→ European Article Numbering Association
That speed of a means of transport which produces the best possible financial result for the owner. Such speed should not be in excess of the maximum or minimum output allowed for the engine(s).
Economy of Scale
Phenomenon which encourages the production of larger volumes of a commodity to reduce its unit cost by distributing fixed costs over a greater quantity.
Europe Combined Terminals (Rotterdam).
→ Electronic Data Interchange
→ Electronic Data Interchange for Administration, Commerce and Transport
→ Electronic Data Processing
→ Equipment Damage Report
Eight Freedoms (Air)
Freedom 1: The right to fly and carry traffic over the territory of the grantor state.
Freedom 2: The right to fly and carry traffic over the grantor state and to make one or more stops for non-traffic purposes (e.g. refueling).
Freedom 3: The right to fly into the territory of the grantor state and set down traffic from the state of the carrier.
Freedom 4: The right to fly into the territory of the grantor state and take on traffic for the state of the carrier.
Freedom 5: The right to fly into the territory of the grantor state and take on or set down traffic to or from third states.
Freedom 6: The right to fly into the territory of the grantor state and take on or set down traffic for the carrier’s state. Such traffic being carried to a third state on a different service.
Freedom 7: The right for a flag-carrier operating entirely outside the territory of this own state to take on or set down traffic in the grantor state for carriage to or from a third state.
Freedom 8: The right of a carrier of another state to take (cabotage) on or set down traffic from one point in the territory of the grantor state to another point within the same state.
→ Five Freedoms (Air)
→ Equipment Interchange Receipt
Electronic Data Interchange
Abbreviation: EDI. 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 Interchange for Administration, Commerce and Transport
Abbreviation: EDIFACT. 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 Processing
Abbreviation: EDP. Computerized handling of information (e.g. business data).
Equipment used to discharge some bulk cargoes such as grain which is removed from the hold by a continuous line of buckets or by suction and carried on a conveyor belt to store.
Draft which meets requirements for discounting at a Federal Reserve Bank.
1. A government order prohibiting the entry or departure of commercial vessels or goods at its ports.
2. 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.
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.
Enhanced Remote Transit Shed
Abbreviation: ERTS. Term used in the UK: Warehouse where agents can transfer incoming groupage/consolidations for customs clearance purposes.
Equipment Damage Report
Abbreviation: EDR. Written statement concerning damage to equipment, based on a physical inspection.
Equipment Interchange Receipt
Abbreviation: EIR. Physical inspection and transfer receipt.
→ Enhanced Remote Transit Shed
Estimated Time of Arrival
Abbreviation: ETA. Expected date and time of arrival in a certain (air)port.
Synonym: Expected Time of Arrival
Estimated Time of Departure
Abbreviation: ETD. Expected date and time when a certain (air)port is left.
Synonym: Expected Time of Departure
→ Estimated Time of Arrival
→ Estimated Time of Departure
European Article Numbering Association
Abbreviation: EAN. International body responsible for administering the European Article Numbering system. It has affiliates in many countries such as: CCG in Germany, DCC in Japan, ANA in the United Kingdom. Note: The North American body responsible for the Uniform Product Code (UPC) coding is the Uniform Code Council (UPC is considered a subset of EAN).
European Pallet Pool
Pool for the exchange of standard-sized pallets (the so-called Europallets) in European cargo traffic, formed in 1961 by a number of European rail administrators.
European Zone Charge
Abbreviation: EZC. Charge for inland haulage transport in case of carrier haulage in Europe.
When used in pricing terms such as “Ex Factory” or “Ex Dock”, it signifies that the price quoted applies only at the point of origin (e.g., at the seller’s factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.
Seller owns goods until they are unloaded on dock at port of discharge; selling price includes all costs so far plus cost of unloading from vessel.
Seller owns goods until they are picked up at their factory; selling price is the cost of the goods.
Ex Quay means that the seller makes the goods available to the buyer on the quay (wharf) at the place named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. There are two “Ex Quay” contracts in use: a) Ex Quay “duty paid” and b) Ex Quay “duties on buyer’s account” in which the liability to clear goods for import is to be met by the buyer instead of by the seller.
Ex Works (... Named Place)
Abbreviation: EXW. Incoterm
→ Exemption Clause
That portion of stock on hand which is over and above the desired stock level.
→ Cycle Stock
Government permit required to convert local currency into foreign (hard) money for transfer abroad.
Price of one currency in terms of another.
→ Currency Adjustment Factor
Actual act of carrying out a task.
Clause in a contract, which relieves the contractor’s responsibility for mentioned events.
Synonym: → Exceptions Clause
→ Disposable Pallet → One-Way Pallet
Termination of a certain period.
Sending goods to another country or countries. The sale of products to clients abroad.
Individual or company that brings together buyers and sellers for a fee but does not take part as principal in actual sales transactions.
Export Commission House
Organization which, for a commission, acts as a purchasing agent for a foreign buyer.
Form indicating the value, weight, destination, and other basic information about an export shipment.
Government document that permits the licensee to export designated goods.
→ General Export License → Individually Validated Export License
Company that packs goods for export.
Party responsible for the export of goods.
Summary or copy of something written, e.g. used in connection with the log book.
Incoterm for “Ex Works“.
→ European Zone Charge
Facilitation Committee of the IMO.
F.C. & S.
Free of Capture & Seizure. Clause excluding war risks from the Marine Policy. War risks can be covered by issuing a separate War Policy with an additional premium being charged.
→ Free in
Full Interest Admitted as between insurer and insured (honor policy).
→ Free out
Free of Claim for Accident Reported.
Free of Damage Absolutely.
Free on Rail.
Free on Train or Truck.
Free of Particular Average.
→ Free of Particular Average, English Conditions → Free of Particular Average, American Conditions
→ Free of Particular Average, American Conditions
Free of Particular Average Absolutely.
→ Free of Particular Average, English Conditions
Free of Particular Average Unless Caused by (stranding, etc.).
Full Premium If Lost (used in connection with time risks for periods of less than twelve months, the balance of a year’s premium being claimable by insurers before paying a total loss).
Fresh Water Damage.
Navigable channel for vessels, often the regular or prescribed track a vessel will follow in order to avoid dangerous circumstances such as shallow waters.
→ Freight All Kinds
Incoterm for “Free Alongside Ship”.
Transport of clothing and/or accessories including shoes, belts and handbags in dedicated means of transport.
Incoterm for “Free Carrier”.
→ Fully Cellular Containership
Foreign Credit Insurance Association.
→ Full Container Load
FIATA Forwarder’s Certificate of Receipt. An official document which proves that the freight has been received by the forwarder.
Vessel used for local or coastal transport to and from ports not scheduled by the main (ocean) vessel.
Appliance made of rubber, timber and/or rope or other materials normally attached to a dock or quay used to prevent damage to the hull of a vessel especially during mooring and un-mooring operations.
→ Forty Foot Equivalent Unit
→ First in/First out
→ Free in Liner out
→ Free in and out
Carrier that actually performs the first part of the air transport (air cargo).
First in/First out
Abbreviation: FIFO. Method whereby the goods which have been longest in stock (first in) are used, delivered (sold) and/or consumed first (first out).
Five Freedoms (Air)
Collective term which depicts the five areas of “rights” for the air transportation of passengers or cargo, viz. (expressed in terms of an airline of country A):
Freedom 1: The right to fly over a foreign country.
Freedom 2: The right to make a technical stop at a country C en route from country A to B.
Freedom 3: The right to set down (off loading) passengers or cargo in a country B from home country A.
Freedom 4: The right to pick up (loading) passengers/cargo from a country B to home country A.
Freedom 5: The right to carry passengers or cargo between two foreign countries.
→ Eight Freedoms (Air)
Indication of the country in which a means of transport is registered through a reference to the ensign of this country.
Capable of being set on fire under given circumstances (Amendment 25 IMO DGS).
→ Flash Point
Lowest temperature at which a good produces enough vapor to form a flammable mixture with air.
→ Flat-Rack Container >Flat-Bed Trailer
Wheeled trailer or a semi-trailer with a flat cargo carrying surface or deck and without any superstructure.
Garments packed in cardboard boxes.
Container with two end walls, open sides and no roof.
Synonym: → Flat
Any group of means of transport acting together or under one control.
Combination of two letters, indicating the airline, and digits indicating the number of the voyage.
Synonym: → Line Number
Crane mounted on a barge or pontoon, which can be towed or is self propelled.
Floating structure which can be partially submerged to enable vessels to enter and to leave and which can be raised for use as a dry dock.
→ Open Insurance Policy
→ Pipeline Inventory<, /P,>
Diagram, using symbols and depicting the sequence of events that should take place in a complex set of tasks.
Term often used to describe a specific production control system.
Direction of flow in which, e.g., pallets have been positioned and stowed.
Flow of Materials
Flow of materials and components which goes to and through the factory for the production process.
→ Procurement Logistics
Federal Maritime Commission (Control of shipping acts USA).
Incoterm for “Free on Board”.
(Free on board vessel.) Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of loading on vessel.
→ Free on Rail
Title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.
Synonym: → Act of God
Fore and Aft Stowage
Stowage from the bow to the stern (lengthwise), as opposed to stowage athwartships.
1. An estimation or calculation in advance; a prediction.
2. The amount of cargo expected to be booked for a specific flight or vessel. 3. The number of containers expected to be used in a certain area.
Abbreviation: Fo’c’s’le. Forward part of a vessel where stores, ropes and anchor chains are located.
Currency or credit instruments of a foreign country. Also, transactions involving purchase and/or sale of currencies.
Foreign Trade Zone
→ Free Trade Zone
Fork Lift Pockets
→ Fork Pockets
Fork Lift Truck
Three- or four-wheeled mechanical truck with forks at the front designed for lifting, carrying and stacking cargo.
Openings or recesses in a side of a container for the entry of the forks of a fork lift truck.
Synonym: → Fork Lift Pockets
Forty-foot Equivalent Unit
Abbreviation: FEU. Unit of measurement equivalent to one forty-feet shipping container.
→ Twenty-Foot Equivalent Unit
At, near or towards the bow or front of a vessel or an aircraft.
Party arranging the carriage of goods including connected services and/or associated formalities on behalf of the cargo principal according to their shipping instructions.
Synonym: → Freight Forwarder
→ Shipping Instructions
→ Free on Truck
Foul Bill of Lading
Receipt for goods issued by a carrier with an indication that the goods were damaged when received.
→ Clean Bill of Lading → Letter of Indemnity
Pallet of which the frame permits the entry of forks of e.g. a fork lift truck, on all four sides.
Easily breakable. Term denoting that goods should be handled with care.
Unit of value in which the limitation of the carrier’s liability is sometimes expressed. One franc poincaré consists of 65.5 milligrams of gold with a fineness of nine hundred thousands.
Amount which, in case of damage, will have to be borne by the insured.
The crime of getting money or other benefits by deceit or trickery.
→ Free Trade Zone
Free Alongside Ship (… Named Port of Shipment)
Abbreviation: FAS. Incoterm
Free Carrier (... Named Place)
Abbreviation: FCA. Incoterm
Free House Uncleared
Delivered at a certain destination without payment of certain duties or incurred costs.
Abbreviation: F.I. Condition indicating that the charterer of a vessel is responsible for the cost of loading goods onto the vessel.
Free in and out
Abbreviation: FIO. Condition denoting that the freight rate excludes the costs of loading and discharging and, if appropriate, stowage and lashing.
Free in Liner out
Abbreviation: FILO. Condition denoting that the freight rate is inclusive of the sea carriage and the cost of discharging, the latter as per the custom of the port. It excludes the cost of loading and, if appropriate, stowage and lashing.
Free of Particular Average, American Conditions
Abbreviation: FPAAC. Average clause which limits recovery of partial losses to those caused by fire, stranding, sinking or collision.
Free of Particular Average, English Conditions
Abbreviation: FPAEC. Same as FPAAC except that the partial losses referred to are recoverable if the vessel has stranded, sunk, burned, been on fire or in a collision, regardless of whether such losses were actually caused by any of these perils.
Free on Board (… Named Port of Shipment)
Abbreviation: FOB. Incoterm
Free on Rail
Former Incoterm, today replaced by Free Carrier (FCA).
→ Free Carrier
Free on Truck
Former Incoterm, today replaced by Free Carrier (FCA).
→ Free Carrier
Abbreviation: F.O. Condition indicating that the charterer of a vessel is responsible for the cost of unloading goods from the vessel.
International port or an area within an international port at which crew, passengers, baggage, cargo, mail and stores may be disembarked or unloaded, may remain and may be transshipped, without being subjected to any customs charges or duties. (Examination is possible, e.g. to meet security or narcotics control requirements.)
Permission granted by local medical authorities, denoting that the vessel has a clean Bill of Health so that people may embark and disembark.
Free Trade Zone
Abbreviation: FTZ. Port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority.
Freeboard of a Vessel
Vertical distance from the main deck to the surface of the water measured at the middle of the vessel’s length.
Costs charged by the carrier for transporting goods.
Freight All Kinds
Abbreviation: FAK. Tariff structure which is applied irrespective of the commodity.
Freight and charges are paid by the consignee.
Costs incurred by the merchant in moving goods, by whatever means, from one place to another under the terms of the contract of carriage.
Itemized list of costs for freight charges and services rendered.
→ Cargo Manifest
Freight and charges to be paid by the shipper.
Unit for calculating freight amount according to weight and/or cubic measurement.
Synonyms: Revenue Ton, Bill of Lading Ton
Freight Ton Kilometers
Index of average amount of freight carried per kilometer flown.
Freight Tons Carried
Index of the weight of cargo flown on board the aircraft.
→ Full Truck Load
→ Free Trade Zone
Full Container Load
Abbreviation: FCL. 1. A container stuffed or stripped under risk and for account of the shipper and/or the consignee. 2. A general reference for identifying container loads of cargo loaded and/or discharged at merchants’ premises.
→ Less than Container Load (LCL)
Full Truck Load
Abbreviation: FTL. Indication for a truck transporting cargo directly from supplier to receiver.
→ Less than Truck Load (LTL)
Full Value Declared
Abbreviation: FVD. Notation on an Air Waybill which indicates that a specific value has been declared to the carrier for carriage of the merchandise.
Fully Cellular Containership
Abbreviation: FCC. Vessel specially designed to carry containers, with cell-guides under deck and necessary fittings and equipment on deck.
→ Full Value Decla
→ General Average
Group of workmen acting together especially for loading and/or discharging operations of a vessel in combination with the necessary technical equipment.
Bridge laid from an opening in the railing or side of a vessel to the shore or to a platform with the purpose of giving access to and from the vessel.
Crane or hoisting machine mounted on a frame or structure spanning an intervening space, which often travels on rails. Used for container movements.
→ Portal Crane
→ General Agreement on Tariffs and Trade;
→ Most Favored Nation Status (MFN)
→ General Cargo Rate ùGeneral Commodity Rate
Motor generator set as power source for e.g. thermal containers.
General Agreement on Tariffs and Trade
Abbreviation: GATT. GATT is a binding contract among (in early 1992) 103 governments. GATT was established in 1947 as an interim measure pending the establishment of the International Trade Organization, under the Havana Charter. Operating in the absence of an explicit international organization, GATT has provided the legal framework for international trade with its primary mission being the reduction of trade barriers.
→ Most Favored Nation Status (MFN)
Abbreviation: G/A. Intentional act or sacrifice which is carried out to safeguard vessel and cargo. 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. Loss or damage sustained by the ship or cargo through delay, whether on the voyage or subsequently, such as demurrage, and any indirect loss whatsoever, such as loss of market, shall not be admitted as general average.
→ Average Adjusters → Contributory Value → General Average Act → General Average Security → General Average Statement → Particular Average → Sacrifice → Valuation Clause → York/Antwerp Rules
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 Average Bond
Document required of cargo owners, after a G/A loss, obtaining their agreement to pay any contribution that may become due.
General Average Contribution
Such losses or expenditures are contributed to by all the interests at risk on the basis of their respective values.
General Average Security
Documents the cargo owner presents to the General Average Adjuster to replace the vessel owner’s maritime lien on cargo for its share of General Average and to obtain release of the goods by the Steamship Company. G/A Security consists of a G/A Bond and either a cash deposit or an underwriter’s guarantee.
General Average Statement
This shows in detail all general average costs and expenses and the contribution of each interest in the general average in proportion to its value.
Cargo, consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales, often palletized.
→ Break Bulk Cargo
General Cargo Rate
Abbreviation: GCR. Rate for the carriage of cargo other than a class rate or specific commodity rate (air cargo).
Synonym: → General Commodity Rate
General Commodity Rate
→ General Cargo Rate
General Export License
General license covering goods for which validated export licenses are not required. No formal application or written authorization is needed to ship exports under a general export license.
General Purpose Container
Container used for the carriage of general cargo without any special requirements for the transport and/or the conditioning of the goods.
German classification society.
→ Classification Society
Ground Handling Agent. Official agent at the airport responsible for moving freight between the terminal and aircraft.
Warehouse or cargo shed. This term is often used in the Far East.
Basic principle of law, also applicable in insurance. A breach of good faith entitles the underwriter to cancel the contract.
→ Bona Fide
Common term indicating movable property, merchandise or wares.
Goods Control Certificate
Document issued by a competent body evidencing the quality of goods described therein, in accordance with national or international standards, or conforming to legislation in the importing country, or as specified in the contract.
Direction and path of the movement of goods and sequence of placement of those goods in a supply chain.
→ Maintenance Chain → Pipeline → Supply Chain
Goods in Transit
Goods which have departed from the initial loading point and not yet arrived at the final unloading point.
Synonyms: Stock in Transit, In Transit Inventory, Transportation Inventory
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.
Indication of the position of a container in a bay plan by means of a combination of page number, column and line.
Manifest containing freight details without any appropriate disbursements.
Gross Register Ton
Abbreviation: GRT. Volumetric measure of the overall size of a vessel determined in accordance with the provisions of the international convention on measurement of vessels.
→ Register Ton
1. Weight (mass) of goods including packing, but excluding the carrier’s equipment expressed in whole kilograms.
2. The weight of a shipment including materials necessary for blocking, etc. (air cargo).
Gross Weight of Container
Total weight of container including cargo (in kilograms).
Collection of several small consignments and the formation of one large shipment thereof (road cargo).
→ Gross Register Ton
Ground Security Agent.
Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier’s control.
Held covered at a premium to be arranged.
Amendment of the Warsaw convention at The Hague, September 28, 1955 (air cargo).
→ Warsaw Convention
International convention for the unification of certain rules, relating to Bills of Lading (1924). These Rules include the description of responsibilities of ocean carriers.
→ Hague-Visby Rules
Set of rules, published in 1968, amending the Hague Rules.
Half Height Container
Container, fitted with or without soft or hard cover, 4'3" in height (used for very dense cargo such as metals).
United Nations Convention on the carriage of goods by sea of 1978 adopted in 1992.
Indication of how cargo is to be handled.
Term used to describe a currency whose value is sound and steady and is generally acceptable at face value internationally.
Abbreviation: HS. Numeric multipurpose system, developed by the Customs Cooperation Council, for the classification of goods. With its six digits it covers 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.
→ Brussels Tariff Nomenclature → Commodity
Watertight means of closing the hatchway of a vessel.
Opening in the deck of a vessel through which cargo is loaded into, or discharged from the hold and which is closed by means of a hatch cover.
Overland carriage of cargo or containers between named locations/points.
Synonym: → Cartage
Thermal container served by a heat-producing appliance.
Cargo piece exceeding the capacity of normal loading equipment and requiring special equipment and rigging methods for handling.
Vessel specially designed and equipped for the carriage of heavy cargo.
Abbreviation: H/C. Provisional acceptance of risk, subject to confirmation that cover is needed at a later date. Where applicable to an existing insurance, cover is conditional, in practice, on prompt advice to the underwriter as soon as the insured is aware of the circumstances to be held covered coming into effect, and a reasonable additional premium is payable if the risk held covered comes into effect.
→ Direct Covered
Loading condition of a vessel in such a way that the center of the vessel is slightly raised (archwise in the center).
Space below the deck of a vessel.
Of, relating to, or being an agreement between parties in which one assumes the potential liability for injury that may arise from a situation and thus relieves the other of liability (e.g.: a hold harmless agreement/a hold harmless clause).
Storage space within the bottom (i.e. belly) of an aircraft that can be used to carry cargo.
Port of registration of a vessel.
Honor (a Draft)
To pay or accept a draft on presentation.
Place of receipt or delivery (name and address) in case of carrier haulage.
House Air Waybill
Air Waybill issued by a freight forwarder.
→ Master Air Waybill
House-to House Transport
Transport of cargo from the premises of the shipper 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.
Synonym: → Door-to-Door Transport → Point-to-Point Transport → Air Waybill
→ Harmonized System
Central transshipment point in a transport structure, serving a number of consignees and/or shippers by means of spokes.
Outer shell of a vessel, made of steel plates or other suitable material to keep water outside the vessel.
Taking care of a vessel’s non-cargo-related operations as instructed by the master or owner of such vessel.
→ International Association of Classification Societies
→ International Air Transport Association
IATA Cargo Agent
Agent approved by IATA and registered in the IATA Cargo Agency List. This enables the agent, upon authorization of the IATA carrier, to receive shipments, to execute Air Waybills and to collect charges (air cargo).
Airline which is a member of IATA (air cargo).
→ International Civil Aviation Organization
Institute Cargo Clauses. There are three basic sets of these clauses (A, B and C). The “A” clauses cover all risks, subject to specified exclusions. The “B” and “C” clauses cover specified risks, subject to specified exclusions.
→ Inland Clearance Depot
International Cargo Handling Coordinating Association.
→ International Chamber of Shipping
Unique data, e.g. name, number or code, determining a certain object or person.
Amount of ineffective time whereby the available resources are not used, e.g. a container in a yard.
Setting on fire or catching fire.
→ International Labor Organization
→ International Maritime Dangerous Goods Code
→ International Medical Guide for Ships
→ International Maritime Organization
Document required and issued by some national governments authorizing the importation of goods into their individual countries.
Party responsible for the import of goods. For customs purposes it is the party that makes, or on whose behalf an agent makes, an import declaration.
Term applied to the status of merchandise admitted provisionally to a country without payment of duties either for storage in a bonded warehouse or for transshipment to another point, where duties will eventually be imposed.
Status of goods or persons between the outwards customs clearance and inwards customs clearance.
→ Goods in Transit → Bonded Transit Warehouse
In 1936, the International Chamber of Commerce first published a set of international rules for the interpretation of trade terms. These rules became known as Incoterms. Amendments and additions have occurred in 1953, 1967, 1976, 1980, 1990 and 2000.
Incremental Cost to Export
Additional costs incurred while manufacturing and preparing a product for export (e.g., product modifications, special export packaging and export administration costs). This does not include the costs to manufacture a standard domestic product, export crating and transportation to the foreign market.
Compensation of lading for a loss and/or the expenses incurred.
Any route other than the direct route.
→ Direct Route
Individually Validated Export License
A required document issued by the Government authorizing the export of specific commodities. This license is for a specific transaction or time period in which the exporting is to take place.
→ General Export License
Characteristic of cargo which causes, or is liable to cause, loss or damage to the cargo, without any accident occurring (e.g. spontaneous combustion). It is always excluded by the insurers of the cargo because of its inevitable nature.
Inland Bill of Lading
Synonym for Consignment Note, used in USA and Canada.
→ Consignment Note
Inland Clearance Depot
Abbreviation: ICD. Inland location where cargo, particularly containerized, may be cleared by customs.
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.
Company providing inspection of goods and packing to meet special requirements and specifications called for by buyer and seller.
Thermal container without devices for cooling and/or heating.
Insulated Tank Container
Container frame holding one or more thermal insulated tanks for liquids.
It is illegal for anyone to insure without an insurable interest or, in the case of marine insurance, a reasonable expectation of acquiring such interest. In general, a party has such interest when its relationship to property at risk may result in the exposure to loss or liability and where it stands to gain by the safety of the property.
Protection against loss or damage for 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.
Proof of an insurance contract.
Party covering the risks of the insured goods and/or services.
→ Assured Party
SwissGlobalCargo’s time definite door-to-door airfreight service without weight limits.
Integrated Logistics Support
Systematic approach applied to simultaneous management of equipment and related logistics support, in order to provide the customer with a desired level of goods available.
As opposed to coastal water operations, intercoastal refers to water transport carried out between coasts (e.g. between Pacific and Atlantic coasts).
Cooperative formed by 19 European railways, for the management of international rail container traffic in Europe.
Receipt given by a carrier pending execution of an Air Waybill.
Cooperation between two or more airlines for the carriage over particular routes.
Carriage over the routes of two or more parties of an interline agreement.
Carrier with whom another carrier has an interline agreement.
Movement of goods (containers) in one and the same loading unit or vehicle which successively uses several modes of transport without handling the goods themselves in changing modes.
→ Combined Transport
International Air Transport Association
Abbreviation: IATA. International organization of airlines, founded in 1945, with the aim of promoting commercial air traffic. It encourages cooperation between parties concerned and ensures that these interested parties follow certain rules, procedures and tariffs, regarding both cargo and passengers.
International Association of Classification Societies
Abbreviation: IACS. Organization in which the major classification societies, among others American Bureau of Shipping, Lloyd’s Register of Shipping and Germanischer Lloyd, are joined. Its principal aim is the improvement of standards concerning safety at sea.
Carriage whereby the place of departure and any place of landing are situated in more than one country.
International Chamber of Shipping
Abbreviation: ICS. Voluntary organization of national shipowners’ associations with the objective of promoting the interests of its members, primarily in the technical and legal fields of shipping operations.
International Civil Aviation Organization
Abbreviation: ICAO. International organization of governments, dealing with search and rescue in distress, weather information, telecommunications and navigational requirements.
International Labor Organization
Abbreviation: ILO. United Nations agency, dealing with employment rights and working conditions, covering work at sea and in ports.
International Maritime Dangerous Goods Code
Abbreviation: IMDG Code. Code, representing the classification of dangerous goods as defined by the International Maritime Organization (IMO) in compliance with international legal requirements.
International Maritime Organization
Abbreviation: IMO. 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 Intergovernmental Maritime Consultative Organization (IMCO).
International Medical Guide for Ships
Abbreviation: IMGS. “The doctor at sea.”
International Organization for Standardization
Abbreviation: ISO. International Standards Organization also referred to as the International Organization for Standardization. This is a worldwide federation of national standards member bodies. It consists of technical committees made up of governmental and non-governmental international organizations. Draft international standards adopted by the technical committees are circulated to member bodies for voting. Adoption of standards requires approval of at least 75% of member bodies that cast a vote.
International Safety Management Code
This international standard for the safe management and operation of ships prescribes rules for the organization of a shipping company management in the context of safety and pollution prevention and requires the development and implementation of a safety management system.
International Transport and Information System
Abbreviation: INTIS. Organization with the aim to improve the position of the port of Rotterdam by the development, realization and exploitation of a communication and information network through computers.
→ International Transport and Information System
A detailed list of goods located in a certain place or belonging to a specified object.
Synonym: Stock List
Irrevocable Letter of Credit
Letter of Credit with a fixed expiry date that carries the irrevocable obligation of the issuing bank to pay the exporter when all of the terms and conditions of the Letter of Credit have been met.
→ International Organization for Standardization
Carrier whose Air Waybill is issued.
Separate article or unit.
Route of a means of transport, indicated by the names of the ports of call or other locations, often including estimated arrival and departure dates.
J. and W.O.
Jettison and Washing Overboard.
Throwing the cargo or ship’s property overboard to save other property from a common danger.
→ General Average (G/A)
Mole or breakwater, running out into the sea to protect harbor or coast. It is sometimes used as a landing-pier.
Charge which applies to the carriage over the lines of two or more carriers and which is published as a single amount (air cargo).
Rate which applies for carriage over the lines of two or more carriers and which is published as single amount (air cargo).
Business undertaking in which more than one firm share ownership and control of production and/or marketing.
The power that a court of law or an official person has to carry out legal judgements or enforce law.
Juridical decisions used for explanation and meaning of law.
Abbreviation: JIT. 1. The movement of material/goods to the required place at the required time. Each operation is closely synchronized with the subsequent ones to make this possible. 2. 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 stockpiling.
1. A method which, during storage, uses standard units or lot sizes with a single card attached to each.
2. A pull system used at a stock point in which a supply batch is ordered only when a previous batch is withdrawn.
Note: Kanban in Japanese means loosely translated “card or sign”.
Longitudinal girder at the lowest point of a vessel from which the framework is built.
Unit of measurement for the speed (of a vessel) equal to a nautical mile (= 1852 meters) per hour.
Convention for the International Customs Cooperation Council held in Kyoto in 1973 for the simplification and harmonization of national customs procedures.
→ Letter of Credit
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.
→ Bar Coding → Dangerous Goods Declaration → Overpack → Shipping Label
→ Loaden Vessel
Movement of goods from one port to another partially by land and partially by water, as a substitute for all-water transport.
To hold goods in position by the use of e.g. wires, ropes, chains and straps.
→ Lighter Aboard Ship
Point on a means of transport to which wires, chains, ropes or straps, which are used to hold goods in position, are attached.
Participating airline over which air routes the last section of carriage under the Air Waybill is undertaken or performed.
Last in/First out
Abbreviation: LIFO. Method of which the assumption is that the most recently received (last in) is the first to be used or sold (first out).
Angular distance of a position on its meridian north or south from the equator, measured in degrees.
Number of days allowed in a charter party for the loading and discharging of cargo. Lay days may be indicated in different ways, e.g. consecutive days, working days, weather working days.
Lay up a Vessel
Temporary cessation of trading of a vessel by the shipowner.
→ United Nations Layout Key
→ Less than Container Load
1. The amount of time between the request of a service and the actual provision of this service.
2. A span of time required to perform an activity.
3. In a logistics context, the time between the initiation of a process and its completion.
Contract by which one party gives to another party the use of property or equipment, e.g. containers, for a specified time against fixed payments.
→ Leasing Company
Company from which property or equipment is taken on lease.
Contract for the leasing of property or equipment.
Less than Container Load
Abbreviation: LCL. 1. 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. 2. For operational purposes a LCL (less than full container load) container is considered a container in which multiple consignments or parts thereof are shipped.
Less than Truck Load
Abbreviation: LTL. Term used if the quantity or volume of one or more consignment(s) does not fill a standard truck.
Party to whom the possession of specified property has been conveyed for a period of time in return for rental payments.
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. Method of payment between buyer and seller. The buyer opens a Letter of Credit in favor of the seller at their local bank by depositing the amount of the purchase price and dictating certain documents which the seller must present in order to obtain a payment. The Letter of Credit will be sent to a bank in the vicinity of the seller and upon presentation of the documents called for, the local bank will release payment.
→ Confirmed Letter of Credit → Deferred Payment Credit → Discrepancy Letter of Credit → Documentary Credit → Irrevocable Letter of Credit → Red Clause Letter of Credit → Revocable Letter of Credit → Transferable Letter of Credit → Uniform Customs and Practice for Documentary Credits
Letter of Credit, Payment by Sight Draft
Document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents, within a given time.
Letter of Indemnity
Written confirmation of holding a specified party harmless. E.g.: When a bank refuses to accept a foul Bill of Lading, the shipper may obtain a clean Bill of Lading. To acquire this, the shipper signs a letter of indemnity, which is an inducement to obtain the clean Bill of Lading through the dock or mate’s receipt, given on delivery of the goods to dock or ship, showing that the shipment was damaged or in bad condition. This acts as a form of guarantee whereby the shipper accords a claim settlement against a steamship by a Bill of Lading holder resulting from a clean bill being issued.
Letter of Instruction
Written directions to be followed.
→ Shipping Instructions
Legal responsibility for the consequences of certain acts or omissions.
Business arrangement in which the manufacturer of a product (with proprietary rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.
Legal claim on assets (personal or commercial) to pay a debt or duty.
Life Cycle Cost
Encompasses all costs associated with the product’s life cycle. These include all costs involved in acquisition (research & development, design, production & construction and phase-in), operation, support and disposal of the product.
→ Last in First out >Liner in Free out
Abbreviation: LOLO. Vessel of which the loading and discharging operations are carried out by cranes and derricks.
Open or covered barge towed by a tugboat and used mainly in harbors and inland waterways.
Lighter Aboard Ship
Vessel which carries barges.
Carriage of goods within a port area by a barge, e.g. from a vessel to a quay.
Weight of an empty vessel including equipment and outfit, spare parts required by the regulatory bodies, machinery in working condition and liquids in the systems, but excluding liquids in the storage tanks, stores and crew.
→ Order Line
→ Flight Number
Group of two or more shipping lines, 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.
Connection through vessels between ports within a trade.
Liner Shipping Company
Company transporting cargo in a regular service by ocean vessels.
Condition of carriage denoting that costs for loading and unloading are borne by the carrier subject to the custom of the port concerned.
→ Free in → Free in Liner out → Free in and out → Liner in Free out
Cargo consisting of live animals, such as horses, cows, sheep and chickens.
Lloyd’s Register of Shipping
British classification society.
→ Classification Society
Quantity or nature of what is being carried. This term normally refers to transport by truck.
Load Factor Management
Process of maximizing the utilization of the (slot) capacity of vessels and/or other means of transport.
→ Yield Management
Person supervising process of loading and unloading.
Vessel where cargo has been put on board.
Synonym: → Laden Vessel
Physical process of bringing cargo into a means of transport.
Flat surface to facilitate loading usually alongside a warehouse.
Load calculator designed for a vessel approved by a classification bureau for the calculation of the vessel’s stability.
Method of financing by which an exporter borrows on the basis of drafts turned over to a bank for collection.
Document signed by the assured where they acknowledge receipt of money advanced by the insurance company as an interest-free loan (instead of payment of a loss) repayable to the insurance company only if the loss is recovered from a third party and then only to the extent of the recovery.
→ On-line Charge
→ On-line Rate
For marine purposes: A space, enclosed at the sides by walls and at each end by gates, by which a vessel can be floated up or down to a different level.
Compartment, in a shed or on board of a vessel, used as a safekeeping place to stow valuable goods, and which can be secured by means of a lock.
Daily report of all events and other relevant particulars of a vessel and attested by the proper authorities as a true record.
All successive links involved in the logistic process.
→ Lift-on/Lift-off Vessel
Transportation of cargo by truck over long distances.
Angular distance of a position on the equator east or west of the standard Greenwich meridian, up to 180 degrees east or west.
Motor truck used for transport of goods. Note: Motor truck is an American term.
British synonym for motor truck is heavy goods vehicle. This British term means any vehicle exceeding 7.5 metric tons maximum laden weight.
Loss of Market
Situation in which, for one reason or another, sound cargo is no longer wanted by the consignee when it arrives. This is a “business loss” not recoverable under a Marine Cargo Policy; e.g., Christmas trees arriving in January undamaged.
→ All Risk
→ Less than Truck Load
Crane with which the load can be moved to or from the vessel horizontally.
Travelers’ baggage, suitcases, boxes, etc., normally accompanied by a passenger.
→ Unaccompanied Baggage
Agreed sum of money, which is paid in full settlement at one time. This term is often used in connection with charter parties.
Voyage charter whereby the shipowner agrees to place the whole or a part of the vessel’s capacity at the charterer’s disposal for which a lump-sum freight is paid.
German brand name of a roll trailer used for RoRo purposes.
First voyage of a vessel or aircraft after delivery to its owner(s).
Abbreviation: MLO. Carrier employing vessel(s) in the main or principal routes in a trade but not participating within a consortium.
Sequence of events in a goods flow which preserves and/or restores the value of a specific good. E.g. repair.
Document which lists the specifications of goods loaded in a means of transport or equipment for transportation purposes. As a rule cargo manifests are drawn up by the agents in the place of loading. Note: For shipping, a manifest represents an accumulation of Bills of Lading for official and administrative purposes.
Marine Insurance Policy
Insurance policy protecting the insured against loss or damage to goods which occurred during transportation.
Marking (or Marks)
Letters, numbers, and other symbols placed on cargo packages to facilitate identification.
→ Shipping Marks
Master Air Waybill
Abbreviation: MAWB. Air Waybill issued by the originating airline when more than one airline is involved with a shipment, or when a freight forwarder issues a House Air Waybill.
→ Air Waybill → House Air Waybill
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.
Any circumstances which would influence the judgment of a prudent underwriter in determining whether to accept a risk and the amount of premium to charge.
Statement made to the underwriter before acceptance of risk which is material to the decision in accepting and rating the risk.
Activities of loading, unloading, placing and manipulating material and of in-process movement.
Means of Transport
Type of vehicle used for the transport of goods (e.g. aircraft, barge, truck, ship or train).
Ton of one cubic meter water.
Legal enforceable claim that a person who has performed work or provided materials is permitted to make against title to the property or as a preferential person in the event the estate or business is liquidated.
Medical First Aid Guide
Abbreviation: MFAG. Instructions to be consulted in case of accidents involving dangerous goods.
→ Dangerous Goods
For cargo carried under the terms and conditions of the carrier’s Bill of Lading and of a tariff, it means any trader or persons (e.g. shipper, consignee) and including anyone acting on their behalf, owning or entitled to possession of the goods.
Inland transport of cargo in shipping containers arranged by the merchant. It includes empty container-moves to and from hand-over points with respect to 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.
Merchant Inspired Carrier Haulage
Carrier haulage by a carrier, which is nominated by the shipper or receiver of the goods, but paid by the carrier.
Distance between the center of gravity of a vessel and a fictitious point. If the meta-centric height is zero or negative, the vessel will heel or capsize.
→ Medical First Aid Guide
→ Most Favored Nation Status
Marine Gas Oil. Fuel used for operating the vessel.
At or in the middle of a vessel.
Lowest amount which applies to the transport of a consignment, irrespective of weight or volume (air cargo, shipping).
Minimum Connection Time
Shortest amount of time needed to move transshipments successfully from an arriving flight to the next departing flight.
Planned minimum allowable inventory for an independent demand item.
Consignment of different commodities, articles or goods, packed or tied together or contained in separate packages.
Mode of Transport
Method of transport used for the conveyance of goods (e.g. by rail, by road, by sea).
Most Favored Nation Status
Abbreviation: MFN. Provision of certain international agreements, including the General Agreement on Tariffs and Trade (GATT), which affords countries the right to have their goods treated no less favorably than the goods of any other country. For example, the GATT MFN clause gives each member the right to have customs duties levied upon its products at the lowest rate offered to any other member nation.
MPC Multi Purpose Carrier
→ Multi-Purpose Vessel
→ Multi-Transport Operator/Carrier
→ Multi-Purpose Vessel
Vessel designed for the carriage of different types of cargo: general, bulk, heavy and/or containerized cargo.
Synonym: → Multi-Purpose Carrier (MPC)
Carriage of goods (containers) by at least two different modes of transport.
Multimodal Transport Document
→ Combined Transport Document
Multimodal Transport Operator/Carrier
Abbreviation: MTO/Carrier. Entity on whose behalf the transport document or any document evidencing a contract of multimodal carriage of goods is issued and which is responsible for the carriage of goods pursuant to the contract of carriage.
Selecting of and working with more than two equivalent suppliers for a certain product.
Net Absolutely; no deductions from gross premium for brokerage or discount.
No Risk After Discharge or No Risk After Landing (N.R.L.D.) especially in use for merchandise consigned to an area where political or other conditions are unsettled.
No Risk After Shipment.
No Risk to Attach till on Rail.
No Risk to Attach till Water Borne; particularly used where congestion (conflagration hazard) exists.
Named Perils Policy
Any marine policy limiting cover to perils specifically listed in the policy; opposed to All Risks policy.
→ All Risk
Narrow Body Aircraft
Aircraft with one corridor, such as a DC-9 and a Boeing 737.
Act of determining position, location and course to the destination of an aircraft or a vessel.
Imprudent action or omission which may cause injury, damage or loss.
In terms of documents, “negotiable” means that e.g. a Bill of Lading is handed over/transferred in the right manner (viz. proper endorsement) to another person. It is either endorsed in blank or endorsed to a person, and that person acquires by this transfer certain rights vis-a-vis the goods (i.e. is entitled to take possession of the goods).
Manifest containing all freight details including negotiated disbursements.
Net Register Ton
Volumetric measure of the useful capacity of a vessel determined in accordance with the provisions of the international convention on tonnage measurement of vessels.
Weight of the goods, excluding all packing.
No Value Declared
Abbreviation: NVD. Notation on Air Waybill which indicates that no specific value has been declared to the carrier for carriage of the merchandise. Liability of the carrier would therefore be as defined by statute or as incorporated in the Waybill.
→ Released Bill
Non Vessel Operating Carrier
Abbreviation: NVOC. Party that undertakes to carry goods and issues in its own name a Bill of Lading for such carriage, without having own means of transport.
Abbreviation: N.D. Disappearance of an entire shipping package rather than the contents themselves or a portion of the contents.
Failure of the insured or their broker to disclose a material circumstance to the underwriter before acceptance of the risk. A breach of good faith.
Airline company which is not a member of IATA but which may work on terms of IATA as an interline partner.
Abbreviation: NTB. Economic, political, administrative or legal impediments to trade other than duties, taxes, and import quotas.
→ Notice of Readiness
Specified general cargo rate without any quantity discount (air cargo).
Normal Course of Transit
Orderly transit of merchandise from the point of origin to the final destination without interruptions or delays resulting from the action or inaction of any party at interest.
Normal General Cargo Rate
Under 45 kg rate or, if no under 45 kg rate exists, the under 100 kg rate (air cargo).
Synonym: → Normal Rate
→ Normal General Cargo Rate
Notice of Abandonment
Condition which must precede a constructive total loss. If the insured fails to give notice to the underwriter, the loss can be treated only as a partial loss unless an actual total loss is proven. An underwriter who accepts notice admits liability for the loss. Notice is not necessary where it would not benefit the underwriter, where the underwriter waives the obligation or in the case of a reinsurance provided the policy incorporates the “waiver” clause. Action taken by an underwriter to prevent or reduce the loss is not deemed to be an acceptance of abandonment.
→ Waiver Clause → Constructive Total Loss
Notice of Readiness
Abbreviation: NOR. 1. Written document or telex issued by the master of a vessel to the charterers advising them the moment when a vessel is ready to load or discharge. 2. Document advising a consignee or their agent that cargo has arrived and is ready for delivery.
Address of the party other than the consignee to be advised of the arrival of the goods.
Party to be notified of arrival of goods.
→ Arrival Notice
→ Non-Tariff Barriers
→ No Value Declared
→ Non Vessel Operating Carrier
→ Oil Bulk Ore Vessel
Products or materials that cannot be or are unlikely to be used in future processes and which are to be sold or disposed of through the usual outlets.
Ocean Bill of Lading
Bill of Lading (B/L) issued by the actual shipping line.
→ Air Waybill → Consignment Note → Through Bill of Lading
→ Original Equipment Manufacturers
The organization of logistics contract work carried out at sea (e.g. logistics in drilling for oil).
Oil Bulk Ore Vessel
Abbreviation: OBO Vessel. Vessel, designed for the carriage of either dry or liquid bulk cargo.
On Board Bill of Lading
Bill of Lading confirming the receipt of merchandise and the fact that it was loaded on board the ocean vessel.
On Deck Bill of Lading
Bill of Lading which states that the cargo has been stowed on deck.
Charge which applies to carriage over the lines of a single carrier (air cargo).
Synonym: → Local Charge → Local Rate → On-Line Rate
→ On-Line Charge
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.
Disposable Pallet, only used once. Note: The addition “One Way” has nothing to do with the number of pallet sides in which the forks of e.g. a fork lift can enter, as opposed to the two- and four-way pallets.
→ Disposable Pallet
The organization of logistics contract work carried out on land.
Abbreviation: O/A. Trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious risk this method poses to the supplier makes it essential that the buyer’s integrity be unquestionable. The transaction is payable when specified (i.e., R/M return mail; E.O.M. end of month; 30 days – 30 days from date of invoice; 2/10/60 – 2% discount for payment in 10 days, net if paid 60 days from date of invoice). If no term is specified O/A usually implies payment by return mail.
Open Insurance Policy
Marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
Exposure to a foreign-exchange risk not covered by an offsetting transaction.
Shipping container with frames of wire mesh at the sides covered by means of a tarpaulin which can be dropped down to give unrestricted access to the sides of the container for loading or discharging.
Shipping 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.
Ratio of the actual output of a piece of equipment, department, or plant as compared to the planned or standard output.
Party responsible for the day-to-day operational management of certain premises such as warehouses, terminals and vessels.
Best calculated trim related to speed engine capacity, fuel consumption for a specific sailing condition.
Achieving the best possible solution to a problem in terms of a specified objective function.
Cargo of which the final destination is not defined at the moment of departure of the vessel, but will be indicated during the voyage.
Port of which it is not known whether or not it will be called by a vessel during a voyage.
Optional Stowage Bill of Lading
Bill of Lading which gives the carrier the right to stow cargo wherever they see fit, especially with respect to the stowage of containers on deck.
Request to deliver specified quantities of goods or to render specific services.
Order Bill of Lading
Negotiable Bill of Lading made out to the order of a named party.
Each line on a customer’s purchase order. An order line always contains one Stock Keeping Unit (SKU) only, but the number may vary.
Original Equipment Manufacturers
Abbreviation: OEM. Customers who incorporate the exporter’s product into their own merchandise for resale under their own brand names.
Out of Gauge Cargo
Cargo of which dimensions exceed the normal dimensions of a 20- or 40-feet container, e.g. overlength, overwidth, overheight, or combinations thereof.
Shipping line, which operates on a route served by a liner conference but which is not a member of that conference.
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.
Operations to be performed on outgoing goods from a production unit, both administrative and physical, starting at the moment forwarding orders can be executed to the moment of actual departure of the goods.
Over Pivot Rate
Rate per kilogram to be charged for the over pivot weight (air cargo).
→ Pivot Weight
Over Pivot Weight
Weight in excess of the pivot weight (air cargo).
→ Pivot Weight
Overage Additional Premium
All additional premiums charged on an open cover declaration where the carrying vessel is outside the scope of the classification clause. It may be applied, also, to additional premium charged for breach of navigational warranties (e.g. institute warranties) where the ship is more than 15 years old.
Carrier within a consortium which carries cargo beyond the allotment distributed to them.
Cargo exceeding the standard height.
Cargo exceeding the standard length.
Unit used by a single shipper to contain one or more package(s) and to form one handling unit for convenience of handling and stowage. Dangerous goods packages contained in the overpack must be properly packed, marked, labeled and in proper condition as required by the regulations regarding dangerous goods (air cargo).
Work beyond normal established working hours.
Cargo exceeding the standard width.
Legal owner of cargo, equipment or means of transport.
Owner’s Container Code
→ Container Prefix
→ Protection and Indemnity Club
Policy Proof of Interest (honor policy).
1. 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.
2. The final product of the packing operation consisting of the packing and its contents to facilitate manual or mechanical handling.
Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.
Any container or other covering in which goods are packed.
Document issued within an enterprise giving instructions on how goods are to be packed.
Document specifying the contents of each individual package.
→ Container Manifest
Type of package where a standard quantity of products of a specific product type can be packed and that requires no additional packaging for storage and shipment.
Panalpina’s inhouse communications system. Stands for Panalpina Communication.
Low portable platform, usually wooden, on which cargo is stacked for storage or transportation; a skid.
Superstructure which can be applied to a pallet to convert it into either a box or post pallet.
Skeleton framework, of fixed or adjustable design, to support a number of individual pallet loads.
Pedestrian- or rider-controlled non-stacking lift truck fitted with forks.
Maximum measurements and dimensions of a vessel capable of passing the Panama Canal.
Panalpina’s global track and trace system which enables both Panalpina employees and customers to check the status of consignments.
Neither a CASS Airline nor a billing participant, which advises the Settlement Office of amounts due to it from agents (air cargo).
→ CASS Airline
1. A carrier participating in a tariff and which therefore applies the rates, charges, routing and regulations of the tariff (air cargo). 2. A carrier over whose air routes one or more sections of carriage under the Air Waybill is undertaken or performed (air cargo).
Abbreviation: P.A. 1. Partial loss or damage to the goods. 2. Fortuitous partial loss to the subject matter insured, proximately caused by an insured peril but which is not a general average. Particular average only relates to damage, loss and/or expenses which are exclusively borne by the owners of a vessel which has sustained damage as a result of e.g. heavy weather or by the owners of the cargo, which has been damaged in transit.
→ Average → General Average → Free Particular Average
Party to whom a payment is made or owed.
Party who pays or is to pay.
Maximum amount of cargo weight which can be loaded on a particular means of transport.
Payment against Documents
Instructions given by a seller to a bank that the buyer may collect the documents only upon payment of the invoice.
Variable indicating the effectiveness and/or efficiency of a process.
Comparison of the results of business processes with certain standards in order to know the effectiveness of these processes and/or the supportive actions.
Perils of the Sea
Fortuitous accidents or casualties, peculiar to transportation on a navigable water, such as stranding, sinking, collision of the vessel, striking a submerged object or encountering heavy weather or other unusual forces of nature.
Fresh produce that can spoil in a short amount of time (such as fruits, fish, meat, flowers).
Those activities related to the flow of goods from the end of conversion to the customer.
Physical Distribution Management
Planning execution and control of those activities which are related to the flow of goods from the end of conversion to the customer.
→ Pilot in Command
Pick and Pack
Taking goods out of a stock and packing them according to customer conditions.
Order to pick certain quantities of goods out of a stock.
Pick-up and Delivery
Service concerning the collection of cargo from the premises of the shipper and the delivery to the premises of the consignee.
Pick up Service
Carriage of outbound consignments from the shipper’s place to the place of departure.
Taking products or components out of a stock.
List used to collect items from stores to fulfil an order.
Synonym: Material Issue List, Kitting List
→ Jetty → Quay
Carriage of road vehicles and trailers on railway wagons.
Synonym: → Huckepack Carriage
Theft of part of the contents of a shipping package.
Pilot in Command
Abbreviation: PIC. Pilot responsible for the operation and safety of the aircraft during flight time (air cargo).
1. A method for conveying liquids and gasses.
2. The physical goods flow from a supplying organization to a receiving organization.
Amount of goods in a pipeline: the sum of loading stock, goods in transit and receiving stock.
Synonym: → Floating Stock
Minimum chargeable weight of a Unit Load Device (air cargo).
→ Over Pivot Rate → Over Pivot Weight
Place of Acceptance
→ Place of Receipt
Place of Delivery
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 Receipt
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.
Synonym: → Place of Acceptance
Activity of positioning an object or goods in a chosen location or position.
Setting of goals over a certain time and determining the methods for achieving these goals as well as the resources used.
Area on an airport where aircraft are parked for embarkation and/or loading and discharging purposes.
Synonym: → Apron → Ramp
Truck or trailer with a floor but no ends, sides or top.
All activities connected with an aircraft during the time it is on the platform.
Synonym: → Ramp Handling
Mark, welded on both sides of the vessel, which gives the limit to which a vessel may be loaded, depending on the specific gravity of the water in which the vessel is situated.
→ House-to-House Transport
Point value is the relative value of an empty container of a certain size and type in a depot location. The system serves to quantify the imbalance costs resulting from a full container move and are the result of empty optimization calculations. Point values are created on forecasted container flows between depot locations. They are calculated taking into account the forecasted imbalances plus repositioning, storage and container costs for empty moves and expressed in USD. Note: In the various computer systems point values are used to calculate the imbalance charge or credit for a particular container flow. This charge or credit is the difference in point values between start and end depot location.
In export financing, the risk of loss due to currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war.
Vessel with flat deck and a shallow draft.
→ Floating Crane
Shared use of e.g. equipment by a number of companies that also share the investment required.
→ European Pallet Pool
Aft part of a vessel where the steering engine is located.
Port1. Harbor with facilities for vessels to moor and load or discharge.
2. Left side of a vessel when facing towards the front or forward end.
Port of Discharge
Port where the cargo is discharged from the ocean- going vessel.
Port of Loading
Port where the cargo is loaded on board the ocean -going vessel.
Type of gantry crane with vertical legs of sufficient height and width to permit vehicles or railroad equipment to pass between the legs.
Record of a vessel’s actual arrival and departure time, used tugs, draft, deadweight, quantity of discharged and loaded goods/containers and any other important particulars.
→ Log Book
Transport of empty equipment from a depot to shipper’s premises or from consignee’s premises back to a depot as the empty leg of a carrier haulage transport.
National code maintained by the Postal Authorities designed to indicate areas and accumulated addresses to facilitate sorting and the delivery of mail and other goods.
→ Zone Improvement Plan (ZIP)
Act of placing goods in slings which are left in position and are used for loading into and discharging from a conventional vessel.
Abbreviation: PTI. Technical inspection of Reefer containers prior to positioning for stuffing.
Carriage of goods (containers) by any mode of transport from the place of receipt to the port of loading.
Carrier by which the goods are moved prior to the main transport.
Charges entered on the Air Waybill for payment in advance by the shipper (air cargo).
Freight paid by the shipper to the carrier when merchandise is accepted for shipment. Not refundable even if the merchandise does not arrive at the intended destination.
Abbreviation: PSI. Checking of goods before shipment for the purpose of determining the quantity and/or quality of said goods by an independent surveyor (inspection company). The inspection can also be for the purpose of determining whether the price charged for certain goods is correct, a practice used by some countries.
Price Quotation/Pro Forma Invoice
Invoice prepared by the seller in advance of shipment that documents the cost of goods sold, freight, insurance and other related charges. It is often used by the buyer to secure a Letter of Credit, an import licence or a foreign currency allocation.
Person or entity for whom another acts as agent.
→ Responsible Carrier
Order which is identified as taking precedence over other orders to ensure its completion in the minimum time.
Synonym: Urgent Order, Rush Order
Draft invoice sent to an importer by the exporter prior to order confirmation and shipment to assist in matters relating to obtaining import licenses or foreign exchange allocations, or to advise the value of a consignment so that Letters of Credit can be opened.
Activities which ensure the availability of the material and/or services in the desired quantity, quality, place and time from the supplier.
Control of the flow of materials up to the manufacturing process.
Relative measure of output of labor hour or machine hour.
Organizational unit which is held accountable for its own profits and losses.
Goods connected to the same project and often carried at different times and from various places.
Proof of Delivery
Receipt signed by the consignee upon delivery.
Rate which is used in combination with other rates to establish a through rate.
Portion of a joint rate or charge obtained by proration.
Division of a joint rate or charge between the carriers concerned on an agreed basis.
→ Prorate → Rate Proration
Protection and Indemnity Club
Abbreviation: P&I Club. Mutual association of shipowners which provides protection against liabilities by means of contributions.
Sworn statement made by a ship’s captain following an accident.
Statement drawn up to attest certain events.
Most direct cause of loss, that is, the most effective, but not necessarily the last, in a series of events.
→ Pre-Shipment Inspection
Agencies or officials in a country responsible for the application and enforcement of the laws and regulations of that state.
Warehouse which is available to all companies and individuals who wish to make use of the services offered.
Charge, the amount of which is specifically set forth in the carrier’s rates tariff.
Synonym: → Published Rate
→ Published Charge
Pull Distribution System
System to provide warehouses with new stock on request of the warehouse management.
Definite order for one or more deliveries by the supplier to the customer of a specific quantity of goods, materials, services or products under agreed terms of delivery and prices.
Agent that purchases goods in their own country on behalf of foreign importers such as government agencies and private companies.
Push Distribution SystemQ
System to provide warehouses with new stock upon decision of the supplier of the goods.
Data element whose value is expressed as a code that gives specific meaning to the function of another data element or a segment.
Quality (ISO 8402)
Totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Note: The ISO 9000 standards on quality management and quality assurance consist of 4 standards: 9000 guidelines for selection and use, 9001 model for quality assurance in design/development, 9002 model for quality assurance in production and installation, 9003 model for quality assurance in final inspection and test, and 9004 guidelines for quality management and quality system elements.
Quality Assurance (ISO 8402)
All those planned and systematic actions necessary to provide adequate confidence that a product or service satisfies given requirements for quality.
Quality Control (ISO 8402)
Operational techniques and activities that are used to fulfil requirements for quality.
Unit rate which is lower than the normal rate and applies to shipments meeting specific weight requirements (air cargo).
Proportional reduction of a rate based on quantity (air cargo).
→ Normal Charge
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.
That part of a wharf which is intended for the mooring of vessels.
Synonym: → Pier → Wharf
→ Waiting Time
System of controlling imports, exports or production by specifying a certain limitation.
Free offer to sell goods at a stated price and under specified conditions.
Quotation Expiration DateR
Date from which a quotation price is no longer valid.
Rail Consignment Note
Document evidencing a contract for the transport of goods by rail.
Artificially inclined path, road or track along which wheeled vehicles, cargo and trailers may pass for the purpose of changing their elevation and facilitating the loading and unloading operation (e.g. an entrance way into a Roll-on/Roll-off vessel).
→ Platform (air cargo)
→ Platform Handling
Charge per unit of freight for a specific service.
Rate of Calculation
Factor for the calculation of an amount.
Rate of Turn
Figure indicating the speed of a change of course of a means of transport expressed in degrees per minute.
Proration on the basis of the applicable local rates (air cargo).
Procedure whereby goods are invoiced in two stages: at first by the supplier to an intermediary and subsequently by the intermediary to the customer.
Written acknowledgement confirming receipt of goods, cash or documents.
Received for Shipment Bill of Lading
Bill of Lading issued by the carrier evidencing actual receipt of merchandise for shipment. Also referred to as a Dock Receipt.
→ Dock Receipt → Mate’s Receipt
Carrier receiving a consignment on behalf of a carrier, agent or shipper for onward transport.
Stock comprising all the goods that have arrived at the door of the receiving organization and which is not yet available in the stock of that organization.
All activities connected with restoring and/or adjusting the packaging of a product so that it is presented to the customer in the requested form.
Amount recovered from a third party responsible for a loss on which a claim has been paid.
Red Clause Letter of Credit
Letter of Credit that allows the exporter to receive a percentage of the face value of the Letter of Credit in advance of shipment. This enables the exporter to purchase inventory and any other costs associated with producing and preparing the export order.
Return of a charter vessel to the owners.
Cargo requiring temperature control.
Thermal container with refrigerating appliances (mechanical compressor unit, absorption unit, etc.) to control the temperature of cargo.
Charges paid or to be paid for subsequent surface or air transport from the airport of destination by a forwarder, but not by a carrier under the Air Waybill (air cargo).
Repayment to the purchaser of the total charge or a portion of that charge for unused carriage.
1. The unit of measurement for the capacity of a vessel whereby one register ton equals 100 cubic feet (2.83 cubic meters).
2. The gross (brutto) tonnage comprises all spaces below the main (tonnage) deck and the enclosed spaces above the main (tonnage) deck less exempted spaces.
3. The net tonnage consists of the gross tonnage less exemptions like ballast tanks, engine room, living quarters, etc. Register tonnage is mentioned on the tonnage certificate.
Process of splitting up shipments into various consignments (degroupage) and combining these small consignments into other shipments (groupage).
→ Degroupage → Groupage
Non-acceptance of e.g. cargo.
Type of affreightment where no specific value has been declared for carriage (No Value Declared).
Bank that sends the draft to the overseas bank for collection.
→ Collecting Bank
Completion of stock.
Route to be followed as altered from the one originally specified in the Air Waybill (air cargo).
Allotment in advance of space or weight capacity. Also referred to as “booking” (air cargo).
→ Safety Stock
1. The carrier liable under the terms of a Bill of Lading.
2. Carrier responsible for the transport of goods as indicated in the transport document (air cargo).
Synonym: → Principal Carrier
Goods returned to the place of acceptance.
Collection of used, damaged, or outdated products and/or packaging from end-users.
→ Waste Logistics
Revocable Letter of Credit
Letter of Credit that can be cancelled or altered by the drawee (buyer) after it has been issued by the drawee’s bank.
→ Irrevocable Letter of Credit
Synonym: Haulier, Trucker
Special trailer for terminal haulage and stowage on board of Roll-on/Roll-off vessels.
Also referred to as Mafi Trailer.
Abbreviation: RoRo. System of loading and discharging a vessel whereby the , cargo, is driven on and off by means of a ramp.
Sequence in which a vessel calls at the ports on her itinerary.
Voyage, a journey, etc. to a certain place, port or country and back again.
Track along which goods are (to be) transported.
1. The determination of the most efficient route(s) to follow.
2. The process of determining how a shipment will be moved between shipper and consignee or between place of acceptance by the carrier and place of delivery to the consignee. 3. The process of aiding a vessel’s navigation by supplying long-range weather forecasts and indicating the most economic and safe sailing route.
Abbreviation: R/O. The routing order is a specific written Shipping Instruction issued by the buyer. It is usually issued in the case of “ex-works” or “delivered at frontier”/“free on board” deals, thereby ensuring that the supplier organizes the transport according to the wishes of the buyer.
Vertical division of a vessel from starboard to portside, used as a part of the indication of a stowage place for containers. The numbers run from midships to both sides.
Subject to Approval.
Subject to Approval, No Risk; i.e., temporary cover; no risk attached until insurance is confirmed.
→ Shipper’s Load and Count
→ Said to Contain
→ Sight Draft (Bill of Exchange)
Deliberate casting away or destruction of property to prevent greater loss.
→ Single Administrative Document
Safe Working Load
Abbreviation: SWL. Maximum load any lifting appliance may handle.
1. A quantity of stock planned to be in inventory to protect against fluctuations in demand and/or supply. 2. In the context of master production scheduling, safety stock can refer to additional inventory and/or capacity planned as protection against forecast errors and/or short term changes in the backlog. Also referred to as “over-planning” or a “market hedge”.
→ Reserve Inventory → Cycle Stock
Said to Contain
Abbreviation: S.T.C. 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.
Saving or rescue of a vessel and/or the cargo from loss and/or damage at sea.
Payable to salvors for saving life and property at sea.
Sanitary and Health Certificate
Statement signed by a health organization official certifying the degree of purity, cleanliness or spoilage of goods, and the health of live animals.
Freighting measurement used in certain trades for various commodities.
Timetable including arrival/departure times.
→ Special Commodity Rate
→ Special Drawing Rights
Non negotiable document, which can only be made out to a named consignee. No surrender of the document by the consignee is required.
→ Bill of Lading
Device used for containers, lockers, trucks, etc. to ensure that they have remained closed during transport.
Document used to record seal numbers.
Inventory built up in anticipation of a seasonal peak of demand in order to smooth production.
There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage. It must be properly crewed, fueled and provisioned, with all equipment in proper working order. Cargo policies waive breach of the warranty except where the insured or their employees are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required. Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the insured.
Rate established by scheduled air carrier(s) for a section of a through route (air cargo).
→ Shipper’s Export Declaration
Distance between the various commodities of dangerous and/or bulk cargoes required by the rules of IMDG or BC codes.
Vehicle without motive power and with one or more axles designed to be drawn by a truck tractor.
Measure for the extent to which the customer orders can be executed at delivery conditions normally accepted in the market.
Setting/Air Delivery Temperature
Indication in the documents (B/L) stating the air supply temperature to the container.
Institution to which billing is issued and which receives remittances from agents. It also distributes the monies to CASS airlines, Billing Participants and Part-Participants (air cargo).
→ CASS Airlines → Part-Participants
Underwriter’s representative who is authorized to settle claims.
Specified length of time for which items which are inherently subject to deterioration are deemed to remain fit for use under prescribed conditions.
Synonym: Storage Life
Part of the work-program of a stevedoring company (a working day can have up to 3 shifts [24 hours]).
Acts as intermediary between shipowners or carriers on one hand and cargo interests on the other.
The shipowner or the (legal) person responsible for the actual management of the vessel and its crew.
Detailed list, signed by the captain of a ship, that contents the individual shipments constituting the ship’s cargo.
Statement of the master of a vessel before authorities, concerning exceptional events which occurred during a voyage.
Goods to be carried. Note: In the United States of America the word shipment is used instead of the word consignment.
Legal entity 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, particulars with respect to 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).
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.
Synonym: → Consignor → Sender
Shipper’s Export Declaration
Abbreviation: SED. → Export Declaration
Shipper’s Letter of Instruction
→ Shipping Instructions
Shipper’s Load and Count
Abbreviation: S.L.C.. Note on Bill of Lading or affreightment, indicating that the contents of a container were loaded and counted by the shipper and not checked or verified by the carrier.
Documents required for the carriage of goods.
Synonym: Transport Documents
Instructions from either the seller/shipper or the buyer/consignee to a freight forwarder, carrier or their 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).
Synonym: → Shipper’s Letter of Instruction (SLI);
Label attached to a shipping unit, containing data for identification purposes.
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.
Synonym: → Marks
Short Form Bill of Lading
Summary type Bill of Lading which does not incorporate all obligations and responsibilities of both parties. Unless a shipper is familiar with the carrier’s tariff, they should request a full Bill of Lading.
Negative difference between actual available or delivered quantity and the required quantity.
Heat treatment that shrinks an envelope of polyethylene or similar substance around several units, thus forming one unit. It is used, for example, to secure packages on a pallet.
Carriage back and forth over an often short route between two points.
→ Standard Industrial Classification
Sight Draft (Bill of Exchange)
Abbreviation: S/D. Draft payable on presentation to the drawee.
Imitation of the reality in order to study the effect of changing parameters in a model as a means of preparing a decision.
Single Administrative Document
Abbreviation: SAD. Set of documents, replacing the various (national) forms for customs declaration within European Community, implemented on January 1st, 1988. The introduction of the SAD constitutes an intermediate stage in the abolition of all administrative documentation in intra European Community trade in goods between member states.
Single Transit Policy
“One Off” insurance for those clients who require transit cover on an infrequent basis.
→ Standard International Trade Classification
National organization for the Simplification of International Trade Procedures in the United Kingdom (e.g. in The Netherlands SITPRO is called “Sitproneth”, in France “Simprofrance” and in Japan “Jastpro”).
Road trailer consisting of a frame and wheels, specially designed to carry containers.
Battens fitted underneath frames, boxes or packages to raise them off the floor and allow easy access for fork lift trucks, slings or other handling equipment.
Airfreight pallet with rollers.
Abbreviation for Shipper’s Letter of Instruction.
→ Shipping Instructions
Special chain, wire rope, synthetic fiber strap or ropes used for cargo handling purposes.
Space on board a vessel, required by one TEU, mainly used for administrative purposes.
→ Slot Charter
Voyage charter whereby the shipowner agrees to place a certain number of container slots (TEU and/or FEU) at the charterer’s disposal.
Voyage charter whereby the shipowner agrees to place part of the vessels capacity at the charterer’s disposal.
Special Drawing Rights
Abbreviation: SDR. Unit of account from the International Monetary Fund, used to express the amount of the limitations of a carrier’s liability.
Special Policy of Insurance
Document issued on behalf of the Underwriter stating the terms and conditions of the marine insurance. Issued when evidence of insurance is required, as by the bank issuing the Letter of Credit.
Rate other than a normal tariff/rate.
Special Commodity Rate
Abbreviation: SCR. Rate applicable to carriage of specifically designated commodities (air cargo).
Rate specified in an IATA Cargo Tariff Coordination Conference resolution (air cargo).
Stretch between a hub and one of the group of consignees and/or shippers being served by the hub.
Spontaneous Ignition Temperature
Lowest temperature at which a substance will start burning spontaneously without an external source of ignition.
→ Flammable → Flash Point
Purchase or sale of foreign exchange for immediate delivery.
1. Device used for lifting containers, and unitized cargo.
2. Beam or frame that holds the slings vertical when hoisting a load, to prevent damage to cargo.
→ Container Bolster → Container Platform
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.
Identifiable amount of containers stowed in a orderly way in one specified place on an terminal, container freight station, container yard or depot.
→ Container Stack
To pile boxes, bags, containers, etc. on top of each other.
Total weight of the containers and cargo in a certain row.
Standard Industrial Classification
Abbreviation: SIC. Method, used in the United States, to categorize companies into different industrial groupings.
Standard International Trade Classification
Abbreviation: SITC. Standard numerical code system developed by the United Nations to classify commodities used in international trade.
Right side of a vessel when facing towards the front or forward end.
State of Origin
State in the country in which the cargo was first loaded on board of an aircraft (air cargo).
State of the Operator
State in which the operator has its principal place of business or, if it has no such place of business, its permanent residence (air cargo).
Agency representing a steamship company that does not have an office in the particular port. Performs services to maintain operations on behalf of vessel owners.
Group of steamship operators that operate under mutually agreed-upon freight rates and other conditions.
Steering of Containers
Function, with the aid of specific software, for tracking and forecasting (IRMA, MINKA), to direct empty containers to areas of demand at minimum cost.
Foremost part of a vessel.
Aftermost part of a vessel.
Company which executes the loading, stowing and discharging of vessels.
Materials in a supply chain or in a segment of a supply chain, expressed in quantities, locations and/or values.
Synonym: Inventory when used as a generic term, common in the USA and extensive in the UK
Systematic administration of stock quantity levels.
Stock Keeping Unit
Description of the unit of measurement by which the stock items are recorded on the stock record.
Stock Locator System
System in which all places within a warehouse are named or numbered.
Point in the supply chain meant to keep materials available.
Record of the quantity of stock of a single item, often containing a history of recent transactions and information for controlling the replenishment of stock.
Placing goods into a warehouse.
Fee for keeping goods in a warehouse.
Provisions and supplies on board required for running a vessel.
Placing and securing of cargo or containers on board a vessel or an aircraft or of cargo in a container.
Ratio of a cargo’s cubic measurement to its weight, expressed in cubic feet to the ton or cubic meters to the tonne, used in order to determine the total quantity of cargo which can be loaded in a certain space.
Details about the way certain cargo is to be stowed.
Plan indicating the locations on the vessel of all the consignments.
→ Bay Plan
Unwanted person who hides on board of a vessel or an aircraft to get free passage, to evade port officials, etc.
Wheeled vehicle designed to lift and carry shipping containers within its own framework. It is used for moving, and stacking shipping containers at a container terminal.
Crane usually running on rails and spanning an open area such as rail-tracks or roadways.
Straight Bill of Lading
Non-negotiable Bill of Lading in which the goods are consigned directly to a named consignee.
Band of metal, plastic or other flexible material used to hold cargo or cases together.
Leg between two points.
Limited to damage caused to insured property by strikers, locked-out workers and persons involved in a labor dispute. Does not include loss or expense incurred as a result of strikes.
Unloading of cargo out of a container.
Synonym: Devanning, Unstuffing, Unpacking
Loading of cargo into a container.
Synonym: Vanning, Packing
Right of the underwriter to step into the shoes of the insured, following payment of a claim, to recover the payment from a third party responsible for the loss. Subrogation is limited to the amount paid on the policy.
Part of a stretch. This term is used if it is necessary to distinguish between a stretch and a part thereof.
Sue and Labor Charges
Charges incurred by an insured in averting or diminishing a loss. They are recoverable in addition to the full sum insured.
Sequence of events in a goods flow which adds to the value of a specific good. These events may include:
a) conversion; b) assembling and/or disassembling;
c) movements and placements.
Vessel which carries stock and stores to offshore drilling rigs/platforms.
Additional charge added to the usual or customary freight.
Inspection of a certain item or object by a recognized specialist.
Marine specialist who examines damaged property and determines the cause, nature, and extent of damage and methods of repair and/or replacement. This person is not an adjuster, and all their actions are without prejudice to policy terms and conditions.
→ Safe Working Load
Separate unit without wheels to carry cargo via road. Sometimes equipped with legs to perform an intermodal transport within Europe. It can be left behind to load or discharge whilst the driver and truck/chassis change to another unit. These units are not used for sea transport.
Simultaneous joint action of separate parties which, together, have greater total effect than the sum of their individual effects.
Whole body of connected elements which influence each other and have a specific relationship with their environment.
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 or container.
Tank, surrounded by a framework with the overall dimensions of a container for the transport of liquids or gasses in bulk.
Vessel designed for the carriage of liquid cargo in bulk.
Tare Mass of Container
→ Tare Weight of Container
Weight of a container or packing materials without the weight of the goods it contains.
→ Gross Weight
Tare Weight of Container
Weight of an empty container including all fittings and appliances associated with that particular type of container in its normal operating condition.
Synonym: Tare Mass of Container
Schedule of rates, charges and related transport conditions.
Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate.
Waterproof material, e.g. canvas, to spread over cargo to protect it from weather.
→ Open-Sided Container
Terms of Delivery
The conditions agreed upon between trading partners regarding the delivery of goods and the related services. Note: Under normal circumstances the Incoterms 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 Incoterms distinguish what the seller pays in terms of the freight and related costs and what the buyer pays. In the UN recommendation 23, a coding system is recommended to recognize the various items.
Terms of Sale
Invoice is the sales contract between buyer and seller and indicates the Terms of Sale.
→ Twenty-Foot Equivalent Unit
Container built with insulating walls, doors, floor and roof by which heat exchange with the environment is minimized thus limiting temperature variations of the cargo.
Third Party Logistics
Supply of logistics-related operations between traders by an independent organization.
Through Bill of Lading
Bill of Lading that provides transshipment.
→ Air Waybill → Consignment Note → Ocean Bill of Lading
Total rate from point of departure to point of destination. It may be a joint rate or a combination of rates (air cargo).
Synonym: → Through Rate
A pallet that goes straight through from origin to destination without being broken up (depalletized) during the voyage.
→ Through Charge
Total route from point of departure to point of destination.
Contract whereby a vessel is let to a charterer for a stipulated period of time or voyage, for a remuneration known as hire (generally a monthly rate per ton deadweight or a daily rate). The charterer is free to employ the vessel as they think fit within the terms as agreed, but the shipowner continues to manage their own vessel through the master and crew who remain the shipowner’s employees.
Time Draft (Bill of Exchange)
Draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft.
→ Date Draft → Sight Draft
Statement, drawn-up by the ship’s agent at the loading and discharging ports, which details the time worked in loading and discharging the cargo together with the amount of lay-time used.
Abbreviation for Transport International des Mar-chandises par la Route.
→ Transport International by Road
Abbreviation for Trailer on Flat Car.
1. Unit of weight measurement: 1000 kilograms (metric ton) or 2240 lbs (long ton). 2. Unit of cubic measurement, mainly used to express the cubic capacity of a vessel. 3. Unit of weight or measurement used as a basis for the calculation of freights (freight ton).
Gross Tonnage – total internal carrying capacity of a vessel expressed in measurement tons (one measurement ton = 100 cu. ft.).
Action of retrieving information concerning the whereabouts of cargo, cargo items, consignments or equipment.
Function of maintaining status information, including current location, of cargo, cargo items, consignments or containers either full or empty.
Power to grip or hold on to a surface while moving without slipping.
Powered vehicle designed and used for towing other vehicles.
Number of passengers, quantity of cargo, etc. carried over a certain route.
Vehicle without motored power, designed for the carriage of cargo and to be towed by a motor vehicle.
Vessel not operating under a regular schedule.
Trans Siberian Landbridge
Overland route from Europe to the Far East via the Trans Siberian Railway (TSR).
Document that delineates the terms and conditions agreed upon between the importer and exporter.
Cargo arriving at a point by one flight and continuing with another flight.
Transferable Letter of Credit
Letter of Credit that allows all or a portion of the proceeds to be transferred from the original beneficiary to one or more additional beneficiaries.
Participating carrier who delivers the consignment to another carrier at a transfer point.
1. Cargo between outwards customs clearance and inwards customs clearance. 2. Cargo arriving and departing at a point via the same through flight.
List of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents.
Device (chip) used for identification, which automatically transmits certain coded data when actuated by a special signal from an interrogator.
→ Shipping Documents
Transport International by Road
Abbreviation: TIR. Set of rules following a customs convention to facilitate the international, European transport of goods by road with minimal interference under cover of TIR-carnets.
The transfer from one vessel or conveyance to another for further transit.
Class of automotive vehicles of various sizes and designs for transporting goods.
Release of merchandise by a bank to a buyer in which the bank retains title of the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his or her assets and to hold them ready for repossession by the bank.
→ Trans Siberian Landbridge
Capital construction projects in which the supplier (contractor) designs and builds the physical plant, trains the local personnel on how to manage and operate the facility and presents the buyer with a self-sustaining project (all the buyer has to do is “turn the key”).
Cargo-carrying surface below the main deck dividing a hold horizontally in an upper and a lower compartment.
20-foot Equivalent Unit
Abbreviation: TEU. Unit of measurement equivalent to one 20-foot shipping container.
Device which has to be inserted into the corner fittings of a shipping container and is turned or twisted, thus locking the container for the purpose of securing or lifting.
Pallet into which the frame permits the entry of forks (e.g. a fork lift at two opposite sides).
Type of Cargo
Indication of the sort of cargo to be transported (e.g. Break Bulk, Containerized, RoRo).
Type of Equipment
Type of material used, e.g. 40-foot container, four-way pallet or mafi trailer.
Type of Movement
Description of the service for movement of containers.
Type of Packing
Description of the packaging material used to wrap, contain and protect goods to be transported.
Synonym: Kind of Packing, Package Type
Type of Transport
Indication whether the carrier or the merchant effects and bears the responsibility for inland transport of cargo in containers, i.e. a differentiation between the logistical and legal responsibility.
Type of VesselU
Sort of vessel used in the transport process, e.g. Container, RoRo, or Multi Purpose.
→ Uniform Customs and Practice for Documentary Credits
→ Union Internationale des Chemins de Fer
→ Ultra Large Crude Carrier
→ Unit Load Device
The person located abroad that receives the export for the designated end-use.
Ultra Large Crude Carrier
Abbreviation: ULCC. Vessel designed for the carriage of liquid cargo in bulk with a loading capacity from 250 000 to 500 000 DWT.
→ United Nations Economic Commission for Europe
Luggage not accompanied by a passenger.
→ United Nations Conference on Trade and Development
Carrier in a conference or consortium who carries less cargo than the allotment distributed to it.
→ United Nations Dangerous Goods Number
→ United Nations Economic Commission for Europe
Uniform Customs and Practice for Documentary Credits
The 1993 revised rules of the International Chamber of Commerce (ICC) governing a Letter of Credit issued with respect to goods shipped applicable as from January 1, 1994.
Union Internationale des Chemins de Fer
Abbreviation: UIC. International railway union, in which most of the European national railway companies are united.
Unit Load Device
Abbreviation: ULD. 1. Any type of container or pallet, in which a consignment can be transported by air whether or not such a container is considered aircraft equipment. 2. Any type of air freight container, aircraft container, aircraft pallet with a net or aircraft pallet with a net over an igloo.
United Nations Conference on Trade and Development
Abbreviation: UNCTAD. United Nations agency whose work in shipping includes the liner code involving the sharing of cargo 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. 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.
United Nations Economic Commission for Europe
Abbreviation: UN/ECE. UN/ECE is one of a number of Economic and Social Commissions established by the General Assembly of the United Nations. Despite its name it embraces both Europe and North America. The UN/ECE comprises 29 core member states, as well as any country which is a member of the United Nations and which applies under Article 11 of the United Nations constitution for delegate status. The aim is to advance the economic development of Europe and associated countries through trade facilitation and common agreements.
United Nations Layout Key
Abbreviation: UNLK. Standard (ISO 6422) which lays down the basic image principles for the design of documents used in international trade.
Synonym: → Layout Key
United Nations Standard Message
Abbreviation: UNSM. Collection of structured data that is exchanged to convey information related to a specific transaction between partners engaged in electronic data interchange. Messages are composed of logically grouped segments required for the type of message transaction covered.
→ United Nations Layout Key
→ United Nations Standard Message
Quotient of used capacity and available capacity.
Consignment which contains one or more valuable articles (air cargo).
Transport charges for certain goods, based on the value declared for the carriage of such goods (air cargo).
→ Declared Value for Carriage
Clause in the Marine Policy that contains a fixed basis of valuation agreed upon by the assured and the underwriter and which establishes the insured value of the merchandise. The clause determines the amount payable under any recoverable loss or General Average contribution.
Abbreviation: VAT. 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 final customer.
These are services offered by a company as an extension of its core services. These services give customers added value for their investment.
Surcharge for the carriage of cargo having a value in excess of a specified amount per kilogram (air cargo).
Valued Bill of Lading
Bill of Lading issued by the carrier which indicates the amount which the shipper has declared as the value of the merchandise. The carrier will be liable for this amount in the event it is found responsible for loss or damage to the merchandise.
→ Value-Added Tax
Very Large Crude Carrier
Abbreviation: VLCC. Vessel designed for the carriage of liquid cargo in bulk with a loading capacity from
50 000 to 250 000 DWT.
Every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water.
Synonym: → Ship
Program of selected countries to eliminate the visa requirement on a test basis.
→ Very Large Crude Carrier
Where the underwriter has the right to avoid a policy (e.g., in the event of a breach of good faith), the policy is termed “voidable”.
Size or measure of anything in three dimensions.
Charge for carriage of goods based on their volume (air cargo).
Volumetric weight measurement is based on the volume of a package and is used when the space a package takes on an aircraft costs more than the package’s actual weight.
Receipt, entry or other document which generates the accounts.
Journey by sea from one port or country to another or, in case of a round trip, to the same port.
Synonym: → Trip
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 lump-sum freight.
Voyage NumberTOP W
Reference number assigned by the carrier or its agent to the voyage of the vessel.
Period of time between the moment at which one is ready for an activity to start and the moment at which this activity can actually begin.
Synonym: → Queue Time
Clause regarding the abandonment or forsaking of a right.
Those risks related to two (or more) belligerents engaging in hostilities, whether or not there has been a formal declaration of war. Such risks are excluded by the F.C.&S. (Free of Capture and Seizure) Warranty, but may be covered by a separate War Risk Policy, at an additional premium.
Building specially designed for receipt, storage and handling of goods.
Synonyms: Shed, Store
Party that takes responsibility for goods entered into a warehouse.
Receipt issued by a warehouse listing goods received for storage.
Clause in the Cargo Policy that defines when cover commences and terminates. The policy begins at the time the goods leave the warehouse of origin named in the policy, continues during the transit period until goods are delivered to the warehouse of destination named in the policy, where it terminates.
Those activities of holding and handling goods in a warehouse (store).
Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, October 12, 1929, or that Convention as amended by the Hague Protocol, 1955.
→ Hague Protocol
Processing and/or removal to final resting place or transfer to a place for reuse or recovering of waste.
Collection of used, damaged, or outdated products and/or packaging from designated users.
Synonym: → Reverse Distribution
Non-negotiable document evidencing the contract for the transport of cargo.
→ Bill of Lading
Wear and Tear
Loss or deterioration resulting from ordinary use.
Charge for carriage of goods based on their weight.
Ton of 1000 kilograms.
Place for berthing vessels to facilitate loading and discharging of cargo.
Fee charged for the use of a wharf for mooring, loading or discharging a vessel or for storing goods.
→ World Health Organization
Intermediary between manufacturers and retailers in various activities such as promotion, warehousing, and the arranging of transport and/or distribution.
Aircraft with two corridors, such as a Boeing 747, 767, 777 and DC-10, MD11.
Claim is paid on this occasion, although the underwriter feels it does not attach to the policy. The action must not be treated as a precedent for similar future claims.
Term indicating that a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented.
→ Advisory capacity
World Health OrganizationTOP X
Abbreviation: WHO. Global agency linked to the United Nations cooperating with other technical agencies relating to health matters at sea and on land.
High-frequency electromagnetic ray of short wave-length, capable of penetrating most solid substances.
International standard of the CCITT for packet switching.
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.
CCITT now ITU recommendations (ISO 9594) for the structure of directories for the maintenance of addresses used in electronic mail.
Fenced off, outdoor storage and repair area.
Process of maximizing the contribution of every slot, vessel, trade and network.
York / Antwerp RulesZ
International rules governing General Average.
→ General Average
→ Zone Improvement Plan
Area, belt or district extending about a certain point defined for transport and/or charge purpose.
Zone Haulage Rate
Rate for which the carrier will undertake the haulage of goods or containers between 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 USA delivery areas.