Glossary of Shipping Terms

Accreditation Certification by duly recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, or operational group or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 series standards.
Ad Valorem In proportion to the value.
Agent (Agt.) A person authorized to transact business for, and in the name of, another person or company.
Air WayBill An AWB is a bill of lading which covers both domestic and international flights transporting goods 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. Normally AWB refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of America to U.S. based airlines.
Air WayBill An AWB is a bill of lading which covers both domestic and international flights transporting goods 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. Normally AWB refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of America to U.S. based airlines.
Aircraft Container A unit load device (ULD) which links directly with the airplane cargo handling and restraint system.
Aircraft Container A unit load device (ULD) which links directly with the airplane cargo handling and restraint system.
AMS Automated Manifest System.  An application that expedites the clearance of cargo for the subsequent release of containers when imported to the U.S. through electronic submission of cargo manifests in lieu of bulk paper manifests. 
Arrival notice An advice that the carrier sends to the consignee advising of goods coming forward for delivery. Pertinent information such as BL number, container number and total charges due from consignee etc, are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier to ensure smooth delivery but there is no obligation by the carrier to do so. The responsibility to monitor the transit and present himself to take timely delivery still rests with the consignee.
ASEAN  The Association of Southeast Asian Nations (ASEAN) agreed in January 1992 to create a free trade area (ASEAN Free Trade Area, or AFTA) with use of a common effective preferential tariff. Under the agreement ASEAN members will cut tariff rates within 15 years of its start date of January 1994. Manufactured goods from 15 sectors designated as "fast track" are subject to tariff reduction to 0-5 percent within 10 years, and seven years if the starting rates were already below 20 percent. "Fast track" sectors include vegetable oils, cement, chemicals, pharmaceuticals, fertilizer, plastics, rubber products, leather products, pulp, textiles, ceramic and glass products, gems and jewelry, copper cathodes, electronics, and wooden and ratan furniture
Asia Pacific Economic Cooperation (APEC) APEC, established in November 1989, is an informal grouping of Asia Pacific countries that provides a forum for Ministerial level discussion of a broad range of economic issues. APEC includes the six ASEAN countries (Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand), plus: Australia, Canada, China, Hong Kong, Japan, New Zealand, South Korea, Taiwan, and the United States.
ATA Actual Time of Arrival
ATD  Actual Time of Departure
Automated Broker Interface (ABI) ABI, a part of Customs' Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the United States. Qualified participants include brokers, importers, carriers, port authorities, and independent data processing companies referred to as service centers.
Automated Clearinghouse  The Automated Clearinghouse (ACH) is a feature of the Automated Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines elements of bank lock box arrangements with electronic funds transfer services to replace cash or check for payment of estimated duties, taxes, and fees on imported merchandise.
Awkward cargo Cargo of irregular size that can either be containerized (packed in container) or non-containerized (without equipment associated with) during transportation. It requires prior approval on a case by case basis before confirmation of booking.
Axle load Maximum load permitted to be carried on each axle of a motor vehicle.
Bank Release Negotiable time draft drawn on and accepted by a bank which adds its credit to that of an importer of merchandise
Banker's Acceptance  A banker's acceptance is a draft drawn on and accepted by a bank. Depending on the bank's creditworthiness, the acceptance becomes a financial instrument which can be discounted.
Banker's Draft Draft payable on demand and drawn by or on behalf of the bank itself; it is regarded as cash and cannot be returned unpaid.
Banker's Guarantee An assurance, obtained from a bank by a foreign purchaser; that the bank will pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults.
Bill of lading (B/L) Official legal document representing ownership of cargo, a negotiable document to receive cargo, and the contract for cargo between the shipper and the carrier.
Block train Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction.
Bls. Bales. A kind of customary packing unit.
Bobtail Movement of a tractor, without trailer, over the highway.
Bona fide In good faith.
Booking number A reference number for bookings registered. It should be unique without duplication for a three-year period.
Bow The front of a vessel.
Box Common term for an ocean going freight container.
Boxcar A closed freight car.
BPS Business Process and Systems - section within ISD responsible for implementation of IRIS-2 and user support in system and business processes.
Break Bulk (B/B) For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or receipant is under one HAWB. When freight forwarder receives the consolidated cargo from carrier, they will break the consolidation apart per HAWB then proceed customs clearance along with associated shipping and import documents. Such Break-Bulk is normally handled by airlines or their contracted ground handling agent.
Break-bulk cargo Goods shipped loose in the vessel’s hold and not in a container.
British Thermal Unit (BTU) The amount of heat required to produce a temperature change of one degree Fahrenheit in one pound of water.
Bulk carriers A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks & number or count.
Bull rings Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo.
Bunker surcharge (BAF, BSC) Bunker Adjustment factor (BAF), or Bunker Surcharge (BSC) are surcharges assessed by the carrier to freight rates to reflect current cost of bunker.
Bunkers Heavy oil used as fuel for ocean vessels.
C.A.F. Currency Adjustment Factor. Surcharge percentage applied to freight rates to reflect currency fluctuations.
C.B.M. (C.M.) Cubic meter.
C.K.D. Abbreviation for Cars Knocked Down.  Automobile parts and subassemblies manufactured abroad and transported to a designated assembly plant.  A classification of Third Party International shippers. See Knocked Down.
C.O.D. Collect (cash) on Delivery; Carried on Docket (pricing); Change of Destination.
Cargo manifest A manifest that lists only cargo, without freight and charges.
Carriage Paid To Carriage paid to (CPT) and carriage and insurance paid to (CIP) a named place of destination. Used in place of CFR and CIF, respectively for shipment by modes other than water.
Carrier Any individual, company or corporation engaged in transporting goods.
Cash Against Document A term denoting that payment is made when the bill of lading is presented.
Cash Against Document A term denoting that payment is made when the bill of lading is presented.
Cash On Delivery COD means payment to be made upon the delivery of goods.
Cash With Order CWO is a means of payment in which the buyer pays cash when ordering; the order is binding on both seller and buyer.
Cells The construction system employed in container vessels; permits below ship containers to be stowed in a vertical line with each container supporting the one above it.
Cellular vessel A vessel designed with internal ribbing to permit the support of stacked containers.
Certificate of Inspection A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment. Pre-shipment inspection is a requirement for importation of goods into many developing countries.
Certificate of Inspection A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment. Pre-shipment inspection is a requirement for importation of goods into many developing countries.
Certificate of Manufacture A document (often notarized) in which a producer of goods certifies that the manufacturing has been completed and the goods are now at the disposal of the buyer.
Certificate of origin Document certifying the country of origin of goods which is normally issued or signed by a Chamber of Commerce or Embassy.
Certificate of Origin Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information.
CFC's (Chlorofluorocarbons) Chemical compounds containing mixtures of carbon, chlorine and fluorine molecules. Because of their stability, lack of flammability and ability to absorb and give up heat readily, CFC's have in the past been popular refrigerants. However, CFC's have been found to contribute to the deterioration of the ozone layer of the upper atmosphere, which is a condition believed to be hazardous to global health. These compounds should not be released into the atmosphere, but should be carefully collected for recycling. Production of CFC's is being phased out by an international convention, the Montreal Protocol.
CFS/CFS A kind of cargo movement by container. Delivered loose at origin point with vanning by carrier, devanned by carrier at destination, and picked up loose at destination.
Chassis A wheeled flat bed or a trailer constructed to accommodate containers moved over the road.
CIF A price term commonly used in International Trade practise, meaning price quoted including cost of goods, cost of insurance covering the risk of goods during its transportation and associated transportation fee. Normally it comes with destination and means of transportation ie. air or sea. (Example: CIF Osaka Airport)
Closing date Last day on which export cargo can be accepted for a nominated sailing.
Commercial Invoice The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, and other characteristics.
Commercial Invoice The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, and other characteristics.
Confirmed Letter of Credit A letter of credit, issued by a foreign bank, whose validity has been confirmed by an American bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.
Consignee The person or firm named in a freight contract to whom goods have been consigned or turned over. For export control purposes, the documentation differentiates between an "intermediate" consignee and an "ultimate" consignee.
Consignment Delivery of 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.
Consolidated cargo Cargo containing shipments of two or more shippers, usually shipped by a firm called a consolidator. The consolidator takes advantage of lower F.C.L. rates, and savings are passed on to shippers.
Consolidation The combination of many small shipments into one container.
Consolidator A person or firm performing a consolidation service for others.
Consortium Group of carriers pooling resources in a trade lane to maximize their resources efficiently.
Container A receptacle designed to transport cargo of many types in continuous transportation.
Container freight station (CFS, C.F.S.) Consolidation depots where parcels of cargo are grouped and loaded into containers.
Container gross weight Please refer to Gross Weight.
Container load plan (CLP) A document prepared to show all details of cargo loaded in a container, e.g. weight (individual and total), measurement, markings, shippers, consignees, the origin & destination of goods, and location of cargo within the container.
Container number The unique identification of a container.
Container seal number The number of high security seals provided by OOCL.
Container size The length of a container i.e. 20'', 40'' and 45'' (feet).
Container terminal Also refered to as a Container Yard (CY). A facility that receives full export containers from one shipper to loading the vessel and delivers full import containers to the consignee after; it is the same location where ocean vessels are loaded & unloaded.
Container type The purpose of a container of which the code is to be adhered to ISO standard.
Containership An ocean vessel specifically designed to carry ocean cargo containers. It is fitted with vertical cells for maximum capacity.
Controlled atmosphere (CA) An atmosphere in which oxygen, carbon dioxide and nitrogen concentrations are regulated, as well as temperature and humidity.
Cost and Freight (C&F) Cost and Freight (CFR) to a named overseas port of import. Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The cost of insurance is left to the buyer's account. (Typically used for ocean shipments only. CPT, or carriage paid to, is a term used for shipment by modes other than water.) Also, a method of import valuation that includes insurance and freight charges with the merchandise values.
Cost, Insurance and Freight (CIF)  Cost, insurance, and freight (CIF) to a named overseas port of import. Under this term, the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation for the vessel. (Typically used for ocean shipments only. CIP, or carriage and insurance paid to, is a term used for shipment by modes other than water.)
Country of Origin  The U.S. Customs Service defines country of origin as the country where an article was wholly grown, manufactured or produced, or, if not wholly grown, cultivated or produced in one country, the last country in which the article underwent a substantial transformation. Duty rates vary according to the country of origin.
Cu. Cubic. A unit of volume measurement.
Cubic foot 1,728 cubic inches.
Custom house A country Treasury Department office where duties, etc., on foreign shipments are handled.
Customs bonded warehouse a public or privately owned warehouse where dutiable goods are stored pending payment of duty or removal under bond. The storage or delivery of goods are under the supervision of customs officers and if the warehouse is privately owned the keeper has to enter into a bond as indemnity in respect of the goods deposited, which may not be delivered without a release from the customs.
Customs Clearance The procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo such as FCC or FDA approval.
Cut-off time Lastest possible time the cargo may be delivered to the vessel or designated point.
Cwt. Hundredweight (U.S.A., 100 pounds; United Kingdom, 112 pounds).
CY Container Yard.  See "Container Terminal".
CY/CFS Cargo loaded in a full container by a shipper at origin, delivered to pier facility at destination, and then devanned by the carrier for loose pick up.
CY/CY Cargo loaded by the shipper in a full container at origin and delivered to the carrier's terminal at destination for pick up intact by consignee.
D & H Dangerous and Hazardous. (Also see "Dangerous Goods")
D.W. Dead Weight. The number of tons a ship can transport of cargo, stores and bunker fuel.  (Also see "Deadweight Tonnage")
Dangerous Goods The term used by I.M.C.O. for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported.
DDC Destination Delivery Charges. A charge assessed by the carrier for handling positioning of a full container.
DDP Delivery Duty Paid
DDU Delivery Duty Unpaid
Dead Space Space in a car, truck, vessel, etc., that is not utilized.
Deadweight Tonnage (D/W) The number of total weight tons that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces "light" and the number of tons it displaces when submerged to the "load line."
Dedicated Unit Train An unit train operated by various railroads for exclusive usage.
Delivered/Duty Paid  While the term "Ex Works" signifies the seller's minimum obligation, the term "Delivered Duty Paid", when followed by words naming the buyer's premises, denotes the other extreme -- the seller's maximum obligation. The term "Delivered Duty Paid" may be used irrespective of the mode of transport. If the parties wish that the seller should clear the goods for import but that some of the cost payable upon the import of the goods should be excluded -- such as value added tax (VAT) and/or other similar taxes -- this should be made clear by adding words to this effect (e.g., "exclusive of VAT and/or taxes").
Delivery Instructions Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order which is used for import cargo.
Delivery Order A document authorizing delivery to a nominated party of goods in the care of a third party. Can be issued by a carrier on surrender of a bill of lading and then used by the merchant to transfer title by endorsement.
Depot Container Container freight station or a designated area where empty containers can be picked up or dropped off.
Destination The place where the carrier actually turns over the cargo to consignee or his agent.
Detention Charges raised for detaining container/trailer at customer’s premises for longer period than provided in Tariff.
Detention Charge See "Detention".
Devanning The removal of cargo from a container. Also known as unstuffing, unloading or stripping.
DFG Dynamic Flow Guidelines -- which is used to control the on-land stock level of each region taking into account of the traffic pattern and local vanning/devanning dwell time. The shortest the dwell time, the lowest the DFG and the more efficient the equipment utilization will be.
Differential Rate An amount added or deducted from base rate to make a rate to or from some other point or via another route.
Diversion A change made in the route of a shipment in transit.
Divert The route of a shipment changed in transit from that shown on the original billing. Used interchangeably with reconsign.
Dock (a) The water alongside a pier or wharf. (b) Loading or unloading platform at an industrial location or carrier terminal.
Dock Receipt A form used to acknowledge receipt of cargo at a steamship pier. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the vessel operator or the operator's agent and serves as basis for preparation of the ocean bill of lading.
Documents Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance (signature on) of the attached draft.
Documents Against Payment (D/P)  Stipulate that the exporter ships goods to the importer without a letter of credit or another form of guaranteed payment. The importer must sign a sight draft before receiving the necessary documents to pick up the goods. Documents Against Acceptance (D/A) are instructions given by a shipper to a bank stating that the documents transferring title to goods should be delivered to the buyer only upon the signing of a time draft. In this manner an exporter extends credit to the importer and agrees to accept payment at a readily determined future date.
Door-to-Door Through transportation of a container and its contents from consignor's premises to consignee's premises.
Double-Deck Load A second tier of cargo placed on top of the first tier.
Dray A truck or other equipment designed to haul heavy loads.
Drayage Charge made for local hauling by dray or truck.
Dry Cargo Cargo that does not require temperature control.
Dry Dock An enclosed basin into which a ship is taken for underwater cleaning and repairing. It is fitted with watertight entrance gates which when closed permit the dock to be pumped dry.
Dry-Bulk Container A container constructed to carry grain, powder and other free flowing solids in bulk.
DST Double Stack Train. Rail or train capable of carrying two 40' containers, one on top of the other.
Dunnage (Dge.) Lumber or other material used to brace material in carrier's equipment.
Dwell Time It is expressed in term of no. of day that a container changed from one status to another e.g. from under inbound load (UIL) to empty available (MTA) to under outbound load (UOL). The shorter the dwell time, the more efficient the container utilization will be.
ECU European Currency Units. A financial unit used for EC accounting.
En route Along the route of movement.
ETA Expected Time of Arrival
ETD  Expected Time of Departure
Ex Works Ex Works (EXW) at a named point of origin (examples are: ex factory, ex mill, ex warehouse). Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at a specified place on the date or within the period fixed. All other charges are for the account of the buyer.
Export Shipment of goods to another country.
Export Declaration A government document permitting designated goods to be shipped out of the country.
Export License A government document (also known as an "Individual Validated License") authorizing exports of specific goods in specific quantities to a particular destination. This document may be required in some countries for most or all exports and in other countries only under special circumstances.
Export Processing Zones EPZs are a form of free trade zone which provide incentives for industrial or commercial export activity. Export processing zones are located in developing countries and are usually in defined areas, industrial parks, or facilities which provide free trade zone benefits and usually offer additional incentives, such as exemption from normal tax and business regulations. The zones, which began appearing around 1975, are sometimes referred to as Special Economic Zones or Development Economic Zones.
F.A.K. Freight All Kind. System whereby freight is charged per container, irrespective of the nature of the goods, and not according to a Tariff.
F.A.S. Free Alongside Ship.
F.C.L. Full Containerload. Arrangement whereby shipper utilizes all the space in a container which he packs himself.
F.I.O. Free In and Out.
F.O.B. Stands