(1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor. According to the value. When the number of units received is greater than the quantity stated on the export documents. At destination, CFS is the location designated by the carrier for unpacking of cargo from equipment/containers. The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. In the context of international trade, intermodal container is usually synonymous with container. An embargo enforced by a government against another country. More precisely, hazardous materials are defined by the U.S. Department of Transportation in accordance with the Federal Hazardous Material Law. New to using courier services? Usually applied to products in which tramps are substituted for liners. New for old deductions made by an average adjuster from the cost of repairs for general average damage to a ship over 15 years old. The goods are not subject to duties if re-shipped to foreign points. Receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities. 0000003817 00000 n It also administers the USDA’s export credit guarantee and food aid programs, and helps increase income and food availability in developing nations. An enterprise that offers overland service to or from a point of export. Goods are transferred from one ship to another at an intermediate port. Company that performs the functions that would be typically performed by the export department or the international sales department of manufacturers and suppliers. Contract rate ("spot" rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew's wages and food, insurance and repairs. �@F� ���1���#us`G�bP��1F�ːI���,Ɉ��}�����������{�9��9�ޗ ���x� C6�@�"55������X�9��p���U����~��r� ��9��pg?e�J#ԗ��A6�8��w��nU8�*=�x74����J�J��2>p+.B�KUN�8��8�� An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement. The total weight of a shipment of goods, including their packaging such as crates, pallets etc. When freight appears to be free of damage after being assessed it is said to be in apparent good order. B. Incoterms® 2020 Updates to be Published by the ICC. That's why we wanted to create a glossary of shipping terms. Failure to export these items makes the importer liable for the payment of liquidated damages for breach of the bond conditions. Special duty imposed to offset the price effect of dumping that has been determined to be materially harmful to domestic producers. This document will state all specific instructions so the agent can correctly arrange the logistics of the cargo. A large compressed, bound, and often wrapped bundle of a commodity, such as cotton or hay. The carrier whose name is printed on the bill of lading and with whom the contract of carriage exists. The owners of a ship are entitled to payment as freight for merchandise returned through the fault of either the consignees or the consignors. A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment. It should be paid before sailing. Federal Security Bureau (FSB). It is attached to the Victualling Bill by the Customs officer who clears the vessel, and is then known as Outward Clearance. We hope you will find it useful. A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment. A claim is a demand made by a customer to a transportation company for payment in order to compensate for loss or damage of goods. FAK is a shipping classification. The terms and conditions of the contract may well be different to the terms and conditions contained on the shipping company’s B/L, which can in extraordinary circumstances lead to legal complications should a dispute arise. Pricing term that indicates that the charterer of the vessel is responsible for the cost of loading and unloading goods from the vessel. A means by which a manufacturer distributes products from the plant to the ultimate user, including warehouses, brokers, wholesalers, retailers, etc. A document certifying where goods were originally made, often abbreviated as COO. In some cases the supplier may also issue an additional Order Confirmation document. The initial port of entry where a vessel transporting goods first arrives at a country. Means the carriage of goods by at least two different modes of transport, from a place at which the goods are taken in charge situated in one country to a place designated for delivery situated in a different country. These ships are designed with their own derricks for loading and unloading. See FPPI and USPPI. TACT stands for The Air Cargo Tariff. It is issued by the carrier, whether an airline or a freight forwarder, as a non-negotiable document serving as a receipt to the consignor for the goods, and containing the conditions of transport. U.S. government department responsible for promoting domestic economic growth and handling other commerce related responsibilities. Required by all world ports and is the primary source from which import duties are assigned. 0000004003 00000 n International Maritime Dangerous Goods code; the regulations established by the International Maritime Organization (IMO) for the international transport of dangerous goods. Detention is the same as demurrage except that instead of applying to delays in cargo, detention applies to delays in equipment. The issuer will require the holder to give them security by way of a bank guarantee. In the context of travel activities, gateway refers to a major airport or seaport. The international agency of national maritime law associations, authors of the Hague Rules. A situation where there are too many ships generally or in a particular trade for the level of available cargoes. Trade agreement between the U.S., Canada, and Mexico featuring duty-free entry and other benefits for goods that qualify. Some common accessorials include liftgate services, and residential delivery. The transfer of cargo from one carrier to another or from one vehicle to another at an intermediate point during the goods’ journey to the final destination. Currency Adjustment Factor – an adjustment to shipping companies’ freight rates to take into account the effect over time of fluctuations in currency exchange rates. Freight rate which is paid on empty space in the vessel when the charterer is responsible for the freight rate of a full cargo. A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit. 3) Goods change their character to such a degree that they can be said to be no longer the thing insured by the policy. Typically, the shipper is responsible for payment for prepaid shipments, while the consignee is responsible for payment for collect shipments, unless a third party is indicated as the payor on the shipping documents. Simply call us on +44 (0)20 8539 8899 or email [email protected]. A shipper may pay a premium rate in order to obtain exclusive use of a trailer. The value of the carrier's property; the calculation basis has included original cost minus depreciation, replacement cost, and market value. Cargo that is shipped loose as opposed to being shipped in packages or containers. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees. Electronic export information is the data that exporters must report to the Automated Export System (AES) via the Automated Commercial Environment (ACE) online web portal. A machine that wraps a pallet's contents in stretch-wrap to ensure safe shipment. Vessel designed to carry containers only and no other cargo. Request for proposal, request for quotation. Less-than-truckload, less-than-load (LTL). A U.S. Department of Commerce program that certifies international trade events so U.S. companies can know ahead of time if an event is high quality and offers opportunities. Signed statement from the producer or exporter attesting that a product has been commercially sold within the country of origin. 0000008016 00000 n The value of the imported goods on which duties will be assessed. A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. Glossary of Logistics Terms. Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability. It is considered a general term for fans' emotional involvement with the ongoing development of romance in a … Document used when the exporter extends credit to the buyer. A part of the ongoing Export Control Reform is the licence exception Strategic Trade Authorization (STA). Port Of Discharge, Port Of Destination, Proof Of Delivery. A code describing a commodity or a group of commodities pertaining to goods classification. Their assets are blocked, and U.S. persons are generally prohibited from dealing with them. the leveling of bulk cargoes. A narrow portable platform used as a passage, by persons entering or leaving a vessel moored alongside a pier or quay. All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots. Items that fall under the jurisdiction of the EAR but are not found on the Commerce Control List (CCL). The opening on the deck of a ship which gives access to the cargo hold. The cargo-carrying vehicle which may or may not have its own propulsion mechanism for the purpose of transporting goods. One ton equals 100 cubic feet; the total of all the enclosed spaces within a ship expressed in tons each of which is equivalent to 100 cubic feet. Integrate QuickBooks with IncoDocs to Eliminate Data Re-entry when Shipping Internationally. The major shipping point in a local area; carriers consider all points in the local area to be the rate basis point. The compartment below the Main Deck (also synonymous with lower hold and lower lobe). A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk. Certificate of Conformity e.g., C.O.C. The document includes packaging types, quantities, sizes and weights of all packages included inside the shipment. A legally binding agreement between two or more parties. In the context of shipping, malpractice refers to situations in which a carrier illegally gives preference to a customer in order to attract their business. 0000003242 00000 n A revocable letter of credit is inadvisable as it carries many risks for the exporter. Internationally, gateway can also mean the port where customs clearance takes place. Recognized by the world's airlines for almost 60 years, the DGR is the most complete, up-to-date, and user-friendly reference in the industry. Information, links and contact information. The weight of goods not including the weight of their packaging. The United States Munitions List is a list of space- and defense-related products which are controlled by the U.S. Department of State under the International Traffic in Arms Regulations (ITAR). Also called a free trade zone or free port. A person appointed by a shipowner to collect data, guarantees, etc. Multiple shipments from different sellers to a single consignee that are consolidated by the carrier into a single shipment. Also called restricted party screening or trade party screening, denied party screening is the process of screening potential customers, partners or vendors against denied party lists. AES The Automated Export System (AES) is the system used by U.S. exporters to electronically declare their international exportsAir Waybill Air Waybill (AWB) or air consignment note refers to a receipt issued by an international airline for goods and an evidence of the contract of carriage, but it is not a document of title to the goods A warehouse that stores goods on the goods' owner's property while the goods are under a bona fide public warehouse manager's custody. A ton on which the shipment is freighted. Also, note that you can enter your freight terms and shipping abbreviations in the search bar at the top. Effective trade screening not only includes denied parties but also controlled products and embargoed or sanctioned countries. Also called dunnage. A general cargo vessel designed to efficiently handle un-containerised cargo. Ship specialised for container transport. A truck trailer loaded with cargo that can be detached for loading onto a vessel or railcar. 3122 0 obj<>stream Need not always be the buyer, and in some countries will be the buyer’s bank. Government payments or other financially quantifiable benefits provided to domestic producers or exporters contingent on the export of their goods and services. The carrying capacity of a piece of equipment according to measurement in cubic feet. The picking of items from storage for more than one order at a time. The distribution of loss among underwriters. Charges incurred with movements of cargo from vessels, through the ports. Independent business formed cooperatively by two or more parent companies. Standard Carrier Alpha Codes are codes developed by the National Motor Freight Traffic Association which are used to identify inland carriers in the U.S. A measure of operating efficiency based on a comparison between a carrier’s operating expenses and its net sales. These ships generally rely on infrastructure on the wharf to load and unload the containers. A list transmitted to a customer or consignor designating items shipped. A generic certificate of origin may be requested by the customs authority of the country of import, in which case the COO must be stamped by a chamber of commerce. An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention. IncoTerms Explained - The Complete Guide, The Export and Import Shipping Trade Guide. A term used in marine transportation, referring to the time it takes between the arrival of a ship and its departure. Act making it unlawful for persons or companies subject to U.S. jurisdiction to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business. 0000244182 00000 n U.S. government agency that provides grants for feasibility studies in developing countries. A clause providing for the continuation of a hull policy beyond the natural expiry date. Freight rates which include loading/unloading charges, generally with a regular shipping lines. Diversion to other countries or parties without prior authorization is a violation of U.S. law. A non-negotiable document prepared by or on behalf of the carrier at the point of shipment origin. A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods. The space not filled with liquid in a drum or tank. Delivery of merchandise to the buyer or distributor, whereby the latter agrees to sell it and only then pay the U.S. exporter. An insurance provision that covers loss due to war and/or strike. The location designated by carriers for receipt of cargo to be packed into containers/equipment by the carrier. Instead, an NVOCC buys space from carriers and sells this space to shippers. Canada, Mexico, and the United States) to determine if goods imported into their countries receive reduced or eliminated duty. Part knocked down (PKD) i.e. A company that provides logistics services to other companies, such as warehousing and transportation. A document, normally issued by a Chamber of Commerce which is a member of the International Chamber of Commerce (ICC) to enable the holder to temporarily take merchandise into certain countries, as samples or for display purposes, without the need to pay import duty or pay a bond for the duty. The person to whom is given the use of the whole of the carrying capacity of a ship for the transportation of cargo or passengers to a stated port for a specified time. Can also refer to goods being transferred from one method of transport to another. Download PDF. On this page you will find a comprehensive glossary of logistics industry terms and definitions. The relative use that companies make of transportation modes; the statistics include ton-miles, passenger-miles, and revenue. This includes sets of documents such as Bill of Lading, Commercial Invoice, Packing List and any other required documentation. Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain exports designed, for example, to protect domestic producers and consumers from temporary shortages of the goods affected or to bolster their prices in world markets. The right a marine assured has to abandon property in order to establish a constructive total loss. A specific location from where goods will depart for movement. Departure by a ship from the agreed customary route of the voyage, with the intention of returning to that route to complete the voyage. Notification provided by the carrier when a shipment has arrived to the consignee or notify party. Shipping Terms. In the United States the certificate of title for a vehicle or boat(also known as a car title or pink slip; or pinks in the plural) is a legal form, establishing a person or business as the legal owner of a vehicle. The person authorizing the other to act is the principal, grantor, or donor (of the power). A full truckload carrier is a carrier that contracts the entirety of a truck’s carrying capacity to a single customer. This ocean freight term refers to containerized cargo that is equivalent to either one forty foot container or two twenty foot containers. The agency within the U.S. federal government tasked with enforcing laws related to transport of goods by sea. For road transportation, a platform from which trucks are loaded and unloaded. Berth suitable for conventional ships, either employing the ship's own derricks or supplementing with shore-based equipment. Document prepared by the exporter or freight forwarder to provide evidence that insurance against loss or damage has been obtained for the goods. A machine-powered device used to raise and lower freight and to move freight to different warehouse locations. Loading cargo close together to minimize movement of goods while in transit. A container with goods protruding beyond the sides of the container/flat rack onto which they are packed. The amount that a vessel tilts from the vertical, measured in degrees. An Export Management and Compliance Program is required by the U.S. Government to ensure that companies comply with export control policy for dual-use commodities, software, and technology. A B/L covering port-to-port shipment. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. Approval or Certificate of Conformity is granted to a product that meets a minimum set of regulatory, technical and safety requirements. The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter's name. 0000244260 00000 n The act of obtaining permission to import merchandise from another country into the importing nation. designed to be folded down to a small proportion (mostly about one quarter) of its erected volume. An enterprise engaged in the business of transporting goods. They are based on HS codes and used by the U.S. Census Bureau to calculate trade statistics and by U.S. Customs and Border Protection to ensure that exporters are following U.S. export regulations. The seller will send an official Proforma Invoice document to reconfirm the details of the goods to be supplied. A letter of credit requires that payment be made on the basis of the presentation of documents to a lender conveying the title and indicating that specific steps have been taken. Bunker Adjustment Factor – an adjustment to shipping companies’ freight rates to take into account fluctuations in the cost of fuel oil (bunkers) for their ships. The customs entry statement is compared to the carrier’s vessel manifest to ensure the goods are accurately declared. %PDF-1.4 %���� Such expenditure, when properly incurred, is recoverable from the G.A. Freight charges paid by a shipper prior to release of bills of lading by the carrier. The tariff applied for chartering tonnage in a particular trade. The draft states that payment is due by a specific time after the buyer accepts the time draft and receives the goods. When an importer makes entry of articles and claimed to be exempt from duty under Chapter 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, a bond is posted with Customs which guarantees that these items will be exported within a specified time frame (usually within one year from the date of importation). For example, a 40 foot container takes up the space of two TEUs. Glossary of shipping terms Unsure of a shipping term? AES. Drafts that are paid on presentation are called sight drafts. Deadweight, gross, net, displacement; a quantity of cargo normally expressed as a number of tons. An insurable interest that ceases during the transit of goods. A charge levied by the Ocean Carrier over and above the ocean freight rate to cater for fluctuations over a period in actual currency exchange rates as compared to those exchange rates set by the conferences as applying to various sailings. Sources drawn on in developing definitions for this glossary include: Brodie, Peter. Location where cargo leaves the custody of a carrier. Disclaimer This information is disseminated under the sponsorship of the U. S. Department of Transportation in the interest of information exchange. Behind a ship ( when facing forward. ) insured goods lading and with whom the port. Interchange that occurs at the consignee so that they can be driven or towed on a... For compensation like a carrier 's agent airline identification assigned by the transport! Status and creditworthiness compared to the ssupplier with money short term ( up 180! The settlement of claims shipped to a customs declaration provided by the carrier ; no discount rate is available large! 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