transportation and logistics business are
explained below in simple, easy to understand
definitions.

Absolute Quota Restrictions - which permit a
limited quantity of merchandise to be entered with
Customs or withdrawn for consumption into the United
States during specified periods of time.

Act of God: - Marine Insurance term meaning an act
beyond man’s control, e.g., lightning, flood,
earthquake, etc. The carrier is not legally responsible
under most circumstances for such damage.

Ad Valorem: - According to value. Rates are based
on value of goods

Advising Bank: - The Bank which advises the seller
that a Letter of Credit has been opened in his favor
by the buyer; however, the advising bank does not
necessarily guarantee payment.

AI - All Inclusive Rates

AMS - Automated Manifest System. Electronic computer
link with U.S. Customs that allows for faster processing
and clearance of cargo.

Arbitrary: - A stated amount over a fixed rate to one
point to make a rate to another point.

Arrival Notice: - Notice sent by the carrier informing
the consignee, notify party, and also notify party of
the arrival date of the cargo. Other pertinent information
for shipment may be included, such as bill of lading
number, weight, charges due and location of cargo.

Awkward Cargo: - Cargo of irregular size that is either containerized or un-containerized. It requires prior
approval, depending on the circumstances, before
confirmation of booking.

BAF or (BSC): - Bunker Adjustment Factor (or Bunker
Surcharge). Surcharge assessed by carrier to freight
rates to supplement increased fuel costs.

Bank Guarantee: - Document accepted in lieu of original
bill of lading to release cargo. Protected in writing
to carrier for performing a deviation from normal
business, guaranteed by a bank.

BB- Break bulk: - A term used to describe cargo
which does not constitute a full container, or
which is palletized, boxed, etc., or large machinery,
trucks, etc. Also used to describe cargo, which
cannot be containerized due to its size and/or nature.

B/L- Bill of Lading: - A receipt for the cargo and
a contract for transportation between a shipper and
the ocean carrier. It may also be used as an
instrument of ownership, which can be bought, sold or
traded while the goods are in transit. To be used
in this manner, it must be a negotiable “Order Bill
of Lading”.

A “Clean B/L” is issued when the shipment is received
in good order. If damage or a shortage is noted, a
clean bill of lading will not be issued. An “On
Board B/L” certifies that the cargo has been placed
aboard the named vessel and is signed by the master of
the vessel or his representative. On letter of credit
transactions, an On Board B/L is usually necessary for
the shipper to obtain payment from the bank.

When all bills of lading are processed, a “ships
manifest” is prepared by the steamship line. This
summarizes all cargo aboard the vessel by port of
loading and discharge.

“Inland Bill of Lading” is also known as the
“Waybill” on rail or the “Pro Forma B/L” in trucking.
It’s used to document the transportation of the goods
between the port and the point of origin or destination.
It should contain information, such as marks, numbers,
steamship line, etc., to match with a dock receipt.

Booking: - The arrangement of space of cargo in a
container (CFS or CY), or as a break bulk or bulk. One
would call an international carrier and reserve space
for the cargo.

Bonded Warehouse: - A warehouse, section of a warehouse,
or secured area designated by U.S. Customs as a bonded
warehouse. It is a temporary storage area (limited
for five years) for goods until duties are paid or
otherwise properly released and the cleared from Customs.

Box: - Slang term for an ocean container for cargo.

Brokerage: - Fee paid to freight forwarder by the
carrier for services performed.

Bulk Freight: - Not in packages or containers,
shipped loose in the hold of the ship. Grain, coal
and sulfur are usually bulk freight.

CAF - Currency Adjustment Factor: Surcharge percentage
applied to freight rates to adjust currency fluctuations
in order to equalize different currency values.

Carrier Certificate and Release Order (Carrier
Certificate): - Used to advise Customs of the details
of the shipment, its ownership, port of lading, etc.
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

Certificate of Origin (C/O) - Formal document,
required at destination, stating the origin of cargo
and relevant cargo details.

CFS - Container Freight Station. Storage/warehouse
facilities for loading/unloading less than full container
orders.

CFS/CFS - Cargo movement delivered loose at origin point,
devanned by carrier at destination, and picked up loose at destination terminal.

CFS/CY - Loose cargo received at origin point, loaded in
a container by carrier, then delivered intact at destination.

Chassis:- A wheeled flat bed trailer on which to
mount a cargo container for transport.

CHB (Custom House Broker)- - A person or company
who is licensed to transact customs business on
behalf of the United States importer. Licensing
is by U.S. Customs. Also referred to as Customs Broker.

CIF: - Cost Insurance and Freight.

Claim: - When used in Marine Insurance, means a
demand made by a shipper or insurance company
upon a carrier for payment of a loss sustained
through its negligence.

Clean B/L: - See B/L

COD- - Collect (Cash) on Delivery

Carried on Docket (pricing)

Change of Destination

COFC: - Container on Flat Car. Containers moving
on articulated flat cars without chassis.

Commercial invoice: - A bill for the goods from
the seller to the buyer. It is often used by
government to determine the true value of goods
for the assessment of customs duties. It is also
used in the preparation of consular documentation.
Governments using the commercial invoice to control
imports often specify its form, content, number of
copies, language to be used, etc.

Conference - Group of carriers allowed by FMC to
determine a level of rates, services and rules of a
given trade route bound together by a common tariff.

Connecting Carrier - An intermediary carrier utilized
to connect cargo to/from the mother vessel.

Also known as “feeder service”.

Consignee - Receiver of shipment

Consolidator- - A company who combines small
shipments to a common point for convenience
and special rate to accommodate the customer.

Consortium - Group of carriers pooling resources
in a trade lane to maximize their resources efficiently.

Consular Invoice - Required by some countries,
this document is used to control and identify goods
shipped to them. It usually must be prepared on
special forms and may require legalization by
their Consul.

Consumption Entry - See Custom Entries

Container - A vehicle designed to transport
cargo of many types in continuous transportation.
They are constructed as to not fail under stress
or handling over a long period of time. Most ocean
vessels can accommodate 20’ and 40’ length ocean
containers for below deck storage and any size
above deck. Containers may be ventilated, insulated,
flat rack (open sided), reefer (refrigerated), vehicle
rack, or open top.

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,
shipper, the origin of goods and destination, as well
as location of the cargo within the container.

Containership - An ocean vessel specifically designed
to carry ocean cargo containers. It’s fitted with
vertical cells for maximum loading/discharge efficiency.

Country of Origin - The country of manufacture,
growth or production of cargo.

Credit Agreement - Agreement between carrier and
shipper for release of cargo with promise to pay
ocean freight within specified time.

CST - Commodity Specialist Team

Customs Entries
Consumption Entry – A form required by U.S.
Customs for entering goods into the U.S.

The form contains information as to the origin
of the cargo, a description of the merchandise,
and estimated duties applicable to the particular
commodity. Estimated duties must be paid when
the entry is filed.

Immediate Delivery Entry (I.D. Entry) – Procedure
used to expedite the clearance of cargo. It allows
up to ten days for the payment of estimated duty
and processing of the consumption entry. In
addition, it permits delivery of the cargo prior
to payment of the estimated duty and then allows
subsequent filing of the consumption entry and duty.

Immediate Transportation Entry (I.T. Entry) – Allows
the cargo to be moved from the pier to an inland
destination via a bonded carrier without the payment
of duties or finalization of the entry at the port
of arrival. Cargo must clear Customs at the inland
destination point.

Transportation and Exportation Entry (T&E Entry) –
Allows goods coming from or going to a third
country (such as Canada or Mexico) to enter the
U.S. for the purpose of Trans-shipments.

Cut-Off - Last possible date cargo may be delivered
to vessel or designated point.

CY- Container Yard - Storage area where full containers
are received and picked up.

CY/CFS - Cargo loaded in a full container by a
shipper at origin, delivered to pier facility at
destination, and then devanned by carrier for loose
pick up.

CY/CY - Cargo loaded by shipper in a full container
at origin and delivered to carrier’s terminal at
destination for pick up intact by consignee.

DDC – A charge assessed by the carrier for
handling positioning of a full container within
the container yard

Delivery Instructions - These instructions
provide specific information to the inland
carrier about the merchandise to the particular
pier or steamship line. This term is not to be
confused with “Delivery Order” which is used
for import cargo.

Delivery Order (Pier Release) - Issued by the
consignee or his customs broker to the ocean carrier
as authority to release the cargo to the inland
carrier. Includes all data necessary for the pier
delivery clerk to determine that the cargo can be
released to the domestic carrier.

Demurrage - A penalty charge against shippers or
receivers for delaying carriers equipment beyond
allowed time.

Devanning - The process of unloading cargo from a
container. Also referred to as un-stuffing,
unloading, or stripping.

Diversion - A change made in the route of a shipment.

Dock Receipt - Receipt given for a shipment received
or delivered at a pier or dock. When delivery of
an overseas shipment is completed, the dock receipt
is surrendered to the carrier and a bill of lading
is issued.

Door to Door - Shippers use the container to carry
goods directly from his premises to his customer’s
location. Shipper is responsible for proper stowage
and security of cargo within container.

DOT - Department of Transportation.

DST- Double Stack Train – Rail car train capable of
carrying two forty-foot equivalent containers, one on
top of each other.

Duty Rates - Tax imposed by U.S. Customs on imported
merchandise. There are three basic types:
(1) ad valorem – based on the entered value,
(2) specific – an amount per unit of quantity,
(3) compound – combination of ad valorem and specific rates.

DWT - Deadweight capacity of vessel to carry cargo.

Entry - The document or set of documents required
to be filed with U.S. Customs to secure the release
of imported merchandise. The entry is the appropriate
Customs document accompanying required supporting
documentation. The final disposition of the
imported cargo will determine the type of entry
to be filed.

Export Declaration - Required by the U.S. Department
of Commerce to control exports and to act as a
source document for export statistics. It includes
complete particulars on the shipment. Common
abbreviation is Ex Dec.

FAK - Freight All Kinds.

FCL (Full Container Load) - A container of goods
with the shipper being responsible for the packing
and the consignee being responsible for the unpacking
of the container at his own premises.

Feeder Service - See Connecting Carrier

FEU - Forty Foot Equivalent Unit. A 40’ container
equals 2 TEUS

FF (Freight Forwarder) - Federally licensed
company that handles documentation details for
shipper of export cargo.

Flat Car - Platform rail car on which trailers,
containers, etc. , are loaded

FMC (Federal Maritime Commission) - U.S.
Government Agency responsible for overseeing
regulatory aspects of all maritime activities.

Foreign Trade Zone (FTZ) - A facility which –
under license issued by the Foreign Trade Zone
(FTZ) board – has acquired extra-territorial
status. Merchandise entered into a FTZ are considered
as having been “exported” and can be subjected
to manipulation or manufacturing processes without
Customs supervision, but will be subject to
other applicable federal or state laws and terms
of the storage contract.

Free Time - Storage time allowed at carriers’
facility without penalties being assessed.

Free On Board (FOB) – An international term of sale.
The goods are placed on board a ship by the seller
at a port of shipment named in the sales contract.
The risk of loss or damage to the goods is transferred
from the seller to the buyer when the goods pass the
ship’s rail.

Freight Brokerage - A commission paid to a licensed
Freight Forwarder or Custom House Broker by the
steamship line concerning export transactions.
Commission is paid either as a percentage or the
freight charges or as a lump sum amount per
container, depending on the carrier and/or trade lane.

Freight Release (Freight Bill Receipt) - Evidence
that the freight charges for the cargo have
been paid. If in writing, it may be presented
at the pier to obtain release of the cargo.
(Normally, once the freight is paid, releases
are usually arranged without additional documentation).

General Average (GA) - Coverage for loss resulting
from voluntary sacrifice, e.g., jettison, or the
act of expending cargo to prevent loss of vessel,
crew, passengers, or total cargo. The value of
such a loss is averaged among all interested parties.

GO – General Order - Cargo seized by customs due
to failure on part of consignee to make customs
entry within allotted free time.

GRI - General Rate Increase.

Gross Weight - The weight of the goods including
packaging, wrapping, and internal and external
containers.

Heavy Lift - Single commodities too heavy to be
lifted by the ship’s regular equipment

H/H - House to House (same as CY/CY)

H/P - House to Pier (same as CY/CFS)

HH/Goods - Household goods

HM - Hazardous Materials

IA – Independent Action - A carrier can take
an independent action within a conference resulting
in a unique rate for that carrier, ability to
file a rate independently of other carrier’s action.

ICTF - Immediate Container Transfer Facility

IFM – Inward Foreign Manifest

Immediate Delivery Entry – See Customs Entries

Immediate Transportation Entry (IT) – See
Customs Entries

In Bond – The transportation of a shipment to an
inland point for Customs clearance rather than
filing an entry to clear the goods at the port of
arrival.

Inland B/L – See B/L

Insurance Certificate – Assures the consignee
that insurance is provided to cover loss or damage
to the cargo while in transit.

Interchange – Transfer of a container from one
party to another.

Interchange Agreement – Contract between carrier
and trucker that legally permits interchange of
equipment

Intermodal – The combining of two forms of
transportation, usually refers to ocean.rail,
rail/truck/ocean, air/truck/rail/ocean movements,
Intermodal movements include mini-landbridge (MLB)
and microbridge.

IPI – Inland Point Intermodal – Inland carriage
by another mode of transportation after port
discharge, cargo moving to/from an inland point.

Issuing Bank – The bank that has issued or opened
a letter of credit. Also called an Opening Bank.

JOC – Journal of Commerce. A trade publication.
Trade Transportation Journal.

LCL (Less Than Container Load) – Cargo in any
quantity (usually loose cargo) intended for carriage
in containers, the carrier is responsible for
packing and unpacking the container at the carrier’s
premises.

Letter of Credit (L/C) – Financial document issued
by a bank at the request of the consignee guaranteeing
payment to the shipper for cargo if certain terms and
conditions are fulfilled. Normally it contains a
brief description of the goods, documents required,
a shipping date, and an expiration date after which
payment will no longer be made.

LT – Long Ton (2,240 pounds)

M & R – Maintenance and Repair

M/T – Metric Ton

Manifest – A list of all cargo loaded on
board a vessel. Entire listing of all cargo
on board a vessel required by the carrier,
customs, and the coast guard.

Microbridge – Cargo moving port to port via
land or rail; inland destination served overland
by rail.

Minimum B/L – The minimum amount one can charge
per individual bill of lading

MLB – Minilandbridge – Cargo moving port to port
via land or rail; port destination served overland
by rail.

Negotiable B/L – Original Bill of Lading endorsed
by shipper that is used for negotiating documents
with bank.

Net Weight – The weight of the commodity only.

Neutral Body – Neutral party used to police the
practices of members of the conference.

Non Conference Carrier – An independent ocean carrier
who does not belong to any group or conference of ocean
carriers and who establishes their own pricing and policies.

Non Negotiable B/L – Copy of original Bill of Lading
which cannot be negotiated with bank

NVOCC – (Non Vessel Operating Common Carrier) –
Company who charters space aboard vessels, then sells
that space to prospective shippers. Also known under
deregulation as an Ocean Transportation Intermediary (OTI)

OBL – Original Bill of Lading

Ocean B/L – See B/L

On Board B/L – See B/L

Overland Common Point (OCP) – A term stated on
bill of lading offering lower shipping rates to importers
east of the Rockies provided merchandise from the Far
East comes in through the West Coast Ports.

Per Diem – Costs per day. Charge on containers held
by customers for an extended time; charges levied upon
a trucker due to late return of equipment.

Pilferage – The act of stealing cargo

POD – Port of Discharge. Also an acronym for Proof of
Delivery.

POR – Port of Origin

POL – Port of Loading

Port of Arrival – Location where imported merchandise
is off-loaded from the importing aircraft or vessel.

Port of Departure – In export, the final ocean port of
aircraft where the shipment in the vessel or aircraft
departs from the United States.

Port of Discharge - Port where goods are unloaded from
vessel

Prepaid B/L – Freight paid prior to movement; money
to be paid prior to issuance of bill of lading.

P/H – Pier to House (same as CFS/CY)

P/P – Pier to Pier (same as CFS/CFS)

R/T – Revenue Ton

Rates – Ocean rates are classified in many ways, here
is just a sampling:

Class – Grouping of articles

Commodity – Specific articles

Arbitrary – Fixed rate according to port to port

Minimum – Lowest charge

Heavy Lift Charge – Extra Charge for cargo which
needs extra or heavy equipment to load or unload, charge
assessed for cargo over a certain length.

Charter – use of an entire vessel

Ad Valorem – based on value of cargo

Refrigerated – cargo which requires refrigeration
equipment

Dangerous Cargo – needs special handling or stowage

On Deck Cargo – Cargo which must be shipped on the
deck of the vessel

Refrigerated Container (Reefer) – A specialized type
of container with built-in diesel power generator, engineered
for the transportation of refrigerated and perishable
commodities.

Revenue Ton – Tonnage used to calculate freight rates
as in ocean cargo

Seals on Containers – Attached to locking device on
container to prevent pilferage and to certify no
tampering; made of steel by customs or carrier.

Service Contract – As provided in the Shipping Act of
1984, a contract between a shipper (or a shipper’s
association) and an ocean carrier (or conference) in
which the shipper makes a commitment to provide a
certain minimum quantity of cargo or freight revenue
over a fixed time period, and the ocean common carrier
or conference commits to a certain rate or rate schedule
as well as a defined service level (such as assured
space, transit time, port rotation, or similar service
failures). The contract may also specify provisions in
the event of nonperformance on the part of either party.

SL&C (Shippers Load and Count) – Shipments loaded
and sealed by shippers and not checked or verified
by the carriers.

Special Customs Invoice – An official form usually
required by U.S. Customs if the rate of duty is based
upon the value and the value of the shipment exceeds
$500. This document is usually prepared by the foreign
exporter or his forwarder and is used by Customs in
determining the value of the shipment. The exporter
or his agent must attest to the authenticity of the
data furnished.

Stevedore - Terminal operator who facilitates the
operation of loading and discharging vessels and
other terminal activities.

Stowage - To place cargo aboard a carrier in a
preplanned and organized manner.

Tare Weight - The weight of a container and the
material used for packing exclusive of cargo.
When applied to a loaded truck, the weight of the
truck exclusive of its contents.

Tariff - A schedule of charges, rules and regulations,
which must be followed. This can be for
transportation charges, loading and unloading charges,
and import duties, etc.

TEU – Twenty-foot Equivalent Unit. A 20’ container
is a TEU. Term used to express the carrying capacity
of vessels.

THC – Terminal Handling Charge. Charge assessed
by terminal for loading, unloading, fork lifts,
document fees, and other assessments for import
and export cargo.

TIR – Trailer Interchange Receipt. Interchange
receipt between trucker and carrier; document showing
condition of container/equipment at the time of
interchange.

TOFC – Trailer on Flat Car. Containers with chassis
loaded onto rail cars.

Transmittal Letter – Contains a list of the
particulars of the shipment, a record of the
documents being transmitted, and instructions
for disposition of these documents. Any special
instructions are also included.

Transportation and Exportation Entry – See Customs
Entries.

Transshipment – The transfer of cargo from one
carrier to another.

TRC – Terminal Receiving Charge. Charge assessed
by the terminal for cargo being delivered for export.

USDA (United States Department of Agriculture).
A government agency which regulates functions of
specific imported merchandise, e.g., plants and
plant products, domestic animals, serums and by
products, etc.

W/M – Weight or Measure.

War Risk – In Marine Insurance, is damage or
loss sustained as the result of acts of war. It
is usually written in a separate policy against
current war like acts as well as former war leftovers,
such as floating mines not detected, etc. War
Risk is not included in an All Risk policy, but
can be added by endorsement. A separate premium
is usually paid.

Wharfage – Charge assessed by terminal or port
authority for the handling of incoming or outgoing
cargo.