Glossary
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10+2 IMPORTER SECURITY FILING (ISF)-
Issued by U.S. Customs and Border Protection (CBP) effective January 26, 2010. Before merchandise arriving by vessel can be imported into the U.S., the ISF importer or their agent must electronically submit certain advance cargo information to CBP in the form of an Importer Security Filing (ISF).
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AIR TRANSPORTATION -
The use of aircraft to move freight.
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CHINA CONTAINER SHIPPING –
The shipping of containerized freight to/from a China port.
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DESTINATION -
The place where freight is going or directed. (The place to which a shipment is consigned.– The place where carrier actually turns over cargo to consignee or his agent.)
DOMESTIC OCEAN TRANSPORTATION -
The use of vessels and barges to move cargo within the U.S.
DOMESTIC OTR TRANSPORTATION SERVICE -
Over the road (OTR) trucking services within the continental United States.
DOMESTIC TRUCKING RATES -
DOMESTIC TRUCKLOAD PRICING -
DRAYAGE -
The pick up or delivery of an ocean container via truck.(Drayage
Charge made for local hauling by dray or truck. Same as Cartage)
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EXPORT -
Shipment of goods to a foreign country.
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FEU –
Abbreviation for “Forty–Foot Equivalent Units.” Refers to a standard container size of 40 feet. Two 20–foot containers or TEU’s equal one FEU.
FCL CONTAINER –
Abbreviation for “Full Container Load.”
FREIGHT CONSOLIDATION -
Cargo consolidation service in which several smaller shipments are assembled and shipped together resulting in better freight rates and security of cargo.
FREIGHT DECONSOLIDATION -
Separating a 'consolidated' (usually containerized) shipment into its original constituent shipments, for delivery to their respective consignees.
FREIGHT FORWARDER –
A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.
FTL RATES -
FULL TRUCK LOAD (FTL) -
The transportation of freight that fills a standard (twenty or forty foot) container.
HAZMAT –
An industry abbreviation for “Hazardous Material.”
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IMPORT -
To receive goods from a foreign country.
INCOTERMS –
The recognized abbreviation for the International Chamber of Commerce Terms of Sale. These terms were last amended, effective 2000.
INTERMODAL –
Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, rail, water, and air carriers, and where the equipment is compatible within the multiple systems.
INTERNATIONAL OCEAN RATES -
The cost to ship containerized freight over the ocean, from one international or domestic port to another.
INTERNATIONAL OCEAN TRANSPORTATION -
The use of vessels and barges to move cargo outside the U.S.
INTERNATIONAL SHIPPING QUOTES -
The cost to ship freight to or from one international port to another.
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LCL-
Abbreviation for “Less than Container Load.” The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.
LESS THAN TRUCKLOAD-
Also known as LTL or LCL.
LESS-THAN TRUCK LOAD (LTL) -
The transportation of relatively small freight; small enough to not fill a standard (twenty or forty foot) container.
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OCEAN BILL OF LADING (Ocean B/L) -
A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in–transit.
OCEAN FREIGHT QUOTE -
OCEAN RATES -
The cost to ship containerized freight via the ocean. Also called ocean transportation rates.
ORIGIN -
The point where freight/cargo originates; where the shipment begins its movement.
OVERSIZE CARGO
Anything that will not fit inside a standard (twenty or forty foot) container. Also called project oversize cargo.
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PICK AND PACK
Merchandise shipment process where items are selected (picked) from a warehouse according to what has been ordered by each customer, and then packed for shipment.
POD-
Abbreviation for Port of Discharge or Port of Destination. Also used for Proof of Delivery: A document required from the carrier or driver for proper payment.
POINT OF ORIGIN
The place at which a shipment is received by a carrier from the shipper.
POL -
Abbreviation for Port of Loading.
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RAMP -
Railroad terminal where containers are received or delivered and trains loaded or discharged.
RAMP-TO-DOOR -
A movement where the load originates at an origin rail ramp and terminates at a consignee’s door.
RAMP-TO-RAMP -
A movement of equipment from an origin rail ramp to a destination rail ramp only.
REFRIGERATED CARGO -
Perishable commodities which require temperature-controlled transportation. Also called Reefer Cargo.
“RO/RO” -
A shortening of the term, “Roll On/Roll Off.” A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes. Also refers to any specialized vessel designed to carry Ro/Ro cargo.
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SHIP TYPES -
- Barge Carriers - Ships designed to carry barges; some are fitted to act as full containerships and can carry a varying number of barges and containers at the same time. At present this class include two types of vessels LASH and Sea-Bee.
- Bulk Carriers - All vessels designed to carry bulk homogeneous cargo without mark and count such as grain, fertilizers, ore, and oil.
- Combination Passenger and Cargo Vessels - Ships with a capacity for 13 or more passengers and any form of cargo or freight.
- Freighters - Breakbulk vessels both refrigerated and unrefrigerated, containerships, partial containerships, roll-on/roll-off vessels, and barge carriers. A general cargo vessel designed to carry heterogeeous mark and count cargoes.
- Full Containerships - Ships equipped with permanent container cells, with little or no space for other types of cargo.
- General Cargo Carriers - Breakbulk freighters, car carriers, cattle carriers, pallet carriers and timber carriers. A vessel designed to carry heterogeneous mark and count cargoes.
- Partial Containerships - Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.
- Roll-on/Roll-off vessels - Ships specially designed to carry wheeled containers or trailers using interior ramps. Includes all forms of car and truck carriers.
- Tankers - Ships fitted with tanks to carry liquid bulk cargo such as crude petroleum and petroleum products, chemicals, Liquefied gasses (LNG and LPG), wine, molasses, and similar product tankers.
SUPPLY CHAIN -
A logistical management system which integrates the sequence of activities from delivery of raw materials to the manufacturer through to delivery of the finished product to the customer into measurable components.
SURCHARGE -
An extra or additional charge.
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TARIFF (Trf.)
A publication establishing the charges, rates and rules of transportation companies.
TERMS OF SALE -
The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods. Following, are the thirteen terms of sale in international trade as Terms of Sale reflected in the recent amendment to the International chamber of Commerce Terms of Trade (INCOTERMS).
- EXW (Ex Works) (...Named Place)-A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term thus represents the minimum obligation for the seller.
- FCA (Free Carrier) (... Named Place)-A Term of Sale which means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.
- FAS (Free Alongside Ship) (...Named Port of Shipment)-A Term of Sale which means the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
- FOB (Free On Board) (...Named Port of Shipment)-An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. (Note: The U.S. Government sometimes uses a made–up term “FOB Destination” to require the seller to take responsibility for delivering the goods at destination rather than the correct Incoterm of DDP.)
- CFR (Cost and Freight) (...Named Port of Destination)-A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
- CIF (Cost, Insurance and Freight) (...Named Place of Destination)-A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.
- CPT (Carriage Paid To) (...Named Place of Destination)-A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
- CIP (Carriage and Insurance Paid To) (...Named Place of Destination)-A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.
- DAF (Delivered At Frontier) (...Named Place)-A Term of Sale which means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country.
- DDU (Delivered Duty Unpaid) (...Named Port of Destination)-A Term of Sale where the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.
- DDP (Delivered Duty paid) (...Named Port of Destination)-“Delivered Duty Paid” means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.
- DES (Delivered Ex Ship) (...Named Port of Destination)-A Term of Sale where the seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.
- DEQ (Delivered Ex Quay, [Duty Paid]) (...Named Port of Destination)-A Term of Sale which means the DDU term has been fulfilled when the goods have been available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.
TEU -
Abbreviation for “Twenty foot Equivalent Unit.” In reference to the size of an ocean container.
TRANSLOADING -
The process of transferring product from ocean containers into domestic, intermodal or over-the-road trailers.
TRUCKING RATES -
The cost to move a truck load over the road. Same as trucking quotes and truckload pricing.
TRUCK BROKERAGE -
A transportation company’s broker's business; acts as intermediary between consignee and customer.
TWIC -
TWIC, Transportation Worker Identification Credential, wasestablished by Congress through the Maritime Transportation Security Act (MTSA) and is administered by the Transportation Security Administration (TSA) and U.S. Coast Guard. TWICs are tamper–resistant biometric credentials that will be issued to all credentialed merchant mariners and to workers who require unescorted access to secure areas of ports, vessels or outer continental shelf facilities.
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WAREHOUSE -
A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo. Also called a distribution facility.
WAREHOUSING -