A

Accessorial Service

A service in addition to the usual shipping services, often involving an additional cost. This can include packing, loading, storage, and other logistics activities.

Accrual

A financial term that refers to the gradual accumulation of expenses or revenue over time, recognized before a cash transaction occurs.

Acquiescence

Acceptance or agreement by silence. For instance, accepting a bill of lading without protest is considered acquiescence to its terms.

Ad Valorem

A Latin term meaning “according to value,” often used in reference to taxes or duties based on the value of goods.

Ad Valorem Duty

A customs duty calculated as a percentage of the value of the goods being imported.

Advice of Shipment

A notification sent to the buyer, informing them that the goods have been shipped, often including details like packing, routing, and invoice copies.

Advising Bank

A bank that receives a letter of credit from the issuing bank and forwards it to the exporter, confirming its authenticity.

Affreightment

The act of hiring a ship to transport goods. See also Charter Party.

Agent

A person or company authorized to act on behalf of another, typically in transactions like sales or shipping.

Air Freight Forwarder

A freight forwarder specializing in air cargo, handling logistics and transportation of goods via air.

Air Waybill (AWB)

A document issued by an airline that serves as a contract between the shipper and the carrier, detailing the shipment’s journey.

All Commodity Rate

A flat freight rate that applies to all types of goods, with certain restrictions.

All Inclusive Rate (AI)

A shipping rate that includes all associated charges, providing a total cost for the shipment.

Allowance

A deduction from the weight or value of goods, often given as a reimbursement or adjustment.

Also Notify Party

A secondary contact listed on a shipping document, typically informed about the shipment’s arrival or status.

Apparent Authority

Authority assumed by an agent, inferred by a principal’s previous actions or communications.

Apparent Good Order

A term indicating that goods appear to be in good condition based on a general inspection at the time of receipt.

Arbitration

A method of resolving disputes between parties using a neutral third party, resulting in a binding decision.

Arrival Notice

A document sent by the carrier to the consignee, informing them of the shipment’s arrival and any pending charges.

Awkward Cargo

Cargo with irregular dimensions or shapes that require special handling and may not fit standard shipping containers.

B

B/L Master

Instructions provided by the shipper for raising a bill of lading, detailing cargo information for the carrier.

Bank Guarantee

A guarantee from a bank to release cargo without the original bill of lading, often used in international trade.

Bareboat Charter

A lease agreement where the charterer rents a ship without crew or provisions, taking full responsibility for operations.

Basic Freight

The base charge for transporting goods, excluding additional fees or surcharges.

Berth Term

A rate term where loading and unloading costs are not included in the freight charges.

Bill of Lading (B/L)

A legal document issued by a carrier that details the type, quantity, and destination of the goods being shipped.

Blanket Waybill

A waybill that covers multiple shipments or consignments, often used for consolidated cargo.

Blocked Train

A train with railcars grouped by destination, minimizing the need for sorting at junctions.

Bond

A customs security for shipments moving under certain conditions, often used in international trade.

Bond Port

The first port of entry for a vessel, where customs procedures are initiated.

Bonded Freight

Freight moving under customs bond, requiring specific conditions for release.

Bonded Warehouse

A storage facility approved by customs for storing goods until duties are paid or conditions are met.

Booking

The process of arranging space with a carrier for transporting goods.

Booking Number

A unique reference number assigned to a shipment for tracking and identification purposes.

Break-Bulk Cargo

Goods shipped loose or in individual pieces rather than in containers, often requiring special handling.

Bulk Carrier

A vessel designed to transport unpackaged bulk cargo, such as grain, coal, or liquid.

Bulk Freight

Goods shipped in large quantities without packaging, typically transported by bulk carriers.

Bunker Surcharge (BAF/BSC)

An additional charge to cover the fluctuating cost of fuel used by ocean vessels.

C

C-TPAT

Customs Trade Partnership Against Terrorism, a U.S. government program to enhance cargo security.

C.I.F. (Cost, Insurance, and Freight)

A trade term indicating that the seller pays for the goods, insurance, and transportation to a specified location.

C.O.D. (Cash on Delivery)

A payment method where the buyer pays for the goods upon delivery.

C.O.G.S.A.

Carriage of Goods by Sea Act, U.S. legislation governing the rights and responsibilities of carriers and shippers.

CFS (Container Freight Station)

A facility where cargo is loaded into or unloaded from containers for shipment.

Charter Party

A contract between a shipowner and a charterer for the use of a vessel, outlining terms and conditions.

Chassis

A wheeled framework used for transporting containers over land.

Clean Bill of Lading

A bill of lading indicating that goods were received in good condition without any damage or defects noted.

Container

A standardized metal box used for transporting goods, designed to be easily moved between ships, trains, and trucks.

Container Yard (CY)

A location where containers are stored and transferred between different modes of transport.

Consignee

The person or company receiving the goods as listed on the bill of lading.

Consignor

The person or company sending the goods, usually the seller or exporter.

Consolidated Cargo

A shipment containing multiple consignments from different shippers, combined to save on transportation costs.

Customs Broker

A professional licensed to handle the import and export of goods through customs, ensuring compliance with regulations.

D

DAF (Delivered at Frontier)

An INCOTERM meaning the seller delivers goods to the buyer at a specified frontier point, but not across the border.

DDP (Delivered Duty Paid)

An INCOTERM indicating the seller is responsible for delivering goods to the buyer, including all duties and taxes.

DDU (Delivered Duty Unpaid)

An INCOTERM where the seller delivers goods to a specified location without paying import duties or taxes.

Deadweight Tonnage (DWT)

The maximum weight a ship can safely carry, including cargo, fuel, and provisions.

Demurrage

A fee charged for holding a container or vessel beyond the agreed period, typically for loading or unloading delays.

Detention Charge

A fee for retaining a container beyond the allowed free time outside the port or terminal.

Distribution

The process of transporting goods from the manufacturer to the final consumer, involving storage and logistics.

Dock

A platform where ships are loaded and unloaded at a port.

Dry Cargo

Goods that do not require temperature control during transportation.

Dunnage

Materials used to secure and protect cargo during transport, preventing movement and damage.

E

ETA (Estimated Time of Arrival)

The expected time and date when a shipment is scheduled to arrive at its destination.

ETD (Estimated Time of Departure)

The expected time and date when a shipment is scheduled to leave its point of origin.

EXW (Ex Works)

An INCOTERM meaning the seller delivers goods at their premises, and the buyer is responsible for transport and export duties.

Export

The act of shipping goods to a foreign country for sale or trade.

Export Declaration

A government document authorizing the export of specific goods, often required for customs clearance.

Express Bill of Lading

A non-negotiable bill of lading used for quick release of cargo without presenting the original document.

F

F.A.K. (Freight All Kinds)

A shipping rate applied to a container regardless of the cargo type.

F.C.L. (Full Container Load)

A shipment in which the entire container is used by a single shipper.

FOB (Free On Board)

An INCOTERM indicating the seller is responsible for goods until they are loaded on a vessel, after which the buyer assumes responsibility.

Freight Forwarder

A company that arranges the transportation and logistics of shipments on behalf of shippers, including documentation and booking.

Free Trade Zone

A designated area where goods can be imported, stored, and exported with reduced customs regulations and duties.

Fresh Air Exchange (FAE)

A system in refrigerated containers that exchanges air to maintain product quality by removing gases like ethylene.

Fumigation

The process of treating cargo with gas or chemicals to eliminate pests and pathogens.

G

G.R.I. (General Rate Increase)

A scheduled increase in shipping rates by carriers, often applied across specific trade routes.

Gateway

A major port or airport used as an entry or exit point for international shipments.

General Average

A maritime law principle requiring all parties in a sea venture to share the loss proportionately if a voluntary sacrifice of part of the ship or cargo is made to save the whole venture.

Gross Tonnage

The total volume of a ship’s enclosed spaces, measured in tons, used to determine fees and regulations.

Gross Weight

The total weight of a shipment, including packaging and container weight.

H

Hague-Visby Rules

International rules governing the rights and responsibilities of carriers and shippers under a bill of lading.

Harmonized System (HS)

An international system for classifying goods, used for customs and trade documentation.

Heavy Lift

Cargo too heavy to be handled by standard equipment, requiring special lifting gear or procedures.

High Cube Container

A container taller than standard height, usually 9.5 feet, providing additional cargo space.

House Bill of Lading

A bill of lading issued by a freight forwarder or NVOCC, covering shipments arranged by them.

I

I.M.C.O. (International Maritime Consultative Organization)

An organization that sets international shipping standards and regulations, now known as the International Maritime Organization (IMO).

IATA (International Air Transport Association)

An organization that sets standards for air transport, including ticketing and cargo handling.

Import

The act of bringing goods into a country for sale or trade.

Import License

A government-issued document authorizing the import of certain goods, often required for controlled products.

Incoterms

Internationally recognized trade terms that define the responsibilities of buyers and sellers in international transactions.

Inland Clearance Depot

A facility located inland where customs clearance and cargo inspections are conducted.

Insurance Certificate

A document verifying that insurance coverage has been arranged for a shipment.

Intermodal Transport

The movement of cargo using multiple modes of transport, such as ship, rail, and truck, without handling the cargo itself during transfers.

J

Just-In-Time (JIT)

A logistics strategy that reduces inventory costs by scheduling goods to arrive only as needed in the production process.

K

Knocked Down

Refers to goods shipped in parts and assembled at the destination, often used to reduce shipping costs or tariffs.

Knot

A unit of speed equal to one nautical mile per hour, used in maritime and air navigation.

L

L.C.L. (Less than Container Load)

A shipment that does not fill an entire container, often consolidated with other shipments.

Letter of Credit

A financial document issued by a bank guaranteeing payment to a seller upon fulfilling specified conditions, often used in international trade.

Load Factor

The percentage of cargo space utilized in a shipping container or vessel.

Logistics

The management of the flow of goods from origin to destination, including transportation, warehousing, and distribution.

Longshoreman

A worker responsible for loading and unloading ships at a dock or port.

M

Manifest

A document listing all cargo on board a vessel or vehicle, used for customs and transport management.

Metric Ton

A unit of weight equal to 1,000 kilograms or approximately 2,204.6 pounds.

Multimodal Transport

Transporting goods using multiple modes (e.g., sea, rail, truck) under a single contract, also known as intermodal transport.

N

N.O.S. (Not Otherwise Specified)

A term used when specific classification or description of cargo is not provided, often requiring special handling or rates.

Net Weight

The weight of goods excluding packaging or container weight, often used for pricing and customs.

NVOCC (Non-Vessel Operating Common Carrier)

A company that arranges ocean shipping for goods without owning vessels, often acting as a freight forwarder.

O

Ocean Bill of Lading

A bill of lading used for sea transport, serving as a receipt and contract for goods being shipped.

On Board

A term indicating that goods have been loaded onto a vessel or other transportation means.

Open-Top Container

A container with a removable roof, used for loading oversized cargo from the top.

Origin

The starting location of a shipment, where goods are initially loaded for transport.

Overheight Cargo

Cargo that exceeds standard height limits, requiring special handling or equipment.

P

Packing List

A document detailing the contents of a shipment, including item descriptions, quantities, and weights, used for customs and inventory.

Per Diem

A daily fee charged for using a container or equipment beyond the agreed rental period.

Perishable Cargo

Goods that require temperature control or timely delivery to prevent spoilage or deterioration.

Pier

A structure extending into a body of water, used for docking ships and handling cargo.

Piggyback

The transportation of truck trailers on railcars, combining rail and road transport.

Pilot

A skilled navigator who guides ships into or out of ports, ensuring safe passage through waterways.

Place of Delivery

The final destination where goods are delivered to the consignee or their representative.

Port

A location where ships dock to load or unload cargo, often with customs and warehousing facilities.

Port of Discharge

The port where goods are unloaded from a vessel, marking the end of the ocean transport segment.

Port of Loading

The port where goods are loaded onto a vessel, beginning the ocean transport segment.

Q

Quarantine

A period during which vessels and cargo are isolated to prevent the spread of infectious diseases, often involving inspections and health checks.

Quay

A structure built along the shore for loading and unloading vessels, similar to a pier or wharf.

Quota

A government-imposed limit on the quantity of goods that can be imported or exported within a specific period.

R

Reefer

A refrigerated container used for transporting perishable goods requiring temperature control.

Relay

The transfer of cargo from one vessel to another, often within the same shipping line.

Revenue Ton

A unit of measure for freight charges, based on the greater of weight or volume.

Ro/Ro (Roll-On/Roll-Off)

A shipping method where vehicles and wheeled cargo are driven on and off the vessel, used for cars, trucks, and machinery.

S

Salvage

The act of recovering goods or a vessel after a shipwreck or accident, often involving specialized operations.

Seal

A secure closure device for containers or freight cars, ensuring cargo integrity during transit.

Service Contract

A contract between a shipper and a carrier detailing the terms, rates, and responsibilities for transporting specific cargo.

Shipper

The person or company responsible for sending goods, typically the seller or exporter.

Shipping Order

A document issued by a shipper detailing the goods to be transported and instructions for handling and delivery.

Shipping Permit

An authorization allowing goods to be transported, often issued by customs or regulatory authorities.

Shortage

A situation where the quantity of goods received is less than expected, often due to loss or error during transit.

Spreader

A piece of equipment used to lift and move containers, typically attached to cranes or forklifts.

Stevedore

A worker or company responsible for loading and unloading ships, also known as a longshoreman.

Stowage

The placement and arrangement of cargo on a vessel to ensure safety and stability during transport.

Supply Chain Management

The management of the entire flow of goods and services, from raw materials to final delivery to consumers.

Surcharge

An additional charge added to the base freight rate, often for fuel, congestion, or currency adjustments.

T

T.E.U. (Twenty-foot Equivalent Unit)

A standard measure for container cargo capacity, representing a 20-foot-long container.

Tare Weight

The weight of packaging or an empty container, used to determine net cargo weight.

Tariff

A published schedule of rates, charges, and terms for transporting goods, often set by carriers or regulatory bodies.

Terminal

A facility where cargo is loaded, unloaded, or transferred between different transport modes, often located at ports or rail yards.

Through Rate

The total cost of transporting goods from origin to destination, including all segments and modes of transport.

Time Charter

A contract where a ship is hired for a specific period, with the charterer responsible for operating expenses and the shipowner providing the vessel and crew.

Tonnage

A measure of a ship’s cargo-carrying capacity, often used to determine fees and regulations.

Transit Time

The total time taken for goods to travel from origin to destination, including all transport and handling.

Transshipment

The transfer of goods from one vessel or mode of transport to another during their journey to the final destination.

U

U.N. Number

A four-digit code assigned to hazardous substances and articles by the United Nations for international transport and handling.

Unit Load

A group of individual items bundled or packed together for easier handling and transport, often on pallets or in containers.

Unit Train

A train composed of railcars carrying the same type of cargo, often moving from a single origin to a single destination.

V

Vanning

The process of loading cargo into a container, ensuring proper packing and stowage.

Vessel

A ship or large boat used for transporting goods and passengers across water.

Voyage Number

A unique identifier for a ship’s journey, used for tracking and documentation.

W

Warehouse

A facility for storing goods, often equipped with features for handling and managing inventory.

Waybill

A document issued by a carrier detailing the goods being transported, similar to a bill of lading but not a title document.

Wharf

A structure built along a waterfront for docking ships, similar to a pier or quay.

Wharfage

A fee charged for using a wharf to load or unload goods from a vessel.

Y

Yard

An area designated for storing, loading, and unloading containers and cargo, often located near ports or rail terminals.