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Glossary of Logistics

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A
Act Of God
An extraordinary and unexpected natural event, accidents of a nature beyond human control and without the possibility of prevention such as flood, lightning or hurricane usually quoted as ‘Force Majeure’.
Ad Valorem
In proportion to the value: A phrase applied to certain freight or customs duties levied on goods, property etc. set as a percentage of their value.
Allotment
A share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of the booking of cargo for a specific voyage.
All Risk
All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots.
Alongside
A phrase referring to the side of a ship. Goods to be delivered alongside are to be placed on the dock or lighter within reach of the transport ships tackle so that they can be loaded aboard the ship. Goods are delivered to the port of embarkation, but without loading fees.
Arrival Notice
Written notice sent by a carrier to a nominated party advising of the arrival of the vessel and/or a certain shipment.
B
Ballast
Materials solely carried to improve the trim and the stability of the vessel. In vessels usually water is carried as ballast in tanks especially designed for that purpose.
Bank Guarantee
An undertaking by a bank to be answerable for payment of a sum of money in the event of non-performance by the party on whose behalf the guarantee is issued.
Bare Boat Charter
A charter whereby the charterer leases the bare ship and appoints the master and crew himself. Charterer takes over all responsibility for the operation of the vessel and expenses for the duration.
Barge
It is a Flat bottomed inland cargo vessel for canals and rivers with or without own propulsion for the purpose of transporting goods. Synonym: Lighter River Shuttle Containers – RSC develops a client service through haulage
Bay
A vertical division of a vessel, used as a pat of the indication of a stowage place for containers.
Bay Plan
A stowage plan which shows the locations of all the containers on the vessel.
Bill Of Lading
Bills of lading are contracts between the owner of the goods and the carrier. There are two types. A straight bill of lading is nonnegotiable. A negotiable or shippers order bill of lading can be bought, sold, or traded while goods are in transit and is used for many types of financing transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods. A document issued on behalf of the carrier which evidences a contract of carriage by sea. The document has the following functions. 1. A receipt of goods, signed by a duly authorized person on behalf of the carriers. 2. A document of title to the foods described therein. 3. Evidence of the terms and conditions of carriage agreed upon between the two parties.
Bonded Warehouse
The Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.
Break Bulk Cargo
General Cargo conventionally stowed as opposed to unitized, containerized and Roll On- Roll Off cargo. Synonym: Conventional Cargo
Break Bulk Vessel
A general cargo vessel designed to efficiently handle un-containerized cargo. Vessels are usually self-sustaining in that they have their own loading and unloading machinery.
Bulk Carrier
Single deck vessel designed to carry homogeneous unpacked dry cargo such as grain, iron ore and coal.
Bunker Adjustment Factor
Abbreviation: BAF Adjustment applied by shipping lines or liner conferences to offset the effect of fluctuation in the cost of bunkers.
Bunkers
Quantity of fuel on board a vessel.
C
Cabotage
Transport of goods between two ports or places located in the same country.
Cargo
Goods transported or to be transported, all goods carried on a ship covered by a B/L. As per IMO definition : any goods, ware, merchandise, and articles of any kind whatsoever carried on a ship, other than mail, ship’s stores, ship’s spare parts, ship’s equipment, stowage material, crew’s effects and passenger’s accompanied baggage.
Cargo Manifest
Document which lists all bills of lading particulars of the goods loaded on a vessel, for official and administrative purposes.
Carnet
A customs document 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.
Carrier Haulage
An inland transport service which is performed by the Carrier and/or a subcontractor for the account and on behalf of the Merchant, in accordance with the conditions and charges of the relevant bill of lading or transport document.
Certificate Of Origin
A certificate showing the country of original production of goods. Frequently used by customs in ascertaining duties under preferential tariff programs or in connection with regulation imports from specific sources.
Charter Party
A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or let his vessel for a definite period or trip for which a hire is paid.
Charterer
The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or a part of the capacity thereof.
Cif
Cost, Insurance and Freight (named port of destination) The seller has the same obligations as under CFR, but must also procure marine insurance against the buyer’s risk of loss of, or damage to the goods during carriage.
Clean Bill Of Lading
A Bill of Lading which does not contain any qualification about the apparent order and condition of goods to be transported (it bears no stamped clauses on the front of the B/L) . It bears no superimposed clauses expressly declaring a defective condition of the goods or packaging (resolution of the ICS 1951).
Clean On Board
When goods are loaded on board and the document issued on respect of these goods is clean. Note: through the usage of UCP 500 rules the term has now become superfluous.
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.
Consignee
The party such as mentioned in the transport document by which the goods, cargo or containers are to be received. 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.
Consortium
Consortium is a form of cooperation between two or more carriers to operate in a particular trade lane.
Container
An item of equipment as defined by the International Organization for Standardization (ISO) for transport purposes.
Container Freight Station
Abbreviation: CFS A facility at which (export) LCL (Less than Container Load) cargo in received from merchants for loading (Stuffing) into containers or at which (import) LCL Cargo is unloaded (stripped) from container and delivered to merchants.
Container Lease
The contract by which the owner of containers (lessor) gives the user of container to a lessee for a specified period of time and for fixed payments.
Container Number
Identification number of a container consisting of prefix and serial number and check digit (e.g.ECMU 123456-7, see also container serial number and container prefix.)
Currency Adjustment Factor (Caf)
Adjustment applied by shipping lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuation in exchange rates or tariff currencies. A freight surcharge or adjustment factor imposed by an international carrier to offset foreign currency fluctuations. In some cases an emergency currency adjustment factor (ECAF) may be applied when a charge or rate has been originally published in a currency that is experiencing sustained or rapid decline. The CAF is charged as a percentage of the freight.
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.)
Custom Broker
An authorized agent specialized in custom clearance procedures on account of importers/exporters.
Container Yard
A facility at which FCL traffic and empty containers are received from or delivered to the Merchant by or on behalf of the carrier.
D
Ddu (Delivered Duty Unpaid)
Deliver Duty Unpaid, referring to DDP except buyer pays for the import duty.
Deadweight
Abbreviation: DWT The total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts which a vessel can lift when loaded to her maximum draught as applicable under the circumstances. The deadweight is expressed in tons.
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 issued by or on behalf of the carrier authorizing the release of import cargo identified thereon and manifested under a single bill of lading.
Demurrage
Compensation / Additional charge imposed for exceeding the free time which is included in the rate and allowed for the use of certain equipment at the terminal payable by the shipper or receiver to the carrier. Excess time taken for loading or unloading a vessel, thus causing delay of scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather than the vessel’s operator, is at fault.
Direct Delivery
Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of immediate transport from the port area (usually occurs when ports lack adequate storage space or when ports are not equipped to handle a specific cargo).
Draft
The draft of a vessel is the vertical between the waterline and the underside of the keel of the vessel. During the construction of a vessel the marks showing the draft are welded on each side of the vessel. Synonym: Draught
Duty
A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).
Drayage
Road transportation between the nearest railway terminal and the stuffing place.
E
Embargo
A government order prohibiting the entry or departure of commercial vessels or goods at its ports.
Equipment
The type of material used, 20 feet dry, 40 feet container, open top, flat rack etc.
Ex Works (…Named Place) (Exw)
A term of sale in which for the quoted price, the seller merely makes the goods available to the buyer at the seller’s “named place” of business. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included.
F
FCL OR CY
Full Container Load, also known as CY. CY is the abbreviation of Container Yard. When the term CY to CY, it means full container load all the way from origin to destination.
Free Carrier (Fca)
Free Carrier, FCA, to a named place. This term replaces the former “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.
Free On Board (Fob)
Common price term used in international trade meaning seller’s responsible for the cost of goods is to the point of loading it to the vessel deck or aircraft loading deck. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered. FOB normally comes with port of loading either airport or sea port.
Free Alongside Ship
Free Alongside Ship, FAS, at a named port of export. Under FAS, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharf age; loading, ocean transportation, and insurance are left to the buyer. FAS is also a method of export and import valuation.
Federal Maritime Commission
The FMC is independent agency’s which regulates ocean borne transportation in the foreign commerce and in the domestic offshore trade of the United States.
Flash Point
The lowest temperature at which a good produces enough vapor to form a flammable mixture with air.
Flat Rack Container
A container with two end walls and open sides.Especially for heavy loads and over-dimensional cargo. Containers do not have sides or a top. This allows easy fork-lift and crane access.
Forty Foot Equivalent Unit
Abbreviation: FEU Unit of measurement equipment to one forty foot shipping container.
Forwarder (Freight Forwarder)
The party arranging the carriage of goods including connected services and/or associated formalities on behalf of a shipper or consignee.
Free In And Out
Abbreviation: FIO Transport condition denoting that the freight rate excludes the costs of loading and discharging.
Free In Liner Out
Abbreviation: FILO Transport condition denoting that the freight rate is inclusive of the sea carriage and the cost of discharging, the latter as per the custom of the port. It excludes the cost of loading.
Free Port
An international port or an area within an international port at which, crew, passengers, baggage, cargo, mail and stores may be disembarked or unloaded, may remain and may be transshipped, without being subjected to any customs charges or duties. (Examination is possible for instance to meet security or narcotics control requirements)
Free Trade Zone
A part of the territory of a state where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being exempted. (Kyoto Convention)
Act
extraordinary
Freight All Kinds
Abbreviation: FAK Single freight which is charged irrespective of the commodity. FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.
Freight Collect
Freight and charges to be paid by the consignee, receiver of the goods.
Freight Manifest
Document which lists all amounts of money due for the carriage of the goods on a vessel.
Freight Prepaid
Freight and charges to be paid by the shipper.
Freight Carriage … Paid To
Like C & F, “Freight/Carriage paid to …” means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship’s rail. The term can be used for all modes of transport including multi- modal operations and container or “roll on-roll off” traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier’s receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.
Freight Carriage … And Insurance Paid To
This term is the same as “Freight/Carriage Paid to …” but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
Full Container Load
Abbreviation: FCL A container stuffed or striped under risk and for account of the shipper and/or the consignee.
Full Liner Terms (Liner In Liner Out)
Condition of carriage denoting that costs for loading and unloading are borne by the carrier subject to the custom of the port concerned.
Fully Cellular Containership
Abbreviation: FCC A vessel specifically designed to carry containers, with cell-guides under deck and necessary fittings and equipment on deck.
G
Gateway
In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.
General Average
Abbreviation: G/A Intentional and successful act or sacrifice which is carried out to safeguard vessel and cargo. When a vessel is in danger, the master has the right to sacrifice property and/or to incur reasonable expenditure. Measures taken for the sole benefit of any particular interest are not considered general average.
General Average Act (York-Antwerp Rules)
There is a general average act when, and only when any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.
General Cargo
Cargo consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales, often palletized. General Cargo can be shipped either in break bulk or containerized form.
Gross Weight
Weight (mass) of goods including packing, and including the carrier’s equipment expressed in whole kilograms or tons.
H
Hague Rules
Rules governing the carriage of goods by sea and identifying the rights and responsibilities of carriers and owners of cargo. These rules were published in 1924 following an international convention and were subsequently given the force of law by many maritime nations.
Haulage
The inland carriage of cargo or containers between name locations / points
I
Import License
A document required and issued by some national governments authorizing the importation of goods. Also referred as import permit. With such documentation, customs clearance can be conducted.
Incoterms
Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred.
Insurance Certificate
This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.
Intermodal Transport
The movement of goods (containers) in one and the same loading unit or vehicle which uses successively several modes of transport without handling of goods themselves in changing modes.
Integrated Carriers
Carriers that have both air and ground fleets; and other combinations, such as sea, rail, and truck. Since they usually handle thousands of small parcels an hour, they are less expensive and offer more diverse services than regular carriers.
Intermediate Consignee
An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.
Intermodal
Movement of goods by more than one mode of transport, i.e. airplane, truck, railroad and ship.
International Maritime Dangerous Goods Code
Abbreviation: IMDG Code A code, representing the classification of dangerous goods as defined by the International Maritime Organization (IMO) in compliance with the international legal requirements.
International Maritime Organization
Abbreviation: IMO A United Nations agency concerned with safety at sea. Its work includes codes and rules relating to tonnage measurement of vessels, load lines, pollution and the carriage of dangerous goods. Its previous name was the Inter-Governmental Maritime Consultative Organization (IMCO).
Irrevocable Letter Of Credit
A letter of credit in which the specified payment is guaranteed by the issuing bank if all terms and conditions are met by the drawee. It is as good as the issuing bank.
J
 
Comming Soon
K
 
Comming Soon
L
Less Than Container Load
Abbreviation: LCL
A general reference for identifying cargo in any quantity intended for carriage in a container, where the carrier is responsible for packing and/or unpacking the container. For operational purposes a LCL (less than full container load) container is considered a container in which multiple consignments are loaded.
Letter Of Credit
Abbreviation: LCL
A written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and or the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents.
Letter Of Indemnity
Document in which one party undertakes to compensate and protect another from liability for the performance and for the costs and consequences of carrying out a certain act. The issue of a letter of indemnity is sometimes used in order to allow consignee to take delivery of goods without surrendering Original Bills of Lading which has been delayed or become lost.
Lien
A legal claim upon real or personal property to pay a debt or duty.
Liner In Free Out
Abbreviation: LIFO
Transport condition denoting that the freight rate is inclusive of the sea carriage and the cost of loading, the latter as per the custom of the port. It excludes the cost of discharging.
M
Mate’s Receipt
A document signed by the chief officer of a Cassel acknowledging the receipt of a certain consignment on board that vessel. On this document, remarks can be made as to the order and condition of the consignment.
Merchant Haulage
Inland transport of cargo in shipping containers arranged by the Merchant. It includes empty container-moves to and from hand-over points in respect of container released by the Carrier to Merchants. Note: Carrier’s responsibility under the Bill of Lading does not include the inland transport stretch under Merchant Haulage.
Marine Cargo Insurance
Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. Three of the most common types of marine insurance coverage are “free of particular average” (f.p.a.), “with average” (w.a.), and “All Risks Coverage.”
N
Net Weight
The weight of the goods, including all packing but excluding the carrier’s requirement.
Non Vessel Operating Common Carrier
Abbreviation: NVOCC
A party who undertakes to carry goods and issues his own name of Bill of Lading for such carriage, without having the availability of any own means of transport.
Notify Party
The party to be notified of arrival of goods.
O
On Carriage
The carriage of containers by any mode of transport to the place of delivery after the discharge from the ocean vessel at the port of discharge.
Open Top Container
A freight container similar in all respect to a general purpose container except that is has no rigid roof but may have a flexible and moveable or removable cover, for example one made of canvas or plastic or reinforced plastic material normally supported on moveable or removable roof rows.
Out Of Gauge Cargo
Cargo which dimensions is exceeding the normal dimensions of a 20 or 40 feet container, e.g. over length, over width, over height, or combinations thereof.
Outsiders
A carrier, which operates on a route served by a liner conference but which is not a member of that conference.