Shipping Terminology Certificate

Transcription

1 Shipping Terminology Certificate Course Manual ~ ~ Copyright ~ Shipping Terminology ~ 1

2 Shipping Terminology Certificate Index Part One A to H Part Two I to Z Part One Introduction This course will cover Global Maritime Shipping Terminology with a particular focus on Containerisation and the Liner Industry. ~ ~ Copyright ~ Shipping Terminology ~ 2

3 Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship. Land or "ground" shipping can be by train or by truck. In air and sea shipments, ground transportation is required to take the cargo from its place of origin to the airport or seaport and then to its destination because it is not always possible to establish a production facility near ports due to limited coastlines of countries. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea especially in developing countries like India, where Inland infrastructure is not efficient. Shipment of cargo by trucks, directly from the shipper's place to the destination, is known as a door to door shipment and more commonly multimodal transport system. Trucks and trains make deliveries to sea ports and air ports where cargo is moved in bulk. Most shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to as its merchant navy or merchant marine. Merchant shipping is lifeblood to the world economy, carrying 90% of international trade with +- 90,000 commercial ships worldwide. The term shipping in this context originated from the shipping trade of wind power ships, and has come to refer to the delivery of cargo and parcels of any size above the common mail of letters and postcards. ~ ~ Copyright ~ Shipping Terminology ~ 3

4 Glossary of Industry Terms Acceptance of goods: The process of receiving a consignment from a Shipper, usually against the issue of a receipt (Bill of Lading), when the Carrier s responsibility for the consignment begins. Act of God: Accidents beyond human control such as floods, earthquakes, lightening or hurricanes usually referred to as force majeure. Add-on: Additional charges. Ad Valorem: According to the value. For example, an import duty rate of 10% ad valorem means 10% of the value of the goods. Aft: The rear of a vessel. Agent / Agency: An organisation working on behalf of a principle. Company whom represents/acts on behalf of another entity. Agency Fee: Fee payable by a shipowner or ship operator to an agent. AI or All-in: All Inclusive. All-water: Service rendered by Carriers on a port-to-port basis, cargo moving via ocean Carrier only. AMS: Automated Manifest System. American Bureau of Shipping (ABS): American classification society. Amidships: The middle of a vessel. Anti-Rebating Certificate: Document signed by shipping companies and filed with the Federal Maritime Commission and in ocean tariffs attesting that rebates are not allowed and will not be paid by such company. Applicant: The buyer who has requested his bank to arrange an L/C on his behalf. In some countries where the buyer may have trouble arranging an import license, the applicant may be a third party acting on behalf of the buyer. ~ ~ Copyright ~ Shipping Terminology ~ 4

5 Arrival Notice (ANF/AN): An advice that the carrier or forwarder sends to the consignee advising of goods coming forward for delivery. Pertinent information such as bill of lading number, container number and total charges due from consignee etc, are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier or forwarder to ensure smooth delivery but there is no obligation by the carrier or the forwarder to do so. The responsibility to monitor the transit and present himself to take timely delivery still rests with the consignee. Artificial Tween Deck (ATD): Forty-foot long, eight foot wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo. As Freighted: All cargoes freighted on same unit, W/M (weight/measurement). Asset-Based, Third Party Provider: A third-party provider that owns transportation and /or warehouse assets. Assignment: An act which involves transfer of rights, title, and interest for the purpose of assigning goods by endorsing of the bill of lading. Athwartships: Across the vessel, from side to side. Average: Marine insurance term for losses or damages to or in respect of goods or equipment. Average Adjusters: In general average matters average adjusters are entrusted with the task of apportioning the loss and expenditure carried by interested parties in a maritime venture and to determine which expenses are to be regarded as average or general average. Axle Load: Maximum load permitted to be carried on each axle of a motor vehicle. Back Haul: The return leg of a round trip. BAF: 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. Ballast: Materials, usually water, carried as ballast in tanks improves the trim and the stability of the vessel. ~ ~ Copyright ~ Shipping Terminology ~ 5

6 Banding: Securing of cargo on a pallet generally by a steel/metal stripping. Bank Guarantee: A document issued by a bank acting as a guarantor for their customer. The bank's guarantee is accepted because of their status and creditworthiness compared to that of their customer. Often used in conjunction with major projects, in the form of Bid Bonds, Performance Bonds and Warranty Bonds, commonly for 10% of the contract value, all of which provide the buyer with a measure of comfort should the seller not fulfil his obligations at various stages of the contract. Bare Boat Charter: A charter whereby the Charterer leases the ship and provides the master and crew himself. Barge (Lighter): Flat bottomed vessel for a.o. canals and rivers with or without own propulsion for the purpose of transporting goods. Base Port: Ports from which standard tariff rates applies to those normally serviced directly by members. Base Rate: Rate used only for construction of other rates. Bay: A vertical division of a vessel, partly indicating the stowage of containers. Bay Plan (B/P): Section by section plan of a vessel indicating where cargo is stowed. B/B: Breakbulk. BCO: Beneficial Cargo Owner, refers to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods. Beneficiary: The seller in whose favour an L/C is issued, ie the person who will "benefit" from the L/C. (See also Letter of Credit). Benchmarking: The measurement, comparison, and exchange of standards in the business process(es). Berth: The place beside a pier, quay or wharf where a vessel can be loaded or unloaded. Best Practice: Also known as competitive benchmarking, the methodology that determines state-of-industry performance or application. Bilateral Transport Agreement: Agreement between two nations pertaining to transport. Bill of Exchange: An unconditional order in writing, issued by the seller (drawer) instructing the buyer (drawee) to pay the seller's bank (payee) a specified amount (normally the full invoice value) on demand (at sight) or at a fixed or determinable future time. A suitable form can be obtained from the seller's bank, or drawn up on a blank sheet of paper. ~ ~ Copyright ~ Shipping Terminology ~ 6

7 Bill of Lading (B/L): The document which covers transport by sea. Signed by the carrier, whether a shipping line or a freight forwarder, it serves as: 1. A receipt to the consignor for the goods, 2. As evidence of the contract of transport containing the conditions of transport, 3. And as a document of title by which possession of the goods can be transferred. Typically a bill of lading (B/L) is issued in a set of three signed originals or negotiables, one of which must be presented to claim the goods upon which the others become void. - Combined Transport / Multimodal bill of lading (B/L), A B/L covering transport by shipping container from an inland place prior to the loading port, to an inland place beyond the destination port. Most freight forwarders and shipping companies title their B/Ls as "Bill of Lading for Combined Transport or Port-to-Port shipment" or similar. - Congen Bill of Lading (B/L), A standard form of bill of lading used in shipments by chartered ship. - Clean Bill of Lading (B/L), A bill of lading indicating that the goods were received by the carrier in good order and condition, without any clauses declaring a defective condition in the goods and/or their packing. - Dirty/Foul/ Claused Bill of Lading (B/L), A bill of lading with any clauses declaring a defective condition in the goods and/or their packing. Almost invariably not acceptable to banks for presentation under L/Cs and almost always not acceptable to the buyer. (See also Clean Bill of Lading). - House Bill of Lading (B/L), A bill of lading issued by a freight forwarder acting as a carrier. 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. - Master Bill of Lading (B/L), The term used for the B/L issued by a shipping company to a freight forwarder for all of the goods covered by one or more House B/Ls on the one ship going from one loading port to one destination port. - Ocean Bill of Lading (B/L), A B/L covering port-to-port shipment. Typically banks continue to use this term on L/Cs even though the majority of international shipments are containerised (See also Multimodal B/L). - On Board/ Shipped On Board Bill of Lading (B/L), A B/L evidencing that the goods were not only received by the carrier but were actually loaded on board in good order and condition. "Shipped" indicates that not only were the goods on board, but that the ship has departed the port. - Order Bill of Lading (B/L), A negotiable B/L, in which the goods are consigned "to order of" a particular party, often the shipper in which case the consignee is mostly shown simply as "to order". - Straight Bill of Lading (B/L), A non-negotiable B/L in which the goods are consigned directly to a named consignee. ~ ~ Copyright ~ Shipping Terminology ~ 7

8 Bill of Lading Clause: A particular article of a Bill of Lading. A clause can be standard and is usually pre-printed on the B/L. Bill of Lading Number: Carrier s unique reference number assigned to a Bill of Lading. Block Train: Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. This eliminates the need to break up a train and sort individual railcars at each junction. Bollard: Pole, fixed to a quay or a vessel, for securing mooring lines. Bolster: Bracing of a commodity in a container. Flatrack container without ends. Bona fide: In good faith; true. Bonded: The storage of import goods under charge of customs viz. Customs seal until the import duties are paid or until the goods are re-exported. Bonded Carrier: A carrier licensed by Customs to carry Customs-controlled merchandise between Customs points. Old Dominion is a bonded carrier. Bonded Warehouse: A warehouse authorised by Customs for storage of goods on which payment of duties is deferred until the goods are removed. Booking: Arrangement with a steamship company for the acceptance and cartage of freight. Booking Number: A reference number for bookings registered with a carrier. It should be unique without duplication for a three-year period. Bow: The front of a vessel. Box: Colloquial term for a shipping container. Box Rate: A lump sum charge to move cargo in containers from origin to destination. Boycott Certificate: Required by certain countries restricting carriage to certain flag vessels. Break Bulk Cargo (Conventional Cargo, B/B): Non-containerised cargo. Goods shipped loose in the vessel hold and not in a container. Roll on/roll off cargo. Breakbulk Vessel: Conventional carriers designed to carry containers and noncontainerised cargo, vessel with hatches built to accommodate various commodities. Broker: Person who serves as an agent or intermediary in negotiating contracts. Brokerage: Fee paid to forwarder by the Carrier for services performed. BSR: Basic Service Rate. ~ ~ Copyright ~ Shipping Terminology ~ 8

9 Bulk Cargo: Unpacked homogeneous cargo poured loose in a vessel s hold or a container eg oil and grain. Bulk Carriers: A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count. Bulk Containers: Containers designed for the carriage of dry cargoes in bulk, which are loaded through hatchways in the roof of the container and discharged through hatchways at one end of the container. Bulkhead: Vertical partition dividing compartments on board a vessel. Bull Rings: Cargo-securing devices mounted in the floor of containers which allow lashing and securing of cargoes. Bunker Adjustment Factor (BAF): Adjustment applied by shipping lines or liner conferences to compensate for the effects of fluctuations in the cost of fuel. Bunker Surcharge (BSC): Adjustment applied by shipping lines or liner conferences to compensate for the effects of fluctuations in the cost of fuel. Bunkers: Heavy oil used as fuel for ocean vessel C&F Cost and Freight (named port of shipment) Incoterms: This abbreviation was changed in 1990 to CFR, but is still commonly used. It is a term of trading in which the buyer of the goods pays an amount which covers the cost of the goods plus the cost of transporting the goods from origin to the port of discharge or final destination. Cabotage: Transport of goods between two locations within the same country. CAF: Currency Adjustment Factor a surcharge percentage applied to freight rates to reflect currency fluctuations between currencies. Call: The vessel s stay in port. Call sign: A vessel-specific code to be used for the communication between vessels, port authorities and other relevant participants in international trade. Cargo: Goods carried on a ship covered by a bill of lading (B/L). Cargo Bays: Doors at cargo warehouse where vehicles back in to load/unload cargo. Cargo Gear: Ship s crane. ~ ~ Copyright ~ Shipping Terminology ~ 9

10 Cargo Manifest: An invoice of all cargo loaded on board a vessel, without freight and charges. Entire listing of all cargo on board a vessel is required by the relevant local authorities, same as manifest Carnet: 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 issuer will require the holder to give them security by way of a bank guarantee. Carrier: Any individual, company or corporation engaged in transporting cargoes. Carrier Haulage: The inland transport service, which is performed under the sea-carrier s responsibility under the terms and conditions of a tariff and of the relevant transport document (bill of lading B/L). Carriers Lien: The Carrier has the right to exercise a lien on cargo on freight collect shipments and thus retain possession of the goods as security for the charges due. Carriers Owned Containers (COC): The containers used for the transportation of cargoes belonging to the property of the carriers. Cash against Documents (CAD): An arrangement whereby the buyer pays for goods as soon as the buyer receives the seller's documents. There is normally an intermediary involved, ie a bank or an agent acting on behalf of the seller, to ensure that the transaction takes place smoothly. CBM (CM): Cubic metre cubic feet. CCA: Connecting Carrier Agreement. An Agreement of freight rates for connections between feeder ports and the ports of call of vessels. Cell: The construction system employed in container vessels which permits containers to be stowed in a vertical line with each container supporting the one above it inside the cargo hold. Cell-Guide: Steel bars and rails used to steer containers during loading and discharging whilst loading in the ship. Cell Position: The location of a cell on board of a container vessel identified by a code for successively the bay, the row and the tier, indicating the position of each container on a vessel. Cellular Vessel: A vessel specifically designed, built and equipped for the transport of containers. A vessel designed with internal ribbing to permit the support of stacked containers. Certificate: A general term for any document issued by the seller or another party, certifying to some action having taken place or some fact about the goods. Certificate of Classification: A certificate issued by the classification society which states the class of a vessel. ~ ~ Copyright ~ Shipping Terminology ~ 10

11 Certificate of Origin: A certificate stating the country of origin of the goods. Depending on the importing country's requirements, this can be as simple as being issued by the seller or the manufacturer. In most cases however, it is required to be issued by a Chamber of Commerce in the country of origin. CFR Cost and Freight (named port of destination) Incoterms: The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The seller is responsible to clear the goods for export. This term very specifically requires the carriage of the goods in a "seagoing vessel". CFS: Container Freight Station. A carrier facility where Less Than Container load shipments are consolidated or unloaded. CFS/CFS: Cargo received and stuffed by Carrier at origin and de-vanned by Carrier at destination. CFS/CY: Cargo received and stuffed by Carrier at origin and then delivered intact at destination. C/H: Carrier s Haulage. Charter Party: A written contract between a shipowner and a charterer who rents use of the ship or part of its freight capacity. A voyage charterparty is a contract covering transport of goods from one or more ports to one or more ports and will detail the costs and responsibilities involved. Charter VSL: Vessel whose owner makes vessels available on bid basis. Charterer: The signatory to a charter party with the owner of a vessel who thus hires or leases the vessel or a part of its capacity. Chassis: A wheeled flat-bed constructed to accommodate containers moved over the road. Also termed as Trailers. CIF Cost, Insurance and Freight (named port of destination) Incoterms: This term is similar to CFR but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods. This term very specifically requires the carriage of the goods in a "seagoing vessel". CIP Cost and Insurance Paid to (named place of destination) Incoterms: This term is similar to CPT but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from the carrier to the buyer. Being based on FCA, this term may be used for any mode of transport. CKD: Abbreviation for Cars Knocked Down. Automobile parts and subassemblies manufactured abroad and transported to a designated assembly plant. Claim: A request for payment by a customer due to shortage or damage to cargo. Clean Bill of Lading: A bill of lading issued by a carrier declaring that the goods have been received in an appropriate condition, without the presence of defects. The product carrier will ~ ~ Copyright ~ Shipping Terminology ~ 11

12 issue a clean bill after thoroughly inspecting the packages for any damage, missing quantities or deviations in quality Clean on Board: Mention specifying that the Bill of Lading is issued without exceptions. CLP: Container Load Plan describes how the inside of container is stowed with cargo. C/O: Care of. COD: Collect (cash) on Delivery; Carried on Docket (pricing); Change of Destination. Collapsible Flat Rack: Specialised flat rack on which either/both ends can collapse to accommodate odd-sized cargo. Combined Transport: Transport where the major part of the journey is by sea and any pre or on carriage is carried out by another mode such as road. Combined Transport Bill of lading (B/L): Transport document providing for a combined transport by a least two different modes of transport from a place at which the goods are taken to a place designated for delivery under the responsibility of the Carrier. Commercial Invoice: A document issued by the seller, addressed to the buyer, giving details of the individual transaction, including complete description of the goods, prices, currency, delivery and payment terms and so on. This is generally used by the Customs authorities in the importing country to assess customs duties payable. Commodity: Indication of the type of cargo. Commodity Box Rate: A freight rate classified by commodity and offered per container. Conference: A group of shipping companies who have associated to offer regular services on specific routes at published rates. Sometimes referred to as liner shipping. Non conference shipping lines are sometimes referred to as independent or outsiders. Congestion: Accumulation of vessels at a port resulting in waiting time for arriving vessels to load or discharge for a vacant berth. Connecting Carrier: An intermediary Carrier utilised to connect cargo to/from mother vessel. Consignee: The party shown on the bill of lading or air waybill to whom the shipment is consigned. Need not always be the buyer, and in some countries will be the buyer's bank. See also Bill of Lading - Order B/L (bill of lading) and Notify Party. Consignment (Shipment): A volume of goods to be transported from a Shipper to a Consignee via one or several modes of transport and specified in one single transport document (B/L bill of lading). Consolidated Cargo: Cargo containing shipments of two or more shippers, usually shipped by a firm called a consolidator. The consolidator takes advantage of lower FCL rates, and savings are passed on to shippers. Consolidation: The combination of many small shipments into one container. ~ ~ Copyright ~ Shipping Terminology ~ 12

13 Consolidator: A person or firm performing a consolidation service of small lots of cargoes for shippers. Consortium: A group of carriers pooling resources, normally container vessels, in a trade lane to maximise their resources efficiently. Container: A van-type body that can be relatively easily interchanged between trucks, trains and ships. Container Chassis: A vehicle specially built for the purpose of transporting containers so that the container and chassis serve as a road trailer when assembled. Container Depot: Storage location for empty containers and repair / cleaning of containers. Container Freight Station (CFS or C.F.S.): Consolidation depots where parcels of cargo are grouped and loaded into containers. Alternatively, inbound cargoes in a container are devanned for deliveries to consignees as LCLs. Container Gross Weight: The weight of the container plus its cargo weight. Container Load Plan (CLP): A document prepared to show all details of cargoes loaded in a container, e.g. weight (individual and total), measurement, markings, shippers, consignees, the origin and destination of goods, and location of cargo within the container. A Container Load Plan is either prepared by the cargo consolidator or the shipper which ships its cargoes on FCL terms. Container Number: The unique identification of a container. Container Pool: Where containers are stored usually inland for container availability to shippers. Carrier location holding empty containers, various points for shipper s utilisation, an area designated for storage of empty container/equipment. Container Prefix: A four letter code that forms the first part of a container identification number indicating the owner of a container eg SAFM Safmarine. Container Seal Number: A number embossed on high-security seals for closing up containers which will serve identification purposes. Container Serial Number: A seven digit number (6 plus 1 check digit) which forms part of a container identification number. Container Service Charge: Charges to be paid by cargo interests according to tariff. Container Stuffing List: List showing how cargo is stowed in each container. Container Ship: An ocean vessel specifically designed to carry ocean cargo containers. It is fitted with vertical cells for maximum capacity. Container Size: The length of a container i.e. 20', 40' and 45' (feet). Container Terminal: A facility which allows container vessels to berth alongside for the operations of loading and unloading of containers. Shippers deliver their export containers to the Container Terminal awaiting for loading onto container vessels whilst consignees at ports ~ ~ Copyright ~ Shipping Terminology ~ 13

14 take delivery of containers from the Container Terminal after they are unloaded from the container vessels. Container Type: Containers are classified under different types, e.g., dry cargo, reefer, open top, flat-rack, open-side, etc. Containerised: Indication that goods are stowed in a container. Container Yard (CY or C.Y.): A facility inside or outside the Container Terminal which accepts laden export containers from shippers or laden import containers for delivery to consignees. Contract: An agreement enforced by law between two or more parties stipulating their rights and obligations. Contract of Affreightment: An agreement whereby the shipowner agrees to carry goods by water, or supplies a vessel for the purpose of carrying goods by sea, in return for a sum of money called freight. Controlled Atmosphere (CA): An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations are regulated, as well as temperature and humidity. Conventional Ship: Ship designed with holds which can load almost any type of loose cargo, such as drums, sacks, crates, pallets etc. These ships are designed with their own derricks for loading and unloading. Corner Fittings (corner casting): Fittings located at the eight corners of container facilitating the support, stacking, handling and securing of containers. Country of Origin: Country in which the goods have been produced or manufactured according to certain customs criteria. C/P: Charter Party. CPT Carriage Paid To (named place of destination) Incoterms: The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. Being based on FCA, this term may be used for any mode of transport. Crane: A machine designed for moving and lifting weight by means of a projecting arm or a horizontal beam. Credit Agreement: Agreement between the Carrier and Shipper for release of cargo with promise to pay ocean freight within a specified timeframe. Document signed by the Shipper which binds Shipper to credit terms for the agreement. Cross-Docking: The process of moving merchandise directly from the receiving dock to the shipping dock eliminating the need to place the merchandise in storage. CT Bill of Lading (B/L): Combined Transport Bill of Lading. Cubic Foot: cubic inches. ~ ~ Copyright ~ Shipping Terminology ~ 14

15 Currency Adjustment Factor (CAF): A surcharge percentage applied to freight rates to reflect currency fluctuations between currencies. Customs: A Government body that deals with the levy of duties and taxes on imported goods from foreign countries and the control over the export and import of goods ie quotas, prohibited goods. Customs Bonded Warehouse: A public or privately owned warehouse where dutiable goods are stored pending payment of duty or removal under bond. The storage or delivery of goods are under the supervision of customs officers and if the warehouse is privately owned the keeper has to enter into a bond as indemnity in respect of the goods deposited, which may not be delivered without a release from the customs. Customs Broker: A person or corporation licensed by the local Customs Service to handle on behalf of importers the process of clearing goods through customs. Customs Clearance: Shipment cleared by Customs for movement, the process of declaring and clearing through Customs. Customs Duty: A tax, duty or tariff levied at the time of import upon goods entering a country. Usually based on the value of the goods (ad valorem), on the physical nature of the goods such as quantity or weight, or on a combination of the value and other factors. Customs House: A Government office where import duties, etc., on foreign shipments are handled. Custom House Broker: An individual or firm licensed to enter and clear goods through Customs. Customs Valuation: The determination of the value of imported goods for the purpose of collecting ad valorem duties. Customs Warehouse: Where cargo is temporarily stored awaiting inspection or where cargo is stored when seized by Customs for lack of permit/entry. Cut off: Last possible day cargoes may be delivered to a ship or a designated point. CY: Container Yard - place or depot where individual containers are held prior to loading on board a ship and after unloading from the ship. Can be inland or at the dock-side. CY/CFS: Cargo loaded in a full container by a shipper at origin, delivered to a CFS facility at destination, and then devanned by the carrier for loose pick-up. CY/CY: Cargo loaded by the shipper in a full container at origin and delivered to the carrier's terminal at destination for pick-up intact by consignee. ~ ~ Copyright ~ Shipping Terminology ~ 15

16 DAF Delivered at Frontier (named place) Incoterms: The seller must pay the costs and freight to bring the goods to a land frontier, but before the customs border of the adjoining country. This term is for land transport only. Damage Report: Form on which physical damage to containers is recorded. Dangerous Goods: Cargo of a hazardous nature as classified under IMO regulations. The term used by IMO for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported. Dangerous Goods Declaration: Document issued by Shipper in accordance with applicable conventions or regulations, describing hazardous goods or materials for transport purposes, and certifying that the latter have been packed and labelled in accordance with the provisions of the prevailing conventions or regulations. D/D: Door/Door. DDP Delivered Duty Paid (named place of destination) Incoterms: The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation, often the buyer's premises. The seller has to bear the risks and all costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. This term should not be used if the seller is unable directly or indirectly to obtain any necessary import licence or approval. This term may be used for all modes of transport. DDU Delivered Duty Unpaid (named place of destination) Incoterms: The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation. The seller has to bear the risks and all costs and other charges of delivering the goods thereto, but not including duties and taxes. The buyer is responsible for customs clearance, and if he fails to do this, he is responsible for the consequences. This term may be used for all modes of transport. D & H: Dangerous and Hazardous. Also see "Dangerous Goods". Deadweight (DWT): The total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts which a vessel is designed to carry, this is expressed in tons. The number of total weight tons a vessel can carry and transport. It is the difference between the number of tons of water a vessel displaces "light" and the number of tons it displaces when submerged to the "load line." Dedicated Service: A service specially designed for the use by one or more particular customers. ~ ~ Copyright ~ Shipping Terminology ~ 16

17 Dedicated Unit Train: A unit train operated by various railroads for exclusive usage. Delivery Note: A document evidencing the delivery of a shipment to a Consignee. Delivery Order: A document authorising delivery to a nominated party of cargoes in the care of a third party. The document is issued by a carrier or a forwarder on surrender of a bill of lading and then used by the merchant to transfer title by endorsement. Demise Charter: A contract whereby the shipowner leases his vessel to the Charterer for a period of time during which the use and management of the vessel passes to the Charterer who pays all expenses for the manning, operation and maintenance of the vessel. Demurrage (port levied charge): Additional charge imposed for exceeding the free time included in the freight rate while in the port, normally back to back recovery of port levied charges. Derrick: Lifting equipment on a conventional vessel for loading and discharging cargo, consisting of a vertical post attached to the deck and an inclined boom. Destination: The place where the carrier or the forwarder actually turns over the cargo or container to consignee or his agent. It may also be termed Final Destination. Destination Delivery Charge (DDC): A charge assessed by the carrier for the handling of a full container at destinations. The term is more commonly used in the U.S.A. trade. Detention (Carrier levied charge): Charges raised by the carrier or the forwarder for detaining container/trailer at customer premises for a period longer than that provided in the Tariff of the carrier or the forwarder. This is to recover loss of earning on the container and encourage the Consignee to return the container to the Carrier as agreed. Devanning: The removal of cargo from a container. Also known as unstuffing, unloading or stripping. Differential Rate: An amount added or deducted from base rate to make a rate to or from some other point or via another route. Discharge: The unloading of a vessel or vehicle. Discharge Port: Port where cargo is unloaded from vessel. Displacement: The weight of the quantity of water displaced by the vessel. Distribution: The full range of activities and planning required to move a product from the production line to the end user. Diversion: A change made in the route of a shipment in transit. Divert: The route of a shipment changed in transit from that shown on the original billing. Used interchangeably with reconsign. Dock: (a) The water alongside a pier or wharf. (b) Loading or unloading platform at an industrial location or carrier terminal. ~ ~ Copyright ~ Shipping Terminology ~ 17

18 Dock Receipt: A document used to acknowledge receipt of cargo or container at a CFS or a CY or a Container Terminal. When delivery of an expert shipment is completed, the dock receipt is surrendered to the vessel operator or the operator's agent in exchange for the ocean or house bill of lading. Documentary Collection: A method whereby the seller uses the services of his bank to ensure that the buyer only receives the shipping documents under conditions specified by the seller, ie upon payment, or upon acceptance, of the seller's bill of exchange. (see also Bill of Exchange, Cash Against Documents and URC522). Documentary Credit: The officially correct term for Letter of Credit. The UCP600 only mentions "Documentary Credit" not "Letter of Credit". See also Letter of Credit and UCP600). Documents against Acceptance (D/A): see Documentary Collection. Documents against Payment (D/P): see Documentary Collection. Domestic: Within your own country. Door-to-Door: Through transportation of a container and its cargoes from consignor's premises to consignee's premises. Double-Deck Load: A second tier of cargo placed on top of the first tier. Double Stack Car: Rail car capable of carrying two FFE one on top of the each other. Double Stack Train (DST): A number of railway wagons, usually a block train, on which containers can be stacked two high. Draft: The draft of a vessel is the vertical distance between the waterline and the bottom of the keel of the vessel. Draft (Bill of Exchange): A written order for a certain sum of money to be transferred on a certain date. Drawee: see Bill of Exchange. Drawer: see Bill of Exchange. Dray: A truck or other equipment designed to haul heavy loads. Drayage: Charge made for local hauling by dray or truck; road transportation between the nearest Ocean Port or Railway terminal and the stuffing/destuffing place. Dry Cargo: Cargo that does not require temperature control. Dry Dock: An enclosed basin into which a ship is taken for underwater cleaning and repairing. It is fitted with watertight entrance gates which when closed permit the dock to be pumped dry. Dry-Bulk Container: A container constructed to carry grain, powder and other free-flowing solids in bulk. ~ ~ Copyright ~ Shipping Terminology ~ 18

19 Dry Reefer: Reefer container used to carry dry cargo not requiring temperature control, normally use in a repositioning exercise where the Carrier has no reefer cargo on a back leg. Dumping: The practice of selling goods in a foreign market at a price lower than which they would be sold at in the home market, to gain a competitive advantage over other suppliers. If this is shown to be injurious to locally-based suppliers in the foreign market, the government of that country may impose remedies by way of anti-dumping duties. Dunnage: Lumber or other material used to brace materials in carrier's equipment or containers. Duty Drawback: If goods which have been imported, and upon which customs duty has been paid, are exported or have been used in the manufacture of goods which have been exported, then the exporter may be entitled to a refund of the original import duty paid. Dwell Time: It is expressed in terms of number of days that a container changed from one status to another, e.g., from inbound load to empty available to outbound load. The shorter the dwell time, the more efficient the container utilisation will be. ECD: Empty Container Depot. EDI: Electronic Data Interchange. Embargo: A government order prohibiting the entry or departure of commercial vessels or merchandise at its ports. Empty Depot: A container yard used for the storage of empty containers. Endorsement: The transfer of the right to obtain delivery of the goods from the Carrier by means of the Consignee s signature on the reverse side of a Bill of Lading. En route: Along the route of movement. ETA: Estimated time of arrival of carriers. ETD: Estimated time of departure of carriers. Ex Works: An INCOTERMS term of sale in which the buyer is responsible for taking delivery of the goods at the premises of the factory. Also known as F.C.A. ~ ~ Copyright ~ Shipping Terminology ~ 19

20 Exchange Rate: The ratio of prices at which the currencies of nations are exchanged at a particular time. Export: Shipment of goods to another country. Export Declaration: A government document permitting designated goods to be shipped out of the country. Extra Loader: Additional vessel brought into schedule to cater for increase in demand ie seasonal fluctuations. FAF: Fuel Adjustment Factor. An ancillary charge on ocean freight shipments to account for fluctuations in fuel costs. FAK: Freight All Kind. A system whereby freight is charged per container, irrespective of the nature of the cargoes, and not according to a Tariff. FAS Free Alongside Ship: An INCOTERMS term of sale in which the buyer is responsible for all charges of the transportation of the cargoes after they arrive at the side of the ship. It is not a commonly-used term of sale in international trade today. FAST (Free and Secure Trade): A joint Canada/US border security agreement, of which C- TPAT and PIP are the main initiatives. FBT: Full Berth Terms. Indicates that the cost of loading and discharge is included in the steamship rate quoted. Ship owner pays these. FCA: Free Carrier. See Ex-Works. FCL: Full Container Load. It is an arrangement whereby the shipper packs cargoes into a container provided by the carrier or the forwarder before delivering to the container terminal. FEU / FFE: Forty foot (40 ) Equivalent Unit. Commonly describes a 40- foot container. FIO: Free In and Out. It is a term used in ship-chartering whereby the owner of the ship is not responsible for any charges incurred in the ports of loading or unloading. FOB: Free On Board. It is an INCOTERMS term of sale where the seller of the cargoes is responsible for all charges of the transportation of the cargoes all the way up to their arrival on board the ship. It includes all charges of carriers or forwarders levied at the port of loading. ~ ~ Copyright ~ Shipping Terminology ~ 20

21 FCL/FCL: See CY/CY. FCL/LCL: See CY/CFS. Feeder Vessel: A vessel employed in normally short-sea routes to fetch or carry cargoes and containers to and from ocean-going vessels from the principle port hubs in a region to the minor ports. FFE / FEU: Forty-foot Equivalent Unit (40' or 2 TEUs). Final Destination: The place where the carrier or the forwarder actually turns over the container or cargo to the consignee or its agent. It is the end of liability of carriers or forwarders. FI (Free In): In the international ocean freight terminology the word Free means Not included. I.e. if FI, then the shipper is responsible for the cost of loading goods onto a vessel for the international shipping overseas. FO (Free Out): FO is the international shipping term in ocean freight that indicates that the consignee (recipient) is responsible for the cost of unloading cargo from the vessel at the destination. FIO (Free In and OUT): The international shipping term used in the ocean freight industry means that the carrier is NOT responsible for the cost of loading and unloading goods onto/from the vessel. FIS Free into Store Incoterms: An unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. This is similar in effect to DDP. Flag: An indication of the country in which a vessel is registered. Flash Point: A temperature that when certain inflammable cargo reaches will trigger spontaneous ignition. It is an IMCO standard information requirement for dangerous goods. Flat Bed Trailer: A wheeled trailer or a semi-trailer with a flat cargo carrying surface. Flat Rack: A device which is designed for cargoes which will not fit into containers to be shipped on container ships. Consists of a base and two ends of the same dimensions as an ISO container. Flexitanks: A polythene bag which can be fitted inside a 20ft container for the transportation of non-hazardous liquids. Floating Crane: Heavy-duty cranes brought in to handle cargo when unable to use gantry crane. A crane mounted on a barge or pontoon which can be towed or is self propelled. Floating Dock: A floating structure which can be partially submerged to enable vessels to enter and leave the structure for use as a dry dock. FMC: Federal Maritime Commission. US Government Agency responsible for the regulation of all maritime activities. ~ ~ Copyright ~ Shipping Terminology ~ 21

22 F.O.B Origin: F.O.B. Origin means that title and risk pass to the buyer at the moment of the seller s delivery to the carrier. The parties may agree to have title and risk pass at a different time or to allocate freight charges by a written agreement. F.O.B. Destination: F.O.B. Destination changes the location where title and risk pass. Under this arrangement, title and risk remain with the seller until they have delivered the freight to the delivery location specified in the contract. Force Majeure (Act of God): A clause in a contract which protects both parties in the event that part of the contract cannot be complied with due to causes outside the control of the parties and could not have been avoided by exercising due care. For example, floods, earthquakes, civil unrest and so on. Foreign Exchange Controls: Government restrictions on the use of currency, bank drafts or other payment types to regulate imports, exports and trade balances. Fork Lift Truck: A mechanical truck with forks at the front designed for lifting, carrying and stowing cargo. Forty Foot Equivalent Unit (FEU): Unit of measurement equivalent to one forty foot container. Forwarder (Freight Forwarder): The party arranging the carriage of goods and connected service and / or associated formalities on a Shipper or Consignee s behalf. Free Along Side (FAS): A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location. Free In and Out (FIO): Transport term signifying that the freight rate excludes the costs of loading/discharging, stowage and lashing. Free In Liner Out (FILO): Transport term signifying that the freight rate is inclusive of the ocean carriage and the cost of discharging. It excludes the cost of loading, stowage and lashing. Free On Board (FOB): An acronym for free on board when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. Once delivery is complete, the title to all the goods and the risk of damage become the buyer s. Free Partique: Permission granted by local medical authorities meaning that the vessel has a clean Bill of Health allowing people to embark and disembark. Free Storage Period (FSP): A carrier offers a period of time, normally three to five days, at destinations whereby imported containers or cargoes are allowed to be taken delivery by consignees free of any storage charge. After the FSP, there will be an overtime storage charge or demurrage levied by the carriers to the consignee. When bulk shipments are involved, the carriers are prepared to negotiate a longer FSP with the consignees. Free Time: Same as Free Storage Period. ~ ~ Copyright ~ Shipping Terminology ~ 22

23 Freight: (a) The price paid to the carrier for the transportation of goods or merchandise by sea or air from one place to another. (b) Freight is also used to denote goods which are in the process of being transported from one place to another. Freight Collect: The freight and charges agreed by the shipper and carrier is payable at destination. Freight Forwarder: A freight forwarder combines less-than-truckload (LTL) or less-thancarload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for cargo. The term may also refer to the company that fills railroad trains with trailers. A person or corporation who arranges transport of goods on behalf of either the seller or buyer. In many cases the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. In most cases the freight forwarder will assume the legal liabilities of acting as a carrier. Freight Prepaid: Freight and charges are required to be paid by a shipper before an original bill of lading is released. Fresh Air Exchange (FAE): The fresh air exchange system in a reefer container which removes harmful gases from reefers carrying sensitive perishable commodities. The fresh air vent is located on the reefer machinery at the end of the container. The fresh air vent is adjustable to accommodate a variety of cargo and chilled load operating conditions. The fresh air vent should be tightly closed when carrying frozen cargo. Full Cellular Ship: A ship fitted for container carriage in all available space. The ship is fitted with vertical cells for container placement both below and above deck. No provisions are available for cargo other than containers. Fumigation: Treatment of cargoes with a pesticide-active ingredient that is a gas under treatment conditions. It is a process required by many importing countries for the importation of wood and related products. Functional Currency: The currency of the primary economic environment of an entity. For ODFL, this is US Dollars. ~ ~ Copyright ~ Shipping Terminology ~ 23

24 GA: General Average. Gang: A number of workmen acting together especially for performing tasks in connection with loading and/or discharging of a vessel by means of the necessary gear. Gangway: Bridge/staircase laid from an opening in the railing or side of a vessel to the shore or to a platform giving access to the vessel. Gantry Crane: A crane or hoisting machine mounted on a structure spanning an intervening space, which often travels on rails. GATT: General Agreement on Tariff and Trade. An international multilateral agreement embodying a code of practice for fair trading in international commerce. Gear and Tackle: Ship s equipment used to level, secure and brace cargo for loading/unloading from vessel. General Average (G/A): International act or sacrifice which is carried out to safeguard vessel and cargo. If the maritime venture is in peril and the Captain decides to sacrifice the ship or cargo for the common good, then all parties who gain by the safe completion of the voyage make a contribution to reimburse those who have suffered from the sacrifice. Measures taken for the sole benefit of any particular interest are not considered general average. General Cargo: Cargo, consisting of merchandise, unpacked or packed in cartons, crates, bags or bales, often palletised. General cargo can be shipped either in Breakbulk or stuffed in containers. Genset (Generator Set): A portable power generator, which converts fuel into electrical power by mechanical means, and from which a reefer draws power. A clip-on generator set is mounted to the front of the refrigeration unit. An underslung generator set is mounted to the chassis upon which the reefer is mounted for handling and transport. The underslung generator set can be either side-mounted or centre-mounted on the chassis. Gooseneck: The front rails of the chassis that rise above the plane of the chassis and engage in the tunnel of a container. GP: General Purpose. G.R.I.: General Rate Increase. ~ ~ Copyright ~ Shipping Terminology ~ 24

25 Gross Tonnage (GRT): Applies to vessels, not to cargo. Determined by dividing by 100 the contents, in cubic feet, of the vessel's closed-in spaces. A vessel ton is 100 cubic feet. Gross Weight of Container: Entire weight (mass) of goods, packaging and container, ready for shipment. Groupage: The combination of many small shipments into one container. Hague Rules: 1924 International Convention on Carriage of Goods by Sea. These rules govern liability for loss or damage to goods carried by sea under a bill of lading. Hague-Visby Rules: 1968 Revision of Hague Rules. Hamburg Rules: In March 1978 an international conference in Hamburg adopted a new set of rules (The Hamburg Rules), which radically alter the liability which ship owners have to bear for loss or damage to goods in the courts of those nations where the rules apply. Hanger Beam: Beam affixed with hanging, looped rope utilised to hang clothing in a hangertainer Hangertainer: Specialised container equipment with hanger beams for the purpose of stowing garments. Harbour: Place of shelter for vessels used as an indication for the geographical location. Harmonized Commodity Description and Coding System: A multi-purpose international goods-classification for manufacturers. Transporters, exporters, importers, customs officials, statisticians, and others in classifying goods moving in international trade under a single commodity code. Developed under the auspices of the Customs Cooperations Council (CCC), an international customs organisation in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings describing the articles moving in international trade. It is organised into 99 chapters arranged in 22 sections. Sections encompass an industry [ (e.g., Section XI, Textiles and Textile Articles); chapters encompass the various materials and products of the industry (e.g.: Chapter 50, Silk; Chapter 55, Manmade Staple Fibres; Chapter 57, Carpets).] The basic code contains four-digit headings and six-digit subheadings. (The U.S. will add digits for tariff and statistical purposes. In the U.S., duty rates will be the 8-digit level; statistical suffixes will be at the 10-digit level. Hatch: The opening in the deck of a vessel which gives access to the cargo hold. Hatch Cover: Watertight means of closing the hatchway of a vessel. Hatch Way: Opening in the deck of a vessel through which cargo is loaded into, or discharge from the hold and which is closed by means of a hatch cover. ~ ~ Copyright ~ Shipping Terminology ~ 25

26 Haulage: The inland carriage of cargo or containers between named locations. Haulier: The participating carrier responsible for drayage of containers, road carrier. Hazardous Goods: Certain cargoes, as prescribed by the UN, such as explosive, radioactive, poisonous and flammable goods etc, which must be declared to the carrier before being loaded onto ships or aircraft. The penalties for mis-declaring or failing to declare hazardous or dangerous cargo are extremely high. Heavy Lift (H/L): Articles too heavy to be lifted by a ship's tackle. Heavy-Lift Charge: A charge made for lifting articles too heavy to be lifted by a ship's tackle. High Cube Container (HC or HQ): Any container which exceeds 8 feet 6 inches (102 inches) in height, usually 9 feet 6 inches. Hinderland: An inland area served by a particular port. Hold: It is the part of the ship below decks where the cargo is stored. Home Port: The port of registration of a vessel. House Bill of Lading (HB/L): Bill of lading issued by a forwarder or an NVOCC operator. House-to-House (H/H): See CY/CY. House-to-Pier (H/P): See CY/CFS. Hub: Transhipment point in a service network, which serves points beyond that of a particular service by means of feeder vessels. Husbanding: Taking care of a vessel s non cargo related operations as instructed by the master or owner of the vessel. Hull: The body of a vessel exclusive of masts, yards, sails, rigging, machinery and equipment. The outer shell of a vessel usually made of steel plates. Hull Underwriter: The person with whom the ship s hull, machinery apparel, and tackle is insured. ~ ~ Copyright ~ Shipping Terminology ~ 26

27 Part Two ICS: International Chamber of Shipping. IHC: Inland Haulage Charge. Cost to move a container to an inland destination. IHL: Inland Haulage. IMO: International Maritime Organisation. I.M.C.O.: International Maritime Consultative Organisation. A forum in which most major maritime nations participate and through which recommendations for the carriage of dangerous goods, bulk commodities and maritime regulations become internationally acceptable. IMDG Code: International Maritime Dangerous Goods Code. Import: To bring in goods from a foreign country. Import Licence: A document required and issued by some national governments authorising the importation of goods into their individual countries. Import Permit: Usually required for items that might affect the public health, morals, animal life, vegetation, etc. Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies). In some countries an import permit is the same as an import licence. In Bond: A term, which indicates that an imported shipment was not cleared by Customs at the border, and is moving under a surety bond. In Transit: In passage from one place to another. Inbound: Inward bound. Direction of vessel or cargo going to port of discharge or final destination. Incoterms: Incoterms are a set of uniform rules codifying the interpretation of trade terms defining the rights and obligation of both buyer and seller in an international transaction, thereby enabling an otherwise complex basis for a sale contract to be accomplished in three letters. Incoterms are drafted by the International Chamber of Commerce. ~ ~ Copyright ~ Shipping Terminology ~ 27

28 Inland Clearance Depot: A CFS with Customs Clearance Facilities. Inland Point: City with no port; landlocked city. Insulated Container: A container insulated on the walls, roof, floor and doors, to reduce the effect of external temperatures on the cargo. Insulated Tank Container: The frame of a container constructed to hold one or more thermally insulated tanks for liquids. Insurance: A process whereby someone with a risk of something happening to their financial detriment (the assured) pays someone else (an underwriter) a fee (premium) to bear that risk on their behalf. Insurance Certificate: A certificate issued by the insurance underwriter giving details of a particular transaction which is held insured under an insurance policy. Insurance Policy: Contract of insurance. Intercoastal: Water transport carried out between coasts eg US Pacific and Atlantic Coasts. Intercontainer: A co-operative formed by 19 European Railways, for the management of international rail container traffic in Europe. Interchange: Transfer of a container from one party to another. Intermodal: Pertaining to transportation involving more than one form of carrier: truck, ship and rail. Intermodal Transport: Moving ocean freight containers by various transportation modes. The fact that the containers are of the same size and have common handling characteristics permits them to be transferred from truck to railroad to air carrier to ocean carrier. International Chamber of Shipping (ICS): A voluntary organisation of national ship owners associations with the objective of promoting member interests, primarily in the technical and legal fields of shipping operations. International Maritime Dangerous Goods Code (IMDG Code): A code, representing the classification of dangerous goods as defined by the International Maritime Organisation (IMO) in compliance with international legal requirements. International Maritime Organisation (IMO): A United Nations agency concerned with safety at sea. Its work includes codes and rules pertaining to tonnage measurement of vessels, load lines, pollution and carriage of hazardous goods. Previous name: Inter- Governmental Maritime Consultative Organisation (IMCO). International Organisation for Standardisation (ISO): ISO is a worldwide federation of national standards bodies from some 130 countries, one from each country. It is a nongovernmental organisation established in 1947 to promote the development of standardisation facilitating international trade. ISO's work results in international agreements which are published as International Standards. ~ ~ Copyright ~ Shipping Terminology ~ 28

29 Invoice: Documentation supplying Customs with the type of goods, quantity, price of each type and terms of sale. The type of invoice required is determined by the shipment s value. IPI: Interior Points Intermodal. A term used by ocean carriers to describe door-to-door delivery service. IT (In Transit): Type of Customs document governing movement of in transit (bonded) cargo. ITC: Inland Transportation Charge. ISO: International Organisation for Standardisation. Jetty: A mole or breakwater, built into the sea to protect the harbour or coast. Jib: a. Projecting arm of a crane. b. Attachment connected to the top of a crane boom. Joint Venture: A joint activity of two or more companies usually performed under a common name. Keel: The main centre-line structural member, running fore and aft along the bottom of a ship, sometimes referred to as the backbone. Kgs: Kilograms (equivalent to 2.205lbs.) ~ ~ Copyright ~ Shipping Terminology ~ 29

30 Knot: Unit of measurement for the speed of a vessel equal to a nautical mile (=1852 metres) Laden On Board: Statement on a Bill of Lading which indicates that a shipment has been loaded on board a vessel. Land Bridge: Cross-country rail service connecting two ocean ports. Landed Cost: The total cost which an importer pays to have goods delivered into their premises. This typically includes the costs of the goods, international transport, insurance premium, port charges, customs duties, delivery charges, bank charges etc. Lashing: Support for cargoes inside a container or a cargo hold to ensure that they are secured and will not be subject to rolling during the voyage from origin to destination. Late-Come: It is a term used in the liner industry when extensions are being given to the shippers against the official CY or CFS Closing date and time which carriers publish to the trade. Latitude: The angular distance of a position on its meridian north or south from the equator, measured in degrees. L/C: Letter of Credit. LCL: Less than Container Load, a small amount of cargo insufficient to, on its own, be economically shipped as FCL. It will be combined with other LCL cargo from other shippers going to the same destination port, into an FAK FCL. See also Consolidation. Lead Time: The time elapsed between the request of a service and the actual provision of such service. Lease: A contract by which one party gives to another party the use of equipment, eg containers, for a specific time against fixed payment. Letter of Credit (L/C): A conditional order in writing, issued by a buyer's bank, guaranteeing to pay the seller upon presentation of stipulated documents, strictly in accordance with the credit. Letter of Credit Confirmed: A letter of credit which has been further guaranteed by a local bank generally in the exporter's country. ~ ~ Copyright ~ Shipping Terminology ~ 30

31 Letter of Credit Irrevocable: A credit which cannot be revoked, cancelled or amended unless the beneficiary agrees. Virtually all L/Cs issued under UCP600. Letter of Credit Discrepancy: Where a document does not comply strictly with the terms and conditions of an L/C. Letter of Credit - Under Reserve: Where documents with discrepancy/ies are nevertheless negotiated against an L/C, and the negotiating bank reserves the right to take back the funds from the exporter if the discrepancy is not acceptable to either the buyer or the L/C issuing bank. Letter of Indemnity: Guarantee from the shipper or consignee to indemnify carriers or forwarders for costs and/or loss, if any, in order to obtain favourable action by carriers or forwarders. It is customary practice for carries and forwarders to demand letters of indemnity from consignees for taking delivery of cargoes without surrendering bill of lading which has been delayed or is lost. Liability: Legal responsibility for the consequences of certain acts or omissions. Lien: A legal claim upon goods for the satisfaction of some debt or duty. Lift-On/Lift-Off (LO-LO): A container ship onto which containers are lifted by crane. Lighter: An open or covered barge towed by a tugboat and used mainly in harbours and inland waterways. Lighterage: Refers to the carriage of cargoes by lighter and the charge assessed therefore. Liner: Vessel plying a regular trade/defined route against a published sailing schedule. Linerbag: Bag, usually made of plastic, used to line the inside of containers for subsequent stowage of dry bulk commodities (nuts, cocoa, beans etc). Liner Service: Carrier advertises fixed schedule of services; port calls usually not made on inducement basis. Liner Terms: Freight rates which include loading/unloading charges, generally with a regular shipping line. Lloyds' Registry: An organisation maintained for the surveying and classing of ships so that insurance underwriters and others may know the quality and condition of the vessels offered for insurance or employment. LNG Carrier: Liquefied Natural Gas Carrier. Load Factor: Percent of loaded containers against total capacity of vessel or allocation. Load List: Container stuffing list. Load Port.: Port where the cargo is actually loaded on vessel. Locking Bar: Device that secures container doors at top and bottom. ~ ~ Copyright ~ Shipping Terminology ~ 31

32 Longitude: The angular distance of a position on the equator east or west of the standard Greenwich meridian up to 180 degrees east or west. Long Ton: 2,240 pounds. Longshoreman: Workers employed in the terminals or quays to load and unload ships. They are also known as Stevedores. Loop: A particular service of any Consortium or Carrier among various ports of calls, with the objective of creating a niche in the market for the first port of discharge. Loose: Without packing. LO/LO: Lift On Lift Off: Low-Bed: A trailer or semi-trailer with no sides and with the floor of the unit close to the ground. LT: Long Ton. Maiden Trip: First voyage of a vessel after delivery to her owner(s). Maiden voyage. Manifest: A document that lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargoes or containers loaded in a vessel. Used principally for customs purposes. It is also called summary of Bills of Lading. Marine Insurance: Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, piracy and various other causes but excludes losses that can be legally recovered. Maritime: Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty has jurisdiction over. Marks and Numbers: Marks and Numbers placed on packages for export for identification purposes; generally a triangle, square, circle, diamond, or cross with letters and/or numbers and port discharge. They are of important use before containerisation. ~ ~ Copyright ~ Shipping Terminology ~ 32

33 Master Bill of lading (MB/L): See Ocean Bill of lading. Master Lease: Master lease is one form of a short-term lease, which refers to the leasing of the containers by carriers from those leasing companies. Master Lease Leasing Cost: Master lease leasing cost includes container rental, depot lifton/lift-off charge, on/off hire drayage, drop-off charge and offhire repair cost, etc. Due to offhire quota limitation, the average on-hire period is around 73 days for 20'GP, 40'GP and 102 days for 40'HQ. Mate's Receipt: A receipt signed by a mate of the vessel, acknowledging receipt of cargo by the vessel. The individual in possession of the mate's receipt is entitled to the bill of lading, which in due course is issued in exchange for that receipt. Maximum Payload: Maximum cargo that can be loaded into a container either by weight or volume. Maximum Rate: The highest freight rate permitted by a regulatory body to apply between points. Measurement Ton: 1 cubic metre. One of the alternative bases of Freight Tariff. Memo Bill of Lading (B/L): A Bill of Lading issued for in-house purposes for cargo short shipped or loaded in advance of issuance of full Bill of Lading. Merchant: Shipper and/or Consignee and anyone acting on their behalf, owning or entitled to possession of the goods. Merchant Haulage: Inland transport of cargo in containers arranged and paid by the Merchant under Merchant s responsibility. MHC: Mobile Harbour Crane. Microbridge: A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. The carrier is responsible for cargo and costs from origin to destination. Also known as I.P.I. or Through Service. Mini Landbridge (MLB): An intermodal system for transporting containers from/to a foreign country by water to/from a U.S. ocean port other than the arrival port by rail at through rates and documents. Mini-Bridge: Cargo moving from/to an inland destination on one bill of lading from/to a foreign port through two U.S. ports. Minimum Charge: The lowest charge that can be assessed to transport a shipment. Mother Vessel: Main vessel in a liner service designated to move containers from set origin point to set destination points on a regular basis. Motor Bridge: Cargo that moves via truck overland to US. West Coast. MT: Metric Ton (equivalent to 2, lbs. Or cft.) ~ ~ Copyright ~ Shipping Terminology ~ 33

34 Multi Purpose Vessel: Vessel designed for carriage of different types of cargo; general, bulk, heavy and /or containerised cargo. Multimodal Transport: The carriage of cargo by means of at least two different modes of transport. Multimodal transport is not equivalent to container transport; multimodal transport is feasible without any form of container. NAI: Net All In. Negligence: Careless action or omission which may cause injury, damage or loss. Negotiable: In terms of documents, negotiable means that eg a Bill of Lading may be sold to another party whereby the ownership of the cargo is transferred by means of an endorsement of the Bill of Lading to the order of the other party whom is subsequently entitled to take possession of the goods. Negotiable Bill of Lading: Original bill of lading endorsed by shipper that is used for negotiating with banks. Negotiating Bank: A bank named in the credit; examines the documents and certifies to the issuing bank that the terms are complied with. Net Tonnage: A vessel's gross tonnage minus deductions of space occupied by accommodation for crew, by machinery, for navigation, by the engine room and fuel. A vessel's net tonnage expresses the space available for passengers and cargoes. Net Weight: Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can. Also called actual net weight. Non-Negotiable Bill of Lading: Copy of original bill of lading which cannot be negotiated with banks. Non-vessel Owning / Operating Common Carrier (NVOCC): (a) A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerisation functions at the port. (b) A carrier issuing bill of lading for carriage of goods on vessel which he neither owns nor operates. No Show: Cargo that fails to appear for the vessel it was originally booked. NOS: Not Otherwise Specified. ~ ~ Copyright ~ Shipping Terminology ~ 34

35 Notice of Readiness: Written document or telex issued by the master of a vessel to the Charterer advising them the time at which the vessel is ready to load or discharge. Notify Party: The person or company to be advised by the carrier upon arrival of the goods at the destination port. NVOCC: Non-Vessel Operating Common Carrier. Cargo consolidator of small shipments in ocean trade into containers at the port. OBL: Original Bill of Lading. O/C: Oncarriage. Movement of cargo by connecting Carrier to ultimate destination. Ocean Bill of Lading (Ocean B/L): A bill of lading issued by the ocean-going carriers. Ocean Route: The all-water transportation portion of a route. Oil Bulk Ore Vessel (OBO-Vessel): A vessel designed for the carriage of dry or liquid bulk cargo. On Board: Cargoes or containers landed onto the cargo hold or the cells of carriers. On Board / Shipped On Board: A notation on a bill of lading, indicating that not only did the carrier receive the goods in good order and condition, but they were also placed on board the ship. On Board Bill of Lading: A Bill of Lading in which a carrier acknowledges that cargoes have been placed on board a certain vessel. The on-board date of bills of lading is the date on which liabilities of the carrier start. Oncarriage: The carriage of cargo (containers) by any mode of transport to the final place of delivery after discharge from the ocean vessel at the port of discharge. On Deck A special stowage instruction to confine that the cargo stowage must be on deck rather than under deck. ~ ~ Copyright ~ Shipping Terminology ~ 35

36 One-Way lease The lease of containers that covers the outbound voyage only, after which the container is returned to the lease holder at or near destination agreed. OOG Out of Gauge Cargo. Open Side Container Container with frames with mesh at the sides covered by a tarpaulin which can be pulled away to give unrestricted sideway access to the container for stuffing or stripping. Open Account The seller allows the buyer to send payment at some future time (ie 60 days). Open Top Container A container fitted with a solid removable roof or with a tarpaulin roof that can be loaded or unloaded from the top. Operator The party responsible for the operational management of premises or equipment such as warehouses, terminals and vessels. Optional Cargo Cargo for which the final destination will be declared during transport. OSTD Outturn Shortage and Damage Report. Cargo short and damaged reported at discharge port. Outbound Outward bound. Direction of vessel or cargo going out from port of loading or point/place of receipt. Out of Gauge Cargo (OOG) Cargo which dimensions exceed the normal dimensions of a container, whether in length, width, height or a combination of same. Outturn Report Written statement issued by a stevedore detailing the condition of cargo discharged from a vessel along with any discrepancies in the quantity compared with the vessel s manifest. ~ ~ Copyright ~ Shipping Terminology ~ 36

37 Overheight Cargo Cargoes which exceed 9-1/2 ft. in height. They have to be stowed normally in an open-top container. Over Landed Cargo taken beyond original port of discharge. P & I Club: Protection and Indemnity Club. Packing List: A document which details the contents, and often dimensions and weight, of each package or container. Pallet: A platform (usually two-deck), with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift-truck. Panamax Size: The maximum dimensions of a vessel capable to transit the Panama Canal. Partlow Chart: A chart which indicates temperature reading in a reefer container. Payee: see Bill of Exchange. Payload: The load carried in a container against which freight rates are levied. Per Diem: Cost Per day. Charge on container held by customers for an extended time, charges levied upon a trucker due to late return of equipment. Perishable Cargo: Cargo subject to decay or deterioration, normally fresh food and vegetables, etc. Phytosanitary Certificate: A document issued by the Department of Agriculture, Fisheries and Forestry, for exports from Australia of plants or plant products. Pilferage: Petty stealing of merchandise from a ship s hold, containers, terminal, cargo shed or warehouse. ~ ~ Copyright ~ Shipping Terminology ~ 37

38 Pilot: A person whose office or occupation is to steer ships, particularly along a coast or into and out of a harbour. Place of Acceptance: See Place of Receipt. Place of Delivery: See Final Destination. Place of Receipt (P.O.R.): Location where cargo enters the care and custody of the carrier. Same as Place of Acceptance. It is the starting port of carrier s liability upon receipt of cargoes from shippers. Plimsoll Mark: A mark, welded on both sides of a vessel, indicating the limit to which a vessel may be loaded, depending on the specific gravity of the water in which the vessel is located. POD: Port of Discharge. The port at which cargoes or containers are discharged from vessel. When transhipment is needed, there can be a number of PODs during the course of shipment until it reaches the final POD. POL: Port of Loading. The port at which cargoes or containers are loaded onto vessels. Port: (a) Harbour with piers or dock. (b) Left side of a ship when facing the bow. (c) Opening in a ship's side for handling freight. Port of Arrival: Location where imported merchandise is off loaded from the importing aircraft or vessel. Port of Call: A port where a vessel discharges or receives traffic. Port of Discharge: A port where cargoes and containers are unloaded from a vessel. Port of Entry: A port where cargoes and containers destined elsewhere are actually discharged from a vessel. Port of Loading (POL): A port where cargoes or containers are loaded onto a vessel. Portal Crane: A type of gantry carne with vertical legs of sufficient height and width to allow trucks/chassis or railroad equipment to pass between the legs. Port charges: see APCA, BSRA and PSC. Positioning: The transport of equipment from a depot to Shipper s premises or from Consignee s premises. P/P (CFS/CFS): Pier to Pier. Cargo movement delivered loose to pier at origin point and picked up loose at destination terminal. Precarriage: The carriage of cargo by any mode of transport from the place of receipt to the port of loading into the ocean vessel. Precarrier: The carrier by which the cargo is moved prior to the port of loading. ~ ~ Copyright ~ Shipping Terminology ~ 38

39 Prepaid Bill of Lading: A Bill of Lading stating that freight has to be paid prior to the Bill of Lading being released to Shipper or Shipper s designated party. Pre-payment: The buyer pays the seller for the goods prior to shipment. Pre-trip Inspection (PTI): A technical inspection of Reefer containers prior to their being positioned for stuffing. Principal: Party for whom another acts as agent. Pro Forma Invoice: A sample invoice issued by the exporter before shipment, which the importer may require to arrange import approvals or apply for a letter of credit. It can also be used as an offer to sell goods. Project Cargo: Cargo of various categories connected to the same project eg construction of a cement factory. Proof of Delivery: A receipt signed by the Consignee upon delivery. Protection and Indemnity Club (P&I Club): A mutual association of ship owners who by means of contribution provide protection against liabilities. Purchase Order: An order from a customer to a supplier for specific quantities of goods, materials, services or products at agreed terms of delivery and prices. PSC: Port Service Charge, similar to APCA. Quarantine: The period during which a vessel, its equipment, cargo, crew or passengers, suspected to carry or carrying a contagious disease, is detained in isolation to prevent the spread of such a disease. Quay (Pier): The part of a wharf intended for the mooring of vessels. Quota: A control system for imports, exports or production by specifying certain limitation. Quotation: Offer providing the price according to tariff for certain services to be provided or issued to a customer with specification on conditions for carriage. ~ ~ Copyright ~ Shipping Terminology ~ 39

40 Rail Terminal: Location where railroad cars are parked and/or turn around. Rail Yard: Location where rail cars are concentrated for loading and unloading of containers. Received for Shipment Bills of Lading: A term used in contrast to shipped bill of lading or on-board bill of lading. This kind of bill of lading is normally issued to acknowledge receipt of shipment before cargo loading or before official original bill of lading is issued. Nowadays, not many shippers ask for this kind of bill of lading. Redelivery: Return of charter vessel or equipment to the owners. Reefer: In the industry, it is the generic name for a temperature-controlled container. The containers, which are insulated, are specially designed to allow temperature controlled air circulation within the container. A refrigeration plant is built into the rear of the container. Reefer Cargo: Cargo requiring temperature control. Reefer Plug: Electrical outlet on ship or a terminal providing electrical current for maintaining temperature. Relative Humidity %: The ratio of the actual amount of water vapour in the air to the maximum it can hold at a given temperature, multiplied by 100. Relay: To transfer cargoes from one ship to another of the same ownership. Release Note: A receipt signed by a customer acknowledging the delivery of cargoes. Return Cargo: Cargo to be returned to original place of receipt. Revenue Ton (R/T): The greater weight or measurement of cargoes where 1 ton is either 1000 kilos or 1 cubic metre (for metric system). Also known as Bill of Lading Ton or Freight Ton. It is used to calculate freight charge. ROE: Rate of Exchange. ROI: Return on Investment. Roll-On/Roll-Off (Ro/Ro): A feature designed in a specially constructed vessel in both the loading and discharging ports. Rotation: Sequence in which a vessel calls at the ports on her schedule. Round Trip: A voyage to a certain port or country and back again. ~ ~ Copyright ~ Shipping Terminology ~ 40

41 Route: The plan of movements of a vessel from the first port of call to her final destination. Routing: The process of determining how a shipment (cargo) will be moved between Shipper and Consignee, between place of receipt and place of delivery. Row: A vertical division across a vessel, used as a part of the indication of a stowage place for containers. RTG Crane: Rubber tyred gantry crane, transteiner. Said to Contain (STC): Term in a Bill of Lading declaring that the master and the Carrier are unaware of the nature or quantity of the goods in a container, particulars of which have been furnished by the Shipper. Salvage: The term salvage refers to the practice of rendering aid to a vessel in distress. Salvage Clause: A marine insurance policy clause which states the proportion of salvage charges for which underwriters are liable. Salvage Lien: A maritime lien which exists when a ship or goods come into the possession of one who preserves them from the perils at sea. All salvage services carry with them a maritime lien on the items saved. Salvage Value: The value on which salvage is awarded. It generally means the value of ship and cargoes when they have been brought to a place of safety by the salvors. Schedule: A timetable comprising arrival/departure times of ocean and feeder vessels and also inland transportation. Sea Way Bill: Non-negotiable Bill of Lading used for through consignments, no original Bill of Lading required, proof of identity (of Consignee), only is required. Seal: A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes. Seal Record: A record of the number, condition and marks of identification on seals made at various times and places, referring to the movement of the container between origin and destination. ~ ~ Copyright ~ Shipping Terminology ~ 41

42 Seaworthiness: Term depicting the fitness of a vessel to travel in the open seas mostly related to a particular voyage with a particular cargo. Self-Sustained Vessel: Vessel equipped with cranes/derricks that does not require shore equipment to load/unload cargo. Service Contract: The Shipping Act of 1984 of U.S.A. allows a contract between a shipper (or a shippers' association) and an ocean common carrier, NVOCC operator or a Shipping Conference in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier, NVOCC operator or conference commits to a certain rate or rate schedule as well as a defined service level (such as assured space, transit time, port rotation or similar service features). The contract may also specify provisions in the event of nonperformance on the part of either party. Shed: Warehouse. Ship Broker: Acts as intermediary between ship owner or Carrier on the one hand and cargo interests on the other. Ship Chandler: An individual or company selling equipment and supplies for ships. Ship Operator: A ship operator is either the ship owner or the legal person responsible for the de-facto management of a vessel and its crew. Ship Owner: The legal person officially registered as such in the vessel s certificate of registry. Ship Planning: A function in the operations of container vessels where containers have to be planned for loading onto vessels, taking into consideration the size and weight of containers, transhipment and discharging port rotation, types of cargoes, etc. The officer responsible for such a function is called a Ship Planner. Shipped Bill of Lading: A bill of lading issued only after the cargoes have actually been shipped on board the vessel, as distinguished from the Received-for-Shipment bill of lading. Also see On- board Bill of Lading. Shipped on-board: Endorsement on a bill of lading confirming loading of cargoes or containers on a vessel. Shipper: The person for whom the owners of a ship agree to carry goods to a specified destination and at a specified price. Also called Consignor. The conditions under which the transportation is effected are stipulated in the bill of lading. Shipper Owned Container (SOC): The container used for cargo shipment is owned by the shipper. Shipper's Load and Count: Shipments loaded and sealed by shippers and not checked or verified by the carriers or forwarders. Neither the carriers nor the forwarders will assume any liability for shortages of cargoes as long as the container seal remains intact at the time of devanning. ~ ~ Copyright ~ Shipping Terminology ~ 42

43 Shipping Order: A set of documents of carriers or forwarders which allows the shippers to book shipping space with them. There are a number of copies with the same form and contents but with different names such as the 1st copy is called Shipping Order and the remainders are called Shipping Order Copy or Dock Receipt for different purposes such as space control, surveyor and sworn measurer, confirmation of receipt of cargoes/containers, etc. As EDI is more popular nowadays and used by both the shipper and Customs, hardcopy Shipping Order is no longer widely used. Shipside Delivery: A special cargo handling instruction for cargoes to be delivered right away at shipside after discharge. Shortage: The difference between actual available or delivered quantity and the required/documented quantity. Short Landed: Cargo volume count less than originally shipped. Short Shipped: Cargo not loaded onto its intended vessel due to Carrier s option (normally because the cargo arrived too late). Cargo indicated on a manifest but not loaded. Shut-out: Cargoes or containers which are not loaded on-board the intended vessel in line with the Shipping Order confirmed with the carrier. Slipsheet: Method of loading packages in a container via a thin liner board and forklift. Sling: Chains, ropes or straps used for cargo handling purposes. Slot: Space on board a vessel occupied by a container. Slot Charter: A charter whereby the ship owner agrees to place a certain number of container slots at the charterer s disposal. Spreader: Device used for lifting containers and unitised cargo. Beam or frame that holds the slings vertical when hoisting a load. SS: Steamship ST: Short Ton (equivalent to 2,000 lbs.) Stability: The force that holds a vessel upright or returns it to upright if keeled over. Weights on the lower hold increase stability. A vessel is stiff if it has high stability, tender if it has low stability. Stack: An identifiable amount of containers stowed in an orderly way in one specified location. Stack Car: An articulated five-platform railcar that allows containers to be double-stacked. A stack car holds ten 40-foot equivalent units. Stacking: To pile containers etc. on top of each other. Standard International Trade Classification (SITC): A standard numerical code used by the United Nations to classify commodities used in international trade. ~ ~ Copyright ~ Shipping Terminology ~ 43

44 Starboard: The right-hand side of a ship when facing the bow. STC (Said to Contain): A standard clause used to protect carrier, NVOCC operators or forwarders when cargoes are stuffed into the container by shippers, their agents or other third parties. See also Shipper s Load and Count. Stern: The end of a vessel. Opposite of bow. Stevedore: Terminal operator entrusted with the operation of loading and discharging vessels and various terminal activities. Store Door Delivery (STOR/DOR): Delivery of goods to consignee's place of business or warehouse by motor vehicle. Refers to a complete package of delivery services performed by a carrier from origin to final consumption point, whether that be a retail, wholesale or other final distribution facility. Store Door PickUp: Picking up an empty container from a carrier, delivering it to a merchant and returning the laden container; the portion of store-door pick up performed by the carrier's trucker. Stowage: A marine term referring to loading freight into the ships' holds. Stowage Plan: A plan indicating the locations on the vessel of all the shipments for the benefit of stevedores and vessel s officers. Stowaway: An unwanted person who hides on board of a vessel to get free passage, to flee a country or to evade port officials etc. Straddle Carrier: Wheeled vehicle designed to lift and carry shipping containers within its own framework. It is used for moving, and stacking containers at a container terminal. Straight Bill of Lading: A term for a non negotiable bill of lading. Stripping (Devanning, Unstuffing, Unpacking): The unloading of cargo out of a container. STS Crane: Ship to Shore Crane. Stuffing (Vanning, Packing): The loading of cargo into a container. Supply Air: Cooled or warmed air leaving the evaporator delivered to the interior of the container. Supply air is sometimes called delivery-air. Supply Vessel: Vessel that carries supplies from shore to platforms (drilling rigs) Surcharge: An extra or additional charge. Survey: An inspection of a certain item or object by a recognised or certified specialist. Surveyor: A specialist who carries out surveys. Switch Bill of Lading: A Bill of Lading is re-made to effect movement from discharge port to final destination. ~ ~ Copyright ~ Shipping Terminology ~ 44

45 T-floor: Interior floor in a reefer, so named because of the longitudinal T-shaped rails which support the cargo and form a plenum for air flow beneath the cargo. Tallyman: A person who records the number of cargo items and/or containers together with the condition thereof at the time it is loaded into or discharged from a vessel. Tail: The rear of a container. Tank Container (Tanktainer): A tank, surrounded by a framework with the overall dimensions of a container designed for the transport of liquids or gasses in bulk. Tanker: A vessel specially designed for the carriage of liquid cargo or bulk. Tare Weight: The weight of packing material or, in carload shipments, the weight of the empty freight car, or the weight of a container. Tariff: A publication setting forth the charges, rates and rules of transportation companies. Tarpaulin: Waterproof sheet eg canvas, to spread over cargo to protect it from getting wet. Terminal: An assigned area in which containers are prepared for loading into a vessel or are stacked immediately after discharge from the vessel. Terms of Freight: Conditions between merchant and Carrier relating to the type of freight and charges due to the Carrier and whether these are prepaid or are to be collected. TEU: Twenty-foot Equivalent Unit (20"). Terminal Handling Charge (THC): A charge of carriers for recovering the costs of handling FCLs at container terminals at origin or destination. THC: Terminal Handling Charge. Through Rate: The total rate from the point of origin to final destination. Through Service (Thru Service): A combination of transportation by sea and land (Thru Service) services to/from the point of origin to final destination. Tier: A horizontal division of a vessel from bottom to top, used as a part of the indication of a stowage place for containers. ~ ~ Copyright ~ Shipping Terminology ~ 45

46 Tier Rates: Rates assessed based on volumes moved. Time Charter: A charter party hiring a vessel for a specified period of time in which the ship owner provides the vessel, bunkers and crew while the charterer supplies the cargo. To Order: see Bill of Lading, Order B/L (bill of lading). Tonnage: Generally refers to freight handled. TOS: Terms of Sale ie FOB/CIF/FAS etc Towage: The charge made for towing a vessel. Tracing: The action of retrieving information concerning the whereabouts of cargo and equipment. Tracking: The function of maintaining status information, including current location, of cargo and containers, whether full or empty. Trading House: Consortium of buyers/sellers of various commodities at high volume. Trailer: A vehicle without propulsion, designed for the carriage of cargo to be towed by a truckhead. Container and chassis as on unit. Tramp Vessel: A freighter vessel that does not run in any regular trade lane but takes cargo wherever the shipper s desire. Tranship: To transfer goods from one transportation line (trade lane) to another, or from one ship to another. Transloading: Taking cargo from one vessel and loading it into another for further oncarriage. Transhipment Hub: A port which is employed by a carrier for transhipping its carriers from one transportation line (trade lane) to another. Transit Cargo: Goods onboard which upon their arrival at a certain port are not to be discharged at that port. Transit Port: A port where cargoes received are merely en route and from which they have to be transferred and dispatched to their ultimate destination by coasters, barge and so on. Also called Transhipment Port. Transit Time: Time vessel takes moving from one port to another. Tri-axle: A third axle used for supporting additional weight. T/T: Telegraphic transfer, an electronic means of transferring funds between banks, generally using SWIFT. Tug Boats: Boats used to guide and tow vessels in/out of port. ~ ~ Copyright ~ Shipping Terminology ~ 46

47 TVC: Time Volume Contract. Contract between customer and Carrier; written agreement between Carrier and customer for specified rate, volume and service level by Carrier over an agreed time. Twenty Foot Equivalent Unit (TEU): Unit measurement equivalent to one twenty foot container. Twin-Lift Spreader: Spreader able to pick up either, two 20ft ISO containers at the same time, or one 40ft container. Twistlock: 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. UCP: Uniform Customs and Practice of Documentary Credit. The "bankers Bible" on Documentary Credit Interpretation issued by the International Chamber of Commerce (I.C.C.) UCP600: Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce publication 600, which lays out guidelines for banks to follow when dealing with a letter of credit L/Cs. (See also Letter of Credit). URC522: Uniform Rules for Collections, International Chamber of Commerce publication 522, which lays out guidelines for banks to follow when handling Collections. (See also Collections). ULCC: Ultra Large Crude Carrier. Ultra Large Crude Carrier: A vessel designed for the carriage of liquid bulk cargo with a loading capacity ranging from to DWT. UN: United Nations. UNCTAD: United Nations Conference on Trade and Development. UNCTAD MMO: UNCTAD Multi Modal Transport Convention. Undercarrier: A Carrier in a conference or consortium who carries less cargo than the allotment distributed to him. Underdeck Stowage: Cargo/container which is stowed below the main deck. ~ ~ Copyright ~ Shipping Terminology ~ 47

48 Underwriter: In marine insurance, one who subscribes his name to the policy indicating his acceptance of the liability mentioned therein, in consideration for which he receives by way of a premium. Unit Load: Packages loaded on a pallet, in a crate or any other way that enables them to be handled at one time as a unit. Unit Train: A train of a specified number of railcars, perhaps 100, wherein they remain in a unit for a designated destination or until a change in routing is made. United Nations Conference on Trade and Development: A United Nations agency whose work in shipping includes the liner code involving the sharing of cargoes between the shipping lines of the importing and exporting countries and third world countries in the ration 40:40:20. Unstuffing/Unstripping: Unoading and devanning of containers. Value Added Tax (VAT): Sales tax paid on products and services at each stage of production or distribution, based on the value added at each individual stage and included in the cost to the end customer. Value for Duty: The value of an import declared to the customs upon which customs duty will be calculated. In Australia, the value of the goods at the time of export from the exporting country, thus generally the FOB value and using the exchange rate at the date of export. Many other countries use the CIF value at the time or declaration in the importing country. Vanning: A term sometimes used for stowing cargo in a container. VAT: Value Added Tax. Ventilated Container: A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed. Vessel (Ship): A floating, self propelled structure designed for the transport of cargo and/or passengers. Vessel's Manifest: Statement of a vessel's cargoes or containers (revenue, consignee, marks, etc.). ~ ~ Copyright ~ Shipping Terminology ~ 48

49 Vessel Sharing Agreement (VSA): Vessel sharing agreement. Co-operation agreement between two or more carriers, whereby liner services are provided jointly with each party contributing tonnage to the service and sharing the resulting total capacity in proportion to the tonnage provided. Very Large Crude Carrier (VLCC): A vessel designed for the carriage of liquid bulk cargo with a loading capacity ranging from to DWT. VIAP: Vessel Insurance Additional Premium. Charge levied when moving cargo in close proximity of war zones. VLCC: Very Large Crude Carrier. A vessel designed for the carriage of liquid bulk cargo with a loading capacity ranging from to DWT. Volumetric: A notional or calculated weight for bulky goods sent by air. Generally stated as 6000cm3 = 1 kg, meaning that the total volume in cubic centimetres is divided by 6000 to give an equivalent weight in kgs. The airline or forwarder will charge whichever is the greater of the actual weight and volumetric weight. Also shown sometimes as 167 kg = 1 cbm Voyage: A journey by sea from one port to another or, in case of round trip, to the same port. Voyage Charter: A charter party hiring a vessel for a particular voyage in which the ship owner provides the vessel, bunkers and crew whilst the charterer supplies the cargoes. Voyage Direction: The sector of a round trip voyage normally denoted by the direction of the sailing. Voyage Number: The numeric identification of a trip undertaken by a vessel on a fixed trade lane. VSA: Vessel sharing agreement. Co-operation agreement between two or more carriers, whereby liner services are provided jointly with each party contributing tonnage to the service and sharing the resulting total capacity in proportion to the tonnage provided. VSL: Vessel. W/M: Weight or Measurement. War Risk: Insurance coverage for loss of goods resulting from any act of war. Warehouse: A place for the reception and storage of cargoes. ~ ~ Copyright ~ Shipping Terminology ~ 49

50 Warehouse Receipt: Receipt for goods deposited in a warehouse Warehousing: The activity of holding and handling goods in a warehouse. 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. A waybill is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Unlike a bill of lading, a waybill is not a document of title. Weight Cargo: A cargo on which the transportation charge is assessed on the basis of weight. Wharf: A place for berthing vessels to perform loading and discharging of cargo. Wharfage: A charge assessed by a pier or dock owner against freight handled over the pier or dock or against a steamship company using the pier or dock. Wire Transfer: Electronic transfer of funds. None Yard: Open or fenced off outdoor storage and/or repair area. None The importance of learning shipping terminologies This is a good start to your progress towards your Diploma in Maritime Shipping. The purpose of learning all these industry terms is so you can better understand the day to day discussions that occur in this specialised industry. End of course notes. ~ ~ Copyright ~ Shipping Terminology ~ 50

51 Thank you for completing the Shipping Terminology Certificate course with ShippingCollege. The course can be completed as a standalone certificate course or may be used as credits towards obtaining your Maritime Shipping Diploma. Students who have completed the Shipping Terminology Certificate course may choose to continue with the Maritime Shipping Diploma. The Maritime Shipping Diploma consists of 7 Pilot Certificates which includes Shipping Terminology Certificate. To further your Maritime Shipping knowledge obtained in Shipping Terminology we suggest you consider enrolling for the International Trade and Maritime Shipping course. The course includes the following modules: The Early Days of Commercial Shipping International Trade and Freight Shipping Trade Routes and Shipping Routes World Trade Policies Industry Issues Environment and shipping Maritime Shipping Pilot Certificate courses These courses will cover global shipping with a particular focus on containerisation and the liner industry. All our courses are online course. Complete all 7 Pilot Certificates and you may write your Maritime Shipping Diploma. You may either complete your Diploma as a single course (at a lower cost) or complete the Pilot Certificate courses individually to accumulate all your credits to attain your Diploma over a longer period. If you intend to obtain your Diploma we recommend you attempt the Pilot Certificate courses in the order they are listed below. ~ ~ Copyright ~ Shipping Terminology ~ 51

52 1. Shipping Terminology Certificate - Glossary of industry terms Over 50 pages of industry terminology. Read more and Register 2. International Trade and Maritime Shipping Certificate - USD60 - Early days of commercial shipping, International trade and freight shipping, Trade routes and shipping routes, World trade policies, Industry issues, Environment and shipping. Read more and Register 3. Containerisation Certificate - USD60 - Liner trade, Container types, Freight and charges, Packing of containers, Load securing in containers, Container ship categories, Export and Import transaction and more. Read more and Register 4. Vessels, Cargo Types and Transport Modes Certificate - USD60 - Vessel types, Cargo types, Break bulk shipping, Bulk shipping, Tramp service, Rail Transport, Road transport and Intermodal versus Multimodal. ~ ~ Copyright ~ Shipping Terminology ~ 52

53 Read more and Register 5. International Contracts and Payments Certificate - USD60 - International trade law, Contract of affreightment, Preparing and international sales contract, Incoterms, Methods of payment in international trade, Introduction to UCP600. Read more and Register 6. International Customs and Shipping Documents Certificate - USD60 - Enquiry documents, Instruction documents, Transport documents, Insurance documents, Customs documents, Inspection documents, Finance documents and more. Read more and Register 7. Shipping Role Players Certificate - USD60 - Exporter and importer, Ocean carriers and ship owners, Shipping agents, International ocean freight forwarders, Inland carriers, Ship brokers, Cargo brokers and more. Read more and Register To view our other courses please click here Please contact us on info@shippingcollege.co.uk should you have any questions. Kind regards The ShippingCollege Team ~ ~ Copyright ~ Shipping Terminology ~ 53