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AR

An abbreviation
for an insurance
clause, Against
All Risks.

Abandon

A proceeding
whereby a
shipper or
consignee seeks
permission to
abandon part or
all of their
cargo.

Act
of God

A natural
disaster which
is outside human
intervention,
for example,
lightning,
floods or
earthquakes.

Ad
Valorem

A Latin term
which means
‘according to
value.’

Advice of
Shipment

A notice advising
a buyer that the
shipment has
moved ahead,
containing
details of the
packing, route,
etc. Often
enclosed are
copies of the
invoice and the
bill of lading.

Advising Bank

A bank in the
seller’s
country, which
can handle
letters of
credit from
foreign banks
referred by the
buyer.

Affreightment

A contract that
binds an ocean
carrier to
provide cargo
space to an
importer or
exporter at a
determined time
and price.

Agent (Agt.)

In the logistics
supply chain,
the types of
agents
include:
iBrokers
iiCommission
merchants
iiiResident
buyers
ivSales
agents
vManufacturer’s
representatives

Air
Waybill

The
non-negotiable
Forwarding or
Carrying
Agreement
between the
shipper and the
air carrier.

Alongside

The side of a
ship; goods to
be delivered
‘alongside’
entails that
they are to be
placed along the
dock or barge,
within reach of
the transport
ship’s tackle
for loading.

Ambient
Temperature

The temperature
of the
atmosphere that
surrounds a
body, and
different the
temperature of
the body itself.
The ambient
temperature of a
container, for
example, is the
atmospheric
temperature to
which it is
exposed during
storage or
freight.

AMS

An abbreviation
for Automated
Manifest System,
the
multi-modular
cargo inventory
control system
of the U.S.
Customs.

Anti-Dumping
Duty

A tariff imposed
on the sale of
subsidized
foreign goods.
The tariff
serves to
discourage sale
of foreign goods
at low prices,
which is
detrimental to
domestic
manufacturers.

Average

See insurance.

Arrival Notice

A notification by
the carrier,
informing of the
ship’s arrival
to the
consignee, the
‘Notify Party,’
and – when
applicable – the
‘Also Notify
Party.’ These
parties in
interest are
listed in the
Bill of Lading
in blocks 3, 4
and 10,
respectively.

B/L

An abbreviation
for ‘Bill of
Lading.’

BAF

An abbreviation
for ‘Bunker
Adjustment
Factor.’ This is
a factor used to
calculate the
compensation for
steamship lines
adjusting for
fluctuating fuel
costs. It is
also known as
Bunker Charge,
‘Fuel Adjustment
Factor’ or FAF.

Bank Guarantee

The guarantee
issued by a bank
to a carrier. to
be used in lieu
of the original,
negotiable
bill-of-lading
which has been
lost or
misplaced.

Barratry

An unlawful or
fraudulent act
committed by the
master or
mariners of a
vessel, contrary
to their duty to
the owners and
wherein the
latter sustain
injury.

Base Rate

The base tariff
rate, or the
ocean rate less
accessorial
charges,
chargeable for
the
transportation
of goods.

Beneficiary

– Entity to whom
money is
payable.
–
Entity to whom a
letter of credit
is issued.
–
The seller and
the drawer of a
draft.

Bilateral

A two-way
contract,
affecting and
binding any two
parties.

Bill of Exchange

An order issued
by an individual
or business,
directing the
recipient to pay
money to a third
party at a fixed
future date.

Bill of Lading
(B/L)

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

• Amended
  B/L
  B/L
  requiring
  updates that
  do not
  change
  financial
  status.
  Slightly
  different
  from
  corrected
  B/L
• B/L
  Terms &
  Conditions
  Defines
  what the
  carrier can
  and cannot
  do,
  including
  the
  carrier’s
  liabilities
  and
  contractual
  agreements.
• B/L’s
  Status
  States
  whether the
  Bill of
  Lading has
  been rated,
  reconciled,
  printed, or
  released to
  the
  customer.
• B/L’s
  Type
  Refers
  to the type
  of B/L being
  issued. Some
  examples
  are: Memo
  (ME),
  Original
  (OBL),
  Non-negotiable,
  Corrected
  (CBL) or
  Amended (AM)
  B/L.
• Cancelled
  B/L
  Signifies
  a processed
  B/L that has
  been
  cancelled,
  usually on
  the
  shipper’s
  request.
  Different
  from voided
  B/L.
• Clean
  B/L
  A
  B/L which
  has no
  superimposed
  clause or
  notation
  which
  declares a
  defective
  condition of
  the goods
  and/or the
  packaging.
• Combined
  B/L
  B/L
  that covers
  cargo moving
  over various
  transports.
• Consolidated
  B/L
  B/L
  combined or
  consolidated
  from two or
  more B/L.
• Corrected
  B/L
  Updated
  B/L
  resulting in
  financially-related
  changes.
• Domestic
  B/L
  Non-negotiable
  B/L,
  primarily
  containing
  routing
  details.
  Usually used
  by truckers
  and freight
  forwarders.
• Duplicate
  B/L
  Another
  original
  Bill of
  Lading set
  if first set
  is lost.
  Also known
  as re-issued
  B/L.
• Express
  B/L
  Non-negotiable
  B/L where
  there are no
  hard copies
  of originals
  printed.
• Freight
  B/L
  A
  contract of
  carriage
  between a
  shipper and
  forwarder
  (who is
  usually a
  NVOCC). A
  non-negotiable
  document.
• House
  B/L
  B/L
  issued by a
  freight
  forwarder or
  consolidator
  covering a
  single
  shipment
  containing
  the names,
  addresses
  and specific
  description
  of the goods
  shipped.
• Intermodal
  B/L
  B/L
  covering
  cargo moving
  via
  multi-modal
  means. Also
  known as
  Combined
  Transport
  B/L or
  Multimodal
  B/L.
• Long
  Form
  B/L
  B/L
  form with
  all Terms &
  Conditions
  written on
  it. Most
  B/L’s are
  short forms
  which
  incorporate
  the long
  form clauses
  by
  reference.
• Memo
  B/L
  Unfreighted
  B/L with no
  charges
  listed.
• B/L
  Numbers
  U.S.
  Customs’
  standardized
  B/L
  numbering
  format to
  facilitate
  electronic
  communications
  and to make
  each B/L
  number
  unique.
• Negotiable
  B/L
  A
  negotiable
  B/L is a
  title
  document
  issued to
  the shipper,
  whose
  endorsement
  is required
  to effect a
  negotiation.
  Thus, a
  shipper’s
  negotiable
  B/L can be
  bought,
  sold, or
  traded while
  goods are in
  transit and
  is commonly
  used for
  letter-of-credit
  transactions.
  The buyer
  must submit
  the original
  B/L to the
  carrier in
  order to
  take
  possession
  of the
  goods.
• Non-Negotiable
  B/L
  See
  Straight
  B/L. Also
  referred to
  a as a file
  copy of a
  B/L.
• ‘Onboard’
  B/L
  B/L
  validated at
  the time of
  loading for
  transportation.
  Onboard Air,
  Boxcar,
  Container,
  Rail, Truck
  and Vessel
  are the most
  common
  types.
• Optional
  Discharge
  B/L
  B/L
  covering
  cargo with
  more than
  one
  discharge
  point option
  possibility.
• ‘Order’
  B/L
  See
  Negotiable
  B/L.
• Original
  B/L
  The
  part of the
  B/L that has
  value,
  especially
  when
  negotiable.
• Received
  for
  Shipment
  B/L
  Validated
  when the
  cargo is
  received by
  ocean
  carrier to
  commence
  movement but
  before being
  validated as
  ‘Onboard’.
• Reconciled
  B/L
  B/L
  set which
  has
  completed a
  prescribed
  number of
  edits
  between the
  shipper’s
  instructions
  and the
  actual
  shipment
  received.
  This
  produces a
  very
  accurate
  B/L.
• Short
  Term
  B/L
  A
  form of B/L
  without the
  Terms &
  Conditions
  written on
  it. The
  terms are
  incorporated
  by reference
  to the long
  form B/L.
• Split
  B/L
  One
  of two or
  more B/L’s
  which have
  been split
  from a
  single B/L.
• Stale
  B/L
  A
  B/L which
  has passed
  the time
  deadline of
  the L/C and
  is void
• Straight
  (Consignment)
  B/L
  Indicates
  the shipper
  will deliver
  the goods to
  the
  consignee.
  It does not
  convey title
  (non-negotiable).
  Most often
  used when
  the goods
  have been
  pre-paid.
• To
  Order
  B/L
  See
  Negotiable
  B/L.
• Unique
  B/L
  Identifier
  U.S.
  Customs’
  standardization:
  four-alpha
  code unique
  to each
  carrier
  placed in
  front of
  nine digit
  B/L number;
  APL’s unique
  B/L
  Identifier
  is ‘APLU’;
  Sea-land
  uses ‘SEAU’.
  These
  prefixes are
  also used as
  the
  container
  identification.
• Voided
  B/L
  Related
  to
  Consolidated
  B/L. The
  B/Ls’
  absorbed in
  the
  combining
  process.
  Different
  from
  Cancelled
  B/L.

Bill of Sale

A confirmation of
the transfer of
ownership of
certain goods
from one person
to another
person, for a
specified amount
of money.

Blocking or
Bracing

Wood or metal
supports
(Dunnage) that
serve to keep
cargo shipments
in place.

Board

To gain access to
a vessel.

Bonded Freight

Freight
transported
under a bond,
which can only
be delivered
once the stated
conditions of
the bond are
met.

Bonded Warehouse

An authorised
warehouse by
Customs
authorities for
storing goods,
where payment of
duties can be
deferred.

Break Bulk

The process of
unloading and
distributing a
part or all of
the contents of
a rail car,
container, or
trailer, loose,
non-containerised
cargo.

Loose,
non-containerized
cargo.

Bulk Cargo

Cargo that is
shipped loose in
the hold of a
ship, without
any marks or
count. Grain,
coal and sulphur
are examples of
cargo that
usually fall
under this
category.

Bulk-Freight
Container

A container that
allows bulk
commodities to
be carried, with
a discharge
hatch inbuilt
into the front
wall.

Bunker Charge

See BAF.

Bunkers

A maritime term
used to refer to
the fuel used
aboard the ship.

Bridge
Point/Bridge
Port

The port where
the cargo is
unloaded by the
ocean carrier,
and moved to
another vessel.

Cabotage

A term used for
water
transportation
between ports of
a nation, and
often referring
to coast-wise
navigation or
trade.

CAF

An abbreviation
referring to the
‘Currency
Adjustment
Factor,’ a
charge that is
expressed as a
percentage of
the base rate
and applied to
compensate ocean
carriers against
currency
fluctuations.

Carnet

– A Customs
document
permitting the
holder to
temporarily send
goods to
specified
foreign
countries,
without paying
duties or
posting bonds
for these goods.

– Any of various
Customs
documents
required while
crossing certain
international
borders.

Cargo Manifest

A manifest that
lists the
details of all
the cargo
carried on a
specific
carrier.

Carrier

A person or
organisation in
a contract of
carriage who
undertakes to
procure the
performance of
carriage by
rail, road, sea,
air, inland
waterway or by a
combination of
these modes.

Carrier’s
Certificate

A certificate
required by
Customs to
release cargo to
the correct
party.

Cartage

A term that
refers to inland
hauling by drays
or trucks.

Cash Against
Documents (CAD)

A method of
payment wherein
the documents
transferring
title of goods
are given to the
buyer, upon
receipt of cash
to an
intermediary
acting for the
seller, usually
a commission
house.

Certificate of
Origin

A certified
document showing
the origin of
goods, used for
international
commerce.

CFS

An abbreviation
for ‘Container
Freight
Station’; a
shipping dock or
storage area,
where cargo is
loaded to or
unloaded from
containers.

Claim

A demand made for
payment to
compensate a
loss sustained
through alleged
negligence in
transportation.

Clean Bill of
Lading

A receipt for
goods issued by
a carrier with
an indication
that the goods
were received in
good order and
condition,
without damage
or other
irregularities.
If no notation
or exception is
made, the B/L is
assumed to be
‘clean’.

COGSA

The Carriage of
Goods by Sea Act
(COGSA) is an
act that
standardizes the
carrier’s
liability
through the Bill
of Lading.

Commercial
Invoice

A complete record
of the
transaction
between exporter
and importer
with regard to
the goods sold.
It reports the
content of the
shipment, and
serves as the
basis for all
other documents
about the
shipment.

Commodity

The article to be
shipped. For
dangerous and
hazardous cargo,
correct
commodity
identification
is critical.

Common Carrier

A transportation
company which
provides service
at fixed rates
to the general
public.

Common Law

The type of law
based on
precedent,
custom and usage
rather than
statutes,
particularly the
laws of India,
England and the
United States.

Conference

An association of
ship owners
operating under
collective
conditions and
agreed tariff
rates in the
same trade
route.

Confirmed Letter
of Credit

Confirmation of
the validity by
a domestic bank
of a letter of
credit issued by
a foreign bank.
A domestic
seller with a
confirmed letter
of credit is
assured of
payment, even if
the foreign
buyer or the
foreign bank
defaults.

Confirming Bank

The bank that
adds its
confirmation to
the issuing
bank’s letter of
credit, and
promises to pay
the beneficiary
upon
presentation of
specified
documents.

Consignee

A person or
organisation to
whom the cargo
is sent.

Consignment

(1) A stock of
merchandise
advanced to a
dealer and
located at his
place of
business, but
with title
remaining in the
source of
supply.

(2) A shipment of
goods to a
consignee.

Consignor

A person or
company shown on
the Bill of
Lading as the
shipper.

Consolidation

Cargo containing
shipments of two
or more shippers
or suppliers.
Container-load
shipments may be
consolidated for
one or more
consignees.

Consolidator

An individual or
company
performing a
consolidation
service for
others, wherein
the consolidator
takes advantage
of lower full
cargo load (FCL)
rates, and
passes these
savings on to
its customers.

Container

The receptacle
used for
transporting
cargo, inland or
by air and sea.

Container
Freight Station

See CFS.

Container
Manifest

A document
listing all the
contents, and
specifying the
loading and
unloading
sequence of a
container.

Contract

A legally binding
agreement
between two or
more persons or
organizations,
where they are
obliged to carry
out reciprocal
value actions.

Correspondent
Bank

A domestic bank
that handles the
business of a
foreign bank.

Cubic Foot

A unit for
measuring
volume; the
basic unit being
the space
contained by one
foot of height,
width and
length.

Customs

A government
agency that
enforces the
rules for its
country’s import
and export laws.

Customs Bonded
Warehouse

See Bonded
Warehouse.

Customs Entry

The process
whereby a
declaration is
made by the
importer on
incoming foreign
goods, and
entails a duty
paid by the
importer on the
merchandise.

Customs Invoice

A form requiring
all data in a
commercial
invoice along
with a
certificate of
value and/or a
certificate of
origin. Required
in a few
countries, it
serves as a
seller’s
commercial
invoice.

Demurrage

A penalty charge
against shippers
or consignees
when the cargo
is delayed
beyond the
allowed period.
The charge is
set forth in the
charter party or
freight tariff.

See also,
Detention and
Per Diem.

Density

The weight of
cargo per cubic
foot or measured
by any other
unit.

Detention

A penalty charge
against shippers
or consignees
for delaying
carrier’s
equipment beyond
allowed time.
Demurrage
applies to
cargo; detention
applies to
equipment. See
Per Diem.

Devanning

The process of
unloading a
container, or
cargo van.

Discrepancy
Letter of Credit

When documents
presented do not
conform to the
requirements of
the letter of
credit (L/C), it
is referred to
as a
‘discrepancy’.
Banks will not
process L/C’s
which have
discrepancies.
They will refer
the situation
back to the
buyer and/or
seller and await
further
instructions.

Dock Receipt

A form used to
acknowledge
receipt of cargo
and often serves
as basis for
preparation of
the ocean Bill
of Lading.

Documents
Against
Acceptance (D/A)

The instructions
given by a
shipper to a
bank, stating
that the
title-transfer
documents of the
goods should be
delivered to the
buyer upon the
buyer’s
acceptance of
the draft
attached.

Documents
Against Payment
(D/P)

An indication on
a draft that, on
payment, the
documents
attached can be
released to the
drawee.

Door-to-Door

Through
transportation
of a container
and its contents
from consignor
to consignee.
Also known as
House-to-House.
Not necessarily
a through rate.

Draft, Bank

An order issued
by a seller
against a
purchaser which
directs payment
through an
intermediary
bank. Typical
bank drafts are
negotiable
instruments and
are similar in
many ways to
checks on
checking
accounts in a
bank.

Draft, Clean

A draft without
any documents
attached.

Draft, Date

A draft that
regardless of
the time of
acceptance,
matures on a
fixed date.

Draft,
Discounted

A discounted time
draft under a
letter of credit
that has been
accepted by a
bank.

Draft, Sight

A draft payable
on demand, i.e.
upon its
presentation to
the bank.

Draft, Time

A draft that
matures at a
fixed time
period after its
presentation or
acceptance.

Drawback

A partial refund
of an import fee
resulting from
re-export of the
same goods from
the country, or
other causes.

Drawee

The individual or
organisation
that issues a
draft to the
buyer, and thus
stands to
receive payment.

Drayage

Charge made for
inward haulage
by dray or
truck. Same as
Cartage.

EDI

Abbreviation for
‘Electronic Data
Interface’; a
generic term
used for
transmission of
data between two
or more computer
systems.

Entry

The customs
documents
required to
clear an import
shipment for
entry into a
country.

Ex
– From

When used in
pricing terms,
it signifies
that the price
quoted applies
only at the
point of origin.
E.g.
‘Ex-Factory’ or
‘Ex-Dock.’

Exception

Notations on the
bill of lading
that show any
irregularities
in packaging, or
damage to the
cargo made when
the cargo is
received at the
carrier’s
terminal or
loaded aboard a
vessel.

Expiry Date

Issued with
reference to
documents with a
time period such
as letters of
credit, tariffs
etc. to advise
that stated
provisions will
expire after a
certain lapse of
time.

Export
Declaration

A government
document to be
completed by the
exporter and
filed with the
government,
declaring the
designated goods
to be shipped
out of the
country.

Export License

A government
document
permitting the
holder of the
license to
engage in the
export of
designated goods
to certain
destinations.

FCL

Abbreviation for
‘Full Container
Load’. Indicates
that the maximum
capacity load
has been
achieved.

Feeder Service

A service whereby
cargo to and
from regional
ports are
transferred to a
central hub port
for a long-haul
ocean voyage.

Feeder Vessel

A short-sea
vessel which
transfers cargo
between a
central ‘hub’
port and smaller
‘spoke’ ports.

FEU

Abbreviation for
‘Forty-Foot
Equivalent
Units.’ A unit
for measuring
the container
size standard of
forty feet. Two
twenty-foot
containers or
TEU’s equal one
FEU.

Force Majeure

A common clause
in contracts
that exempts the
parties from
non-fulfilment
of their
obligations as a
result of
conditions
beyond their
control, such as
earthquakes,
floods or war.

Foul Bill of
Lading

A receipt issued
by a carrier
indicating that
the goods were
damaged when
received. See
also: Clean Bill
of Lading.

Free Astray

A lost shipment
that is located
and sent to its
actual
destination
without
incurring any
additional
charges.

Free Time

The amount of
time that a
carrier’s
equipment may be
used without
incurring
additional
charges. (See
Storage,
Demurrage or Per
Diem.)

Freight Bill

An invoice issued
by the carrier
based on the
Bill of Lading
and other
information.
Used to account
for a shipment
operationally,
statistically,
and financially.

Freight
Forwarder

A person who acts
as an agent on
behalf of the
shipper, and who
often makes the
booking
reservation.

Gateway

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

GRI

Abbreviation for
‘General Rate
Increase.’ An
across-the-board
tariff rate
increase,
implemented by
conference
members and
applied to base
rates.

Groupage

A consolidation
service that
puts small
shipments into
FCL containers
for shipment.

Harmonised
System of Codes
(HS)

Developed by the
Brussels-based
Customs
Co-operations
Council (CCC),
an international
goods
classification
system for
describing cargo
in international
trade under a
single
commodity-coding
scheme.

House-to-House

See Door-to-Door.

House-to-Pier

Cargo loaded into
a container by
the shipper
under shipper’s
supervision.
When the cargo
is exported, it
is unloaded at
the foreign pier
destination.

ICC

Abbreviation for
International
Chamber of
Commerce.

I.M.C.O.

Abbreviation for
‘International
Maritime
Consultative
Organization’. A
forum made up of
major maritime
nations, where
recommendations
for the carriage
of dangerous
goods, bulk
commodities and
maritime
regulations
become
internationally
acceptable.

I.M.D.G. Code

Abbreviation for
‘International
Maritime
Dangerous Goods
Code’. The
regulations
published by the
IMCO for
transporting
hazardous
materials
internationally.

Import

To receive goods
from a foreign
country.

Import License

A government
document
authorizing the
importation of
goods.

In
Bond

Cargo moving
under Customs
control, on
which duty has
not yet been
paid.

Indemnity Bond

An agreement that
holds a carrier
harmless with
regards to a
liability.

Inherent Vice

An insurance term
that refers to
any defect or
cause of damage
inherent in the
product without
external cause
(for example,
instability in a
chemical that
could cause it
to explode
spontaneously).
Insurance
policies may
exclude inherent
vice losses.

Inspection
Certificate

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

Insurance with
Average-clause

In marine
insurance, the
word average
describes
partial damage
or partial loss;
this clause
covers
merchandise if
the damage
amounts to 3% or
more of the
insured value of
the package or
cargo.

Insurance,
All-risk

The broadest
insurance
coverage
available to the
shipper,
covering against
all losses
incurred during
transit.

Insurance,
General-Average

In ocean freight,
the deliberate
sacrifice of
part of the
cargo to make
the vessel safe
for the
remaining cargo.
The loss is
covered by those
sharing in the
spared cargo
proportionately.

Insurance,
Particular
Average

A marine
insurance term
to refer to
partial loss on
an individual
shipment from
one of the
perils insured
against,
regardless of
the balance of
the cargo.
Particular
average
insurance can
usually be
obtained, but
the loss must be
in excess of a
certain
percentage of
the insured
value of the
shipment,
usually three to
five percent,
before a claim
will be allowed
by the company.

Intermodal

Denotes movement
of cargo
containers
across various
transport modes,
for example,
motor, water,
and air
carriers.

Irrevocable
Letter of Credit

A letter of
credit wherein
all terms and
conditions being
met by the
drawee, the
specified
payment is
guaranteed by
the bank. It
cannot be
revoked without
joint agreement
of both the
buyer and the
seller.

Issuing Bank

A bank that opens
a straight or
negotiable
letter of
credit, and
assumes the
obligation to
pay the
beneficiary if
the documents
presented are in
accordance with
the terms of the
letter of
credit.

Issuing Carrier

The carrier
issuing
transportation
documents or
publishing a
tariff.

Known
Loss

A loss discovered
any time at or
before the
delivery of a
shipment.

Landbridge

Movement of cargo
by water from
one country
through the port
of another
country and then
using rail or
truck to an
inland point in
that country or
to a third
country. An
example is the
through movement
of Asian cargo
to Europe across
North America.

Landed Cost

The total cost of
goods to a
buyer, including
the cost of
transportation.

Landing
Certificate

Certificate
issued at the
point or place
of export, when
the subject
goods are
exported under
bond, by
consular
officials of
some importing
countries.

LCL

Abbreviation for
‘Less than
Container Load’.
The quantity of
freight which is
less than that
required for the
application of a
container load
rate. Loose
Freight.

Less-than-Truckload

Less-than-Truckload
is a service
offered by
freight
companies for
businesses that
only need a
small shipment
of goods
delivered.

Letter of Credit
(LC)

A document,
issued by a bank
on the
instructions of
a buyer of
goods,
authorizing the
seller to draw a
specified sum of
money under
specified terms.
Some of the
specific
descriptions
are:

• Back-to-Back
  A
  new letter
  of credit
  issued to
  another
  beneficiary
  on the
  strength of
  a primary
  credit. The
  second LC
  uses the
  first LC as
  collateral
  for the
  bank. Used
  in a
  three-party
  transaction.
• Clean
  A
  letter of
  credit that
  requires the
  beneficiary
  to present
  only a draft
  or a receipt
  for
  specified
  funds before
  receiving
  payment.
• Confirmed
  An
  LC
  guaranteed
  by both the
  issuing and
  advising
  banks of
  payment so
  long as
  seller’s
  documents
  are in
  order, and
  the LC terms
  are met.
  Only applied
  to
  irrevocable
  LCs’. The
  confirming
  bank assumes
  the credit
  risk of the
  issuing
  bank.
• Deferred
  Payment
  A
  letter of
  credit
  issued for
  the purchase
  and
  financing of
  merchandise,
  similar to
  acceptance-type
  letter of
  credit,
  except that
  it requires
  presentation
  of sight
  drafts
  payable on
  an
  instalment
  basis.
• Irrevocable
  An
  instrument
  that cannot
  be modified
  or cancelled
  without the
  agreement of
  all parties
  concerned.
• Non-cumulative
  A
  revolving
  letter of
  credit that
  prohibits
  the amount
  not used
  during the
  specific
  period from
  being
  available
  afterwards.
• Restricted
  A
  condition
  within the
  letter of
  credit which
  restricts
  its
  negotiation
  to a named
  bank.
• Revocable
  An
  instrument
  that can be
  modified or
  cancelled at
  any moment
  without
  notice to an
  agreement of
  the
  beneficiary.
  Rarely used
  since there
  is no
  protection
  for the
  seller.
• Revolving
  An
  irrevocable
  letter
  issued for a
  specific
  amount.
  Renews
  itself for
  the same
  amount over
  a given
  period.
• Straight
  A
  letter of
  credit that
  contains a
  limited
  engagement
  clause which
  states that
  the issuing
  bank
  promises to
  pay the
  beneficiary
  upon
  presentation
  of the
  required
  documents at
  its counters
  or the
  counters of
  the named
  bank.
• Transferable
  A
  letter of
  credit that
  allows the
  beneficiary
  to transfer
  in whole or
  in part to
  another
  beneficiary
  any amount
  which, in
  aggregate,
  of such
  transfers
  does not
  exceed the
  amount of
  the credit.
  Used by
  middlemen.
• Unconfirmed
  A
  letter of
  credit
  forwarded to
  the
  beneficiary
  by the
  advising
  bank without
  engagement
  on the part
  of the
  advising
  bank.

Letter of
Indemnity

In order to
obtain the clean
Bill of Lading,
the shipper
signs a Letter
of Indemnity,
although the
dock or mate’s
receipt showed
that the
shipment was
damaged or in
bad condition.

Licenses

* Some
governments
require certain
commodities to
be licensed
prior to
exportation or
importation.
Clauses
attesting to
compliance are
often required
on the B/L.

* Various types
issued for
export (general,
validated) and
import as
mandated by
government(s).

Lien

A legal claim
upon goods in
the hands of
another party
for the
satisfaction of
some debt or
duty.

Marine
Insurance

Insurance
covering loss or
damage of goods
at sea, which
typically
compensates the
owner of goods
for losses
sustained from
fire, shipwreck,
etc., but
excludes losses
that can be
recovered from
the carrier.

Mini Landbridge

An intermodal
system for
transporting
containers by
ocean and then
inland to a port
that previously
served as an all
water route
(e.g., Hong Kong
to New York over
Seattle).

Minimum Charge

The lowest charge
that can be
assessed to
transport a
shipment.

Multimodal

Synonymous for
all practical
purposes with
‘Intermodal’.

Non-Vessel
Operating Common
Carrier (NVOCC)

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

Ocean
Bill of Lading
(Ocean B/L)

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

On
Board

A notation on a
Bill of Lading
that cargo has
been loaded on
board a vessel.
Used to satisfy
the requirements
of a Letter of
Credit, in the
absence of an
express
requirement to
the contrary.

On
Deck

A notation on a
Bill of Lading
that the cargo
has been stowed
on the open deck
of the ship.

Open Insurance
Policy

A marine
insurance policy
that applies to
all shipments
over a period of
time rather than
to one shipment
only.

Open Top
Container

A container
fitted with a
removable roof,
so the container
can be loaded or
unloaded from
the top.

Order-Notify
(O/N)

A term used for
the surrender of
the original
Bill of Lading
before freight
is released.
Usually
associated with
a shipment
covered under a
letter of
credit.

Original Bill of
Lading (OBL)

A document which
requires proper
signatures for
consummating
carriage of
contract. Must
be marked as
‘original’ by
the issuing
carrier.

Overheight Cargo

Cargo that cannot
fit into a
standard
container, i.e.
more than eight
feet high.

Perils
of the Sea

Those natural
causes of loss
for which the
carrier is not
legally liable.

Pier-to-House

A shipment loaded
into a container
at the pier or
terminal, then
to the
consignee’s
facility.

Pier-to-Pier

Containers that
are loaded at
the port of
loading, and
discharged at
port of
destination. See
door-to-door.

Place of
Delivery

The place where
the cargo leaves
the care and
custody of the
carrier.

Place of Receipt

The location
where the cargo
enters the care
and custody of
carrier.

POD

Abbreviation
for
Port of
Discharge.
Port
of
Destination.
Proof
of
Delivery.
A
document
required from
the carrier or
driver for
proper payment.

Point of Origin

The place where
the shipment is
received by the
carrier.

POL

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

Pomerene Act

Also known as
Federal Bill of
Lading Act of
1916. U.S.
federal law
enacting
conditions by
which a B/L may
be issued.
Penalties for
issuing B/L’s
containing false
data include
monetary fines
and/or
imprisonment.

Port of
Discharge

The port where
the cargo is
discharged from
the carrier.

Port of Entry

The port where
the cargo is
unloaded and
enters a
country.

Port of Exit

The port where
cargo is loaded
and leaves the
country.

Prepaid (Ppd.)

Freight charges
paid by the
consignor
(shipper) prior
to the release
of the Bills of
Lading by the
carrier.

Pro
Forma

A Latin term
meaning ‘for the
sake of form.’

Pro
Forma Invoice

An invoice
provided by a
supplier prior
to the shipment
of merchandise,
informing the
buyer of details
of goods to be
sent, their
value, and
specifications.

Pro
Rata

A Latin term
meaning ‘in
proportion.’

Re-consignment

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

Reefer

Refrigerated
container.

Ro/Ro

A common use of
the term,’Roll
On/Roll Off.’ A
method of
loading ocean
cargo, using a
vessel with
ramps which
allows cargo to
be loaded and
discharged
without the use
of cranes.

Roll

To re-book cargo
to a later
vessel.

Schedule
B

The statistical
classification
of domestic and
foreign
commodities
exported from
the United
States.

Sea
Waybill

The document
indicating a
document of
title (b/L) was
not needed the
goods when were
loaded on-board.

Shipper

The person or
company who is
usually the
supplier or
owner of
commodities
shipped.

Shipper’s Load &
Count (SL&C)

Shipments that
are loaded and
sealed by
shippers without
being checked or
verified by the
carriers.

Sight Draft

A draft payable
upon
presentation to
the drawee.

SL/W

Shippers’ load
and count. All
three clauses
are used as
needed on the
Bill of Lading
to exclude the
carrier from
liability when
the cargo is
loaded by the
shipper.

Statute of
Limitation

A law that limits
the time in
which claims or
suits may be
instituted.

STC

An abbreviation
for ‘Said to
contain’.

Supply Chain

A logistical
management
system which
integrates the
sequence of
activities from
delivery of raw
materials to the
manufacturer
through to
delivery of the
finished product
to the customer
into measurable
components.

Surcharge

An extra or
additional
charge.

Terminal
Charge

A charge made for
a service
performed in a
carrier’s
terminal area.

TEU

Abbreviation for
Twenty Foot
Equivalent Unit.
See FEU.

TIR

Abbreviation for
Transport
International
par la Route, an
agreement among
European
governments and
the United
States for the
international
movement of
cargo by road.

Tranship

To transfer goods
from one
transportation
line to another,
or from one ship
to another.

UCP

Abbreviation for
the Uniform
Customs and
Practice for
Documentary
Credits,
published by the
International
Chamber of
Commerce. This
is the most
frequently used
standard for
making payments
in international
trade.

UN/EDIFACT

United Nations
EDI for
Administration,
Commerce and
Transport. EDI
Standards are
developed and
supported by the
UN for
electronic
message
interchange on
an international
level.

Uniform Customs
and Practices
for Documentary
Credits (UCP)

The rules for
letters of
credit drawn up
by the
Commission on
Banking
Technique and
Practices of the
International
Chamber of
Commerce in
consultation
with the banking
associations of
many countries.
See Terms of
Payment.

War
Risk

Insurance
coverage for
loss of goods
resulting from
any act of war.

Waybill (WB)

A document
prepared by a
transportation
line at the
point of a
shipment. Shows
the point of the
origin,
destination,
route,
consignor,
consignee,
description of
shipment and
amount charged
for the
transportation
service.

Without Recourse

A phrase
preceding the
signature of a
drawer or
endorser of a
negotiable
instrument;
signifies that
the instrument
is passed onto
subsequent
holders without
any liability to
the endorser in
the event of
non-payment or
non-delivery.

W.M. (W/M)

Abbreviation for
‘Weight or
Measurement’,
the basis for
assessing
freight charges.
Also known as
‘worm’.

Zulu
Time

Time based on
Greenwich Mean
Time.

Logistics
Terminology

Incoterms
2020

Container
Dimensions