Commercial and Operational Shipping

Logistics, freight forwarding and multimodal trade glossary

Moving goods from origin to destination with ocean shipping as one link: freight forwarders and NVOCCs, house and master bills of lading, FIATA documents, intermodal rail and drayage, container fleet management under IICL and the CSC plate, cold-chain reefer logistics, customs brokerage under the Harmonized System and AEO status, the CTU Code, Incoterms 2020, the electronic bill of lading and the DCSA eBL, and container standards (ISO 668, 6346, 1496).

218 defined terms.

A

ACE: Automated Commercial Environment, US Customs system.
ACEP: Approved Continuous Examination Programme for CSC container inspection.
Acquittal: Discharge of a transit document such as TIR carnet.
AEO: Authorised Economic Operator under EU and WCO frameworks.
AFRA scale: Reference scale for tanker freight averages.
Air waybill: AWB, transport document for air freight.
All risks cover: ICC(A) Institute Cargo Clauses A.
Antwerp Container Repair Standard: Repair benchmark recognised by IICL members.
Arrival notice: Carrier notice to consignee of cargo arrival.
ATA Carnet: Customs document for temporary admission.

B

Bagging plan: Plan for bagging bulk in port.
Berth congestion surcharge: Liner surcharge for delays.
Bill of lading clauses: Standard liner BL terms such as Himalaya, Paramount, Demise.
Bonded warehouse: Customs bonded storage facility.
Booking confirmation: Carrier confirmation of liner space booking.
Box rate: Freight rate per container regardless of cargo.
Break bulk: Cargo handled piecemeal rather than in unit loads.
Breakdown allowance: Liner allowance for delivery of partial container loads.
Bulker box: 20 foot open top container converted for bulk cargo.
Bunker adjustment factor: BAF, surcharge to reflect fuel cost changes in liner tariffs.

C

CABAF: Combined currency and bunker adjustment factor.
CAF: Currency adjustment factor.
Carnet TIR: Transit document under the TIR Convention.
Carriage paid to: CPT, Incoterm 2020.
Carrier haulage: Container haulage arranged by the carrier.
Cellular container ship: Container ship with cell guides.
CFS: Container freight station for less than container load cargo.
CGM: Charges on goods at port and inland.
Charter rate quote: Liner or NVOCC rate quotation.
CHIEF: UK Customs Handling of Import and Export Freight system, replaced by CDS.
CITES permit: Convention permit for endangered species cargo.
Clean bill of lading: Bill issued without clausing.
Combined Transport: Carriage involving more than one mode under a single document.
Commercial invoice: Sales invoice for customs and payment.
Commodity box rate: Box rate set for a specific commodity.
Conformity assessment: Certification under product standards.
Consignee: Party to whom goods are consigned.
Consolidation: Combining several shipments into one container or unit.
Container demurrage: Charge for container retention at terminal beyond free time.
Container detention: Charge for container retention outside terminal beyond free time.
Container manifest: List of containers on a voyage.
Container shipping line: Operator of a liner container service.
Container yard: CY, in-port container storage area.
Cross dock: Transfer of cargo between transport modes without storage.
CTU Code: IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units.
Customs broker: Licensed agent handling customs declarations.
Customs declaration: Import or export declaration to customs authority.
CY/CY: Container yard to container yard service terms.

D

D&D: Demurrage and detention charges.
Dangerous goods declaration: DGD, shipper declaration under IMDG Code.
DCSA: Digital Container Shipping Association.
Delivered at place: DAP, Incoterm 2020.
Delivered at place unloaded: DPU, Incoterm 2020.
Delivered duty paid: DDP, Incoterm 2020.
Demise Clause: Bill of lading provision identifying the contracting carrier (relevant to The Berkshire).
Demurrage and detention tariffs: Carrier published D&D tariffs.
Destination delivery charge: DDC, liner charge at destination.
Detention free time: Free days for return of empty containers.
Direct delivery: Cargo discharged direct ex-ship to consignee transport.
Documentary collection: URC 522 collections instruction.
Documentary Credit: Letter of credit governed by UCP 600, intersecting with bill-of-lading practice.
Doorstep delivery: Door delivery of containerised cargo.
Drayage: Short haul road movement of containers.
Dry container: Standard general purpose container.

E

eBL: Electronic bill of lading per DCSA standards.
eCMR: Electronic consignment note under CMR Protocol.
Embargo: Restriction on movement of goods to a country.
EORI: Economic Operator Registration and Identification number.
Ex Works: EXW, Incoterm 2020.
Export licence: Government licence required for controlled goods.

F

FBL standards: ICC Rules for Multimodal Transport applied by FBL.
FCA: Free Carrier, Incoterm 2020.
FCL: Full container load.
FCR: Forwarder's Certificate of Receipt, FIATA document.
FCT: Forwarder's Certificate of Transport.
Fee-based service: Forwarder fee model.
FFI: FIATA Forwarder's Instructions.
FFW: FIATA Forwarders Warehouse Receipt.
FIATA: International Federation of Freight Forwarders Associations.
FIATA Bill of Lading: FBL, multimodal transport BL.
First mile: Movement from shipper to consolidation point.
Flat rack: Container with collapsible or fixed end walls.
Forwarder: Freight forwarder organising transport on behalf of shipper.
Free in store: FIS, delivery to consignee warehouse.
Free on board: FOB, Incoterm 2020.
Free out: Owner pays loading, charterer pays discharging.
Freight collect: Freight payable by consignee at destination.
Freight forwarder liability: Forwarder liability under FIATA standard trading conditions.
Freight prepaid: Freight paid at origin.
Freight tariff: Published rates and terms.
Frequency: Liner sailing frequency on a service.
Fronthaul: Headhaul leg with stronger demand.

G

Garment on hanger: GOH, container fitted for hanging garments.
General Average bond and guarantee: Lloyd's standard forms.
General order warehouse: GO warehouse for unclaimed customs cargo.
Global Shippers Forum: Industry association of cargo owners.
Goods description: Description of goods for HS classification.
Green container: Bio-fuel insulated reefer or environmental container.
Groupage: Consolidation of LCL cargo.

H

Hague-Visby Rules: 1968 Visby Protocol and 1979 SDR Protocol to the Hague Rules.
Hanjin episode: 2016 carrier insolvency that reshaped liner credit policy.
Hazmat: Hazardous materials, regulated under IMDG and 49 CFR.
High cube container: Container 9 feet 6 inches tall.
HMM Algeciras class: Reference for 24,000 TEU class ULCS.
House airway bill: HAWB.
House Bill of Lading: Issued by a freight forwarder against a Master Bill from the contracting carrier.
HS code: Harmonized System tariff classification.

I

ICC: Institute Cargo Clauses A, B, and C.
ICS: International Chamber of Shipping, industry body.
IICL: Institute of International Container Lessors.
IMDG Code: International Maritime Dangerous Goods Code, mandatory under SOLAS VII Part A.
Import licence: Government licence to import specified goods.
Inland container depot: ICD or dry port.
Inland customs depot: Customs office in inland location.
Intermodal container: Standard ISO container.
Intermodal terminal: Multimodal cargo transfer facility.
International Trade Single Window: Single window per UN/CEFACT.
ISBP: International Standard Banking Practice for documentary credits.
ISO 10374: ISO standard for container automatic identification.
ISO 1496: ISO standard for container specifications and testing.
ISO 17712: ISO standard for high security seals.
ISO 6346: ISO standard for container coding and marking.
ISO 668: ISO standard for container classifications and dimensions.
ISPM 15: Phytosanitary standard for wood packaging material.

J

Junior officer of customs: Field customs officer.
Just in time: Inventory model dependent on reliable logistics.

K

Kanban supply chain: Pull based replenishment model.
Key account agreement: Strategic shipper to carrier contract.

L

Lashing manual: CSS aligned cargo lashing manual.
Last mile: Final leg of delivery to consignee.
LCL: Less than container load.
Letter of credit: Bank instrument guaranteeing payment under specified document conditions.
LIBOR replacement clauses: Replacement of LIBOR in finance and trade docs.
Liner agency agreement: Standard agreement such as FONASBA.
Liner conference exemption: Repeal of EU conference exemption in 2008.
Load list: Container load list for a service or vessel.
Logistics service provider: 3PL or 4PL provider.
LTI: Lost time injury, KPI in logistics safety.

M

Made up bill: BL prepared and ready for issue.
Manifest: Cargo manifest filed with authorities.
Master bill of lading: MBL between vessel operator and NVOCC.
Material handling equipment: MHE in warehouses and terminals.
Merchant haulage: Container haulage arranged by the shipper, not the carrier.
Modal split: Distribution of freight between transport modes.
Multimodal transport: Transport using two or more modes under one contract.

N

Negotiable bill of lading: To order BL transferable by endorsement.
Net weight: Weight of cargo excluding packaging.
Non-vessel operating common carrier: NVOCC.
Notify party: Party notified of cargo arrival but not necessarily consignee.

O

Ocean carrier: Vessel operating carrier in liner trade.
Off-dock facility: Terminal facility outside the main port area.
Open top container: Container with removable tarpaulin roof.
Order bill of lading: BL consigned to order.
Out of gauge cargo: OOG cargo exceeding container dimensions.

P

Packing certificate: CTU Code packing certificate.
Packing list: Detailed list of contents in each package.
Pallet: ISO 6780 standard pallet sizes.
Pallet wide container: Container sized for European pallets.
Phytosanitary certificate: Plant health certificate.
Port community system: PCS, electronic data exchange platform.
Pre-carriage: Inland leg before main carriage.
Preferential origin: Origin qualifying for tariff preference.
Project cargo: Heavy lift or oversized cargo for projects.
Proof of delivery: POD, signed delivery document.
Pure car and truck carrier: PCTC vessel.

Q

Quay rent: Charges for use of quay space.
Quick release procedure: Customs quick release for low risk cargo.

R

Rail bill of lading: Carriage document for rail under CIM or domestic.
Reefer container: Refrigerated container with integral plant.
Reefer monitoring: IoT monitoring of reefer set points and alarms.
Refrigerated container leasing: Leasing per IICL guidelines.
Release order: Documentary release at destination port.
Reverse logistics: Returns and recycling logistics.
Road CMR: Convention on the Contract for the International Carriage of Goods by Road.
Roll on roll off: RoRo loading and discharging.
Rolling cargo: RoRo cargo such as cars or trailers.
Royal Cargo IS: Example of cargo logistics IT, not exhaustive.

S

Sea waybill: Non-negotiable transport document.
Sealing of container: ISO 17712 compliant seal.
Service contract: Long term agreement between liner shipper and carrier.
Short shipment: Cargo booked but not loaded.
SI: Shipping instructions to carrier.
SPS measure: Sanitary and phytosanitary measure.
Stowage plan: Plan showing container or cargo positions.
Stripping: Unloading of a container.
Stuffing: Loading of a container.
Submission of declaration: Lodging entry with customs.
Supply chain visibility: SCV via EDI, API, or PCS platforms.

T

Tally: Cargo count at loading or discharge.
Tank container: ISO tank container for liquids and gases.
Tariff filing: Required filing of carrier tariffs in some jurisdictions.
TEU: Twenty foot equivalent unit.
Through bill of lading: BL covering multi-leg journey.
TIR Convention: International road transit convention.
TOS: Terminal operating system.
Track and trace: Cargo tracking through the chain.
Transhipment: Transfer of cargo between vessels.
Triangulation: Empty container repositioning optimisation.
Trucker appointment system: TAS for terminal gate slots.

U

UCC: Union Customs Code of the European Union.
UCP 600: Uniform Customs and Practice for Documentary Credits.
ULCS: Ultra Large Container Ship, above about 18,000 TEU.
UN number: Number identifying dangerous goods under UN model regulations.
Unitisation: Combining cargo into standard load units.
URC 522: ICC Uniform Rules for Collections.
URDG 758: ICC Uniform Rules for Demand Guarantees.

V

Valuation for customs: Customs valuation under WTO valuation agreement.
Verified gross mass: VGM of containers under SOLAS Chapter VI.
Vessel manifest: Manifest of all cargo aboard a vessel.

W

Warehouse receipt: FIATA FWR or general warehouse receipt.
WCO: World Customs Organization.
Weight bridge ticket: Certified weighbridge slip used for VGM.
Wharfage: Charge for use of wharf.
Wholesaler shipping: Logistics for consolidators and wholesalers.

X

X-ray scanning: Non-intrusive customs inspection.

Y

Yard planner: TOS module for container yard planning.
Yard tractor: Terminal tractor moving chassis or mafis.

Z

Zero rated VAT: VAT treatment for exports.

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