Shipping Glossary

Cabotage

Transport of goods between two ports or places located in the same country

Transport of cargo in a country other than the country where the vehicle is registered road-cargo)

The carriage of a container from a surplus area to an area specified by the Owner of that container, in exchange of which and during which the operator can use this container

CAD

Terms of payment: if the buyer of goods pays for the goods against transfer of the documents, entitling him to obtain delivery of the goods from the carrier.

CAF

Adjustment applied by P&O Nedlloyd lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies.

Call

The visit of a vessel to a port.

Call Sign

A code published by the International Telecommunication Union in its annual List of Ships’ Stations to be used for the information interchange between vessels, port authorities and other relevant participants in international trade.

Note: The code structure is based on a three digit designation series assigned by the ITU and a one digit assigned by the country of registration.

Capacity

The ability, in a given time, of a resource measured in quality and quantity

The quantity of goods which can be stored in or loaded into a warehouse, store and/or loaded into a means of transport at a particular time

Cargo

Goods transported or to be transported, all goods carried on a ship covered by a B/L.

Any goods, wares, merchandise, and articles of every kind whatsoever carried on a ship, other than mail, ship’s stores, ship’s spare parts, ship’s equipment, stowage material, crew’s effects and passengers’ accompanied baggage (IMO) Any property carried on an aircraft, other than mail, stores and accompanied or mishandled baggage Also referred to as ‘goods’ (ICAO)

Cargo Handling

All procedures necessary to enable the physical handling of goods.

Cargo Tracer

A document sent by the agent to all relevant parties, stating that certain cargo is either missing or over-landed.

Cargo Unit

A vehicle, container, pallet, flat, portable tank or any other entity or any part thereof which belongs to the ship but is not permanently attached to that ship.

Carriage

The process of transporting (conveying) cargo, from one point to another.

Carriage and Insurance Paid To (…named place of destination)

Abbreviation: CIP

Carriage Paid To (…named place of destination)

Abbreviation: CPT

Carrier

The party undertaking transport of goods from one point to another.

Carrier Haulage

The inland transport service, which is performed by the sea-carrier under the terms and conditions of the tariff and of the relevant transport document.

Carriers Bill of Lading Ports

Terminal, Pre-terminal port or Post-terminal Port as per tariff, indicated on the Bill of Lading and which is not the port physically called at by Carriers’ ocean vessels.

Note: Under normal circumstances in the B/L only ports should be mentioned which are actually called at.

Carriers Lien

When the shipper ships goods ‘collect’, the carrier has a possessory claim on these goods, which means that the carrier can retain possession of the goods as security for the charges due

Cartage

Abbreviation: CAD

Terms of payment: if the buyer of goods pays for the goods against transfer of the documents, entitling him to obtain delivery of the goods from the carrier.

Cash On Delivery

Abbreviation: COD

Terms of payment: if the carrier collects a payment from the consignee and remits the amount to the shipper (air cargo).

Caveat Emptor

Let the buyer beware, purchaser must ascertain the condition of the goods to be purchased prior to the purchase.

Cellular Vessel

A vessel, specially designed and equipped for the carriage of containers.

CENSA

Council of European and Japanese National Shipowner’s Associations.

Certificate of Classification

A certificate, issued by the classification society and stating the class under which a vessel is registered.

Certificate of Origin

A certificate, showing the country of original production of goods. Frequently used by customs in ascertaining duties under preferential tariff programmes or in connection with regulating imports from specific sources.

Charge

An amount to be paid for carriage of goods based on the applicable rate of such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.

Charge Type

A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.

Charter Party

A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or to let his vessel for a definite period or trip for which a hire is paid

synonym: Charter Contract

Charterer

The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.

Chassis

A wheeled carriage onto which an ocean container is mounted for inland conveyance The part of a motor vehicle that includes the engine, the frame, suspension system, wheels, steering mechanism etc., but not the body

Claim

A charge made against a carrier for loss, damage or delay.

Classification

Arrangement according to a systematic division of a number of objects into groups, based on some likeness or some common traits.

Classification Society

An Organisation, whose main function is to carry out surveys of vessels, its purpose being to set and maintain standards of construction and upkeep for vessels, their engines and their safety equipment. A classification society also inspects and approves the construction of containers.

Clean Bill of Lading

A Bill of Lading which does not contain any qualification about the apparent order and condition of the goods to be transported (it bears no stamped clauses on the front of the B/L). It bears no superimposed clauses expressly declaring a defective condition of the goods or packaging (resolution of the ICS 1951).

Note: Through the usage of the UCP 500 rules the term has now become superfluous.

Client

A party with which a company has a commercial relationship concerning the transport of e.g. cargo or concerning certain services of the company concerned, either directly or through an agent.

Co-loading

The loading, on the way, of cargo from another shipper, having the same final destination as the cargo loaded earlier.

Combined Transport

Intermodal transport where the major part of the journey is by one mode such as rail, inland waterway or sea and any initial and/or final leg carried out by another mode such as road.

Combined Transport Document

Abbreviation: CTD

Negotiable or non-negotiable document evidencing a contract for the performance and/or procurement of performance of combined transport of goods.

Thus a combined transport document is a document issued by a Carrier who contracts as a principal with the Merchant to effect a combined transport often on a door-to-door basis.

Combined Transport Operator

Abbreviation: CTO

A party who undertakes to carry goods with different modes of transport.

Commercial Invoice

A document showing commercial values of the transaction between the buyer and seller.

Commodity

Indication of the type of goods. Commodities are coded according to the harmonised system.

Conditions

Anything called for as requirements before the performance or completion of something else

Contractual stipulations which are printed on a document or provided separately

Conditions of Carriage

The general terms and conditions established by a carrier in respect of the carriage (air cargo).

Conditions of Contract

Terms and conditions shown on the Air Waybill (air cargo).

Conference

Accumulation of vessels at a port to the extent that vessels arriving to load or discharge are obliged to wait for a vacant berth.

Consignee

The party such as mentioned in the transport document by whom the goods, cargo or containers are to be received.

Consignment

A separate identifiable number of goods (available to be) transported from one consignor to one consignee via one or more than one modes of transport and specified in one single transport document.

Consignment Instructions

Instructions from either the seller/consignor or the buyer/consignee to a freight forwarder, carrier or his agent, or other provider of a service, enabling the movement of goods and associated activities. The following functions can be covered:

Movement and handling of goods (shipping, forwarding and stowage)

Customs formalities

Distribution of documents

Allocation of documents (freight and charges for the connected operations)

Special instructions (insurance, dangerous goods, goods release, additional documents required)

Consignment Note

A document prepared by the shipper and comprising a transport contract. It contains details of the consignment to be carried to the port of loading and it is signed by the inland carrier as proof of receipt.

Consignor

To group and stuff several shipments together in one container.

Consolidated Container

Container stuffed with several shipments (consignments) from different shippers for delivery to one or more consignees.

Consolidation

The grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate.

Consolidation Point

Location where consolidation of consignments takes place.

Consolidator

A firm or company which consolidates cargo.

Consortium

Consortium is a form of co-operation between two or more carriers to operate in a particular trade.

Container

An item of equipment as defined by the International Organisation for Standardisation (ISO) for transport purposes. It must be of:

A permanent character and accordingly strong enough to be suitable for repeated use

Specially designed to facilitate the carriage of goods, by one or more modes of transport without intermediate reloading

Fitted with devices permitting its ready handling, particularly from one mode of transport to another

So designed as to be easy to fill and empty

Having an internal volume of 1 m3 or more

The term container includes neither vehicles nor conventional packing.

Container Check Digit

The 7th digit of the serial number of a container used to check whether prefix and serial number are correct.

Container Depot

Storage area for empty containers.

Container Freight Station

Abbreviation: CFS

A facility at which (export) LCL cargo is received from merchants for loading (stuffing) into containers or at which (import) LCL cargo is unloaded (stripped) from containers and delivered to merchants.

Container Lease

The contract by which the owner of containers (lessor) gives the use of containers to a lessee for a specified period of time and for fixed payments.

Container Load Plan (CLP)

A list of items loaded in a specific container and where appropriate their sequence of loading.

Container Manifest

The document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.

Container Number

Identification number of a container consisting of prefix and serial number and check digit. (e.g. KNLU 123456-7)

Container Prefix

A four letter code that forms the first part of a container identification number indicating the owner of a container.

Container Size Code

An indication of 2 digits of the nominal length and nominal height.

Container Terminal

Place where loaded and/or empty containers are loaded or discharged into or from a means of transport.

Container Yard

Abbreviation: CY

A facility at which FCL traffic and empty containers are received from or delivered to the Merchant by or on behalf of the Carrier.

Note: Often this yard is used to receive goods on behalf of the merchant and pack these in containers for FCL traffic.

Containerised

Indication that goods have been stowed in a container.

Containerised

Indication that goods have been stowed in a container.

Contraband

Goods forbidden by national law to be imported or exported.

Contract

An agreement enforceable by law between two or more parties stipulating their rights and obligations which are required by one or both parties to acts or forbearance by the other or both.

Conventional Cargo

General cargo conventionally stowed as opposed to unitised, containerised and Roll On-Roll Off cargo.

Cost and Freight (…named port of destination)

Abbreviation: CFR

Cost, Insurance and Freight (…named port of destination)

Abbreviation: CIF

Crew Member

Any person actually employed for duties on board during a voyage in the working or service of a ship and included in the crew list (IMO).

Cruise Ship

A ship on an international voyage carrying passengers participating in a group program and accommodated on board, for the purpose of making scheduled temporary tourist visits at one or more different ports, and which during the voyage does not normally: (a) embark or disembark any other passengers; (b) load or discharge any cargo.

Currency Adjustment Factor

Abbreviation: CAF

Adjustment applied by lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies.

Customs

The department of the Civil Service that deals with the levying of duties and taxes on imported goods from foreign countries and the control over the export and import of goods e.g. allowed quota prohibited goods.

Customs Broker

An authorised agent specialised in customs clearance procedures on account of importers/exporters.

Customs Clearance Agent

Customs broker or other agent of the consignee designated to perform customs clearance services for the consignee.

Customs Invoice

Document required by the customs in an importing country in which an exporter states the invoice or other price (e.g. selling price, price of identical goods), and specifies costs for freight, insurance and packing etc., terms of delivery and payment, for the purpose of determining the customs value in the importing country of goods consigned to that country.

Customs Value

The worth of an item or group of items expressed in a monetary amount, within a consignment declared to Customs for duty and statistical reasons.

Damaged Cargo Report

Written statement concerning established damages to cargo and/or equipment.

Dangerous Goods

Goods are to be considered dangerous if the transport of such goods might cause harm, risk, peril, or other evil to people, environment, equipment or any property whatsoever.

Dangerous Goods Declaration

Document issued by a consignor in accordance with applicable conventions or regulations, describing hazardous goods or materials for transport purposes, and stating that the latter have been packed and labelled in accordance with the provisions of the relevant conventions or regulations.

Dangerous Goods Packing Certificate

A document as part of the dangerous goods declaration in which the responsible party declares that the cargo has been stowed in accordance with the rules in a clean container in compliance with the IMDG regulations and properly secured.

Deadfreight

Abbreviation: DWT

Deadweight

Abbreviation: DWT

The total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts which a vessel can lift when loaded to her maximum draught as applicable under the circumstances. The dead-weight is expressed in tons.

Degroupage

The ability, in a given time, of a resource measured in quality and quantity

The quantity of goods which can be stored in or loaded into a warehouse, store and/or loaded into a means of transport at a particular time

Delivered Duty Paid (…named place of destination)

Abbreviation: DDP

Delivered Duty Unpaid (…named place of destination)

Abbreviation: DDU

Delivered Ex Quay (…named port of destination)

Abbreviation: DEQ

Delivered Ex Ship (…named port of destination)

Abbreviation: DES

Delivery Instruction

Document issued by a buyer giving instructions regarding the details of the delivery of goods ordered.

Delivery Note

A document recording the delivery of products to a consignee (customer).

Delivery Order

A carrier’s delivery order (negotiable document) is used for splitting a B/L (after surrender) in different parcels and have the same function as a B/L.

The authorisation of the entitled party for the shipment to a party other than the consignee showed on the Air Waybill (air cargo)

Demurrage

A variable fee charged to carriers and/or customers for the use of Unit Load Devices (ULD’s) owned by a carrier beyond the free time of shipment

Additional charge imposed for exceeding the free time, which is included in the rate and allowed for the use of certain equipment at the terminal

Despatch Advice

Information send by shippers to the recipient of goods informing that specified goods are sent or ready to be sent advising the detailed contents of the consignment.

Destination

Place for which goods or a vehicle is bound

The ultimate stopping place according to the contract of carriage (air cargo)

Detention

Keeping equipment beyond the time allowed.

Detention Charge

Charges levied on usage of equipment exceeding free time period as stipulated in the pertinent inland rules and conditions.

Devanning

See Stripping, UnpackingDeviation from a Route

A divergence from the agreed or customary route.

Dimensions

Measurements in length, width and height, regarding cargo.

Direct Delivery

The conveyance of goods directly from the vendor to the buyer. Frequently used if a third party acts as intermediary agent between vendor and buyer

Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of immediate transport from the port area (usually occurs when ports lack adequate storage space or when ports are not equipped to handle a specific cargo)

Direct Interchange

Transfer of leased equipment from one lessee to another (container).

Direct Route

The shortest operated route between two points.

Discharge

The unloading of a vehicle, a vessel or an aircraft

The landing of cargo

Discrepancy

Difference between the particulars given and the particulars found.

Distribution Centre

A warehouse for the receipt, the storage and the dispersal of goods among customers.

Distribution Channel

The route by which a company distributes goods.

Door to Door Transport

The transport of cargo from the premises of the consignor to the premises of the consignee.

Note: In the United States the term ‘Point to Point Transport’ is used instead of the term ‘Door to Door

Transport’, because the term ‘house’ may mean ‘customs house’ or ‘brokers house’, which are usually located in the port.

Double Stack Train

A number of railway wagons, usually a block train, on which containers can be stacked two- high.

Draft

The draft of a vessel is the vertical distance between the waterline and the underside of the keel of the vessel. During the construction of a vessel the marks showing the draft are welded on each side of the vessel near the stem, the stern and amain-txtships.

Drawback

Repayment of any part of customs or excise duties previously collected on imported goods, when those goods are exported again.

Drayage

The hauling of a load by a cart with detachable sides (dray)

Road transportation between the nearest railway terminal and the stuffing place

Drop off Charge

Charge made by container owner and/or terminal operators for delivery of a leased, or pool container into depot stock. The drop-off charge may be a combination of actual handling and storage charges with surcharges.

Dunnage

Stowage material, mainly timber or board, used to prevent damage to cargo during carriage.

Duty Free Zone

An area where goods or cargo can be stored without paying import customs duties awaiting further transport or manufacturing.

EDI For Administration, Commerce and Transport

Abbreviation: UN/EDIFACT

The ISO application level syntax rules for the structuring of user data and of the associated service data in the interchange of messages in an open environment.

Electronic Data Interchange

Abbreviation: EDI

The transfer of structured data, by agreed standards from applications on the computer of one party to the applications on the computer of another party by electronic means.

Electronic Data Processing

Abbreviation: EDP

The computerised handling of information (e.g. business data).

Embargo

A government order prohibiting the entry or departure of commercial vessels or goods at its ports

The refusal by a carrier, for a limited period, to accept for transport over any route or segment thereof, and to or from any area or point, of a connecting carrier, any commodity, type of class of cargo duly tendered (air cargo)

Emergency Medical Service

Abbreviation: EMS

Medical procedures in case of emergencies on board of vessels.

Endorsement

The transfer of the right to obtain delivery of the goods of the carrier by means of the consignee’s signature on the reverse side of a bill of lading. If the name of the new consignee (transferee) is not stated, the endorsement is an open one which means that every holder of the document is entitled to obtain delivery of the goods.

Equipment Interchange Receipt

Abbreviation: EIR

Physical inspection and transfer receipt.

Estimated Time of Arrival

Abbreviation: ETA

The expected date and time of arrival in a certain (air)port.

Estimated Time of Departure

Abbreviation: ETD

The expected date and time when a certain (air)port is left.

Ex Works (…named place)

Abbreviation: EXW

Export

The process of carrying or sending goods to another country or countries, especially for purposes of use or sale in the country of destination. The sale of products to clients abroad.

Export Licence

Document granting permission to export as detailed within a specified time.

Exporter

The party responsible for the export of goods.

Factory Delivery

The delivery of goods by a factory whereby the goods are put at the disposal of another (internal) party such as a commercial department

Feeder

A vessel normally used for local or coastal transport (for carriage of cargo and/or containers) to and from ports not scheduled to be called by the main (ocean) vessel, directly connecting these ports to the main (ocean) vessel.

Flag

An indication of the country in which a means of transport is registered through a reference to the ensign of this country.

Flammable

Capable to be set on fire under given circumstances. (Amendment 25 IMO DGS).

Flash Point

The lowest temperature at which a good produces enough vapour to form a flammable mixture with air.

Flat Rack Container

A container with two end walls and open sides.

Fleet

Any group of means of transport acting together or under one control.

FMC

Federal Maritime Commission (Control of Shipping acts USA)

Force Majeure

Circumstance which is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to execute the contract.

Fork Lift Truck

Abbreviation: FEU

Unit of measurement equivalent to one forty foot container.

Forwarder

The party arranging the carriage of goods including connected services and/or associated formalities on behalf of a shipper or consignee.

Forwarding Charge

Charges paid or to be paid for preliminary surface or air transport to the airport of departure by a forwarder, but not by a carrier under an Air Waybill (air cargo).

Forwarding Instruction

Document issued to a freight forwarder, giving instructions to the forwarder for the forwarding of goods described therein.

FTL

Full Truck Load, an indication for a truck transporting cargo directly from supplier to receiver.

Garments On Hangers

Clothes in containers on hangers and hung from rails during transit, reducing the handling required for the garments.

Gateway

A point at which cargo is interchanged between carriers or modes of transport

A means of access, an entry

General Agreement on Tariffs and Trade

Abbreviation: GATT

Major international agreement on trade and tariffs between many nations all over the world. The discussions are now held by the WTO.

General Average

Abbreviation: G/A

Intentional act or sacrifice which is carried out to safeguard vessel and cargo. When a vessel is in danger, the master has the right to sacrifice property and/or to incur reasonable expenditure. Measures taken for the sole benefit of any particular interest are not considered general average.

General Average Act (York-Antwerp Rules)

There is a general average act when, and only when any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.

General Cargo

Cargo, consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales, often palletised. General cargo can be shipped either in breakbulk or containerised

Any consignment other than a consignment containing valuable cargo and charged for transport at general cargo rates (air cargo)

General Purpose Container

A Container with two end walls and open sides.A container used for the carriage of general cargo without any special requirements for the transport and or the conditioning of the goods.

Goods

Common term indicating movable property, merchandise or wares

All materials which can be used to satisfy demands

Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper

Goods in Transit

The goods which have departed from the initial loading point and not yet arrived at the final unloading point.

Goods Receipt

Document issued by a port, warehouse, shed, or terminal operator acknowledging receipt of goods specified therein on conditions stated or referred to in the document.

Groupage

The collection of several small consignments and the formation of one large shipment thereof (road cargo).

Hague Rules

International convention for the unification of certain rules, relating to Bills of Lading (1924). These Rules include the description of responsibilities of Shipping Lines.

Hague-Visby Rules

Set of rules, published in 1968, amending the Hague Rules.

Hamburg Rules

United Nations Convention on the carriage of goods by sea of 1978 adopted in 1992.

Harmonized System

Abbreviation: HS

It is a numeric multi purpose system, the international convention on the HS was established under auspices of the World Customs Organisation in 1983, for the classification of goods with its six digits covering about 5000 descriptions of the products or groups of products most commonly produced and traded. It is designed for customs services, but can also be used for statistics, transport purposes, export, import and manufacturing.

Haulage

The inland carriage of cargo or containers between named locations/points.

Merchant inspired Carrier Haulage or customer nominated Carrier Haulage or shipper preferred Carrier Haulage service performed by a sub-contractor of the merchant

Carrier inspired Merchant Haulage means Haulage service performed by a sub- contractor of the Carrier

Haulier

Road carrier.

House to House Transport

The transport of cargo from the premises of the consignor to the premises of the consignee.

Note: In the United States the term ‘Point to Point Transport’ is used instead of the term ‘Door to Door Transport’, because the term ‘house’ may mean ‘customs house’ or ‘brokers house’, which are usually located in the port.

Hub

The central transhipment point in a transport structure, serving a number of consignees and/or consignors by means of spokes. The stretches between hubs mutually are referred to as trunks.

Idle Time

The amount of ineffective time whereby the available resources are not used e.g. a container in a yard.

In Transit

The status of goods or persons between the outwards customs clearance and inwards customs clearance.

INCO Terms

Trade terms in coded form as established by the International Chamber of Commerce in 1953, whereafter they have been regularly updated. (Last update 2000). The terms represent a set of international rules for the interpretation of the principal terms of delivery used in trade contracts.

Inland Waterways Bill of Lading

Transport document made out to a named person, to order or to bearer, signed by the carrier and handed to the sender after receipt of the goods.

Insurance

A system of protection against loss under which a party agrees to pay a certain sum (premiums) for a guarantee that they will be compensated under certain conditions for loss or damage.

Insurance Certificate

Proof of an insurance contract.

Insurance Company

The party covering the risks of the issued goods and/or services that are insured.

Intermodal Transport

The movement of goods (containers) in one and the same loading unit or vehicle which uses successively several modes of transport without handling of the goods themselves in changing modes.

International Air Transport Association

Abbreviation: IATA

An international organisation of airlines, founded in 1945, with the aim of promoting the commercial air traffic. Parties should achieve this by co-operation between the parties concerned and by performance of certain rules, procedures and tariffs, regarding both cargo and passengers.

International Association of Classification Societies

Abbreviation: IACS

A voluntary organisation of national shipowner’ associations with the objective to promote interests of its members, primarily in the technical and legal fields of shipping operations.

International Maritime Dangerous Goods Code

Abbreviation: IMDG Code

A code, representing the classification of dangerous goods as defined by the International Maritime Organisation (IMO) in compliance with international legal requirements.

International Maritime Organisation

Abbreviation: IMO

An United Nations agency concerned with safety at sea. Its work includes codes and rules relating to tonnage measurement of vessels, load lines, pollution and the carriage of dangerous goods.

Its previous name was the Inter-Governmental Maritime Consultative Organisation (IMCO).

Invoice

An account from the supplier, for goods and/or services supplied by him.

Jetsam

Goods thrown or lost.

Jettison

The act of intentionally throwing cargo overboard e.g. with the objective of lightening a vessel, which has run aground, such for the common good of all interests: vessel, crew and remaining cargo.

Jetty

A mole or breakwater, running out into the sea to protect harbours or coasts. It is sometimes used as a landing-pier.

Jib

Projecting arm of a crane

Attachment connected to the top of a crane boom

Job

That work which is undertaken to meet a customer or production order and, for production control purposes, has a unique identification.

Joint Venture

A joint activity of two or more companies usually performed under a common name.

Journey

A voyage from one place, port or country to another one, in case of a round trip, to the same one.

Jurisprudence

Juridical decisions used for explanation and meaning of law.

Just In Time

Abbreviation: JIT

The movement of material/goods at the necessary place at the necessary time. The implication is that each operation is closely synchronised with the subsequent ones to make that possible.

A method of inventory control that brings stock into the production process, warehouse or to the customer just in time to be used, thus reducing stock piling.

Kyoto Convention

The convention for the International Customs Co-operation Council held in Kyoto in 1974 for the simplification and harmonisation of national customs procedures.

On 25th of June 1999 the updated and restructured International Convention on the simplification and harmonisation of Customs Procedures (Kyoto Convention) was unanimously adopted by 114 customs administrations.

This convention was restructured to deal with computerised controls and to ensure better co- operation between customs authorities mutually and with trade in general.

Label

A slip of e.g. paper or metal attached to an object to indicate the nature, ownership, destination, contents and/or other particulars of the object.

Lash

To hold goods in position by the use of, e.g., wires, ropes, chains and straps

Less than Container Load

Abbreviation: LCL

A general reference for identifying cargo in any quantity intended for carriage in a container, where the Carrier is responsible for packing and/or unpacking the container

For operational purposes a LCL (Less than full container load) container is considered a container in which multiple consignments or parts thereof are shipped Abbreviation: LTL A term used if the quantity or volume of one or more consignment(s) does not fill a standard truck.

Lessee

The party to whom the possession of specified property has been conveyed for a period of time in return for rental payments.

Lessor

The party who conveys specified property to another for a period of time in return for the receipt of rent.

Letter of Credit

Abbreviation: L/C

A written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents.

Letter of Indemnity

Written statement in which one party undertakes to compensate another for the costs and consequences of carrying out a certain act. The issue of a letter of indemnity is sometimes used for cases when a shipper likes receiving a clean Bill of Lading while a carrier is not allowed to do so.

Liability

Legal responsibility for the consequences of certain acts or omissions.

Lien

A legal claim upon real or personal property to pay a debt or duty.

Liner Conference

A group of two or more vessel-operating carriers, which provides international liner services for the carriage of cargo on a particular trade route and which has an agreement or arrangement to operate under uniform or common freight rates and any other agreed conditions (e.g. FEFC = Far Eastern Freight Conference).

Liner In Free Out

Abbreviation: LIFO

Transport condition denoting that the freight rate is inclusive of the sea carriage and the cost of loading, the latter as per the custom of the port. It excludes the cost of discharging.

Liner Terms

Condition of carriage denoting that costs for loading and unloading are borne by the carrier subject the custom of the port concerned.

Lloyd’s Register of Shipping

British classification society.

Main-line Operator

Abbreviation: MLO

A carrier employing vessel(s) in the main or principal routes in a trade but not participating within a consortium.

Manifest

Document, which lists the specifications of goods, loaded in a means of transport or equipment for transportation purposes.

As a rule cargo the agents in the place of loading draw up manifests

Note: For P&O Nedlloyd a manifest represents a cumulation of Bills of Lading for official and administrative purposes

Marine Insurance Policy

An insurance policy protecting the insured against loss or damage to his goods occurred during ocean transport.

Mate’s Receipt

A document signed by the chief officer of a vessel acknowledging the receipt of a certain consignment on board of that vessel. On this document, remarks can be made as to the order and condition of the consignment.

Medical First Aid Guide

Abbreviation: MFAG

Instructions to be consulted in case of accidents involving dangerous goods. documents.

Merchant Haulage

Inland transport of cargo in containers arranged by the Merchant.

It includes empty container-moves to and from hand-over points in respect of containers released by the Carrier to Merchants.

Note: Carrier’s responsibility under the Bill of Lading does not include the inland transport stretch under Merchant Haulage.

Multimodal Transport

The carriage of goods (containers) by at least two different modes of transport.

Multimodal Transport Document

Negotiable or non-negotiable document evidencing a contract for the performance and/or procurement of performance of combined transport of goods.

Thus a combined transport document is a document issued by a Carrier who contracts as a principal with the Merchant to effect a combined transport often on a door-to-door basis.

Multimodal Transport Operator/Carrier

The person on whose behalf the transport document or any document evidencing a contract of multimodal carriage of goods is issued and who is responsible for the carriage of goods pursuant to the contract of carriage.

Non Vessel Operating Common Carrier

Abbreviation: NVOCC

A party who undertakes to carry goods and issues in his own name a Bill of Lading for such carriage, without having the availability of any own means of transport.

Notify Address

Address of the party other than the consignee to be advised of the arrival of the goods.

Notify Party

The party to be notified of arrival of goods.

Oncarriage

The carriage of goods (containers) by any mode of transport to the place of delivery after discharge from the ocean vessel (main means of transport) at the port (place) of discharge.

One Stop Shop

An organisation, which provides all needed requirements in one location.

Open Top Container

A freight container similar in all respects to a general purpose container except that it has no rigid roof but may have a flexible and movable or removable cover, for example one made of canvas or plastic or reinforced plastic material normally supported on movable or removable roof bows.

Out of Gauge Cargo

Cargo which dimensions are exceeding the normal dimensions of a 20 or 40 feet container, e.g. overlength, overwidth, overheight, or combinations thereof.

Outturn Report

Written statement by a stevedoring company in which the condition of cargo discharged from a vessel is noted along with any discrepancies in the quantity compared with the vessel’s manifest.

Overheight Cargo

Cargo, exceeding the standard height.

Overlength Cargo

Cargo, exceeding the standard length.

Overwidth Cargo

Cargo, exceeding the standard width.

Owner

The legal owner of cargo, equipment or means of transport.

P & I Club

A mutual association of shipowners who provide protection against liabilities by means of contributions.

Any physical piece of cargo in relation to transport consisting of the contents and its packing for the purpose of ease of handling by manual or mechanical means

The final product of the packing operation consisting of the packing and its contents to facilitate manual or mechanical handling.

Packaging

Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.

Packing Instruction

Document issued within an enterprise giving instructions on how goods are to be packed.

Packing List

Document specifying the contents of each individual package.

Pallet

A platform on which goods can be stacked in order to facilitate the movement by a fork lift or sling.

Panamax Size

The maximum measurements and dimensions of a vessel capable to pass the Panama Canal.

Payload

The revenue-producing load carried by a means of transport.

Payment Against Documents

Instructions given by a seller to a bank to the effect that the buyer may collect the documents necessary to obtain delivery of the goods only upon actual payment of the invoice.

Physical Distribution

Those activities related to the flow of goods from the end of conversion to the customer.

Pier

That part of a wharf which is intended for the mooring of vessels.

Pilferage

Petty stealing of goods from a ship’s hold, cargo shed or warehouse.

Place of Acceptance

The location where a consignment (shipment) is received by the carrier from the shipper viz. the place where the carrier’s liability for transport venture commences.

Place of Delivery

The location where a consignment (shipment) is delivered to the consignee viz. the place where the carrier’s liability ends for the transport venture.

Place of Despatch

Name and address specifying where goods are collected or taken over by the carrier (i.e. if other than consignor).

Place of Receipt

The location where a consignment (shipment) is received by the carrier from the shipper viz. the place where the carrier’s liability for transport venture commences.

Port of Call

Place where a vessel actually drops anchor or moors during a certain voyage.

Port of Discharge

The port where the cargo is actually loaded on board the sea (ocean) going vessel.

Precarriage

The carriage of goods (containers) by any mode of transport from the place of receipt to the port (place) of loading into the ocean vessel (main means of transport).

Precarrier

The carrier by which the goods are moved prior to the main transport.

Preshipment Inspection

Abbreviation: PSI

The checking of goods before shipment for the purpose of determining the quantity and/or quality of said goods by an independent surveyor (inspection company) for phytosanitary, sanitary and veterinary controls.

Presently there is a tendency by developing countries to use the inspection also for the purpose of determining whether the price charged for certain goods is correct.

Principal

Person for whom another acts as agent.

Pro Forma Invoice

Draft invoice sent to an importer by the exporter prior to order confirmation and shipment to assist in matters relating to obtaining import licences or foreign exchange allocations, or simply to advise the value of a consignment so that letters of credit can be opened.

Project Cargo

Quantity of goods connected to the same project and often carried on different moments and from various places.

Proof of Delivery

The receipt signed by the consignee upon delivery.

Proper Shipping Name

A name to be used to describe particular goods on all documents and notifications and, if appropriate, on the goods. basis (air cargo).

Protection and Indemnity Club

Abbreviation: P & I club

A mutual association of shipowners who provide protection against liabilities by means of contributions

Quarantine

The period during which an arriving vessel, including its equipment, cargo, crew or passengers, suspected to carry or carrying a contagious disease is detained in strict isolation to prevent the spread of such a disease.

Quay

That part of a wharf which is intended for the mooring of vessels.

Rate

The price of a transport service

Quantity, amount or degree measured or applied

Rebate

That part of a transport charge which the carrier agrees to return.

Receipt

A written acknowledgement, that something has been received.

Reefer Cargo

Cargo requiring temperature control.

Reefer Container

A thermal container with refrigerating appliances (mechanical compressor unit, absorption unit etc.) to control the temperature of cargo.

Regroupage

The process of splitting up shipments into various consignments (degroupage) and combining these small consignments into other shipments (groupage).

Release Order

A document issued by or on behalf of the carrier authorising the release of import cargo identified thereon and manifested under a single Bill of Lading.

Roll-on Roll-off

Abbreviation: RoRo

System of loading and discharging a vessel whereby the cargo is driven on and off by means of a ramp.

Route

The track along which goods are (to be) transported.

Routing

The determination of the most efficient route(s) that people, goods, materials and or means of transport have to follow

The process of determining how a shipment will be moved between consignor and consignee or between place of acceptance by the carrier and place of delivery to the consignee

The process of aiding a vessel’s navigation by supplying long range weather forecasts and indicating the most economic and save sailing route.

Said to Contain

Abbreviation: STC

Term in a Bill of Lading signifying that the master and the carrier are unaware of the nature or quantity of the contents of e.g. a carton, crate, container or bundle and are relying on the description furnished by the shipper.

Salvage

The saving or rescue of a vessel and/or the cargo from loss and/or damage at sea.

Schedule

A timetable including arrival/departure times of ocean- and feeder vessels and also inland transportation. It refers to named ports in a specific voyage (journey) within a certain trade indicating the voyage number(s). In general: The plan of times for starting and/or finishing activities.

Seal

A device used for containers, lockers, trucks or lorries to proof relevant parties that they have remained closed during transport.

Seaworthiness

Fitness of a vessel to travel in open sea mostly related to a particular voyage with a particular cargo. Seller

Party selling merchandise to a buyer.

Sender

A service Bill (of Lading) is a contract of carriage issued by one carrier to another for documentary and internal control purposes

For internal documentary and control purposes a so-called participating agent in a consortium uses some kind of document which, depending on the trade, is referred to as ‘Memo Bill’ which will among others state:

Name of Carrier on whose behalf the original document (Way Bill, Bill of Lading, etc.) was issued The original document number. The agent who issued the original document and his opponent at the discharging side

The number of packages, weight and measurement, marks and numbers and goods description Further mandatory details in case of special cargo

No freight details will be mentioned and the Memo Bill is not a contract of carriage. Acts as intermediary between shipowners or carriers by sea on the one hand and cargo interests on the other. The functions are to act as forwarding agent or custom broker, fixing of charters, and acting as chartering agent.

Ship Operator

A ship operator is either the shipowner or the (legal) person responsible for the actual management of the vessel and its crew.

Ship’s Protest

Statement of the master of a vessel before (in the presence of) competent authorities, concerning exceptional events which occurred during a voyage.

ShipLeasing Company

The company from which property or equipment is taken on lease.

Shipment

A separately identifiable collection of goods to be carried.

Note: In the United States of America the word shipment is used instead of the word consignment.

The (legal) person officially registered as such in the certificate of registry where the following particulars are contained:

Name of vessel and port of registry

Details contained in surveyors certificate

The particulars respecting the origin stated in the declaration of ownership

The name and description of the registered owner, if more than one owner the proportionate share of each

Shipper

The merchant (person) by whom, in whose name or on whose behalf a contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage.

Shipper’s Export Declaration

Abbreviation: SED

A United States customs form to be completed for all exports to assist the government in compiling export statistics.

Shipper’s Letter of Instruction

Abbreviation: SLI

A document containing instructions given by the shipper or the shipper’s agent for preparing documents and forwarding (air cargo).

Shipping Documents

Documents required for the carriage of goods.

Shipping Instruction

Document advising details of cargo and exporter’s requirements of its physical movement.

Shipping Label

A label attached to a unit, containing certain data.

Shipping Marks

The identification shown on individual packages in order to help in moving it without delay or confusion to its final destination and to enable the checking of cargo against documents.

Shipping Note

Document provided by the shipper or his agent to the carrier, multimodal transport operator, terminal or other receiving authority, giving information about export consignments offered for transport, and providing for the necessary receipts and declarations of liability.

Shortage

The negative difference between actual available or delivered quantity and the required quantity.

Shrink Wrapping

Heat treatment that shrinks an envelope of polyethylene or similar substance around several units, thus forming one unit. It is used e.g. to secure packages on a pallet.

Slot

The space on board a vessel, required by one TEU, mainly used for administrative purposes.

Slot Charter

A voyage charter whereby the shipowner agrees to place a certain number of container slots (TEU and/or FEU) at the charterer’s disposal.

Special Drawing Rights

Abbreviation: SDR

Unit of account from the International Monetary Fund (IMF), i.a. used to express the amount of the limitations of a carrier’s liability.

Special Rate

A rate other than a normal rate.

Stability

The capacity of a vessel to return to its original position after having been displaced by external forces. The stability of a vessel depends on the meta-centric height.

Stack

An identifiable amount of containers stowed in a orderly way in one specified place on an (ocean) terminal, container freight station, container yard or depot.

Storage

The activity of placing goods into a store or the state of being in store (e.g. a warehouse).

Storage Charge

The fee for keeping goods in a warehouse.

Stowage

The placing and securing of cargo or containers on board a vessel or an aircraft or of cargo in a container.

Stowage Factor

Ratio of a cargo’s cubic measurement to its weight, expressed in cubic feet to the ton or cubic metres to the tonne, used in order to determine the total quantity of cargo which can be loaded in a certain space.

Stowage Instructions

Imperative details about the way certain cargo is to be stowed, given by the shipper or his agent.

Stowage Plan

A plan indicating the locations on the vessel of all the consignments for the benefit of stevedores and vessel’s officers.

Stripping

The unloading of cargo out of a container.

Stuffing

The loading of cargo into a container.

Supply Chain

A sequence of events in a goods flow which adds to the value of a specific good. These events may include:

– Conversion

– Assembling and/or disassembling

– Movements and placements

Supply Vessel

Vessel which carries stock and stores to offshore drilling rigs, platforms.

Surcharge

An additional charge added to the usual or customary freight.

Survey

An inspection of a certain item or object by a recognised specialist.

Surveyor

A specialist who carries out surveys.

Note: A surveyor is often representing a classification bureau or a governmental body.

Tallyman / Clerk

Person who records the number of cargo items together with the condition thereof at the time it is loaded into or discharged from a vessel.

Tank Container

A tank, surrounded by a framework with the overall dimensions of a container for the transport of liquids or gasses in bulk.

Tanker

A vessel designed for the carriage of liquid cargo in bulk

Tare Weight of Container

Mass of an empty container including all fittings and appliances associated with that particular type of container on its normal operating condition.

Tariff

The schedule of rates, charges and related transport conditions.

Terminal

A location on either end of a transportation line including servicing and handling facilities.

Terms of Delivery

All the conditions agreed upon between trading partners regarding the delivery of goods and the related services.

Note: Under normal circumstances the INCO terms are used to prevent any misunderstandings.

Terms of Freight

All the conditions agreed upon between a carrier and a merchant about the type of freight and charges due to the carrier and whether these are prepaid or are to be collected.

Note: The so-called Combi terms based on the INCO terms do make a distinction what of the freight and related costs is to be paid by the seller and what by the buyer. In the UN recommendation 23 a coding system is recommended to recognise the various items.

The document has the following functions:

A receipt for goods, signed by a duly authorised person on behalf of the carriers

A document of title to the goods described therein

Evidence of the terms and conditions of carriage agreed upon between the two parties

Tonnage

Cubic capacity of a merchant vessel.

Total weight or amount of cargo expressed in tons

Tracing

The action of retrieving information concerning the whereabouts of cargo, cargo items, consignments or equipment.

Track & Trace

The pro-active tracking of the product along the supply chain, and the paper information flow relating to the order.

Tracking

The function of maintaining status information, including current location, of cargo, cargo items, consignments or containers either full or empty.

Trailer

A vehicle without motive power, designed for the carriage of cargo and to be towed by a motor vehicle.

Trailer on Flat Car

Abbreviation: TOFC

Carriage of piggyback highway trailers on specially equipped railway wagons.

Tramp Vessel

A vessel not operating under a regular schedule.

Transhipment

A shipment under one Bill of Lading, whereby sea (ocean) transport is ‘broken’ into two or more parts. The port where the sea (ocean) transport is ‘broken’ is the transhipment port.

Transfer of cargo from one means of transport to another for on-carriage during the course of one transport operation.

Customs: Customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office which is the office of both importation and exportation.

Transit Cargo

Cargo between outwards customs clearance and inwards customs clearance

Cargo arriving at a point and departing there-from by the same through flight (air cargo)

Transport

The assisted movement of people and or goods.

Note: Transport is often used as a generic term for various means of transport, and is distinguished from ‘movement’ in that it requires such means.

Transport Document

Document evidencing a contract of carriage between a shipowner and a consignor, such as bill of lading, seawaybill or a multimodal transport document. (IMO)

See Shipping DocumentTwenty Foot Equivalent Unit

Abbreviation: TEU

Unit of measurement equivalent to one twenty foot container.

Type of Cargo

An indication of the sort of cargo to be transported, (e.g. Break Bulk, Containerised, RoRo).

Type of Movement

Description of the service for movement of containers.

Note: The following type of movement can be indicated on B/L and Manifest all combinations of FCL and LCL and break bulk and RoRo. Whilst only on the manifest combinations of House, Yard and CFS can be mentioned.

Type of Packing

Description of the packaging material used to wrap, contain and protect goods to be transported.

Ultimate Consignee

Party who has been designated on the invoice or packing list as the final recipient of the stated merchandise.

Unaccompanied Baggage

Luggage not accompanied by a passenger.

Unit Load

A number of individual packages bonded, palletised or strapped together to form a single unit for more efficient handling by mechanical equipment.

United Nations Conference on Trade and Development

Abbreviation: UNCTAD

A United Nations agency whose work in Shipping includes the liner code involving the sharing of cargoes between the Shipping lines of the importing and exporting countries and third countries in the ratio 40:40:20.

United Nations Dangerous Goods Number

Abbreviation: UNDG Number

The four-digit number assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods to classify a substance or a particular groups of substances.

Note: The prefix ‘UN’ must always be used in conjunction with these numbers.

Valuable Cargo

A consignment which contains one or more valuable articles.

Value Added Tax

Abbreviation: VAT

A form of indirect sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate customer.

Vanning

Buyer.

Vendor

Seller.

Very Large Crude Carrier

Abbreviation: VLCC

A vessel designed for the carriage of liquid cargo in bulk with a loading capacity from 50.000 till 250.000 DWT.

Vessel

A floating structure designed for the transport of cargo and/or passengers

Boiler, drum

Volume

Size or measure of anything in three dimensions.

Volume Charge

A charge for carriage of goods based on their volume (air cargo).

Voyage

A journey by sea from one port or country to another one or, in case of a round trip, to the same port.

Voyage Charter

A contract under which the shipowner agrees to carry an agreed quantity of cargo from a specified port or ports to another port or ports for a remuneration called freight, which is calculated according to the quantity of cargo loaded, or sometimes at a lumpsum freight.

Voyage Number

Reference number assigned by the carrier or his agent to the voyage of the vessel.

Warehousing

Those activities of holding and handling goods in a warehouse (store).

Warsaw Convention

The Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, 12 October 1929, or that Convention as amended by the Hague Protocol, 1955, stipulating obligations or parties and limitations and/or exonerations of carriers (air cargo)

Waybill

Non-negotiable document evidencing the contract for the transport of cargo.

Weight Charge

The charge for carriage of goods based on their weight (air cargo).

Wharf

A place for berthing vessels to facilitate loading and discharging of cargo.

Wharfage

The fee charged for the use of a wharf for mooring, loading or discharging a vessel or for storing goods.

X-ray

High frequency electromagnetic ray of short wave-length, capable of penetrating most solid substances.

X.25

International standard of the CCITT for packet switching.

X.400

A CCITT recommendation designed to facilitate international message and information exchange between subscribers of computer based store-and-forward services and office information systems in association with public and private data networks.

X.500

The CCITT now ITU recommendations (ISO9594) for the structure of directories for the maintenance of addresses used in electronic mail.

XML

Extensible mark-up language is an official recommendation by the World Wide Web Consortium as a successor of HTML (Hyper Text Mark-up language) it can be used to convey documents layout and contents from one computer application to another. XML is a subset of SGML.

XML / EDI

The exchange of structured information over the Internet using XML as the syntax.

Yard

Fenced off, outdoor storage and repair area.

Yaw

Variation of the course of a ship to port or starboard caused by the action of waves or wind.

Yawl

A vessel’s small boat moved by one oar A small sailboat rigged fore-and-aft, with a short mizzenmast astern of the cockpit – distinguished from ketch

Yield Bucket

The remaining slot capacity for a trade/voyage in a certain port of loading after deduction of the allowance for specific contracts.

Yield Management

The process of maximising the contribution of every slot, vessel, trade and network. Basically it should be seen as the process of allocating the right type of capacity to the right kind of customer at the right price as to maximise revenue or yield. The concept should be used in combination with load factor management.

York – Antwerp Rules

There is a general average act when, and only when any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure

Zodiac

A rubber dinghy. An inflatable craft for the transport of people. Zone Area, belt or district extending about a certain point defined for transport and/or charge purpose.

Zone Haulage Rate

The rate for which the carrier will undertake the haulage of goods or containers between either the place of delivery and the carrier’s appropriate terminal. Such haulage will be undertaken only subject to the terms and conditions of the tariff and of the carrier’s Combined Transport Bill of Lading.

Zone Improvement Plan

Abbreviation: ZIP System to simplify sorting and delivery of mail, consisting of a number of five digits (the so-called ZIP-code) for identification of the state, city or district, and the postal zone in the U.S.A. delivery areas.