Glossary

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A

Aboard

Referring to cargo being put, or laden, onto a means of conveyance.

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Accrual

An accounting concept. It is a gradual increase by addition over a period of time and is a way of recognizing that an expense (or revenue) and the related liability (or asset) can increase over time and not as signalled by an explicit cash transaction.

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Advice of Shipment

A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading.

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Advising bank

The bank which advises the seller that a letter of credit has been opened in his favour by the buyer, however, the advising bank does not necessarily guarantee payment.

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B

B/L Master

A document provided by the shipper after handing over the cargo to the carrier, tells the carrier how the B/L should be raised. Also known as B/L instruction or shipping instruction.

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Bill of lading

A document that establishes the terms of contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage, and a receipt for goods.

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C

Carrier

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such modes.

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CIP

One of 13 INCOTERMS.
"Carriage and Insurance paid to..."means that the seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage.

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Container vessel

Ship equipped with cells into which containers can be stacked; container ships may be full or partial, depending on whether all or only some of its holds are fitted with container cells.

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CPT

CPT
One of 13 INCOTERMS "Carriage paid to ..." means that the seller delivers the goods to the carrier nominated by him bsut the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears risks and any costs occurring after the goods have been so delivered.

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CSC

Container Service Charge.
European THC on Transatlantic Trade

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CSI

Container Security Initiative. US Government legislation designed to improve security against terrioists.

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D

D & H

Dangerous and Hazardous. Also see Dangerous Goods.

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D.W.

Dead Weight. The number of tons a ship can transport of cargo, stores and bunker fuel. Also see Dead weight Tonnage.

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DAF

One of 13 INCOTERMS.
"Delivered at Frontier" means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of tranport not unloaded, cleared for export but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country.

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Daily running cost

Cost per day of operating a ship.

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DDC

Destination Delivery Charges. A charge assessed by the carrier for handling positioning of a full container.

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DDP

One of 13 INCOTERMS.
"Delivery duty paid" means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of tranport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including where applicable, any "duty"(which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.

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De-consolidation point

Place where cargo is regrouped for delivery.

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Destination

The place where carrier actually turns over cargo to consignee or his agent.

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E

EDI

Abbreviation for "Electronic Data Interface." Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards.

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Entry

Customs documents required to clear an import shipment for entry into the general commerce of a country.

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ETA

- Estimated Time of Availability. That time when a tractor/partner carrier is available for dispatch.
- Estimated time of arrival.

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Export

Shipment of goods to a foreign country.

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F

Factor

A factor is an agent who will, at a discount (usually five to 8% of the gross), buy receivables.

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FMC (F.M.C.)

Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.

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Free trade zone

A zone, often within a port (but not always),designated by the government of a country for duty-free entry of any non prohibited goods.Merchandise may be stored, displayed, or used

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Freight

Refers to either the cargo carried or the charges assessed for carriage of the cargo.

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G

Gateway

Industry-related: A point at which freight moving from one territory to another is interchanged between transportation lines.

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GRI

Abbreviation for "General Rate Increase." Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.

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Grounding

Contact by a ship with the ground while the ship is moored or anchored as a result of the water level dropping, or when approaching the coast as a result of a navigational error.

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Groupage

The grouping together of several compatible consignments into a full container load. Also referred to as consolidation.

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H

Heavy-Lift Charge

A charge made for lifting articles too heavy to be lifted by a ship's normal tackle.

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Humping

The process of connecting a moving rail car with a motionless rail car within a rail classification yard in order to make up a train. The cars move by gravity from an incline or "hump" onto the appropriate track.

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I

Import

To receive goods from a foreign country.

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Inspection Certificate

A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.

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Invoice

An itemized list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc.

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J

Jumboising

Conversion of a ship to increase cargo-carrying capacity by dividing and adding a new section.

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K

Keel

A flat steel plate running along the center line of a vessel.

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Knocked Down (KD)

Articles which are taken apart to reduce the cubic footage displaced or to make a better shipping unit and are to be re-assembled.

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Knot

Measure of ship speed, equal to one nautical mile (1,852 meters) per hour.

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L

Lighter

An open or covered barge towed or pushed by a tugboat or a pusher tug and used primarily in harbors and on inland waterways to carry cargo to or from the port.

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Limited recourse financing

Project financing in which sponsors or governments agree to provide contingent financial support to give lenders extra comfort; typically
provided during the construction and start-up period of a project, which is generally the riskiest time in the life of an infrastructure project.

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M

Mixed Cargo

Two or more products carried on board one ship.

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Mobile crane

General purpose crane capable of moving on its own wheels from one part of a port to another.

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Moor

To attach a ship to the shore by ropes.

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N

NEC

Abbreviation for "Not Elsewhere Classified."

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Non-Vessel Operating Common Carrier (NVOCC)

A cargo consolidator in ocean trades who will buy space from a carrier and subsell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.

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O

Ocean Bill of Lading (Ocean B/L)

A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.

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Owner Code (SCAC)

Standard Carrier Abbreviation Code identifying an individual common carrier. A three letter carrier code followed by a suffix identifies the carrier's equipment. A suffix of "U" is a container and "C" is a chassis.

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P

Packing List

Itemized list of commodities with marks/numbers but no cost values indicated.

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Pier-to-Pier

Containers loaded at port of loading and discharged at port of destination.

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POL

Abbreviation for:
- Port of Loading.
- Petroleum, Oil, and Lubricants.

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Pooling

Sharing of cargo or the profit or loss from freight by member lines of a liner conference.

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Port of registry

Place where a ship is registered with the authorities, thereby establishing its nationality.

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Q

Quarantine

A restraint placed on an operation to protect the public against a health hazard. A ship may be quarantined so that it cannot leave a protected point. During the quarantine period, the Q flag is hoisted.

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Quotation

An offer to sell goods at a stated price and under stated terms.

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R

Re-consignment

Changing the consignee or destination on a bill of lading while shipment is still in transit. Diversion has substantially the same meaning.

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Reefer

Refrigerated container or vessel designed to transport refrigerated or frozen cargo.

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S

Sea Waybill

Document indicating the goods were loaded onboard when a document of title (b/L) is not needed. Typically used when a company is shipping goods to itself. Sea worthiness The fitness of a vessel for its intended use.

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Sto-ro

A vessel with capacity for break bulk cargo as well as vehicles or trailer borne cargo.

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Stowage factor

The average cubic space occupied by one ton weight of cargo as stowed aboard a ship.

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Supply chain

A logistics management system that integrates the sequence of activities from delivery of raw

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T

Telex

Used for sending messages to outside companies. Messages are transmitted via Western Union, ITT and RCA. Being replaced by fax and internet.

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Tender

The offer of goods for transportation or the offer to place cars or containers for loading or unloading.

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U

UFC

Abbreviation for "Uniform Freight Classification."

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V

Validation

Authentication of B/L and when B/L becomes effective.

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W

Warehouse

A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo.

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Weight Cargo

A cargo on which the transportation charge is assessed on the basis of weight.

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Y

Yard

A classification, storage or switching area.

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Z

Zulu Time

Time based on greenwich mean time

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