19/03/2019
SHIPPING TERMS GLOSSARY (A to C)
AES:
The Automated Export System is the system used by the U.S. government to collect data on exports. This data is called Electronic Export Information (EEI) and in many cases exporters are legally required to file the EEI through AES for each shipment. The U.S. Census Bureau uses this data to calculate trade statistics such as gross domestic product (GDP), while U.S. Customs and Border Protection (CBP) uses it to make sure that exporters are following U.S. export regulations.
AEO (Authorised Economic Operator):
Authorised Economic Operator is a party involved in the international movement of goods that has been approved by or on behalf of a national Customs administration as complying with World Customs Organisation or equivalent supply chain security standards.
Aggregate shipment:
Multiple shipments from different sellers to a single consignee that are consolidated by the carrier into a single shipment.
Alongside:
Refers to the side of a ship. Goods delivered alongside are placed on the dock or barge within reach of the ship’s rigging so it can be easily loaded onto the ship.
Apparent good order:
When freight appears to be free of damage after being assessed it is said to be in apparent good order.
Arrival notice:
Notification provided by the carrier when a shipment has arrived to the consignee or notify party.
ATR1:
A customs document that allows goods moving between an EU country and Turkey to benefit from cheaper rates of duty.
ATDNSHINC:
Stands for “Any Time, Day or Night, Sundays and Holidays Included” referring to when a vessel will operate.
Automatic identification system (AIS):
A satellite system used by ships and vessel tracking service (VTS) to identify and locate ships.
AWB (Airway bill):
Air Waybill or Consignment Note is the document airlines issue on receipt of cargo for shipment and as evidence for the contract of carriage, but it is not a document of title to the goods. The air waybill is non-negotiable. It includes an 11-digit Air Waybill number you can use to track your goods in transit.
Backhaul:
Cargo carried on a return journey.
BAF (Bunker Adjustment Factor):
The Bunker Adjustment Factor, or BAF, as it is more commonly known, is one of the charges levied on goods transported via Sea Freight. This particular charge represents the fluctuating costs to the shipping, as an example varying global oil prices.
Balloon freight:
Freight that is low weight but high volume (light but bulky.)
Beam:
The width of a ship.
Beneficiary:
The party that receives payment.
BIFA (British International Freight Association):
BIFA is a trade association for UK registered companies engaged in international movement of freight by all modes of transport, air, road, rail and sea.
Bill of Lading:
The document that shipping companies issue on receipt of cargo for shipment and as evidence for the contract of carriage. As well as setting out all the details for each shipment, it includes a Bill of Lading Number you can use to use to track your goods in transit. Often abbreviated as BOL, BoL, B/L, or BL. If there were no issues with the cargo stated on the BOL, it is said to be a clean bill of lading.
Bill of sale:
A document that confirms that transfer of goods in exchange for money.
Bill-to party:
The party paying for goods or services in a transaction.
BIP (Border Inspection Post):
Boarder controls operated by the Port Health Authorities.
Blocking or bracing:
Wood or metal supports used to secure cargo while in transit. Also called dunnage.
Block stowage:
Loading cargo close together to minimize movement of goods while in transit.
Bolster:
A piece of equipment attached to a chassis or railcar in order to secure the container.
Bond port:
The initial port of entry where a vessel transporting goods first arrives at a country.
Bonded Warehouse
A building or other secure area in which dutiable goods can be stored, manipulated or undergo manufacturing operations without payment of Vat and Duty.
Booking: Arrangements made with a carrier for the movement of cargo; space reservation.
Bow:
The front of a vessel.
Broken stowage:
Empty space in a container not occupied by cargo.
BTIS (Binding Tariff Information System):
A system created by the EU to help formal classification of a product to a specific Customs commodity code and to establish the amount of VAT and Duty applicable for the specific product.
Bulk cargo:
Cargo that is shipped loose as opposed to being shipped in packages or containers. Grain and coal are examples of goods usually shipped as bulk cargo.
Bull ring:
A device attached to the floor of a container which is used to secure cargo.
C of O (Certificate of Origin):
An official document that, when stamped by the relevant authorities, provide the Country of Origin of the goods in transit. A generic certificate of origin may be requested by the customs authority of the country of import, in which case the COO must be stamped by a chamber of commerce.
Cabotage:
Transport of goods between two places in the same country by a transporter from another country.
CAF (Currency Adjustment Factor):
The Currency Adjustment Factor is a component of the cost of shipping goods, by air or by sea. It reflects changes in foreign exchange rates.
Cargo:
Any goods being transported, regardless of the mode of transport.
Cargo manifest:
A document detailing the cargo carried on a ship, often provided to a customs authority.
Carnet:
A document permitting the holder to temporarily send goods to certain foreign countries for display or demonstration purposes without having to pay duties.
Chassis:
The base frame of a wheeled vehicle, used to secure a container prior to movement.
Chock:
Material (often wood) placed next to cargo to prevent excessive movement of the cargo during transit in order to avoid damage.
CL:
Abbreviation for carload or containerload.
Claim:
In the context of logistics, a claim is a demand made by a customer to a transportation company for payment in order to compensate for loss or damage of goods.
CM and cm:
CM (uppercase) stands for “cubic meters,” while cm (lowercase) stands for “centimeters.”
Commercial invoice:
A fundamental document for an international transaction with details including what goods are being shipped, who is the shipper, and who is the ultimate consignee. Serves as the basis for all other documents related to the shipment.
Commercial Release:
A document sent out a warehouse operator that states that goods are ready for release to an authorised collector and all applicable taxes and duties have been paid.
Commodity:
Any commercial good that is shipped.
Common law:
Law that derives authority from precedent, custom and usage rather than from statutes, particularly regarding the laws of the United States, the United Kingdom, and countries formerly part of the British Empire.
Concealed loss/concealed damage:
Shortage of or damage to goods shipped that is not immediately evident upon delivery.
Connecting carrier:
A carrier which acts as an intermediary between two or more other carriers.
Consignee:
The person or place to whom a shipment will be transferred. The ultimate consignee is the final recipient of the goods, while an intermediate consignee takes possession of the goods for a portion of the time that they are in transit.
Consignment:
A shipment of goods to a consignee.
Consignor:
Refers to the exporter or shipper from which the goods originate.
Consolidation:
When cargo from multiple shippers is combined in a single container.
Container:
A truck trailer loaded with cargo that can be detached for loading onto a vessel or railcar. Different types of containers exist for different shipping needs. For example, a container may be ventilated, refrigerated, insulated, dehumidified, or equipped with special devices used to secure certain types of cargo. A container shipment is a large shipment, typically over 20,000 pounds.
Container Demurrage:
If a container is used for longer than it was booked or agreed free time, the excess time is referred to as demurrage.
Container load:
A load large enough in volume or weight to fill a container.
Container manifest:
A document stating the contents of a container, its point of origin and point of destination. Vessels may be required by law to produce a manifest for every container being transported.
Contraband:
Prohibited cargo such as illegal drugs or unauthorized weapons.
Cu.:
Abbreviation for “cubic” used when describing measurements of volume.
Cube out:
Refers to when a container or vessel has reached its volumetric capacity before reaching its weight capacity.
Customhouse:
A government office where duties are paid and import and export paperwork are filed.
Customs:
A customs authority, or customs for short, refers to the agency within a government that is responsible for collecting duties and enforcing import and export regulations.
Customs broker:
An individual or organization who helps a shipper navigate customs requirements.
Customs Cleared:
A cargo becomes customs cleared once it has been declared to the local customs authorities and all applicable taxes and duties have been paid. Once cleared, goods are ready for onward shipment.
Customs Commodity Code:
A six, eight or 10 digit code that tells customs authorities exactly what the cargo is.
Customs entry:
A document produced by an importer to declare incoming foreign goods after which the importer will typically pay any import duties. The customs entry statement is compared to the carrier’s vessel manifest to ensure the goods are accurately declared.
Customs invoice:
A document required by a country’s customs authority which serves the same purpose as a standard commercial invoice but also contains additional information such as a certificate of origin.
Customs of the port (COP):
A phrase referring to local rules and practices which may impact a shipment.
Cut-off time:
The latest time cargo may be delivered to a terminal for loading.
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