Shipping Glossary and Freight Terms

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Freight and logistics could claim to be the industry which, more than any other, makes it possible for a truly global economy to work. It connects countries, markets, businesses and people, allowing them to buy and sell goods on a scale not previously possible. And as consumers, we have become used to seeing goods from all parts of the globe in our shops, no matter the time of year. The reality is that the needs of a rapidly growing world population can only be met by transporting goods and resources between countries. The freight and shipping industry has made this process more efficient and changed the shape of the world economy. This benefits consumers by creating choice, boosting economies and creating employment. Costs for the consumer are kept down and efficiencies are improved. Bill of lading (B/L) – Official legal document representing ownership of cargo; negotiable document to receive cargo; contract for cargo between shipper and carrier.Box – Another (less formal) name for a shipping container. This is how they are often referred to in the industry. Brake horsepower – a common unit of power, the rate at which work is done. The power of cars and other motor of engine-driven vehicles, including container ships, is often measured in brake horsepower.

Break bulk – loose cargo, such as cartons, stowed directly in the ship’s hold as opposed to containerised or bulk cargo. The volume of break bulk cargo has declined

dramatically worldwide as containerisation has grown.

Bulk cargo – commodity cargo that is transported unpackaged in large quantities. These cargos are usually dropped or poured as a liquid or solid, into a bulk carrier’s

hold. Examples of bulk cargo are grain, seed, coal and iron ore.

Carrier – any individual, company or corporation engaged in transporting goods. Container shipping lines are sometimes referred to as carriers.

Charter rate – a rate for shipping freight agreed between the owner of a vessel and the person wanting to use the vessel (the ‘charterer’).

Clean Cargo Working Group – an organisation that develops voluntary environmental management guidelines and metrics to help evaluate and improve the performance of

freight transport. The aim is to integrate product transport into corporate supply chain management.

Container – a reusable steel rectangular box for carrying cargo that first came into common use about 50 years ago. The sizes of containers are standardised so that

they can easily be moved between specially adapted containers ships, trains and trucks.

Container terminal – a docking, unloading and loading area within a port designed to suit the sizes and needs of container ships.

FEU – ‘Forty-foot Equivalent Unit’. This is a container that is the same height and width as a TEU but twice the length. As a result, it has twice the capacity.

Freight rates – The charge made by a shipping line for the transportation of freight aboard one of its ships from one place to another.

Intermodalism – a system whereby standard-sized cargo containers can be moved seamlessly between different ‘modes’ of transport, typically specially adapted ships,

barges, trucks and trains. Because the cargo does not need to be unloaded from the container every time it is moved from one mode to the other it is a very efficient

and fast system of transportation.

International Convention for the Safety of Life at Sea (SOLAS) – prescribes the numbers of lifeboats and other emergency equipment that ships must have, as well as

safety procedures including continuous radio watches when a ship is at sea.

International Organisation for Standardisation (ISO) – an international standard-setting body composed of representatives from various national standards

organisations. It was the ISO that prescribed the standard size of shipping containers to make global container trade more efficient.

Maiden voyage – the very first journey a ship makes after being delivered from the ship-yard.

Manifest – a list of cargo being carried by a ship as declared by the shipper.

Pallet – a term used for a load-carrying platform onto which loose cargo is stacked before being placed inside a container. It is designed to be moved easily by fork-

lift trucks.

Reefer – a temperature-controlled container usually refrigerated but sometimes heated. Inside each one is a complex system of coils, wires and electrical fittings,

which are managed by a computer that controls everything from the temperature and humidity to ventilation and gas levels, all working to prevent the deterioration of

fresh food or other sensitive goods over long distances and periods of time.

Shipper – any person or organisation paying for its cargo to be shipped from one place to another.

TEU – ‘Twenty-foot Equivalent Unit’. This is the industry standard to measure containers. A 20-foot container’s dimensions are twenty feet long (6.09 metres), 8 feet

wide (2.4 metres) and 8 feet six inches high (2.6 metres). These dimensions have been set by the International Organisation for Standardisation (ISO).

Chargeable Weight
The shipment weight used in determining air freight charges. The chargeable weight may be the dimensional weight or for container shipments, the gross weight of the shipment less the tare weight of the container.Commercial Invoice
A commercial invoice is the basic statement of the seller to the buyer for payment of the goods shipped. It must conform to any Letter of Credit requirements, foreign government requirements, and U.S. export control requirements regarding destination statements. It is used as one of the primary documents in the collection process, and is the main document used by foreign Customs for control, valuation of the goods, pricing, terms of sale, payment and delivery, credit numbers, import license numbers, shipper and consignee names, and shipping marks and numbers. Commercial invoices are usually signed by the exporter.

Commercial Value
Assessment of monetary value of manufactured goods including production costs, packaging, shipping, overhead and profit margin; used to determine duty.

Dangerous Goods
Articles or substances which are capable of posing a significant risk to health, safety or property when transported by air and which are classified according to subsections 3.1 through 2.10 in IATA. This includes cargo labeled as flammable, corrosive, radioactive, etc.

Delivery Instructions
Also called delivery Orders, these documents provide specific information to a carrier regarding delivery to a specific port, pier, terminal, airport, or steamship line. They show the shipping carrier, delivery deadlines, name and address of consignee, and the contact name and telephone number of the shipper n case of delivery problems.

Dimensional Weight
The weight calculated by measuring the length x width x height of a package: used when calculating the rate of oversized pieces.

Air Waybill
The Air Way bill is a non-negotiable Bill of Lading, and is used as a receipt for cargo and a contract for transportation between shipper and air carrier. Unlike an ocean carrier with a “to order” Ocean Bill of Lading, the air carrier must deliver the shipment to the consignee named on the non-negotiable Air Waybill. International air waybills or “airline air waybills,” are used by the air carriers; “House air waybills, ” are used as receipts by Freight Forwarders who then consolidate them with the air carriers international air waybills.

Air cargo Agent
An agent appointed by an airline to solicit and process international airfreight shipments.

Airport Code
A three letter code assigned to all airport locations worldwide.

Arrival notice
A notice from the ocean carrier to the “notify party” indicating the vessel’s estimated arrival date; identifying shipment details such as number of packages, weight, and container number, and indicating when free time expires. Often includes a freight invoice.

BAF
Bunker Adjustment Factor.

Barge To Ship
When cargo is loaded directly from the barge to the ocean carrier, therefore avoiding delivery to the wharf.

Bonded Warehouse
Goods that must be held until duties are paid are normally put in a bonded warehouse.

Break Bulk
The movement by ocean of packaged goods that are not containerized.

BSC
Bunker Surcharge.

C/
Consignee.

C/Y
Container yard.

CAF
Currency Adjustment Factor.

Carnet
Customs document, issued under the terms of a convention, that permits the holder to carry or send merchandise temporarily into foreign countries ( for display, demonstration, or similar purpose) without paying duty or posting bond. Examples are ATA (Admission Temporaire) and TIR ( Transport International Routier). Violation of any of the privileges of CARNET will result in assessment of duty and charges for damage. Click here for more info.

Carrier Certificate and Release Order
Used to advise Customs of the shipment’s details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.

CBM
Cubic Meter (35.314 cubic Feet = 1 CBM).

Certificate of Origin
The document certifies that goods were manufactured in the United States. It is signed by the shipper and may also be a certified by a local Chamber of Commerce,

CFS
Container Freight Station.

CFS/CFS
Container Freight Station to Container Freight Station. A type of steamship line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.

CFT
Cubic Feet.

Charterparty
A Charterparty is a contract signed between a ship owner and a charter who hires the vessel for a period of time (Time Charter) or for a particular voyage (Voyage Charter). There are many types of Charterparties, most codified by various shipping associations.

Clean On-Board B/L
A Bill of Lading issued without exceptions.

COD
Collect on Delivery: cost of goods and freight.

COFC
Container on Flat Car

COL
Collect Charges.

Collect Freight
Freight payable to the carrier at the port of discharge or ultimate destination. The consignee need not pay if the cargo does not arrive at destination.

Collection Letter
A collection is the procedure whereby the exporter entrusts the movement of his commercial documents to a remitting bank for further processing through a collection bank for settlement from the buyer. A Collection Letter is the document used by the remitting bank to relay complete and precise instructions to the collecting bank.

Commercial Invoice
A commercial invoice is the basic statement of the seller to the buyer for payment of the goods shipped. It must conform to any Letter of Credit requirements, foreign government requirements, and U.S. export control requirements regarding destination statements. It is used as one of the primary documents in the collection process, and is the main document used by foreign Customs for control, valuation of the goods, pricing, terms of sale, payment and delivery, credit numbers, import license numbers, shipper and consignee names, and shipping marks and numbers. Commercial invoices are usually signed by the exporter.

Commercial Value
Assessment of monetary value of manufactured goods including production costs, packaging, shipping, overhead and profit margin; used to determine duty.

Commodity
Any article or goods of commerce.

Commodity Control List
List of commodities subject to U.S. Department of Commerce export controls.

Conference Rates
Published rates which are applied equally by all the lines belonging to that particular conference for a specific commodity.

Consignee
The receiver of the shipment.

Consular Invoice
Prepared from the information on the commercial invoice by the buyer’s consulate or embassy in the shipper’s country, these documents are usually stamped with an official seal. They may be specific forms required by the destination country’s government or simply copies of the Commercial Invoice. Consular Invoices are required for control of certain commodities and to ensure valuation control.

Consularization
A document certified by the Consular of some foreign countries verifying the value, quantity and nature of a shipment.

Country of Transshipment
The country through which a shipment must pass and be re-sorted to reach its ultimate destination.

Country of Ultimate Destination
Final country, as known by an exporter, where goods are scheduled to arrive.

Courier
A term used to connote fast, expedited, personalized package and document handling.

CSC
Container Service Charge.

Customs Broker
A firm that represents importers in dealings with Customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through Customs, arranging inland transport, and paying all charges related to these functions.

Customs Clearance
International procedure of declaring goods at the Customs Office to gain authorized entry of those goods into a country.

Customs Invoice
Certain countries require special invoices containing specific information for the Customs clearance and valuation of imported shipments. These documents contain most of the elements of the Commercial Invoice, and are usually in the language of the importing country.

Customs Value
The value of a shipment as declared by the shipper or appraised by Customs to enable determination of accurate import duties.

CY/CY
Container Yard to Container Yard. A type of steamship line service in which freight is transported from origin container yard to destination container yard.

DDC
Destination Delivery Charge.

Declared Value
The value of a shipment as declared by the shipper, used to determine the value for duty and carrier liability.

Delivery Order
Document issued by the Customs broker to the ocean carrier as authority to release the cargo to the inland carrier.

Delivery Service
Bringing goods to a destination on behalf of a shipper for a fee.

Demurrage
A charge for storage of incoming merchandise beyond the free time allotted by the shipping company. Also applies to carrier owned or leased equipment, such as containers and chassis.

Destination
The location to which a shipment is being delivered.

DG
Dangerous Goods.

Dimensional Weight
The weight calculated by measuring the length x width x height of a package: used when calculating the rate of oversized pieces.

Dock Receipt
The Dock Receipt provides the exporter with a receipt indicating that the ocean terminal operator has taken custody of the shipment on behalf of the ocean carrier. It is basically a proof of delivery of the goods from the exporter to the pier.

Draft
Sometimes called a Bank Drafter Bill of Exchange, the Draft is a negotiable instrument which contains an order to pay. It must be signed by the drawer (seller) and be payable at sight or by a certain time. The Draft must contain an unconditional order to pay a certain sum of money to the drawee (buyer). Drafts are used in both collection and Letter of Credit methods of payment.

DTD
Door To Door.

DTP
Door to Port.

Dutiable
Those goods which are subject to duty as per each nation’s Customs regulation.

Duty
A tax imposed by a government on merchandise imported from another country. There are several types of duty, including: A) Ad valorem duty (“According to the value”) – an assessment based on of the actual value of an article. B) Specific duty – an assessment based on the weight or quantity of an article without reference to its monetary value or market price.

Duty Drawback
A refund of duty paid on imported merchandise when it is later exported.
ECCN (Export Control Commodity Number)
Number (sometimes required on international shipping documentation) that indicates the commodities subject to U.S. Department of Commerce export controls.

EIN (Exporter Identification Number)
An Employer’s IRS Identification Number (needed on some international shipping documentation) assigned by the Government when exporting goods from the United States.

Embargo
The prohibition of accepting freight at origin because of a crisis at the point of destination.

Entry Summary
Issued by: Customs broker on behalf of importer. Purpose: Customs Form 7501 specifies all shipment particulars that allow U.S. Customs to assess and collect import duties. Highly standardized to allow computer processing. Includes Harmonized Code number, broker identification number, and auxiliary fees. Broker figures all assessments, then submits form with supporting documents and payment. Customs later either accepts or modifies entry and payment.

Entry/Immediate Delivery
Customs Form CF3461 allows the importer or Customs Broker to take immediate delivery of imported goods prior to payment of duties and processing of an Entry Summary for most types of merchandise. The importer has ten days to file the Entry Summary and pay the appropriate duties.

ETA
Estimated Time of Arrival.

ETD
Estimated Time of Departure.

EX DEC
Shipper’s Export Declaration.

Export Airbill
A non-negotiable document prepared by the shipper which includes pertinent information. For example, Shipper and consignee name and address, Account Number, brief description of goods, etc.

Export Broker
An individual or organization that unites buyer and broker for a fee.

Export License
Under the Export Administration Act, the U.S. Bureau of Export Administration (BXA) is charged with controlling and licensing most items exported from the U.S. for reasons of national security, short supply, and foreign policy. There are two basic types of export licenses: Individual Validated Licenses which must be applied for and received from the BXA: and General Licenses, which are not documents but rather published authorizations covering commodities not subject to validated licensing.

Export License
A Government authorization which allows a shipper to export specified goods to designated countries.

Export Management Company
A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of it s clients in return for a commission, salary, or retainer plus commission.

Export Trading Company
A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.

Exporter
The person sending goods produced in one country to another country.

Express B/L
Ocean Bill of Lading issued by the steamship line when cargo is consigned directly to the customer. Cargo is automatically released. No originals are issued.

F.O.B. (Free on Board)
The price including cost of loading the goods for transportation at a specified place.

Facsimile
The transmission of an exact copy of a document by wire or radio.

FAF
Fuel Adjustment Factor.

FCL
Full Container Load.

FEU
40 foot equivalent unit.

Flat Bed
A type of truck with no side panels on to which cargo is usually strapped, chained or otherwise attached.

Flat Rack
Usually a wheel-less piece of equipment to which a piece of cargo is attached, strapped, or otherwise secured. Standard size is 20′ or 40′ long.

Foreign Trade Zone
A site sanctioned by the U.S. Customs Service in which imported goods are exempted from duties until withdrawn for domestic sale or use. Such zones are used for commercial warehouses or assembly plants.

Forwarder’s Receipt
Receipt issued by the appointed forwarder that goods have been received without exception for export. Could be used in case of Letter of Credit shipment under Ex-Works terms of sale.

Forwarding
To ensure and facilitate the passage of goods from an origin to a destination.

Free Trade Zone
A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be sorted, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs authority.

Freight Forwarder
A firm that represents shippers by arranging transport and completing documentation required for international shipping. Some freight forwarders also act as cargo consolidators.

Freight Payable at Destination
When the ocean freight of a shipment is paid at the time of delivery at the foreign port.

Full Set Off B/L’s
Usually means the issuance of the three original’s and three copies of the ocean Bill of Lading. This term is generally accepted by banks and shippers.

FVD
Full Value Declared.

Gateway City
Key cities of entry/departure for international shipments, strategically located for the most efficient movement of goods.

General Order (G.O.)
A Customs term referring to a warehouse where merchandise not entered within five working days after the carrier’s arrival is stored at the risk and expense of the importer.

Gross Weight
The total weight of a shipment including the goods and packaging. (Compare with Tare Weight.)

HBL
House Bill of Lading.

House to House Rates
This rate usually applied from the Shipper’s Warehouse to the Consignee’s Warehouse. Also known as Warehouse to Warehouse.

IATA (International Air Transport Association)
International Air Transport Association. The trade and service organization representing international airlines from more than 100 countries.

ICAO
International Civil Aviation Organization. A United Nations agency organized to ensure orderly worldwide technical development of civil aviation.

IMO
International Maritime Organization. A United Nations affiliated organization representing all maritime countries in matters affecting maritime transportation, including the movement of dangerous goods. The organization also is involved in deliberations on marine environmental pollution.

Import License
Many countries have currency exchange controls which serve to limit the amount of currency available for the purchase of foreign merchandise. The import license is used to control orders sent to foreign exporters. It is important for exporters to understand their foreign buyer’s licensing requirements as payment negotiations are made prior to any exportation.

Import License
A document issued by a carrier required and issued by some national governments authorizing the importation of goods into their individual countries.

In Bond
A term applied to the status of merchandise admitted provisionally to a country without payment of duties, either for storage in a bonded warehouse or for transshipment to another point, where duties eventually will be paid.

Inspection Certificate
To protect themselves, many foreign firms request a Certificate of Inspection. This may be an affidavit by the shipper, or by an independent inspection firm hired by the buyer, certifying the quality, quantity, and conformity of the goods to the purchase order.

Insurance Certificate
An Insurance Certificate gives evidence of risk coverage for merchandise shipped. It is sent to the bank with other collection documents, and normally is used only when required by Letter of Credit or Documentary Collection procedures. There are many types of insurance policies available. Coverage requested is usually 110% of the value of the cargo shipped.

Insured Value
Dollar amount of which goods are insured by shipper.

Integrated Carrier
An airfreight company that offers a blend of transportation services such as air carriage, freight forwarding, and ground handling.

Interchange Agreement
A contract between a steamship line and the truck line, stating the (truck line) is responsible for any detention charges and/or repairs that may occur while container is in their possession. Contract also proves that truck line has the required insurance.

International Import Certificate
This document is the Bureau of Export Administration (BXA) form number BXA-645P. It is required for the import of selected commodities form COCOM nations. The U.S. importer would supply this form, after authorization by BXA, to the foreign exporter so that he could apply for an export license.

KGS
Kilogram (2.2046 pounds).

Knots Per Hour
Units of measure for ship’s speed: Nautical Miles per Hour. One nautical mile is 1852 meters.

KT
Kilo ton (1,000 kilograms).

L/B
Land Bridge.

L/C
Letter of Credit.

Lash Down
A method of securing cargo inside the hold or on deck of a vessel. Usually done with cables.

LBS
Pounds.

LCL
Less than Container Load.

Letter of Credit
The Letter of Credit is a financial Instrument issued by an importer’s bank (opening bank, on behalf of the importer). The opening bank substitutes its own credit for that of the importer, and undertakes a commitment to designated beneficiary (the exporter) to pay a stated amount within a stated time frame, provided that the exporter complies with all the terms and conditions of the Letter of Credit.

Limits of Liability
The extent to which carrier is liable for loss or damage to a particular shipment.

Loss and Damage Claim
This document is used to claim insurance compensation for goods lost or damaged during exportation. The items lost or damaged must be fully described. Supporting documentation would include copies of the Commercial Invoice, Bill of Lading, and Insurance Certificate.

LRD
Last Receiving Date.

LT
Long Ton (2,249 Pounds).

LTL
Less than Trailer Load.

M/N
Marks and Numbers.

M3
Cubic Meters.

Manufacturer’s Certificate
A Certificate of Manufacture is used when a buyer intends to pay for goods prior to shipment, but the lead time for the manufacturing process is lengthy and the buyer does not which to tie up funds too far in advance. Usually, the goods are manufactured after a small down payment. when the goods have been manufactured, the seller prepares a Manufacturer’s Certificate stating that the goods ordered have been produced in accordance with the contract with the buyer. Upon receiving the certificate, the buyer forwards both payment and shipping instructions, and the shipment is made by the seller.

Marine Cargo Insurance
Average – A term in marine cargo insurance signifying loss or damage to merchandise. General average – A loss arising out of a voluntary sacrifice made of any part of a shipment or cargo to prevent loss of the whole and for the benefit of all persons concerned. FPA – Free of particular average – a provision in a marine cargo insurance policy that no claim shall be paid for damage to goods in the course of a voyage unless a loss is sustained that totals or exceeds a certain percentage of the value as specified in the policy. The object of such a provision is the avoidance of petty claims. Open Policy – A contract between an insurance company and the exporter by which all shipments made by the assured are automatically protected from the time the merchandise leaves the initial shipping. Particular average – A partial loss or damage of merchandise caused by a peril insured against, but which is not a general-average loss.

MLB
Mini-Land Bridge.

N/
Notify Party.

NCV (No Commercial Value)
Shipments declared as having no commercial value but having a value for Customs. Best example would be business documents.

Non-Conference Rate
Rates which are assessed by those lines that do not belong to a particular conference. Rates can be approximately 10% lower than conference rates.

Non-Dutiable
Those goods which are exempt from duty as per each nation’s Customs regulation.

NOS/NES
Not otherwise specified/Not elsewhere specified. This term often appears in ocean or airfreight tariffs respectively. If no rate for the specific commodity shipped appears in the tariff, then a general class rate (for example, “printed matter NES”) will apply. Such rates usually are higher than rates for specific commodities.

NVOCC
Non-vessel operating common carrier. A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full containerloads. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime commission and are subject to the same laws and statutes that apply to primary common carriers.

O/B
Onboard Vessel.

O/F
Ocean Freight (charges).

OBL
Ocean Bill of Lading.

Ocean Bill of Lading
Issued by: Steamship line Purpose: Each carrier has its own bill of lading form. Serves as contract of carriage between carrier and shipper, spelling out legal responsibilities and liability limits for all parties to the shipment. The B/L also can be used to transfer title to the goods to a party named in the document. Specifics shipment details, such as number of pieces, weight, destination, etc. Usually three signed originals issued. Licensed consolidators (NVOCCs) issue their own B/Ls to shippers.

On-Board Courier
A dedicated messenger who physically accompanies an international shipment.

On-Deck Cargo
Cargo usually stowed on the deck of a vessel. This cargo is usually subjected to wind and sea water.

On-Forwarding
Forwarding a shipment from an intermediate stop to its final destination; subject to additional charge.

Open Tops
A 20′ or 40′ container with the top being open. Used for oversized cargo, and it’s covered by a tarp for protection of the cargo.

Oversized Pieces
Shipments of 85 inches or greater that are too large to fit on a pallet.

Packing List
This important document describes all items in the box, crate, pallet, or container, plus the type, dimensions, and weight of the container. It is used to determine total shipping weight and volume (cubes) by Customs officials to check cargo, and by the buyer to inventory merchandise received. Prices and item values are usually omitted from the Packing List. Shipping marks, reference numbers and carton numbers are also important additions to the packing list.

Palletized Cargo
Cargo that is placed on portable platforms for easier loading/unloading or transportation. Platforms are called pallets.

Perishable
Products that require expedited transport or special attention to prevent spoilage or decay such as fruits, vegetables, frozen fish or certain chemical products.

Phytosanitary Inspection Certificates
Also referred to as “plant health” certificates, these are required by many foreign countries for shipments of plants and plant products. They serve to certify conformity to local plant quarantine import regulation with respect to pest and disease infection.

Pick Up Service
Retrieving goods from a shipper to be brought to their destination for a fee.

POD
Port of Discharge, also Proof of Delivery.

Point of Origin
The location where a shipment first starts out.

POL
Port of Landing

Port of Entry
The Port, airport, or other location whereby a shipment enters a country.

Postal Code
A four to nine digit number identifying postal delivery zones in Canadian and international cities.

Power of Attorney
Exporters and Importers authorize Freight Fowarders and Customs Brokers to act as their agents, for export control and Customs purposes, with this document. Completed Power of Attorney documents, however, do not relieve importers or exporters from liability to the U.S. Government in the event of export control or entry errors.

PPD
Prepaid Charges.

Prepaid freight
Freight paid by the shipper to the carrier when merchandise is tendered for shipment. Not refundable if the merchandise does not arrive at the intended destination.

Preprinted Airbill
Airbills preprinted with shipping company name, address and account number. Preprinted airbills help speed completion of shipping documentation and assure accurate billing.

Pro forma Invoice
The Pro Forma is used primarily to document to the buyer, in advance, the cost and terms of sale of a proposed export. It is used by the foreign buyer as a quotation from the exporter and also to assist in applying for a Letter of Credit from his bank. The Pro Forma Invoice serves as the basis for the subsequent Commercial Invoice.

PTP
Port to Port.

Receipt For Shipment B/L
When the steamship line gives the shipper a B/L indicating that cargo has been received at the pier, but not necessarily loaded on the vessel.

Reefer
This container usually has a self-sustaining unity to keep cargo cool/cold at certain temperatures.

Restricted Articles
An airline term meaning a hazardous material as defined by Title 49, Code of Federal Regulations (U.S.) and Air Transport Restricted Articles Circular 6-D. Restricted articles may be transported domestically and may be classified as dangerous goods when transported internationally by air.

Ro/Ro
Roll-on/Roll-off. A type of vessel that transports wheeled vehicles. Also used to refer to the cargo itself.
S/
Shipper.

Schedule B Number
A number from a published governmental list that classifies commodities being exported from the United States. Needed for completion of international shipping documentation.

Shipper’s Declaration for Dangerous Goods
Under the regulations of the Department of Transportation, the International Air Transport Association (IATA), and the International Maritime Organization (IMO), shippers and exporters are required to declare dangerous cargos to the air and ocean carriers they use for shipment. Both the IMO and IATA require specific documents to report hazardous goods, and these requirements are published in their respective Codes. IATA also provides a document specifically for non-restricted articles.

Shipper’s Export Declaration (SED)
Issued by: Exporter (or freight forwarder on exporter’s behalf) Purpose: U.S. Forms 7525-V and 7525-V-Alternate (for intermodal shipments) required by federal law for any commodity with value over $2,500 or any shipment requiring validated export license. Enables Bureau of the Census to compile trade statistics. Shipper or its agent submits form to carrier, which then submits SEDs for all shipments on vessel voyage or aircraft flight to U.S. Customs.

Shipper’s Interest Insurance
Insurance, arranged for by carrier if specified on the Airbill, which covers shipments against risk of physical loss or damage from any external causes.

Shipper’s Letter of Instruction
These instructions, often prepared along with a Shipper’s Export Declaration, are the exporter’s direction to the freight forwarder on how to handle the exporter’s shipment. The information prepared on the SLI includes a description of the goods and containers, the ultimate consignee, shipping method desired, insurance requirements, and special instructions pertaining to the shipment.

Ship’s Gear
Any equipment ( such as cranes, hatches, winches, cables) belonging to or part of the vessel.

Sight, Time Drafts
Issued by: Exporter (or freight forwarder on exporter’s behalf) Purpose: Request for payment from foreign buyer. Instructs buyer’s bank to collect payment; when collected it releases shipping documents to buyer. Buyer’s bank then remits to seller’s bank. Sight drafts are payable on receipt at buyer’s bank. Time drafts extend credit; foreign bank releases documents immediately, but collects payment later, for example, 30 days after receipt of draft.

Single Access Document
Also referred to as “SAD” the Single Access Document required for movement of goods through the countries of the European Economic Community. Generally prepared by Customs Brokers in Europe for imports entering the EC.

Skidded Crate
A crate with skids underneath for easy lifting with fork lifts.

SL&C
Shipper Load and Count.

ST
Short Ton (2,000 pounds).

STC
Said to Contain.

Steamship conference
A voluntary collective ratemaking body representing member steamship lines.

Steamship line
A company that owns and/or operates vessels in maritime trade.

T.O.F.C.
Railroad term which means Trailer On Flat Car.

Tare Weight
The weight of a shipment excluding the goods being shipped (compare with Gross Weight.)

Tariff
A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. It sets up a contract of carriage between the shipper, consignee, and carrier. In international trade applications, the term also refers to a tax on imports.

Tariff Rate
The rate or price schedule for transporting different items to various countries.

TEU
Twenty-foot equivalent unit. Used to measure a vessel’s capacity.

THC
Terminal Handling Charge.

Third Party Billing
The designated payor of an invoice other than the shipper or the consignee.

Transmittal Letter
The Transmittal Letter, commonly prepared with a Bank Draft, is the document used to send shipping documents to a remitting bank for processing either a collection or payment/negotiation under a Letter of Credit. It contains the shipper’s precise and complete instructions on how the documents are to be handled and the payments remitted.

Transshipment
Shipment of merchandise to the point of destination in another country on more than one vessel or vehicle. The liability may pass from one carrier to the next, or it may be covered by “through bills of lading” issued by the first carriers.

TRC
Terminal Receiving Charge.

TVC
Time Volume Contract.

ULD
Unit load device. Refers to airfreight containers and pallets.

Unit Cost
The cost associated with one unit of an item.

Validated Export License
Issued by: U.S. Department of Commerce. Purpose: Required for commodities deemed important to national security, foreign-policy objectives, or protecting domestic supplies or strategic materials. Constitutes permission to export a specific product to a specific party. Exporter applies for license, which must be returned to Bureau of Export Administration after completing specified shipments.

W/M
Weight or Measure: whichever is greater.

WT
Weight or Weight Ton.

( To be used as a guide only )

Australian Courier, Freight Quote, Courier Services

Shipping Glossary and Freight Terms