Terms and Abbreviations

Numerical

20’

Standard Twenty Foot Long Shipping Container

40’

Standard Forty Foot Long Shipping Container

20’HC

Twenty Foot High Cube Container

40’HC

Forty Foot High Cube Container

40’GOH

Forty Foot Goods on Hanger Container

20’RF

Twenty Foot Reefer Container

40’RF

Forty Foot Reefer Container

A

Agent

A person authorized to transact business for and in the name of another person or company.

Allotment

A term used to describe blocked space by airlines and shipping lines on behalf of forwarders/shippers

AWB

Airway Bill –is a bill of lading which covers both domestic and international flights transporting gods to a specified destination. Technically it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions.

B

BAF

Bunker Adjustment Factor. Adjusts the freight to reflect current cost of bunkers (fuel for ships).

BCN (FCX)

Buyers Consolidation. Full container shipments from multiple suppliers for the one consignee

B/L , BOL

Bill of Lading –acts as a receipt for the cargo and contains the terms of the contract of carriage and is a document of title to the goods.

Bonded Warehouse

A place of security approved by the custom authorities for the deposit, keeping and securing of goods liable to excise duty, without payment of this duty.

Box

A colloquial name for a shipping container

Break Bulk (Seafreight)

Goods shipped loose in vessels hold and not in containers

Break Bulk (Airfreight)

For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under on HAWB. When the freight forwarder receives the consolidated cargo from the carrier they will break the consolation apart per HAWB then proceed with the customs clearance along with associated shipping and import documents.

C

CAF

Current adjustment factor –adjusts the freight to reflect currency exchange fluctuations

CABAF

Currency and Bunker adjustment factor, a combination of CAF and BAF

CAN

Customs Authority Number. Number provided by customs upon the clearance of export goods.

Carnet

A customs document for permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

CBM

Cubic Meter –calculated as length x width x height

Certificate of Origin

A document certifying the country of origin of goods which is issued or signed by a chamber of commerce or embassy

CFR/C&F

Cost and freight. An Incoterm where the seller includes the cost of transportation in the price for his goods (freight prepaid). Formally known as C&F

CFS

Container Freight Station –a place for the packing and unpacking of LCL consignments

CHIEF

Customs handling of Import and Export Freight –a customs computer system

CIF

Cost, Insurance and freight. An Incoterm where the seller arranges and pays for the main carriage to the port of destination and organizes the insurance cover for the cargo while in transit.

CMI

Comite maritime International –an international committee of maritime lawyers.

Commercial Invoice

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

COU

Clip on unit –a portable refrigeration unit

Consignment

Delivery or merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Consolidation

In order to handle small lots of consignments efficiently and competitively, freight forwarders usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one house bill of lading respectively and all of them will be under one master bill of lading.

CRN

Customs Register Number –is the number allocated by customs to an export, agent or freight forwarder for use when exporting goods on the same shipment from more than one shipper.

CT

Combined Transport –carriage buy more than one mode of transport under one contract of carriage

CY

Container Yard –a collection and distribution point for FCL Containers

Cut Off Date

The last date for which goods can be accepted for a nominated sailing.

Consignee (CNEE)

The party, to whom a consignment is dispatched, having legal title to the goods

Consignor (CNOR)

The sender of the goods

Consignment Note

A document that describes a consignment moving from one point to another, also known as advice or dispatch note or connote.

COD

Cash on Delivery –full payment for goods on delivery

D

DDP

Delivery Duty Paid –an Inco term meaning the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU

Delivered Duty Paid –an Inco Term meaning that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time

Deconsolidation Point

Place where loose cargo is ungrouped for delivery

Demurrage

A charge raised for detaining cargo, containers or trailers for a longer period than provided for in the tariff

DO

A document given to the party surrendering the original Bill of Lading authorizing them to take delivery of the goods

Documentary Credit

The basis of international trade by means of which payment is made against surrender of specified documents

DOT

Department of Trade –governmental department with responsibility for shipping and trade

Drawback

Repayment of a duty upon re-exportation of goods previously imported.

Duty

Is a particular percentage (depending on commodity) of the FOB value which is paid to the government. The FOB value is the cost of the goods plus any other charges to get those goods onto a vessel.

E

EHA

Equipment Handover Agreement –acknowledging the condition of the carrier?s equipment when taking over and returning it, incorporating contractual terms under which the equipment is taken over.

ETA

Estimated Time of Arrival –indicated the estimation of the date/hour the carrier believes the cargo, vessel or container will arrive at a nominated point/port

ETD

Estimated Time of Departure –indicates the estimation of the date/hour the carrier believes the cargo, vessel or container will leave a nominated point/port

Ex-Works (EXW)

An Incoterm when the sellers only responsibility is to make the goods available at his premise for pickup

F

FAS

Free Carrier means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point

FAK

Freight All Kinds –refers to the full container loads of mixed shipments for different consignees

FCL

Full Container Load –an arrangement whereby the shipper utilizes all the space in a container.

FCX (BCN)

Full container shipments from multiple suppliers for the one consignee

Feeder Vessel

A Short-sea vessel used to fetch and carry goods and containers to and from deep-sea ports/vessels

FIS

Free Into Store –Sellers responsibility for all costs –CIF/C&F plus Customs Duty, Landing costs and all transport charges delivered into buyers store

Flat Rack

Container bottom specifically for heavy lifts and over width cargoes.

FMC

Federal Maritime Commission –US Federal Authority governing sea transport

FOB

Free On Board –Seller is responsible for all costs up to Free on Board ship at named port

Freight

The amount of money payable for the carriage of goods.

G

GATT

General Agreements on Tariffs and Trade –an international multilateral agreement embodying a code of practice for fair-trading in international commerce with headquarters in Geneva

GRP

Groupage - refers to the full container loads of mixed shipments for different consignees

GOH

Good On Hanger container used to transport garments and other hanging product. Available in 20?and 40?sizes

Groupage

Consolidation of several LCL Consignments into a container for difference consignees

GP

General Purpose –a closed steel container for the carriage of all types of general. 20?and 40?available in GP.

GST

Goods and Service Tax –worked out as 10% if the CIF Value + the duty amount. The CIF value is the cost of goods + marine insurance + freight amount (cost to get cargo to destination port) + duty

H

Harmonised System

The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council.

Hazchem Code

Hazardous chemical code placed on tankers carrying dangerous chemicals

HC - Hi-Cube

Is a container which is higher than a General Purpose Container –Available in both 20?and 40?size and is most common on the Australian Coastal and Australia-New Zealand Trade Lanes.

HBL - House Bill of Lading

Issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.

HAWB –House Airway Bill

Issued by a freight forwarder –although similar to a Bill of Lading it does not confer title in goods and therefore does not have legal standing of Bill of Lading

I

IATA

International Air Transport Association (IATA) established in 1945 is a trade association serving airlines, passengers, shippers, travel agents and governments. The association promotes safety standardization in forms (baggage checks, tickets, weigh bills) and aids in establishing international airfares.

ICC

International Chamber of Commerce

IMDG Code

International Maritime Dangerous Goods Code –contains the IMO Recommendations for the carriage of dangerous goods by sea. The form needed for export of this sort of cargo is known as an M041 and is available from a freight forwarder. Paperwork for imported dangerous goods comes from the supplier

IMO

International Maritime Organisation –a UN body charges with the duty of making safety and anti-pollution conventions and recommendations concerning sea transport.

Import Certificate

The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.

Import License

A document required and issued by some national governments authorizing the importation of goods. Also referred as an import permit. With such documentation, customs clearance can be conducted.

Incoterms

A list of standard terms stated by the ICC for all foreign trade contracts, which lists the respective responsibilities of the buyer and seller.

Intermodal

Movement of goods by more than one mode of transport ie. airplane, truck, railroad and ship.

Insulated Container

Specifically for cargoes requiring transport at a constant temperature above or below freezing point. This is controlled by the ships or terminals cooling plant or a clip on reefer unit.

ISO

International Standards Organisation –a body responsible for setting standards for container construction.

ITF/IDF

Air Cargo Charges –International Terminal Fee, International Documentation Fee

L

Letter of Credit (L/C)

Letter of Credit –a document in which the terms of documentary credit transactions are set out.

LCL

Less than Container Load –when a parcel is too small to fill a container, it is grouped by the carrier at a CFS depot with other compatible cargo for the same destination

LD3

Lower deck type airline container. This is the most commonly used container in passenger aircraft.

Letter of Indemnity (L/I)

Letter of Indemnity –sometimes also called a letter of guarantee, if an original bill of lading has become lost or delayed it allows the consignee to take delivery of his goods.

Liner

A vessel playing a regular pattern of trade on a defined route under a published sailing schedule

Lower Deck

The compartment below the Main Deck of an aircraft

LO/LO

Lift On Lift Off –a wharf or cartage operator charge for lifting of containers on and off a vessel or vehicle

M

MAWB

Master Airway Bill –is the Airway Bill issued by the airline or principle carrier

MBL

Master Bill of Lading is the Bill of Lading issued by the shipping line or principle carrier

MMO

Multi Modal Operator

Manifest

List of goods on a vessel or aircraft

N

Non Conference

A shipping line which does not participate in a consortium with other lines for tariff agreement

NVOCC

Non Vessel Operating Common Carrier –a carrier issuing bills of lading for carriage of goods on a vessel which they neither own nor operate

Notify Party

The party to whom the cargo arrival notice is sent

NOR

Non operating reefer container

O

OBL

Ocean Bill of Lading issued by the shipping line/owners Page

O/H

Over Height –a container with cargo exceeding the height of the container

O/S

Open Sided –A container with open sides for over width cargo

O/T

Open Top –A container with open top loading facility, suitable for the carriage of heavy, over height cargo?s. Can be equipped with tarpaulin roof.

OOG

Out of gauge –goods whose dimensions exceed those of the container in which they are packed

O/W

Over Width –a container with goods protruding beyond the sides of the container / flat rack onto which they are packed

P

Packing List

Document required by the buyer and Customs, indicating content being shipped, or contents of each packed

Packing Declaration

Document required by AQIS which states how the shipment as been packed with regards to straw, timber, and bark. The packing declaration must be completed in full including a numerical link to the shipment (eg. Container number, bill number)

POA

Place of Acceptance –the place where the goods are received for shipment of transit and where the carriers liability commences

POD

Definition 1- Place of Discharge –the place where the goods are discharged and carrier?s liability ends.

Definition 2- Proof of Delivery –a signed receipt acknowledging delivery

POL

Portof Loading–the port at which accepted cargo is loaded onto a vessel

Principle Carrier

The carrier who issues the Bill of Lading regardless of whether or not the goods are carrier on their own, a third party?s or a consortium members vessel

PSC

Port Service Charge. Cost of loading, unloading FCL consignments at the terminal

R

RO/RO

Roll on Roll Off –A vessel onto which goods can be driven via ramp

Routing Order

Document given to a supplier for instruction of buyers whom cargo is to be routed through, ie. forwarder or forwarders agent in country of origin.

Reefer

A refrigerated container used for cargo requiring temperature control

S

SCA

Sea Cargo Automation is an electronic reporting system set up by Australian Customs to report on cargo prior to arrival in Australia

SOB

Shipped on Board –an endorsement on the bill of lading confirming that the goods have been loaded on board

Shipper

The person who tenders the goods for carriage.

Shipping Mark

The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Short Shipped

Goods not carried on the intended vessel

SLI

Shippers Letter of Instruction –Forwarding Instructions completed by shippers to freight forwarders instructing them on the completion of HAWB or HBL.

Slot

The space on board a vessel occupied by a container.

T

TACT

The Air cargo Tariff. Published by IAP (International Airlines Publications) and IATA company. Outlines outlining general airfreight information, acceptance of carriage, transportation charges, services and related charges, payment of rates and charges and various other items. Airfreight Hazardous cargo will always travel on the “TACT”rate.

Time Slot

The time booked to deliver a container or collect a container from the wharf

TEU

Twenty Foot Equivalent Unit (20?)

THC

Terminal Handling Charge –A charge for handling containers at ocean terminal/wharves. Also charge for handling LCL cargo at deconsolidation depots.

Tare Weight

The actual weight of the empty container, not including the goods.

Tariff

The terms, condition and scale of charges for carriage

Transship

When cargo is discharged from one ship and loaded onto another in order to reach a port of no direct service or as a cheaper alternative to the direct service

U

ULD

Unit load device which links directly with the airplane cargo handling and restraint system.

V

Vent

Container which contains ventilations sites to prevent condensation accumulating on cargo.

W

Waybill

A bill of lading that acts as a receipt for the goods and evidence of the contract for carriage. A waybill is a bill of lading that is not a document and can be defined as follows: a receipt for goods, is evidence of the contract; is a non-negotiable document.

Under a waybill, delivery will be effected to a nominated consignee upon proof of identity. As a title it presents a personal contract between the shipper and the carrier only. There is (at present) no mandatory law or convention and the parties have absolute freedom of contract

W/M

Weight Measure the freight rate based on the weight of volume of the cargo. The rate uses the comparative relationship between weight and volume of cargo

Wharfage

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

 

Terms and Abbreviations

Numerical

20’

Standard Twenty Foot Long Shipping Container

40’

Standard Forty Foot Long Shipping Container

20’HC

Twenty Foot High Cube Container

40’HC

Forty Foot High Cube Container

40’GOH

Forty Foot Goods on Hanger Container

20’RF

Twenty Foot Reefer Container

40’RF

Forty Foot Reefer Container

A

Agent

A person authorized to transact business for and in the name of another person or company.

Allotment

A term used to describe blocked space by airlines and shipping lines on behalf of forwarders/shippers

AWB

Airway Bill –is a bill of lading which covers both domestic and international flights transporting gods to a specified destination. Technically it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions.

B

BAF

Bunker Adjustment Factor. Adjusts the freight to reflect current cost of bunkers (fuel for ships).

BCN (FCX)

Buyers Consolidation. Full container shipments from multiple suppliers for the one consignee

B/L , BOL

Bill of Lading –acts as a receipt for the cargo and contains the terms of the contract of carriage and is a document of title to the goods.

Bonded Warehouse

A place of security approved by the custom authorities for the deposit, keeping and securing of goods liable to excise duty, without payment of this duty.

Box

A colloquial name for a shipping container

Break Bulk (Seafreight)

Goods shipped loose in vessels hold and not in containers

Break Bulk (Airfreight)

For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under on HAWB. When the freight forwarder receives the consolidated cargo from the carrier they will break the consolation apart per HAWB then proceed with the customs clearance along with associated shipping and import documents.

C

CAF

Current adjustment factor –adjusts the freight to reflect currency exchange fluctuations

CABAF

Currency and Bunker adjustment factor, a combination of CAF and BAF

CAN

Customs Authority Number. Number provided by customs upon the clearance of export goods.

Carnet

A customs document for permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

CBM

Cubic Meter –calculated as length x width x height

Certificate of Origin

A document certifying the country of origin of goods which is issued or signed by a chamber of commerce or embassy

CFR/C&F

Cost and freight. An Incoterm where the seller includes the cost of transportation in the price for his goods (freight prepaid). Formally known as C&F

CFS

Container Freight Station –a place for the packing and unpacking of LCL consignments

CHIEF

Customs handling of Import and Export Freight –a customs computer system

CIF

Cost, Insurance and freight. An Incoterm where the seller arranges and pays for the main carriage to the port of destination and organizes the insurance cover for the cargo while in transit.

CMI

Comite maritime International –an international committee of maritime lawyers.

Commercial Invoice

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

COU

Clip on unit –a portable refrigeration unit

Consignment

Delivery or merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Consolidation

In order to handle small lots of consignments efficiently and competitively, freight forwarders usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one house bill of lading respectively and all of them will be under one master bill of lading.

CRN

Customs Register Number –is the number allocated by customs to an export, agent or freight forwarder for use when exporting goods on the same shipment from more than one shipper.

CT

Combined Transport –carriage buy more than one mode of transport under one contract of carriage

CY

Container Yard –a collection and distribution point for FCL Containers

Cut Off Date

The last date for which goods can be accepted for a nominated sailing.

Consignee (CNEE)

The party, to whom a consignment is dispatched, having legal title to the goods

Consignor (CNOR)

The sender of the goods

Consignment Note

A document that describes a consignment moving from one point to another, also known as advice or dispatch note or connote.

COD

Cash on Delivery –full payment for goods on delivery

D

DDP

Delivery Duty Paid –an Inco term meaning the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU

Delivered Duty Paid –an Inco Term meaning that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time

Deconsolidation Point

Place where loose cargo is ungrouped for delivery

Demurrage

A charge raised for detaining cargo, containers or trailers for a longer period than provided for in the tariff

DO

A document given to the party surrendering the original Bill of Lading authorizing them to take delivery of the goods

Documentary Credit

The basis of international trade by means of which payment is made against surrender of specified documents

DOT

Department of Trade –governmental department with responsibility for shipping and trade

Drawback

Repayment of a duty upon re-exportation of goods previously imported.

Duty

Is a particular percentage (depending on commodity) of the FOB value which is paid to the government. The FOB value is the cost of the goods plus any other charges to get those goods onto a vessel.

E

EHA

Equipment Handover Agreement –acknowledging the condition of the carrier?s equipment when taking over and returning it, incorporating contractual terms under which the equipment is taken over.

ETA

Estimated Time of Arrival –indicated the estimation of the date/hour the carrier believes the cargo, vessel or container will arrive at a nominated point/port

ETD

Estimated Time of Departure –indicates the estimation of the date/hour the carrier believes the cargo, vessel or container will leave a nominated point/port

Ex-Works (EXW)

An Incoterm when the sellers only responsibility is to make the goods available at his premise for pickup

F

FAS

Free Carrier means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point

FAK

Freight All Kinds –refers to the full container loads of mixed shipments for different consignees

FCL

Full Container Load –an arrangement whereby the shipper utilizes all the space in a container.

FCX (BCN)

Full container shipments from multiple suppliers for the one consignee

Feeder Vessel

A Short-sea vessel used to fetch and carry goods and containers to and from deep-sea ports/vessels

FIS

Free Into Store –Sellers responsibility for all costs –CIF/C&F plus Customs Duty, Landing costs and all transport charges delivered into buyers store

Flat Rack

Container bottom specifically for heavy lifts and over width cargoes.

FMC

Federal Maritime Commission –US Federal Authority governing sea transport

FOB

Free On Board –Seller is responsible for all costs up to Free on Board ship at named port

Freight

The amount of money payable for the carriage of goods.

G

GATT

General Agreements on Tariffs and Trade –an international multilateral agreement embodying a code of practice for fair-trading in international commerce with headquarters in Geneva

GRP

Groupage - refers to the full container loads of mixed shipments for different consignees

GOH

Good On Hanger container used to transport garments and other hanging product. Available in 20?and 40?sizes

Groupage

Consolidation of several LCL Consignments into a container for difference consignees

GP

General Purpose –a closed steel container for the carriage of all types of general. 20?and 40?available in GP.

GST

Goods and Service Tax –worked out as 10% if the CIF Value + the duty amount. The CIF value is the cost of goods + marine insurance + freight amount (cost to get cargo to destination port) + duty

H

Harmonised System

The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council.

Hazchem Code

Hazardous chemical code placed on tankers carrying dangerous chemicals

HC - Hi-Cube

Is a container which is higher than a General Purpose Container –Available in both 20?and 40?size and is most common on the Australian Coastal and Australia-New Zealand Trade Lanes.

HBL - House Bill of Lading

Issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.

HAWB –House Airway Bill

Issued by a freight forwarder –although similar to a Bill of Lading it does not confer title in goods and therefore does not have legal standing of Bill of Lading

I

IATA

International Air Transport Association (IATA) established in 1945 is a trade association serving airlines, passengers, shippers, travel agents and governments. The association promotes safety standardization in forms (baggage checks, tickets, weigh bills) and aids in establishing international airfares.

ICC

International Chamber of Commerce

IMDG Code

International Maritime Dangerous Goods Code –contains the IMO Recommendations for the carriage of dangerous goods by sea. The form needed for export of this sort of cargo is known as an M041 and is available from a freight forwarder. Paperwork for imported dangerous goods comes from the supplier

IMO

International Maritime Organisation –a UN body charges with the duty of making safety and anti-pollution conventions and recommendations concerning sea transport.

Import Certificate

The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.

Import License

A document required and issued by some national governments authorizing the importation of goods. Also referred as an import permit. With such documentation, customs clearance can be conducted.

Incoterms

A list of standard terms stated by the ICC for all foreign trade contracts, which lists the respective responsibilities of the buyer and seller.

Intermodal

Movement of goods by more than one mode of transport ie. airplane, truck, railroad and ship.

Insulated Container

Specifically for cargoes requiring transport at a constant temperature above or below freezing point. This is controlled by the ships or terminals cooling plant or a clip on reefer unit.

ISO

International Standards Organisation –a body responsible for setting standards for container construction.

ITF/IDF

Air Cargo Charges –International Terminal Fee, International Documentation Fee

L

Letter of Credit (L/C)

Letter of Credit –a document in which the terms of documentary credit transactions are set out.

LCL

Less than Container Load –when a parcel is too small to fill a container, it is grouped by the carrier at a CFS depot with other compatible cargo for the same destination

LD3

Lower deck type airline container. This is the most commonly used container in passenger aircraft.

Letter of Indemnity (L/I)

Letter of Indemnity –sometimes also called a letter of guarantee, if an original bill of lading has become lost or delayed it allows the consignee to take delivery of his goods.

Liner

A vessel playing a regular pattern of trade on a defined route under a published sailing schedule

Lower Deck

The compartment below the Main Deck of an aircraft

LO/LO

Lift On Lift Off –a wharf or cartage operator charge for lifting of containers on and off a vessel or vehicle

M

MAWB

Master Airway Bill –is the Airway Bill issued by the airline or principle carrier

MBL

Master Bill of Lading is the Bill of Lading issued by the shipping line or principle carrier

MMO

Multi Modal Operator

Manifest

List of goods on a vessel or aircraft

N

Non Conference

A shipping line which does not participate in a consortium with other lines for tariff agreement

NVOCC

Non Vessel Operating Common Carrier –a carrier issuing bills of lading for carriage of goods on a vessel which they neither own nor operate

Notify Party

The party to whom the cargo arrival notice is sent

NOR

Non operating reefer container

O

OBL

Ocean Bill of Lading issued by the shipping line/owners Page

O/H

Over Height –a container with cargo exceeding the height of the container

O/S

Open Sided –A container with open sides for over width cargo

O/T

Open Top –A container with open top loading facility, suitable for the carriage of heavy, over height cargo?s. Can be equipped with tarpaulin roof.

OOG

Out of gauge –goods whose dimensions exceed those of the container in which they are packed

O/W

Over Width –a container with goods protruding beyond the sides of the container / flat rack onto which they are packed

P

Packing List

Document required by the buyer and Customs, indicating content being shipped, or contents of each packed

Packing Declaration

Document required by AQIS which states how the shipment as been packed with regards to straw, timber, and bark. The packing declaration must be completed in full including a numerical link to the shipment (eg. Container number, bill number)

POA

Place of Acceptance –the place where the goods are received for shipment of transit and where the carriers liability commences

POD

Definition 1- Place of Discharge –the place where the goods are discharged and carrier?s liability ends.

Definition 2- Proof of Delivery –a signed receipt acknowledging delivery

POL

Portof Loading–the port at which accepted cargo is loaded onto a vessel

Principle Carrier

The carrier who issues the Bill of Lading regardless of whether or not the goods are carrier on their own, a third party?s or a consortium members vessel

PSC

Port Service Charge. Cost of loading, unloading FCL consignments at the terminal

R

RO/RO

Roll on Roll Off –A vessel onto which goods can be driven via ramp

Routing Order

Document given to a supplier for instruction of buyers whom cargo is to be routed through, ie. forwarder or forwarders agent in country of origin.

Reefer

A refrigerated container used for cargo requiring temperature control

S

SCA

Sea Cargo Automation is an electronic reporting system set up by Australian Customs to report on cargo prior to arrival in Australia

SOB

Shipped on Board –an endorsement on the bill of lading confirming that the goods have been loaded on board

Shipper

The person who tenders the goods for carriage.

Shipping Mark

The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Short Shipped

Goods not carried on the intended vessel

SLI

Shippers Letter of Instruction –Forwarding Instructions completed by shippers to freight forwarders instructing them on the completion of HAWB or HBL.

Slot

The space on board a vessel occupied by a container.

T

TACT

The Air cargo Tariff. Published by IAP (International Airlines Publications) and IATA company. Outlines outlining general airfreight information, acceptance of carriage, transportation charges, services and related charges, payment of rates and charges and various other items. Airfreight Hazardous cargo will always travel on the “TACT”rate.

Time Slot

The time booked to deliver a container or collect a container from the wharf

TEU

Twenty Foot Equivalent Unit (20?)

THC

Terminal Handling Charge –A charge for handling containers at ocean terminal/wharves. Also charge for handling LCL cargo at deconsolidation depots.

Tare Weight

The actual weight of the empty container, not including the goods.

Tariff

The terms, condition and scale of charges for carriage

Transship

When cargo is discharged from one ship and loaded onto another in order to reach a port of no direct service or as a cheaper alternative to the direct service

U

ULD

Unit load device which links directly with the airplane cargo handling and restraint system.

V

Vent

Container which contains ventilations sites to prevent condensation accumulating on cargo.

W

Waybill

A bill of lading that acts as a receipt for the goods and evidence of the contract for carriage. A waybill is a bill of lading that is not a document and can be defined as follows: a receipt for goods, is evidence of the contract; is a non-negotiable document.

Under a waybill, delivery will be effected to a nominated consignee upon proof of identity. As a title it presents a personal contract between the shipper and the carrier only. There is (at present) no mandatory law or convention and the parties have absolute freedom of contract

W/M

Weight Measure the freight rate based on the weight of volume of the cargo. The rate uses the comparative relationship between weight and volume of cargo

Wharfage

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

Terms and Abbreviations

Numerical

20’

Standard Twenty Foot Long Shipping Container

40’

Standard Forty Foot Long Shipping Container

20’HC

Twenty Foot High Cube Container

40’HC

Forty Foot High Cube Container

40’GOH

Forty Foot Goods on Hanger Container

20’RF

Twenty Foot Reefer Container

40’RF

Forty Foot Reefer Container

A

Agent

A person authorized to transact business for and in the name of another person or company.

Allotment

A term used to describe blocked space by airlines and shipping lines on behalf of forwarders/shippers

AWB

Airway Bill –is a bill of lading which covers both domestic and international flights transporting gods to a specified destination. Technically it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions.

B

BAF

Bunker Adjustment Factor. Adjusts the freight to reflect current cost of bunkers (fuel for ships).

BCN (FCX)

Buyers Consolidation. Full container shipments from multiple suppliers for the one consignee

B/L , BOL

Bill of Lading –acts as a receipt for the cargo and contains the terms of the contract of carriage and is a document of title to the goods.

Bonded Warehouse

A place of security approved by the custom authorities for the deposit, keeping and securing of goods liable to excise duty, without payment of this duty.

Box

A colloquial name for a shipping container

Break Bulk (Seafreight)

Goods shipped loose in vessels hold and not in containers

Break Bulk (Airfreight)

For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under on HAWB. When the freight forwarder receives the consolidated cargo from the carrier they will break the consolation apart per HAWB then proceed with the customs clearance along with associated shipping and import documents.

C

CAF

Current adjustment factor –adjusts the freight to reflect currency exchange fluctuations

CABAF

Currency and Bunker adjustment factor, a combination of CAF and BAF

CAN

Customs Authority Number. Number provided by customs upon the clearance of export goods.

Carnet

A customs document for permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

CBM

Cubic Meter –calculated as length x width x height

Certificate of Origin

A document certifying the country of origin of goods which is issued or signed by a chamber of commerce or embassy

CFR/C&F

Cost and freight. An Incoterm where the seller includes the cost of transportation in the price for his goods (freight prepaid). Formally known as C&F

CFS

Container Freight Station –a place for the packing and unpacking of LCL consignments

CHIEF

Customs handling of Import and Export Freight –a customs computer system

CIF

Cost, Insurance and freight. An Incoterm where the seller arranges and pays for the main carriage to the port of destination and organizes the insurance cover for the cargo while in transit.

CMI

Comite maritime International –an international committee of maritime lawyers.

Commercial Invoice

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

COU

Clip on unit –a portable refrigeration unit

Consignment

Delivery or merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Consolidation

In order to handle small lots of consignments efficiently and competitively, freight forwarders usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one house bill of lading respectively and all of them will be under one master bill of lading.

CRN

Customs Register Number –is the number allocated by customs to an export, agent or freight forwarder for use when exporting goods on the same shipment from more than one shipper.

CT

Combined Transport –carriage buy more than one mode of transport under one contract of carriage

CY

Container Yard –a collection and distribution point for FCL Containers

Cut Off Date

The last date for which goods can be accepted for a nominated sailing.

Consignee (CNEE)

The party, to whom a consignment is dispatched, having legal title to the goods

Consignor (CNOR)

The sender of the goods

Consignment Note

A document that describes a consignment moving from one point to another, also known as advice or dispatch note or connote.

COD

Cash on Delivery –full payment for goods on delivery

D

DDP

Delivery Duty Paid –an Inco term meaning the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU

Delivered Duty Paid –an Inco Term meaning that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time

Deconsolidation Point

Place where loose cargo is ungrouped for delivery

Demurrage

A charge raised for detaining cargo, containers or trailers for a longer period than provided for in the tariff

DO

A document given to the party surrendering the original Bill of Lading authorizing them to take delivery of the goods

Documentary Credit

The basis of international trade by means of which payment is made against surrender of specified documents

DOT

Department of Trade –governmental department with responsibility for shipping and trade

Drawback

Repayment of a duty upon re-exportation of goods previously imported.

Duty

Is a particular percentage (depending on commodity) of the FOB value which is paid to the government. The FOB value is the cost of the goods plus any other charges to get those goods onto a vessel.

E

EHA

Equipment Handover Agreement –acknowledging the condition of the carrier?s equipment when taking over and returning it, incorporating contractual terms under which the equipment is taken over.

ETA

Estimated Time of Arrival –indicated the estimation of the date/hour the carrier believes the cargo, vessel or container will arrive at a nominated point/port

ETD

Estimated Time of Departure –indicates the estimation of the date/hour the carrier believes the cargo, vessel or container will leave a nominated point/port

Ex-Works (EXW)

An Incoterm when the sellers only responsibility is to make the goods available at his premise for pickup

F

FAS

Free Carrier means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point

FAK

Freight All Kinds –refers to the full container loads of mixed shipments for different consignees

FCL

Full Container Load –an arrangement whereby the shipper utilizes all the space in a container.

FCX (BCN)

Full container shipments from multiple suppliers for the one consignee

Feeder Vessel

A Short-sea vessel used to fetch and carry goods and containers to and from deep-sea ports/vessels

FIS

Free Into Store –Sellers responsibility for all costs –CIF/C&F plus Customs Duty, Landing costs and all transport charges delivered into buyers store

Flat Rack

Container bottom specifically for heavy lifts and over width cargoes.

FMC

Federal Maritime Commission –US Federal Authority governing sea transport

FOB

Free On Board –Seller is responsible for all costs up to Free on Board ship at named port

Freight

The amount of money payable for the carriage of goods.

G

GATT

General Agreements on Tariffs and Trade –an international multilateral agreement embodying a code of practice for fair-trading in international commerce with headquarters in Geneva

GRP

Groupage - refers to the full container loads of mixed shipments for different consignees

GOH

Good On Hanger container used to transport garments and other hanging product. Available in 20?and 40?sizes

Groupage

Consolidation of several LCL Consignments into a container for difference consignees

GP

General Purpose –a closed steel container for the carriage of all types of general. 20?and 40?available in GP.

GST

Goods and Service Tax –worked out as 10% if the CIF Value + the duty amount. The CIF value is the cost of goods + marine insurance + freight amount (cost to get cargo to destination port) + duty

H

Harmonised System

The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council.

Hazchem Code

Hazardous chemical code placed on tankers carrying dangerous chemicals

HC - Hi-Cube

Is a container which is higher than a General Purpose Container –Available in both 20?and 40?size and is most common on the Australian Coastal and Australia-New Zealand Trade Lanes.

HBL - House Bill of Lading

Issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.

HAWB –House Airway Bill

Issued by a freight forwarder –although similar to a Bill of Lading it does not confer title in goods and therefore does not have legal standing of Bill of Lading

I

IATA

International Air Transport Association (IATA) established in 1945 is a trade association serving airlines, passengers, shippers, travel agents and governments. The association promotes safety standardization in forms (baggage checks, tickets, weigh bills) and aids in establishing international airfares.

ICC

International Chamber of Commerce

IMDG Code

International Maritime Dangerous Goods Code –contains the IMO Recommendations for the carriage of dangerous goods by sea. The form needed for export of this sort of cargo is known as an M041 and is available from a freight forwarder. Paperwork for imported dangerous goods comes from the supplier

IMO

International Maritime Organisation –a UN body charges with the duty of making safety and anti-pollution conventions and recommendations concerning sea transport.

Import Certificate

The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.

Import License

A document required and issued by some national governments authorizing the importation of goods. Also referred as an import permit. With such documentation, customs clearance can be conducted.

Incoterms

A list of standard terms stated by the ICC for all foreign trade contracts, which lists the respective responsibilities of the buyer and seller.

Intermodal

Movement of goods by more than one mode of transport ie. airplane, truck, railroad and ship.

Insulated Container

Specifically for cargoes requiring transport at a constant temperature above or below freezing point. This is controlled by the ships or terminals cooling plant or a clip on reefer unit.

ISO

International Standards Organisation –a body responsible for setting standards for container construction.

ITF/IDF

Air Cargo Charges –International Terminal Fee, International Documentation Fee

L

Letter of Credit (L/C)

Letter of Credit –a document in which the terms of documentary credit transactions are set out.

LCL

Less than Container Load –when a parcel is too small to fill a container, it is grouped by the carrier at a CFS depot with other compatible cargo for the same destination

LD3

Lower deck type airline container. This is the most commonly used container in passenger aircraft.

Letter of Indemnity (L/I)

Letter of Indemnity –sometimes also called a letter of guarantee, if an original bill of lading has become lost or delayed it allows the consignee to take delivery of his goods.

Liner

A vessel playing a regular pattern of trade on a defined route under a published sailing schedule

Lower Deck

The compartment below the Main Deck of an aircraft

LO/LO

Lift On Lift Off –a wharf or cartage operator charge for lifting of containers on and off a vessel or vehicle

M

MAWB

Master Airway Bill –is the Airway Bill issued by the airline or principle carrier

MBL

Master Bill of Lading is the Bill of Lading issued by the shipping line or principle carrier

MMO

Multi Modal Operator

Manifest

List of goods on a vessel or aircraft

N

Non Conference

A shipping line which does not participate in a consortium with other lines for tariff agreement

NVOCC

Non Vessel Operating Common Carrier –a carrier issuing bills of lading for carriage of goods on a vessel which they neither own nor operate

Notify Party

The party to whom the cargo arrival notice is sent

NOR

Non operating reefer container

O

OBL

Ocean Bill of Lading issued by the shipping line/owners Page

O/H

Over Height –a container with cargo exceeding the height of the container

O/S

Open Sided –A container with open sides for over width cargo

O/T

Open Top –A container with open top loading facility, suitable for the carriage of heavy, over height cargo?s. Can be equipped with tarpaulin roof.

OOG

Out of gauge –goods whose dimensions exceed those of the container in which they are packed

O/W

Over Width –a container with goods protruding beyond the sides of the container / flat rack onto which they are packed

P

Packing List

Document required by the buyer and Customs, indicating content being shipped, or contents of each packed

Packing Declaration

Document required by AQIS which states how the shipment as been packed with regards to straw, timber, and bark. The packing declaration must be completed in full including a numerical link to the shipment (eg. Container number, bill number)

POA

Place of Acceptance –the place where the goods are received for shipment of transit and where the carriers liability commences

POD

Definition 1- Place of Discharge –the place where the goods are discharged and carrier?s liability ends.

Definition 2- Proof of Delivery –a signed receipt acknowledging delivery

POL

Portof Loading–the port at which accepted cargo is loaded onto a vessel

Principle Carrier

The carrier who issues the Bill of Lading regardless of whether or not the goods are carrier on their own, a third party?s or a consortium members vessel

PSC

Port Service Charge. Cost of loading, unloading FCL consignments at the terminal

R

RO/RO

Roll on Roll Off –A vessel onto which goods can be driven via ramp

Routing Order

Document given to a supplier for instruction of buyers whom cargo is to be routed through, ie. forwarder or forwarders agent in country of origin.

Reefer

A refrigerated container used for cargo requiring temperature control

S

SCA

Sea Cargo Automation is an electronic reporting system set up by Australian Customs to report on cargo prior to arrival in Australia

SOB

Shipped on Board –an endorsement on the bill of lading confirming that the goods have been loaded on board

Shipper

The person who tenders the goods for carriage.

Shipping Mark

The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Short Shipped

Goods not carried on the intended vessel

SLI

Shippers Letter of Instruction –Forwarding Instructions completed by shippers to freight forwarders instructing them on the completion of HAWB or HBL.

Slot

The space on board a vessel occupied by a container.

T

TACT

The Air cargo Tariff. Published by IAP (International Airlines Publications) and IATA company. Outlines outlining general airfreight information, acceptance of carriage, transportation charges, services and related charges, payment of rates and charges and various other items. Airfreight Hazardous cargo will always travel on the “TACT”rate.

Time Slot

The time booked to deliver a container or collect a container from the wharf

TEU

Twenty Foot Equivalent Unit (20?)

THC

Terminal Handling Charge –A charge for handling containers at ocean terminal/wharves. Also charge for handling LCL cargo at deconsolidation depots.

Tare Weight

The actual weight of the empty container, not including the goods.

Tariff

The terms, condition and scale of charges for carriage

Transship

When cargo is discharged from one ship and loaded onto another in order to reach a port of no direct service or as a cheaper alternative to the direct service

U

ULD

Unit load device which links directly with the airplane cargo handling and restraint system.

V

Vent

Container which contains ventilations sites to prevent condensation accumulating on cargo.

W

Waybill

A bill of lading that acts as a receipt for the goods and evidence of the contract for carriage. A waybill is a bill of lading that is not a document and can be defined as follows: a receipt for goods, is evidence of the contract; is a non-negotiable document.

Under a waybill, delivery will be effected to a nominated consignee upon proof of identity. As a title it presents a personal contract between the shipper and the carrier only. There is (at present) no mandatory law or convention and the parties have absolute freedom of contract

W/M

Weight Measure the freight rate based on the weight of volume of the cargo. The rate uses the comparative relationship between weight and volume of cargo

Wharfage

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.