TERMS AND ABBREVIATIONS OF INTERNATIONAL SEA FREIGHT TRANSPORTATION

Alphabetical:

ABS (Activity Based Costing)

An accounting system that measures the cost and performance of specific activities performed within an organisation. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.

AC (Accessorial)

Accessorial Service - Service rendered by a carrier in addition to transportation services. (e.g. sorting, packing, precooling, heating and storage.)

ALL IN (All Inclusive)

– the cost of transportation includes all additional fees provided for under the conditions of carriage. For example, in case of freight under LILO, this means the base freight rate includes, apart from loading/unloading, all related costs, such as BAF, CAF, etc.;

AQ (Any Quantity)

A rating that applies to an item regardless of weight.

ATD (Artificial Tween Decks)

Artificial Tween Decks Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.

B/L (Bill of Lading)

– a consignment note issued by the carrier to the shipper. It embodies possession of goods, and can be issued in the name of the bearer, in the name of the consignee (straight), made out to the consignor or consignee (to order);

BAS

– Base Rate;

BAF (Bunker Adjustment Factory)

– a charge to account for fluctuations in the cost of fuel, an adjustment to freight rate, is determined monthly or quarterly, usually quoted for TEU (e.g. 500 USD/TEU);

BFR

– Basic Freight Rate;

Booking

– arrangements made to reserve space on a vessel for carriage of cargo;

CAF (Currency Adjustment Factor)

– a charge added to the base rate. The rate of CAF depends on the exchange rate and is determined monthly or quarterly, usually, a percentage of the base rate;

Carrier

– a person using own or leased vehicle to transport goods on the basis of agreement with the consignor;

Certificate of Origin

– document that certifies that the exported goods were manufactures at the given place;

Charter

– an agreement between the owner of the vessel and his customer (charterer) regarding the lease of the vessel for a certain period of time or fulfillment of shipment;

C.O.C (Сarrier’s Оwned Container)

– the shipping container is owned by the carrier;

Consignee

– the recipient;

CUC

– Chassis Using Charge;

CY (Container yard)

– container terminal;

DС (Dry container)

– container type used for transportation of dry goods with no temperature control requirement;

DDF (Documentation Fee – Destination)

– document handling fee collected at the port of destination;

Demurrage

– penalty imposed for excessive use of the container from the moment of its arrival at the terminal and till the time of its departure; charges for delay in loading or unloading of a shipping vessel (laytime);

DEQ ( Delivered Ex Quay)

– an international trade term (Incoterm). Similar to DES but the passing of risk does not occur until the goods have been unloaded at the port of destination;

DES (Delivered Ex Ship)

– an international trade term (Incoterm). The seller has fulfilled his obligations when the goods are available to the byer on board the ship uncleared for import at the main port of destination. The seller bears all the costs and risks of the delivery of the goods to the named port of destination;

Detention

– penalty imposed for excessive use of the container from the moment of its departure from the terminal and till the time of its return to the port;

DHC (Handling Charge – Destination)

– reloading fees at the port of destination;

Disbursement Account

– document that contains the list of expenses on service at the port;

Discharging

– unloading;

DOCS (documentation), DocsFee

– local agent’s fees for document handling, can be charged for either full shipment or per container;

DOOR – door-to-door delivery

– the terms of delivery that means that the costs include transportation from/to the door/warehouse of the consignor/consignee;

Endorsement

– signature on the reverse side of the security document according to which occurs the passing of rights. The person who performs an endorsement is called endorser. Two types of endorsement are distinguished: full and general. The latter means without an indication of the endorsee, i.e. it only contains a signature of the endorser. An endorsement signature can be placed on a commercial paper, receipt, consignment note, and other documents;

ETA

– Estimeted Time of Arrival;

ETD

– Estimated Time of Departure;

Feeder

– sea carrier, deals with transportation of cargo (containers) on small-sized vessels, serves short distances between ports or from/to the port of loading to an ocean vessel;

FFC

– Freight Forwarder Commission/Brokerage – Origin;

FI (Free In)

– free of loading – freight rate does not include the coast of loading;

FICY (Free in/Container yard)

– loading at port at the cost of the consignor, delivery to the container yard at the cost of the liner;

FIFO (Free in/Free out)

– loading and unloading at the cost of the consignor;

FILO (Free in/Liner out)

– loading at the cost of the consignor, unloading at the cost of the liner;

FIOS (Free in/out)

– loading and unloading at the cost of the consignor;

FCL (Full Container Loading)

– container filled with cargo of one consignee;

FO (Free Out)

– free of unloading – freight rate does not include the cost of unloading;

Freight

– the cost of cargo transportation;

G (Gantry Crane)

– Gantry Crane Port crane used to load and discharge containers from vessels, can be positioned by moving along rail tracks;

GRI (General Rate Increase)

– planned increase of a base rate from a certain date;

Gross Weight

– cargo weight combined with internal packaging (inseparable) as well as external packaging (cases, bags, barrels, etc.);

HC (High Cube)

– type of container with increased capacity due to increased height in comparison to a standard container;

Heavy Lift Charge

– a surcharge for exceeding certain weight;

International Maritime Control Organisation

– International Maritime Control Organisation. See IMO;

IMO Surcharge

– a surcharge for dangerous goods;

Imports

– Goods and services which one country's residents purchase and transport from another country into their own country;

Inbound

– Import Shipment

International Commercial Terms (INCOTERMS)

– a collection of international trade terms, issued by the International Chamber of Commerce. The glossary provides the basic delivery conditions concerning carriage, formalities, etc;

For more information, see:
www.iccwbo.org

Integrated Carriers

– Carriers that have both air and ground fleets or other combinations, such as sea, rail and truck. They usually handle thousands of small parcels an hour;

Interleaved 2 of 5

– This is strictly a numeric barcode. Each encoded character is made up of five elements, two are wide and three are narrow. The number of characters to be printed must be an even number. If the number of characters to be printed is odd, a zero will be appended to the beginning of the code;

Intermodal

– Coordinated transport of freight, especially in connection with relatively long-haul movements, using any combination of freight forwarders, piggy-back, containerisation, air freight, assemblers, rail and road;

IPI (Inland Point Intermodal)

– Cargo moving via land from/to an inland point;

ISA (Information System Agreement)

– Leading organisation of ocean carriers that develops, promotes and implements electronic commerce solutions for the maritime industry;

ISPS

– port security surcharge;

LCL (Less Container Loading)

– container stowed with multiple consignees’ cargo;

LI (Liner In)

– liner terms, the cost of loading is included in the base rate;

LI-Door (Liner in / Door)

– loading at port at the cost of the liner, delivery to the “door” of the consignee;

LIFO (Liner in/Free out)

– loading at the cost of the liner, unloading at the cost of the consignor;

LILO (Liner in/out)

– loading and unloading at the cost of the liner, i.e. they are included in the base rate – full liner terms;

LO (Liner Out)

– liner terms on arrival, unloading is included in the base rate;

Laytime

– the amount of time the carrier has on loading the vessel without paying additional fees, determined by the voyage charter or, if the latter is not present, by the rules of the port of loading;

Manifest

– document listing the consignment notes for the use of customs officials as well as agents and stevedores at port of destination. It usually includes: name of vessel, port of loading, consignment numbers, name, weight, size, amount of cargo for every consignment, consigner and consignee's names, marking;

Mixed Shipment

– Shipment consisting of items described in and rated under two or more rate items within a tariff;

MLB (Mini Land Bridge Containers)

– moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also Land Bridge;

MSI Plessey

– This barcode is a variable length barcode that can encode up to 15 numeric digits. Checksum generation is dependent on the value of the checksum parameter. The following table indicates the value of the checksum property and the type of checksum created. Setting, Description, 0, one modulus 10 checksum, 1, two modulus 10 checksums, 2, one modulus 11 checksum/one modulus 10 checksum;

MT (Metric Ton)

– 1 MT = 2,204.62lbs or 35.314 cft.

Notify party

– party that must be notified by the carrier on arrival of goods. Usually, the forwarder or other representative of the consignee at port;

NVOCC (Non-Vessel Operating Common Carrier)

– Carrier offering an international cargo transport service through the use of underlying carriers and under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission in Washington D.C.;

ODF (Documentation Fee – Origin)

– document handling fee at port of origin;

OT (Oреn Tор)

– type of container with open top for easier loading which can be covered with tart;

OHC (Handling Charge – Origin)

– handling fee at port of origin;

Order bill of lading

– a bill of lading made out ‘to order’ of the consignor,’to order’ of the consignee, ‘to order’ of the bank, or ‘to order’ blank endorsed. If the order bill of lading is not made out ‘to order’ of the consignee, it is issued ‘to order’ of the consignor. Ownership of goods under it can be transferred by one party to another by signature (endorsement);

POD

– Port of Delivery

POL

Port of Loading

PSE (Port Security Charge – Export)

– charge for port security when exporting;

PSS (Peak Season Surcharge)

– an additional fee due to the seasonal increase in the number of shipments at a particular time of year;

PCS (Port Congestion Surcharge)

– surcharge due to congestion of container yards;

QR (Quick Response)

– a consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter. Distributors, carriers and suppliers act as trading partners and focus on improving the total supply system;

Quality Certificate

– document certifying that the goods meet the quality, technical characteristics, personal health and environmental safety requirements;

RF (Reefer container)

– type of container for transporting cargo that requires temperature control;

Register Ton (a unit of interior capacity of ships)

– 1 Register Ton = 100 cubic feet or 2,832 cubic metres. Also known as vessel ton;

Relay

– marine shipment that is transferred to its ultimate destination port after having been shipped to an intermediate point

Replenishment

– The process of moving the inventory of an item from a reserve storage location to the primary picking location or to another mode of storage in which picking is performed;

Revenue Ton

– number of tonnes which freight is paid for per ton;

Reverse Logistics

– reverse Logistics is a rather general term. In its broadest sense, reverse logistics stands for all operations related to the reuse of products and materials. The management of these operations can be referred to as Product Recovery Management (PRM). PRM is concerned with the care of products and materials after they have been used. Some of these activities are, to some extent, similar to those occurring in the case of internal returns of defective items due to unreliable production processes. Reverse logistics refers however to all logistics activities the collection, disassembly and processing of used products, product parts and/or materials in order to ensure a sustainable (environmentally-friendly) recovery;

Ro-Ro (Roll on/Roll off)

– vessel used for carrying cars and light trucks. Vehicles are driven on and driven off, as opposed to being loaded with cranes or other external equipment;

SEA,O/F

– (seafreight), (oceanfreight)

SEC (security charges)

– port security fee;

Shipper

– sender, or consignor;

S.O.C (Shipper’s Owned Container)

– container that belongs to the client;

Statement

– document used instead of time sheet in case laytime cannot be calculated due to lack of necessary conditions. It contains data on arrival, use of laytime specifying the standing period and its cause. Statement is used for creating time sheets and making calculations as to demurrage and dispatch;

Storage

– additional fee for exceeding the original length of stay at port. The rate is calculated from the moment of unloading until its departure from the port according to the port’s pricing scale. Usually, quoted for TEU and increases exponentially with the number of days of storage;

S.T.C. (Said To Contain)

– claim of content;

TC (Tank container)

– type of container used for gas and liquid cargo;

TEU (Twentyfoot Equivalent Unit)

– measuring unit equivalent to the volume of 1х20ft container, 1х40 ft container = 2TEU;

THC (terminal handling charges)

– the cost of handling at port;

Time charter

– hiring a vessel for a specific period of time. The owner lends out the vessel for a specific period of time to the charterer for the named fee. Usually, the owner manages the ship’s crew, maintains the ship in good condition, and covers insurance costs; the charterer pays, apart from the hire, for all the fuel the vessel consumes, port/channel charges, commissions, daily expenses;

Time sheet

– record of laytime of handling. Time sheet is made in every port of loading/unloading and is signed by the captain and the representative of the charterer. Time sheet is used for calculating demurrage and dispatch;

Vessel Ton

– a unit of interior capacity of ships equal to 100 cubic feet or 2,832 cubic metres; register ton;

Vessel Sharing Agreement

– a term agreement between two or more carriers in which a number of container positions ("slots") equal in space are reserved on particular vessels for each of the participants. The number of slots (space) on different vessels on the same route can vary by vessel type and direction but may also be expressed as each party's capacity use of the vessels employed jointly;

WarRisk

– war risk surcharge, at ports situated in the area of military actions;

Waybill

– document that states the dispatch, acceptance and transportation of goods and regulates the relationship between the consignor, carrier and consignee;

Wharfage

– port surcharge;

WSC (Winter Surcharge)

– surcharge imposed during wintertime at ports where icing may occur;

Weights

Gross/Long Ton: 2,240 lbs. (1016 kg)
Net/Short Ton: 2,000 lbs (907.19 kg)
Metric/Kilo Ton: 2,204.6 lbs (1,000 kg)

Protective packaging: its types and properties

Protective packaging: its types and properties

Packaging is defined as a technical means or a group Read More
Shipping glossary

Shipping glossary

Terms and abbreviations of international sea freight transportation. Read More
Cargo on pallets

Cargo on pallets

Useful information about the carriage of goods by sea, air Read More
Container marking

Container marking

Container marking A container is a reusable transport equipment designed Read More
  • 1
  • 2
  • 3