This indicates that the maximum load capacity has been reached.
This service allows cargo from regional ports to be transferred to a central hub port to embark on a long-haul, oceanic voyage.
A short-sea vessel which transfers cargo between a central ‘hub’ port and smaller ‘spoke’ ports.
Abbreviation of “Forty Foot Equivalent Units”. A unit that measures the container size standard at forty feet. Two TEU containers of twenty feet or TEUs equal one FEU.
Common clause in contracts that exempts parties from not fulfilling their obligations due to conditions beyond their control such as war, earthquakes, floods, or floods.
A receipt issued by a carrier indicating that the goods were damaged when received. See also: Clean Bill of Lading.
Lost shipment is one that has been located and shipped to its destination.
A carrier’s equipment can be used for a certain amount of time without additional charges. (See Storage, demurrage and per diem.)
A carrier issue an invoice based on the Bill of Lading. This is used to account for a shipment statistically, operationally, and financially.
Agent who works for the shipper and often makes the booking reservation.
Industry-related. A point at which freight moving from one territory to another is interchanged between transportation lines.
A consolidation service that puts small shipments into FCL containers for shipment.
Abbreviation for “General Rate Increase.” An across-the-board tariff rate increase, implemented by conference members and applied to base rates.
See Door-to-Door.
Under the supervision of the shipper, cargo is loaded into a container. The cargo is then unloaded at its destination foreign pier when it is export.
Developed by the Brussels-based Customs Co-operations Council (CCC), an international goods classification system for describing cargo in international trade under a single commodity-coding scheme.
Abbreviation for International Chamber of Commerce.
Abbreviation of the International Maritime Consultative Organization. This is a forum that brings together major maritime countries. It makes recommendations on how to transport dangerous goods, bulk commodities, and other maritime regulations internationally.
Abbreviation of the “International Maritime Dangerous Goods Code”. International regulations for hazardous material transport published by the IMCO.
To receive goods from a foreign country.
A government document authorizing the importation of goods.
Cargo moving under Customs control, on which duty has not yet been paid.
An agreement that holds a carrier harmless with regards to a liability.
A term in insurance that describes any defect or cause for damage in the product that is not caused by external causes (for example instability in a chemical that could cause it spontaneously explode). Inherent vice losses may not be covered by insurance policies.
An agent or company issue a certificate confirming the quantity and quality of the merchandise being shipped. This certificate is required for shipping letters of credit.
Marine insurance uses the term average to describe partial damage or loss. This clause covers merchandise when the damaged amount exceeds 3% of the insured value of the cargo or package.
The broadest insurance coverage available to the shipper, covering against all losses incurred during transit.
Ocean freight is the deliberate loss of cargo in order to make the vessel safer for the rest. All those who share in the cargo are responsible for covering the loss.
Marine insurance is used to describe partial loss of a shipment due to one of the perils covered, regardless of whether the cargo balance is included. A company may allow a claim if the cargo is less than the insured value.
Denotes movement of cargo containers across various transport modes, for example, motor, water, and air carriers.
A letter of credit in which all terms and conditions are met by the drawee. The bank guarantees the payment. Without the agreement of the seller and buyer, it cannot be revoked.
A bank that issues a straight or negotiable credit letter to a beneficiary. The bank assumes responsibility for paying the beneficiary if the documents are in compliance with the terms of this credit letter.
The carrier issuing transportation documents or publishing a tariff.
A loss discovered any time at or before the delivery of a shipment.
The total cost of goods to a buyer, including the cost of transportation.
Certificate issued at the point or place of export, when the subject goods are exported under bond, by consular officials of some importing countries.
Abbreviation of ‘Less Than Container Load’. A lesser quantity of freight than the container load rate. Loose Freight.
Less-than-Truckload is a service offered by freight companies for businesses that only need a small shipment of goods delivered.
Water transport of cargo from one country to another using the port of another. Then, rail or truck transportation to an inland point within that country or to a country in the third country. One example is the movement of Asian cargo across North America to Europe.
A document, issued by a bank on the instructions of a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms. Some of the specific descriptions are:
A new letter credit is issued to another beneficiary based on the strength and condition of a primary credit. The bank uses the collateral in the second LC to secure the first LC. It is used in a three-party transaction.
A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment.
A LC is guaranteed by the issuing and advising bank of payment as long as the seller’s documents and terms are met. Only applicable to irrevocable LCs. The credit risk of issuing banks is assumed by the confirming bank.
A letter of credit that is issued to purchase or finance merchandise. It is similar to an acceptance-type credit but requires sight drafts.
An instrument that cannot be modified or cancelled without the agreement of all parties concerned.
A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards.
A condition within the letter of credit which restricts its negotiation to a named bank.
An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary. Rarely used since there is no protection for the seller.
An irrevocable letter issued for a specific amount. Renews itself for the same amount over a given period.
A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank.
A letter of credit that allows the beneficiary to transfer in whole or in part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit. Used by middlemen.
A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.
To obtain a clean Bill of Lading the shipper must sign a Letter of Indemnity even though the receipt from the dock or mate indicated that the shipment was damaged, or in poor condition.
A legal claim upon goods in the hands of another party for the satisfaction of some debt or duty.
* Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L.
* Various types issued for export (general, validated) and import as mandated by government(s).
Insurance covering loss or damage of goods at sea, which typically compensates the owner of goods for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.
An intermodal system for transporting containers by ocean and then inland to a port that previously served as an all water route (e.g., Hong Kong to New York over Seattle).
The lowest charge that can be assessed to transport a shipment.
Synonymous for all practical purposes with ‘Intermodal’.
A cargo consolidator in ocean trades who will buy space from a carrier and then sell it to smaller shippers. The NVOCC issues Bills of Lading, publishes tariffs and conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.
A contract between a shipper or carrier for transport. It is also proof of receipt by the carrier of the cargo. If the bill of lading is negotiable it can be purchased, sold, or traded while goods are in transit.
An indication on a Bill of Lading that cargo was loaded onto a vessel. In the absence of any express requirements, it is used to fulfill the requirements of a Letter of Credit.
A notation on a Bill of Lading that the cargo has been stowed on the open deck of the ship.
A marine insurance policy that applies to all shipments over a period of time rather than to one shipment only.
A container fitted with a removable roof, so the container can be loaded or unloaded from the top.
A term used for the surrender of the original Bill of Lading before freight is released. Usually associated with a shipment covered under a letter of credit.
A document which requires proper signatures for consummating carriage of contract. Must be marked as ‘original’ by the issuing carrier.
Cargo that cannot fit into a standard container, i.e. more than eight feet high.
Those natural causes of loss for which the carrier is not legally liable.
A shipment loaded into a container at the pier or terminal, then to the consignee’s facility.
Containers that are loaded at the port of loading, and discharged at port of destination. See door-to-door.
The place where the cargo leaves the care and custody of the carrier.
The location where the cargo enters the care and custody of carrier.
The place where the shipment is received by the carrier.
Abbreviation for:
– Port of Discharge.
– Port of Destination.
– Proof of Delivery. A document required from the carrier or driver for proper payment.
Abbreviation for:
– Port of Loading.
– Petroleum, Oil, and Lubricants.
The port where the cargo is discharged from the carrier.
The port where the cargo is unloaded and enters a country.
The port where cargo is loaded and leaves the country.
Freight charges paid by the consignor (shipper) prior to the release of the Bills of Lading by the carrier.
A Latin term meaning “For the sake of form.”
A Latin term meaning “In proportion.”
Also known as Federal Bill of Lading Act of 1916. U.S. federal law enacting conditions by which a B/L may be issued. Penalties for issuing B/L’s containing false data include monetary fines and/or imprisonment.
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of details of goods to be sent, their value, and specifications.
Also known as Federal Bill of Lading Act of 1916. U.S. federal law enacting conditions by which a B/L may be issued. Penalties for issuing B/L’s containing false data include monetary fines and/or imprisonment.
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of details of goods to be sent, their value, and specifications.
Refrigerated container.
To re-book cargo to a later vessel.
Changing the consignee or destination on a Bill of Lading while shipment is still in transit. Diversion has substantially the same meaning.
A common use of the term, “Roll On/Roll Off.” A method of loading ocean cargo, using a vessel with ramps which allows cargo to be loaded and discharged without the use of cranes.
The Statistical Classification of Domestic and Foreign Commodities Exported from the United States.
The document indicating a document of title (b/L) was not needed the goods when were loaded onboard.
The person or company who is usually the supplier or owner of commodities shipped.
Shipments that are loaded and sealed by shippers without being checked or verified by the carriers.
A draft payable upon presentation to the drawee.
A law that limits the time in which claims or suits may be instituted.
Shippers’ load and count. All three clauses are used as needed on the Bill of Lading to exclude the carrier from liability when the cargo is loaded by the shipper.
A logistical management system which integrates the sequence of activities from delivery of raw materials to the manufacturer through to delivery of the finished product to the customer into measurable components.
An abbreviation for ‘Said to contain’.
An extra or additional charge.
A charge made for a service performed in a carrier’s terminal area.
Abbreviation for Twenty Foot Equivalent Unit. See FEU.
Abbreviation for Transport International par la Route, an agreement among European governments and the United States for the international movement of cargo by road.
To transfer goods from one transportation line to another, or from one ship to another.
Abbreviation for Uniform Customs and Practice for Documentary Credits. Published by the International Chamber of Commerce. This standard is used most often to make payments in international commerce.
United Nations EDI for Administration, Commerce and Transport. EDI Standards are developed and supported by the UN for electronic message interchange on an international level.
Abbreviation for Uniform Customs and Practice for Documentary Credits. Published by the International Chamber of Commerce. This standard is used most often to make payments in international commerce.
United Nations EDI for Administration, Commerce and Transport. EDI Standards are developed and supported by the UN for electronic message interchange on an international level.
The rules for letters of credit drawn up by the Commission on Banking Technique and Practices of the International Chamber of Commerce in consultation with the banking associations of many countries. See Terms of Payment.
Insurance coverage for loss of goods resulting from any act of war.
Abbreviation for ‘Weight or Measurement’, the basis for assessing freight charges. Also known as ‘worm’.
Document prepared by a transport line at the point where a shipment is being shipped. This document shows the destination, origin, destination, consignor, consignee, description and cost of transportation.
A phrase preceding the signature of a drawer or endorser of a negotiable instrument; signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of non-payment or non-delivery.
Time based on Greenwich Mean Time.
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