ROCKWOOD GROUP - GLOSSARY
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Abandonment
Giving up the proprietary rights in insured property to the underwriter
in exchange for payment of a constructive total loss.
Notice of Abandonment Waiver Clause
Absorption
Acceptance by the carrier of a portion of a joint rate or charge
which is less than the amount which it would receive for the service
in the absence of such joint rate or charge (air cargo).
Agreement to pay at some future date C a “time draft” drawn on the
accepting party.
Acceptance of Goods
Process of receiving a consignment from a shipper, usually against
the issue of a receipt. As from this moment and at this place the
carrier’s responsibility for the consignment begins.
Approved Continuous Examination Program
Acknowledgement of Receipt
Notification relating to the receipt of, for example, goods, messages
and documents.
Air Cargo Process. Computer system used at UK airports as an intermediary
between airlines, airports authorities, agents and customs declarations.
Act of God
Natural event, such as floods, storms, lightning, earthquakes, etc.,
not preventable by human agency. Forces of nature that a carrier
has no control over, and therefore cannot be held accountable for.
Synonym: Force Majeure
Actual Total Loss
This occurs when: 1. The insured property is
or 2. The insured is irretrievably deprived of
or 3. Cargo changes in character so that it is no longer the thing
that was insured (e.g., cement becomes concrete) or 4. A ship is
posted “missing” at Lloyd’s, in which case both the ship and its
cargo are deemed to be an actual total loss.
Notice of Abandonment
Actual Voyage Number
Code for identification purposes of the voyage of a vessel.
Ad Valorem
Mode of freight or customs duties levied on cargo based on its value.
Ad Valorem Duty
Ad Valorem Bill of Lading
Same as Valued Bill of Lading.
Ad Valorem Duty
Tax imposed on merchandise based on its value.
Added Value
Value attributed to products, and services as the result of a particular
process (e.g. production process, storage, transport).
Articles Dangereux de Route
Down payment on account of final invoice amount.
Advance against Documents
Down payment in exchange for original shipping documents.
Advance Freight
Same as Prepaid Freight.
Advanced Interline
Interline carrier that picks up cargo from the shipper and delivers
it to another carrier for shipment to the consignee.
Exposure of property to risk.
General Average Act (York-Antwerp Rules)
Advice Note
Written shipment information, for example, about the status of the
Advice of Fate
Notice given by the collecting bank to the remitting bank as to
payment, acceptance, non-payment, or non-acceptance of a draft presented
at the remitting bank’s request.
Advising Bank
Bank that handles Letters of Credit (L/C) for a foreign bank by
notifying the seller that the buyer has opened a L/C in their favor.
The advising bank fully informs the seller of the conditions of
the Letter of Credit.
Confirmed Letter of Credit
Advisory Capacity
Term indicating that agent or representative is not empowered to
make definitive decisions or adjustments without approval of the
group or individual represented.
Without Reserve
Aeroquip System
Special accessories in a container consisting of, among other things,
the attachment rails on the inside walls to provide facilities for
lashing and securing of the cargo.
Affreightment
Contract which sets forth the obligations of both shipper and carrier
concerning transportation of the merchandise. The most common forms
of affreightment are Bills of Lading and Waybills.
At, near or towards the stern or rear of a vessel or an aircraft.
Agency Fee
Fee payable by shipowner or ship operator to port agent.
A company (or person) which does business on behalf of another company
based on a contractual agreement.
Aggregate Inventory
Inventory for any group of items or products, involving multiple
stock-keeping units.
Synonym: Aggregate Stock
Air Commuter
Airline operating regional passenger traffic.
Air Consignment Note
Air Waybill
Air Waybill
Abbreviation: AWB. Document used for carriage by air, evidencing
the conclusion of a contract of carriage. This is a non-negotiable
document of air transport that serves as a receipt for the shipper,
indicating that the carrier has accepted the goods listed and obligates
itself to carry the consignment to the airport of destination according
to specified conditions.
Consignment Note Bill of Lading Through Bill of Lading
Abbreviation: A.R. Broadest form of insurance cover available, providing
protection against all risks of physical loss or damage from any
external cause. Does not cover loss or damage due to delay, inherent
vice, pre-shipment condition, inadequate packaging or loss of market.
ICC Named Perils Policy
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 booking cargo
for a specific voyage.
Reservation
Phrase referring to the side of a ship. Goods to be delivered “alongside”
are to be placed on the dock or barge within reach of the transport
ship’s tackle so that they can be loaded aboard the ship.
Free Alongside Ship (FAS)
Annual Policy
Designed for clients with a small turnover of Goods in Transit.
A deposit premium is paid and this is adjusted at the end of the
year based on declarations made.
1. A vessel’s outfit, such as rigging, anchor and life boats. 2.
The term used in distribution/transport of clothing for a single
piece of clothing C a garment.
Approved Continuous Examination Program
Abbreviation: ACEP. Agreement between the owners of the equipment
and the responsible government body to allow continuous examination
of the equipment (e.g. containers).
Approved Vessel
Vessel which the underwriters deem adequate to carry the insured
cargo, at the agreed rate of premium. Where the vessel is not approved,
the risk is still covered but is subject to a reasonable additional
Buying of foreign exchange, securities, or commodities in one market
and the simultaneous selling in another market. By this manipulation
a profit is made because of the difference in the rates of exchange
or in the prices of securities or commodities involved.
Code specifying an area.
Zone Improvement Plan (ZIP)
Arrival Notice
Notice sent by a carrier or freight forwarder to notify party advising
the arrival of a shipment.
Articles Dangereux de Route
Abbreviation: ADR. European agreement concerning the international
carriage of dangerous goods by road.
Stage of production in which components are put together into an
end product.
Assignment
Transfer of the rights, duties, responsibilities and/or benefits
of an agreement, contract, or financial instrument to a third party.
Assignment of Proceeds
Stipulation within a Letter of Credit in which some or all of the
proceeds are assigned from the original beneficiary to one or more
additional beneficiaries.
Assured Party
Party that has legal title to the cargo and to whom a claim payment
will be paid.
1. Behind a vessel or an aircraft. 2. B in a reverse direction.
Athwartships
Across the vessel, i.e., from one side to the other.
Fore and Aft Stowage
Methodical examination and review of a situation or condition (as
within a business enterprise) concluding with a detailed report
of findings.
Authentication
Proof by means of a signature or otherwise that a certain document
or certain data is of undisputed origin and is genuine.
Authorization
Commission to a certain person or body to act on behalf of another
person or body.
Auto Container
Container equipped for the transportation of vehicles.
Automated Guided Vehicle System
Unmanned vehicles equipped with automatic guidance equipment which
follow a prescribed path.
Automatic Indentification
Means of identifying an item (e.g. a product, parcel or transport
unit) by a device entering the data automatically into a computer.
The most widely used technology at others include
radio frequency, magnetic stripes and optical character recognition.
Any loss or damage due to insured perils that is less than a total
loss. Two types of average occur: Particular Average and General
Particular Average General Average Average Adjusters
Average Adjusters
In general average adjusters are entrusted with the task of apportioning
the loss and expenditure over the parties interested in the maritime
venture. They also determine which expenses are to be regarded as
average or general average.
Average Clause
Clause in marine policy which sets out the cover provided in the
event of partial loss.
Average Irrespective of Percentage
Indicates that partial losses will be paid regardless of any franchise
or percentage.
Air Waybill
Both Days Inclusive.
Bill of Lading
Back Letter
1. Back letters are drawn up in addition to a contract in order
to lay down rights and/or obligations between both contracting parties,
which, for various possible reasons, cannot be included in the original
2. This expression is sometimes used for letters of indemnity.
Back Order
Customer order or commitment, which is unfilled due to insufficient
1. The quantity of goods still to be delivered, received, produced,
issued, etc., for which the planned or agreed date has expired.
2. The total number of customer orders which have been received
but not yet been shipped.
Synonym: Open Order
Bunker Adjustment Factor
Balance of Trade
Difference between a country’s total imports and exports. If exports
exceed imports, a favorable bal if not, a trade
deficit is said to exist.
The capacity of cargo spaces under the deck of a vessel (including
hatchways but excluding void spaces behind cargo battens and beams)
expressed in cubic meters or cubic feet.
Materials carried to improve the trim and the stability of the vessel.
Vessels usually carry water in tanks as ballast. The tanks are specially
designed for this purpose.
Bank Draft
Check issued by a bank.
Bank Guarantee
Undertaking by a bank to effect payment of a sum of money in the
event of non performance by the party on whose behalf the guarantee
is issued.
Bank Release
Negotiable time draft drawn on and accepted by a bank that adds
its credit to that of an importer of merchandise.
Banker’s Acceptance
“Time draft” drawn on a bank and bearing the bank’s promise to pay
at a future date.
Banking System
For marine purposes the practice of always keeping more than one
piece of cargo on the quay or in the vessel ready for loading or
discharging in order to avoid delays and to obtain optimal use of
the loading gear.
Bar Coding
Method of encoding data for fast and accurate electronic readability.
Bar codes are a series of alternating bars and spaces printed or
stamped on products, labels, or other media, representing encoded
information which can be read by electronic readers, used to facilitate
timely and accurate input of data to a computer system.
Bareboat Charter
Charter whereby the charterer leases the bare ship and appoints
the master and crew itself.
Flat-bottomed cargo transport vessel designed for canals, rivers
and shallow waters with or without its own propulsion.
Synonym: Lighter
Unlawful act or fraudulent breach of duty on the part of a master
of a ship or of the mariners resulting in the injury of the owner
of the ship or cargo.
Trade in which merchandise is exchanged directly for other merchandise
without use of money.
Countertrade
Basic Stock
Items of an inventory intended for issue against demand during the
re-supply lead time.
Collection of products or data which is treated as one entity with
respect to certain operations (e.g. processing and production).
Batch Production
Production process where products/components are produced in batches
and where each separate batch consists of a number of the same products/components.
Vertical division of a container vessel from stem to stern, used
to indicate stowage places for containers. The numbers run from
odd numbers indicate a 20-foot position, even numbers
indicate a 40-foot position.
Cell Position Grid Number
Stowage plan which shows the locations of all the containers on
the vessel.
Bulk Cargo Code Segregation
Under-floor area of an aircraft.
Hold Space
Benchmarking
Measurement and comparison against a standard, of efforts and results
in the business process (e.g. input, output, reliability, quality
and customer satisfaction).
Beneficiary
Entity or person on whom a Letter of Credit has been opened or a
draft has been drawn.
Assignment of Proceeds Transferable Letter of Credit
Benefit of Insurance Clause
Clause by which the bailee of goods claims the benefit of any insurance
policy effected by the cargo owner on the goods in care of the bailee.
Such a clause in a contract of carriage issued in accordance with
the Carriage of Goods by Sea Act is void at law.
Location in a port where a vessel can be moored, often indicated
by a code or name.
Wharf Quay Pier
Bilateral Trade
Commerce between two countries, usually in accordance with specific
agreements.
Bilateral Transport Agreement
Agreement between two nations concerning transport relations.
Bill of Exchange
Bill of Lading
Abbreviation: B/L. Document that establishes the terms of a contract
between a shipper and a transportation company under which freight
is to be moved between specified points for a specified charge.
Usually prepared by the shipper on forms issued by the carrier,
it serves as a document of title, a contract of carriage, and a
receipt for goods.
Air Waybill Ocean Bill of Lading Through Bill of Lading
Bill of Lading Clause
Particular article, stipulation or single provision in a Bill of
Bill of Material
List of all parts, sub-assemblies and raw materials that constitute
a particular assembly, showing the quantity of each required item.
Bimodal Trailer
1. Road semi-trailer with retractable running gear to allow mounting
on a pair of rail boogies.
Synonym: Road-Rail Trailer 2. Trailer which is able to carry different
types of standardized unit loads (e.g. a chassis which is appropriate
for the carriage of one FEU or two TEUs).
Block Train
Complete train moving straight from origin station to destination
station without marshalling or decoupling of wagons.
Double Stack Train
Member of the vessel’s crew.
Post, fixed on a quay to lash mooring ropes.
Container Bolster
I without dishonesty, fraud or deceit.
Bonded Shipments
Shipments which are permitted to travel to inland destinations before
customs clearance.
Bonded Transit Warehouse
Warehouse under customs control holding cargo in transit to further
destination.
Bonded Warehouse
Warehouse authorized by customs authorities for storage of uncleared
Space reservation, conclusion of contract of carriage.
Synonym for Air Cargo: Reservation
Booking Reference Number
Number assigned to a certain booking by the carrier or its agent.
Bottom Fittings
Special conical-shaped devices to avoid the container moving during
the voyage.
Bottom Lift
Handling of containers with equipment attached to the four bottom
corner fittings (castings).
Bottom Limit
Maximum value at risk per shipment/sending/aircraft.
Box Pallet
Pallet with at least three fixed, removable or collapsible, vertical
Break Bulk
1. Physical discharge of unitized cargo. 2. Administration procedure
of document splitting at destination.
Break Bulk Cargo
General cargo conventionally stowed as opposed to unitized, containerized
and Roll-on/Roll-off cargo.
Synonym: Conventional Cargo
Break-Even Weight
Weight at which it is cheaper to charge the lower rate for the next
higher weight-break multiplied by the minimum weight indicated,
than to charge the higher rate for the actual weight of the shipment
(air cargo).
Broken Stowage
Cargo space that is unavoidably lost when stowing cargo. The percentage
of wasted space depends upon the kind of cargo, the packing and
the used spaces.
Person who acts as an agent or intermediary in negotiating contracts.
Brussels Tariff Nomenclature
Abbreviation: BTN. Old Customs Cooperation Council Nomenclature
for the classification of goods. Now replaced by the Harmonized
Harmonized System (HS)
British Standards Institution.
Brussels Tariff Nomenclature
Buffer Stock
Quantity of goods or articles kept in store to safeguard against
unforeseen shortages or demands.
Bulk Cargo
Unpacked cargo loaded directly into the vessel’s holds. Examples
of commodities that can be shipped in bulk are ores, coal, scrap
iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers
and similar commodities.
Bulk Cargo Code
Abbreviation: BC Code. Safe working practice code for solid bulk
Bulk Carrier
Single-deck vessel designed to carry homogeneous unpacked dry cargo
such as grain, iron ore and coal.
Bulk Container
Container designed for the carriage of free-flowing dry cargo, which
are loaded through hatchways in the roof of the container and discharged
through hatchways at one end of the container.
Bulk Shipments
Bulk Cargo
Bulk Unitization Charge
Charge which applies to consignments carried from airport of departure
to airport of arrival, entirely in Unit Load Devices (air cargo).
1. Upright partition dividing compartments on board a vessel. 2.
A vertically mounted board to provide front wall protection against
shifting cargo and commonly seen on platform trailers (road cargo).
3. Partition in a container, providing a plenum chamber and/or air
passage for either return or supply air. 4. Vertically mounted wall
separating the fore respectively aft compartment from the rest of
the aircraft (air cargo).
Bull Rings
Rings for lashing the cargo in containers.
Spaces on board a vessel to store fuel.
Synonym: Tank
Bunker Adjustment Factor
Abbreviation: BAF. Adjustment applied by shipping lines or liner
conferences to offset the effect of fluctuations in the cost of
Bureau veritas
French classification society.
Additional abbreviation for CFR, “Cost and Freight”
Cover Note
C.O.G.S.A.
Carriage of Goods by Sea Act
Charter Party
Canceling (of policy) Returns Only
Constructive Total Loss
Country Damage
1. Transport of goods between two ports or places located in the
same country. 2. Transport of cargo in a country other than the
country where the vehicle is registered (road cargo). 3. The carriage
of a container from a surplus area to an area in which equipment
is needed.
Cash against Documents
Currency Adjustment Factor
Visit of a vessel to a port.
Capacity Control
Process of registering and steering of capacity.
Capacity Optimization
Activities to maximize the amount of freight that is carried in
the hold space of an aircraft.
Goods to be transported.
Cargo Accounts Settlement System
Abbreviation: CASS. System for automated account settlement between
participating IATA airlines, billing participants and part participants,
on the one hand and their appointed IATA cargo agents on the other
hand (air cargo).
Cargo Aircraft
Any aircraft other than a passenger aircraft or a combi.
Cargo Assembly
Separate reception of parcels or packages and the holding of them
for later dispatch as one consignment.
Consolidation
Cargo Disassembly
Break Bulk
Cargo Handling
Physical handling of goods.
Cargo Interchange Message Procedures
Cargo Interchange Message Procedures
Abbreviation: Cargo IMP. Procedures developed by the member airlines
of the Air Transport Association of America (ATA) and the International
Air Transport Association (IATA).
Cargo Manifest
List including all particulars of consignments.
Cargo Restriction Code
Code indicating that the use of a certain container is restricted
to particular cargo.
Cargo Tracer
Information sent by the agent or airline to all relevant parties,
stating that certain cargo is either missing or arrived in excess.
Carnet ATA
Customs document permitting the holder to carry or send merchandise
temporarily into certain foreign countries (for display, demonstration
or similar purposes) without completing normal customs formalities.
With a carnet, the holder avoids paying duties or posting bonds.
Process of transporting (conveying) cargo, from one point to another.
Synonym: Transport
Carriage and Insurance Paid to (... Named Place of Destination)
Abbreviation: CIP. Incoterm
Carriage of Goods by Sea Act
Abbreviation: C.O.G.S.A. 1936 U.S. Statute that governs the acts
that a carrier is responsible for and defines the terms used in
shipping. The act provides that the shipowner’s liability will be
limited to $500 per shipping package, and it stipulates a one-year
time limit for filing suit against the carrier. This act automatically
applies to international ocean movements but not to domestic ocean
transits unless the carrier agrees to be bound by it.
Carriage Paid to (... Named Place of Destination)
Abbreviation: CPT. Incoterm
Company that carries the cargo, e.g. shipping line, airline, trucking
company, etc.
Carrier Haulage
Inland transport service performed by the sea-carrier under the
terms and conditions of the relevant transport document.
Merchant Inspired Carrier Haulage
Carriers’ Lien
Right to retain the property as security for the payment of services,
material, or money expended on that property. E.g.: When the shipper
ships goods “collect”, the carrier has a possessory claim on these
goods, which means that the carrier can retain possession of the
goods as security for the charges due.
Carrying Temperature
Required cargo temperature during transport and storage.
Setting/Air Delivery Temperature
Cash Against Documents
Abbreviation: CAD. Payment condition which implies transfer of title
at time of payment.
Cash in Advance
Abbreviation: CIA. Payment condition which implies up-front payment
before transfer of title of goods.
Cash on Delivery
Abbreviation: COD. Payment condition which implies payment of goods
at the time of physical transfer.
Cash with Order
Abbreviation: CWO. Payment condition which implies payment when
order is placed.
Abbreviation for: Cargo Accounts Settlement System.
Part-Participant Settlement Office
CASS Airline
Airline, fully participating in the CASS.
Closed Circuit Television.
Location on board of a container vessel where one container can
be stowed.
Cell Position
Location of a cell on board of a container vessel identified by
a code for, respectively, the bay, the row and the tier, indicating
the exact position of a container on that vessel.
Cell-Guide
Steel bars and rails used to steer containers during loading and
discharging whilst sliding in the ship.
Fully Cellular Containership
Cellular Vessel
Vessel, specially designed and equipped for the carriage of containers.
Council of European and Japanese National Ship-owners’ Associations
Center of Gravity
Point at which the entire weight of a body may be considered as
concentrated so that if supported at this point the body would remain
in equilibrium in any position.
Meta-Centric Height
Certificate
Document by which a fact is formally or officially attested and
in which special requirements and conditions can be stated.
Certificate of Analysis
Document, often required by an importer or government authorities,
attesting to the quality or purity of commodities.
Certificate of Classification
Certificate, issued by the classification society, stating the class
under which a vessel or an aircraft is registered.
Certificate of Free Sale
Certificate, required by some countries as evidence that the goods
are normally sold on the open market and approved by the regulatory
authorities in the country of origin.
Certificate of Inspection
Document confirming that cargo has been inspected by a competent
authority (SGS, Bureau Veritas or any national authority) before
Certificate of Insurance
Document presented by the insurance company or insured as evidence
that insurance is in effect. The insured may assign their rights
under this negotiable document to a third party, usually the consignee,
by endorsing the reverse of the certificate.
Certificate of Manufacture
Statement (often notarized) in which a producer of goods certifies
that manufacture has been completed and that the goods are now at
the disposal of the buyer.
Certificate of Origin
Statement signed by the exporter, or its agent, and attested to
by a local Chamber of Commerce, indicating that the goods being
shipped, or a major percentage of them, originated and were produced
in the exporter’s country.
Incoterm for “Cost and Freight (... named port of destination)”
Synonym: C&F.
Container Freight Station
Charge Type
Separate, identifiable element of charges to be used in the pricing/rating
of common services rendered to customers.
Charter Contract
Charter Party
Charter Party
Written contract, usually on a special form, between the owner of
a vessel and a “charterer” who rents use of the vessel or a part
of its freight space. The contract generally includes the freight
rates and the ports involved in the transportation.
Synonym for Airfreight: Charter C
Bareboat Charter Demise Charter Lump-Sum Charter Slot Charter
Space Charter Time Charter
Person who has signed a charter party with the owner of a vessel
or an aircraft and thus hires or leases the same vessel or aircraft
or a part of the capacity thereof on a legal basis.
Cash in Advance
Incoterm for “Cost, Insurance and Freight (... named port of destination)”
Cost, Insurance, Freight and Commission.
Convention Internationale Concernant le Transport des Marchandises
par Chemin de Fer
Incoterm for “Carriage and Insurance Paid to
(... named place of destination)”
City Terminal Service
Shuttle service between city and airport.
Class Rate
Rate applicable to a specifically designated class of goods (air
General Cargo Rate
Classification
Arrangement according to a systematic division of a number of objects
into groups, based on some likeness or some common traits.
Classification Society
Organization, whose main function is to carry out surveys of vessels,
its purpose being to set and maintain standards of construction
and upkeep for vessels, their engines and their safety equipment.
A classification society also inspects and approves the construction
of shipping containers.
Bureau Veritas Det Norske Veritas Germanischer Lloyd Lloyd’s Register
of Shipping
Clean Bill of Lading
Receipt for goods issued by a shipping line that indicates that
the goods were received in “apparent good order and condition”,
without damage or other irregularities.
Foul Bill of Lading Letter of Indemnity
Clean Draft (Bill of Exchange)
Draft with no accompanying documents.
Clean on Board
When goods are loaded on board and the document issued in respect
to these goods is clean. Note: Through the usage of the UCP 500
rules the term has now become superfluous.
Clearence Terminal
Terminal where customs facilities for the clearance of goods are
available.
Cleared without Examination
Abbreviation: CWE. Cleared by customs without inspection.
Clip on Unit
Abbreviation: COU. Detachable aggregate for a temperature controlled
container (Conair).
Closed Ventilated Container
Container of a closed type, similar to a general-purpose container,
but specially designed for carriage of cargo where ventilation,
either natural or mechanical (forced), is necessary.
Container Load Plan
Convention Relative au Contrat de Transport International de Marchandises
Co-Insurance
Where two or more parties share the same risk. A co-insurer is not
obliged to follow the decision of another co-insurer, except where
they have given authority for the other party to act on their behalf.
Each co-insurance is a separate contract with the insured.
Co-Loading
Combination of cargo from another shipper or carrier, having the
same final destination as the cargo base load.
Cash on Delivery
Empty space on board of a vessel between two bulkheads or two decks
separating oil tanks from each other and/or the engine room or other
compartments.
Collapsible Container
Container which can be easily folded, disassembled and reassembled.
Collect Freight
Freight which is payable to the carrier when the merchandise arrives
at the port of discharge named in the Bill of Lading.
Collecting Bank
Bank to which a remitting bank sends draft for collection.
Advice of Fate
Collection Papers
All documents (Commercial invoices, Bills of Lading, etc.) submitted
to a buyer for the purpose of receiving payment for a shipment.
Physical impact between two or more vehicles. In collision liability
insurance, the term does not include contact of the insured vessel
with anything other than a ship or vessel.
Perils of the Sea
Combi Aircraft
Aircraft, carrying passengers and cargo upper deck.
Combination Chassis
Chassis which can carry either one 40-foot or two
20-foot containers.
Combination Joint Rate
Joint rate which is obtained by combining two or more published
rates (air cargo).
Combined Transport
Intermodal transport where the major part of the journey is by one
mode and any initial and/or final leg carried out by another mode.
Synonym: Multimodal Transport
Combined Transport Document
Combined Transport Document
Abbreviation: CTD. Negotiable or non-negotiable document evidencing
a contract for the performance of combined transport of goods.
Synonym: Multimodal Transport Document
Combined Transport Operator
Abbreviation: CTO. Party that undertakes to carry goods with different
modes of transport.
Synonym: Multimodal Transport Operator
Commercial Invoice
Document issued by the seller to the buyer, which gives detail of
merchandise sold, number of units being shipped, per unit cost and
the terms of sale.
Declaration of Origin
Commercial Set
Set of four “negotiable” documents that represents and takes the
place of the goods themselves in the financing of the cargo sales
transaction.
Indication of the type of goods. Commodities are coded according
to the harmonized system.
Harmonized System
Commodity Box Rate
Rate classified by commodity and quoted per container.
Harmonized System
Commodity Code
Code used in the Harmonized System for the classification of goods
which are most commonly produced and traded.
Commodity Item Number
Specific description number required in air transport to indicate
that a specific freight rate applies.
Common Carrier
Transporter that provides its services to the general public for
the transportation of goods over a definite route and according
to a regular schedule.
Compromised Total Loss
Arranged settlement on a hull policy where there is no claim for
actual or constructive total loss, but where it is impractical to
repair the vessel.
Conair Container
Thermal container served by an external cooling system (e.g. a vessel’s
cooling system or a Clip on Unit), which regulates the temperature
of the cargo. Note: Conair is a brand name.
Clip on Unit
Conditions of Carriage
General terms and conditions established by a carrier in respect
of the carriage.
Conditions of Contract
Terms and conditions of a transportation contract.
Devices for facilitating the loading, positioning and lashing of
containers. The cones insert into the bottom castings of the container.
Synonym: Locating Pin
Conference
Liner Conference
Confirmed Letter of Credit
Letter of Credit, issued by a foreign bank, with validity confirmed
by a bank of origin. A seller that requires a confirmed Letter of
Credit from the buyer is assured of payment by the origin bank even
if the foreign buyer or the foreign bank defaults.
Connecting Carrier
Carrier to whose services the cargo is to be transferred for onward
connecting transport.
Connecting Road Haulage
Party, mentioned in the transport document, by whom the goods, cargo
or containers are to be received.
Consignment
Separate identifiable number of goods to be transported from one
shipper to one consignee.
Synonym: Shipment
Consignment Instructions
Shipping Instructions
Consignment Note
Document prepared by the shipper and comprising a transport contract.
It contains details of the consignment to be carried to the port
of loading and it is signed by the inland carrier as proof of receipt.
Consignment Stock
Stock of goods with an external party (customer) which is still
the property of the supplier. Payment for these goods is made to
the supplier at the moment when they are sold.
Consolidated Container
Container filled with several shipments from different shippers
for delivery to one or more consignees.
Consolidation
Grouping together of smaller consignments of goods into a large
consignment for carriage as a larger unit in order to obtain a reduced
Cargo Assembly Consolidation Point
Consolidation Point
Location where consolidation of consignments takes place.
Consolidator
Firm or company which consolidates cargo.
Constructive Total Loss
Position which exists when the cost of repairing or recovering lost
or damaged property plus the value of the salvage would exceed the
property’s value when repaired or recovered.
Abandonment Compromised Total Loss Notice of Abandonment
Consular Declaration
Formal statement, made by the consulate of a foreign country.
Consular Documents
Bills of Lading, certificates of origin or special invoice forms
that are officially legalized by the consul of the country of destination.
Consular Invoice
Document, required by some foreign countries, describing a shipment
of goods and showing information such as the shipper, consignee,
and value of the shipment. Certified by a consular official of the
foreign country, it is used by the country’s customs officials to
verify the value, quantity, and nature of the shipment.
Item of equipment as defined by the International Organization for
Standardization (ISO) for transport purposes. It must be of: a)
a permanent character and accordingly strong enough to be suitable
b) specially designed to facilitate the carriage
of goods, by one or more modes of transport without intermediate
c) fitted with devices permitting its ready handling,
particularly from one mode of
d) so designed
as to be ea e) having an internal volume of
1 m3 or more. The term container includes neither vehicles nor conventional
Synonym: Freight Container
Container Bolster
Container floor without sides or end walls which does not have the
ISO corner fittings and is generally used for Ro/Ro operations.
Note: A bolster cannot be handled either full or empty by a container
spreader without special fittings.
Synonym: Bolster
Container Chassis
Vehicle specially built for the purpose of transporting containers.
Container Check Digit
7th digit of the serial number of a container used to check whether
prefix and serial number are correct.
Container Depot
Storage area for empty containers.
Container Freight Station
Abbreviation: CFS. Term CFS at loading ports refers to the location
designated by carriers for the receiving of cargo to be packed into
containers by the carrier. At discharge ports, the term CFS refers
to the location designated by carriers in the port area for unpacking
and delivery of cargo.
Container Lease
Contract by which the owner of containers (leasing company, lessor)
gives the use of containers to a shipping line or other lessee for
a specified period of time.
Container Load Plan
List of items loaded in a specific container and where appropriate,
their sequence of loading.
Container Manifest
Container Logistics
Controlling and positioning of containers.
Container Manifest
Document specifying the contents of particular freight containers
or other transport units, prepared by the party responsible for
their loading into the container or unit.
Synonym: Unit Packing List Container Load Plan
Container Number
Identification number of a container consisting of prefix and serial
number and check digit (e.g. KNLU ).
Container Serial Number Container Prefix
Container Platform
Container floor without sides or end walls which can be loaded by
spreader directly and is generally used for off-size cargo.
Container Pool
Certain stock of containers which is jointly used by several container
carriers and/or leasing companies.
Container Prefix
Four-letter code that forms the first part of a container identification
number indicating the owner of a container.
Synonym: Owner’s Container Code
Container Safety Convention
Abbreviation: CSC. International convention for safe containers.
Container Serial Number
Seven digit serial number (6 plus 1 Check Digit) that forms the
second part of a container identification number.
Container Service Charges
Charges to be paid by cargo interests as per local port tariffs.
Container Size Code
Two digit indication of the nominal length and nominal height of
a container.
Container Size / Type
Description of the size and type of a freight container or similar
unit load device as specified in ISO 6346.
Container Stack
Two or more containers, one placed above the other forming a vertical
Container Sublease
Contract by which a carrier gives the use of containers to another
carrier for a specified period of time and for a fixed payment.
Container Terminal
Place where loaded and/or empty containers are stored awaiting dispatch
or pick up.
Container Type Code
Two digits, the first of which indicates the category and the second
of which indicates certain physical characteristics or other attributes
of a container.
Container Yard
Abbreviation: CY. Facility at which containers are received from
or delivered to the merchant by or on behalf of the carrier.
Synonym: Marshalling Yard
Containerized
Indication that goods have been stowed in a container.
Contingency Insurance
Secondary insurance coverage which will protect the insured’s financial
interest if the primary insurance cover effected by others does
not respond for a covered loss (Seller’s Insurance).
Contraband
Goods forbidden by national law to be imported or exported.
Agreement enforceable by law, between two or more parties stipulating
their rights and obligations.
Contract Logistics
Contracting out of all the warehousing, transport and distribution
activities or a part thereof by manufacturing companies.
Contract of Affreightment
Affreightment
Contractual Carrier
The contractual carrier (called NVO, Non Vessel Operator or NVOC,
Non Vessel Operating Carrier) is a party which contracts carriage
of goods for the account of the Merchants and fulfills its commitment
by using the services of a carrier (sometimes referred to as the
“actual” carrier).
Contractual Port of Loading
Port at which an ocean vessel does not call, but which is equalized
with the actual port of call and upon which inland haulage services
and inland tariffs are based. Note: Generally speaking it is seen
as the port mentioned on the B/L from which cargo is accepted (e.g.
delivered by the consignee for sea transport).
Synonym: Commercial POL/POD
Contribution
This relates to situations where more than one party covers the
risk. Each party is deemed to be liable for its portion of the loss.
If the insured has recovered in full from one insurer, that insurer
is entitled to recover from the other insurer that part of the loss
which should have been paid by the latter. The term, as used in
marine insurance, also applies to contributions paid by the insured
in connection with salvage and/or General Average.
Contributory Value General Average Bond General Average Statement
Protection and Indemnity Club Valuation Clause
Contributory Value
Value of property saved as a result of a General Average Act which
forms the basis for determining each party’s contribution in General
Convention Internationale Concernant le Transport des Marchandises
par Chemin de Fer
Abbreviation: CIM. International agreement, applied by 19 European
railway companies, setting out conditions for international railway
transport of goods and the liabilities of the carrier.
Convention Relative au Contrat de Transport International de
Marchandise par Route
Abbreviation: CMR. Convention for the international carriage of
goods by road, setting out the conditions of carriage and the liabilities
of the carrier. Note: Adherence to this set of regulations reflects
a desire to standardize items such as documentation and rules on
the carriers liability.
Conventional Cargo
Break Bulk Cargo
Convertible Currency
Currency that can be bought and sold for other currencies at free-trade.
Convertor Dolly
Auxiliary undercarriage assembly consisting of a chassis, fifth
wheel and tow-bar used to convert a semi-trailer or a container
chassis to a full trailer.
Conveyance
Transport of goods from one place to another.
Mechanical device in the form of a continuous belt used for transporting
Core Competence
Combination of individual skills and use of technologies that underlay
the various products and/or services of a business.
Corner Fittings
Fittings located at the corners of containers providing means of
supporting, stacking, handling and securing the container.
Synonym: Corner Casting
Corner Post
Vertical structural member at either side of an “end frame” of a
container joining a top and a bottom corner fitting (and thereby
forming a “corner structure”).
Correspondent Bank
Bank that, in its own country, handles the business of a foreign
Cost and Freight (… Named Port of Destination)
Abbreviation: CFR. Incoterm
Cost, Insurance and Freight (… Named Port of Destination)
Abbreviation: CIF. Incoterm
Clip on Unit
Council of European and Japanese National Shipowners’ Associations
Abbreviation: CENSA. Main objectives of this organization are to
promote and protect sound shipping policies in all sectors of shipping,
to coordinate and present the views of its members and to exchange
views with other shipowner groups.
Count Bill of Lading
Bill of Lading which shows the actual number of units being shipped.
Countertrade
Sale of goods or services that are paid for in whole or in part
by the transfer of goods or services from a foreign country.
Country Damage
Damage caused by dirt, mud, etc., to commodities before they are
Country of Departure
Country from which a certain means of transport is scheduled to
depart or has departed.
Country of Dispatch
Country from which the goods are shipped.
Country of Origin
Country of Origin
Country where the merchandise was grown, mined, or manufactured.
In instances where the country of origin cannot be determined, transactions
are credited to the country of dispatch.
Country of Dispatch
Country of Provenance
Country of origin of goods or cargo being sent to the importing
Cover Note
Non-negotiable document evidencing insurance which may or may not
indicate the terms of cover.
Incoterm for “Carriage Paid to (... named place of destination)”.
Machine designed for moving and lifting weight by means of a movable
projecting arm or a horizontal beam which is able to travel over
a certain distance.
Credit Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods.
Crew Member
Any person actually employed for duties on board during a voyage
in the working or service of a ship and included in the crew list
Crosstrade
1. Used in shipping for the services of a vessel between nations
other than the nation in which the vessel is registered. 2. Term
used in the freight forwarding industry for the transportation services
between nations other than the nation in which the cargo’s principle
is domiciled (UNCTAD).
Container Safety Convention
Combined Transport Document
Combined Transport Operator
Medium of exchange of value, defined by reference to the geographic
location of the authorities responsible for it (ISO 4217). In general,
the monetary unit is represented by a name or a symbol.
Currency Adjustment Factor
Abbreviation: CAF. Adjustment applied by shipping lines or liner
conferences on freight rates to offset losses or gains for carriers
resulting from fluctuations in exchange rates of tariff currencies.
Customer Pick Up
Cargo picked up by a customer at a warehouse.
Customer Service Level
Performance measure of customer service. Note: Generally this is
seen as the degree with which customer orders can be executed, in
accordance with the terms which are generally accepted in the market.
Customhouse Broker
Individual or firm licensed to enter and clear goods through customs.
Authorities designated to collect duties levied by a country on
imports and exports. The term also applies to the procedures involved
in such collection.
Customs Broker
Authorized agent specialized in customs clearance procedures on
account of importers/exporters.
Customs Clearance Agent
Customs Clearance Agent
Customs broker or other agent of the consignee designated to perform
customs clearance services for the consignee.
Customs Broker
Customs Entry Form
Form required by customs authorities for merchandise entering the
country. It indicates the country of origin, description of merchandise
and the amount of estimated duty to be paid before merchandise is
Customs Invoice
Document required by customs in an importing country in which the
seller states the price (e.g. selling price, price of identical
goods), and specifies costs for freight, insurance and packing,
etc., terms of delivery and payment. This is for the purpose of
determining the customs value in the importing country of goods
consigned to that country.
Customs Value
Worth of an item or group of items expressed in a monetary amount,
within a consignment declared to customs for duty and statistical
Customs Invoice
Cut-Off Time
Last point before a flight departs at which freight will be accepted
to travel on that flight.
Cleared without Examination
Cash with Order
Container Yard
Cycle Stock
That portion of stock available or planned to be available in a
given period for normal demand, excluding excess stock and safety
Documents against Acceptance
Documents against Payment
Incoterm for “Delivered at Frontier (... named place)”.
Damage Report
Form on which physical damage of a consignment or transportation
unit (e.g. container) is recorded.
Damaged Cargo Report
Written statement concerning established damages to cargo and/or
equipment.
Dangerous Goods
Goods are to be considered dangerous if the transport of such goods
might cause harm, risk, peril, or other evil to people, environment,
equipment or any property whatsoever.
Articles Dangereux de Route Dangerous Goods Packing Certificate
International Maritime Dangerous Goods Code International Maritime
Organization Medical First Aid Guide United Nations Dangerous Goods
Dangerous Goods Declaration
Document issued by a shipper in accordance with applicable conventions
or regulations, describing hazardous goods or materials for transport
purposes, and stating that the latter have been packed and labeled
in accordance with the provisions of the relevant conventions or
regulations.
Dangerous Goods Packing Certificate
Document as part of the dangerous goods declaration in which the
responsible party declares that the cargo has been stowed in accordance
with the rules in a clean container in compliance with the IMDG
regulations and has been properly secured.
Data Plate
Metal identification plate affixed to a container which displays,
among other things, the gross and tare weights and external dimensions.
Date Draft (Bill of Exchange)
Draft that matures in a specified number of days after the date
it is issued, without regard to the date of acceptance.
Draft Sight Draft Time Draft
Incoterm for “Delivered Duty Paid (... named place of destination)”.
Incoterm for “Delivered Duty Unpaid (... named place of destination)”.
Difference between the actual and calculated ship’s draft.
Deadweight
Abbreviation: DWT. Total weight of cargo, cargo equipment, bunkers,
provisions, water, stores and spare parts which a vessel can lift
when loaded to her maximum draft as applicable under the circumstances.
The deadweight is expressed in tons.
Any extended horizontal structure in a vessel or an aircraft, serving
as a floor and structural support, covering, partially or fully,
a portion of the vessel or aircraft.
Deck Cargo
Cargo carried outside on deck of a vessel.
Declaration of Origin
Appropriate statement as to the origin of the goods, made in connection
with their exportation by the manufacturer, producer, supplier,
exporter or other competent person on the commercial invoice or
any document relating to goods.
Commercial Invoice
Declared Value for Carriage
Value of the goods declared to the carrier by the shipper for the
purpose of determining charges or of establishing the limit of the
carrier’s liability for loss, damage or delay. It is also the basis
for possible applicable valuation charges (air cargo).
Deductible
Specific dollar amount, or percentage of the insured value, which
will be deducted from all losses recoverable under a policy.
Tank fitted and equipped for the carriage of vegetable oil (e.g.
palm oil and coconut oil) and other liquids in bulk.
Default Charge
Charge applicable for a trade, stretch or location. In the absence
of specifics (not otherwise specified/enumerated) a general amount
has been set.
Deferred Payment Credit
Type of Letter of Credit providing for payment some time after presentation
of shipping documents by seller.
Degroupage
Splitting up shipments into small consignments.
Regroupage
Even under All Risk cover, damage due to delay is not recoverable.
Most underwriters have inserted a “Delay Clause” in the Open Cargo
Policy, which states specifically that damage caused by delay is
not recoverable even if the delay was due to a peril insured against.
Delivered at Frontier (… Named Place)
Abbreviation: DAF. Incoterm
Delivered Duty Paid (… Named Place of Destination)
Abbreviation: DDP. Incoterm
Delivered Duty Unpaid (… Named Place of Destination)
Abbreviation: DDU. Incoterm
Delivered Ex Quay (… Named Port of Destination)
Abbreviation: DEQ. Incoterm
Delivered Ex Ship (… Named Port of Destination)
Abbreviation: DES. Incoterm
Delivering Carrier
Carrier that delivers the consignment to the consignee or its agent.
Process of delivering the consignment to the consignee at the agreed
Delivery Instruction
Document giving instructions regarding the details of the delivery
of the shipment.
Delivery Order
1. 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 (shipping). 2. The authorization of the
entitled party for the shipment to a party other than the consignee
shown on the Air Waybill.
Delivery Party
Party to which goods are to be delivered.
Delivery Receipt
Document recording the delivery of shipment to a consignee.
Delivery Time
Time between order and delivery.
Demand Draft (Bill of Exchange)
Sight Draft
Demise Charter
Contract whereby the shipowner leases its vessel to the charterer
for a period of time during which the whole use and management of
the vessel passes to the charterer. This involves the charterer
paying all expenses for the operation and maintenance of the vessel.
Officers and crew become servants of the charterer. A demise charter
whereby the charterer has the right to place its own master and
crew on board of the vessel is also called “bareboat charter”.
Bareboat Charter
1. A variable fee charged to carriers and/or customers for the
use of Unit Load Devices (ULD’s) owned by a carrier beyond the free
time of shipment (air cargo). 2. Additional charge imposed for exceeding
the free time which is included in the rate and allowed for the
use of a certain equipment at the terminal.
Density of Commodity
Mass of a commodity to its volume.
Place designated by the carrier where empty containers are kept
in stock and received from or delivered to the container operators
or merchants.
Synonym: Container Depot
Incoterm for “Delivered Ex Quay (... named port of destination)”.
Lifting equipment on board a conventional vessel for loading and
discharging cargo, consisting of a post attached to the deck and
an inclined spar.
Lift-on/Lift-off Vessel
Incoterm for “Delivered Ex Ship (... named port of destination)”.
Destination
1. Place for which goods or a vehicle is bound. 2. The ultimate
stopping place according to the contract of carriage.
Destuffing Report
A document reporting the destuffing of a container indicating time
and place as well as responsible peron and any damage.
Det Norske Veritas
Norwegian classification society.
Classification Society
Keeping equipment beyond the time allowed.
Detention Charge
Charges levied on usage of equipment exceeding free time period
as stipulated in the pertinent inland rules and conditions.
Deterioration
Downgrading of a product due to long storage, damage due to packing
or other external influences.
Shelf Life Wear and Tear
Devaluation
Official lowering of the value of one country’s currency in terms
of one or more foreign currencies. (E.g., if the U.S. dollar is
devalued in relation to the French franc, one dollar will “buy”
fewer francs than before.)
Deviation from a Route
Divergence from the agreed or customary route.
Dimensions
Measurements in length, width and height, regarding cargo.
Direct Covered
Condition which requires the insured voyage to be direct from one
place to another. If the voyage is delayed en route or if there
is a deviation from the direct route, the insurance cover continues
subject to payment of an additional premium, but only if the assured
gives prompt notice of the delay or deviation immediately on receipt
of advice, unless the policy provides otherwise.
Direct Delivery
1. The conveyance of goods directly from the vendor to the buyer.
Frequently used if a third party acts as intermediary agent between
vendor and buyer. 2. Direct discharge from vessel onto railroad
car, road vehicle or barge with the purpose of immediate transport
from the port area.
Direct Route
Shortest operated route between two points.
Indirect Route
Disbursement
Sums paid out by a ship’s agent at a port and recovered from the
1. Unloading of a vehicle, a vessel or an aircraft.
2. Landing of cargo.
Disclaimer
A statement in which a company or individual says that they are
not responsible for something.
Disclosure
Duty of the insured and their broker to tell the underwriter every
material circumstance before acceptance of the risk.
Discrepancy
Difference between the particulars given and the particulars found.
Discrepancy Letter of Credit
When documents presented do not conform to the Letter of Credit,
it is referred to as a “discrepancy”.
Process of sending goods.
Synonym: D Dispatch Advice
Dispatch Advice
Information sent by shipper to the consignee informing that specified
goods have been sent or are ready to be sent advising the detailed
contents of the consignment.
Synonym: Dispatch Note
Dispatch Note (for Post Parcels)
Document which, according to the agreement concerning postal parcels,
is to accompany post parcels.
Displacement
Weight of the quantity of water displaced by the vessel. The displacement
of the vessel on her light draft represents the weight of the vessel
ready for use including stores, etc.
Disposable Pallet
Pallet intended to be discarded after a single cycle of use.
One-Way Pallet Expendable Pallet
Dispositioning
All activities relating to the inland movement of empty and/or full
containers.
Distribution
Set of activities which ensure the availability of goods in the
desired quality, quantity, place and time for the customer.
Physical Distribution
Distribution Center
Warehouse for the receipt, the storage and the dispersal of goods
among customers.
Synonym: Branch Warehouse
Distribution Channel
Route by which a company distributes goods.
Vertically mounted partition in a compartment on board of an aircraft
(air cargo).
Synonym: Partition
Dock Receipt
Form issued by a carrier or its representative as evidence that
merchandise was in fact received by the carrier for shipment. Often
referred to as a Received for Shipment Bill of Lading.
Documentary Credit
Commercial Letter of Credit providing for payment by a bank to the
name beneficiary, usually the seller of merchandise, against delivery
of documents specified in the credit.
Documentary Draft
Draft to which documents are attached.
Documents against Acceptance
Abbreviation: 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 of an attached
Documents against Payment
Abbreviation: D/P. Instructions a shipper gives to its bank that
the documents attached to a draft for collection are deliverable
to the drawee only against their payment of the draft.
Domestic Carriage
Carriage whereby the place of departure and the place of destination
are situated within one country (air cargo).
Domestic Rate
Rate applicable within a country, and in most cases subject to special
conditions other than those of IATA (air cargo).
Door-to-Door Transport
House-to-House Transport
Double Stack Train
Railway wagons on which containers can be stacked two-high.
Block Train
Double-Deck Pallet
Flat pallet with a top and bottom deck.
Period of time when a machine is not available for production due
to a functional failure or maintenance.
Draft (or Bill of Exchange)
Unconditional order in writing from one person (the drawer) to another
(the drawee), directing the drawee to pay a specified amount to
a named drawer at a fixed or determinable future date.
Date Draft Sight Draft Time Draft
Draft of a vessel is the vertical distance 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 near the stem, the stern and amidships.
Synonym: Draught
Repayment of any part of customs or excise duties previously collected
on imported goods, when those goods are exported again.
Individual or firm on whom a draft is drawn and who owes the stated
Draft Drawer
Individual or firm that issues or signs a draft and thus stands
to receive payment of the stated amount from the drawee.
Draft Drawee
1. The hauling of a load by a cart with detachable sides (dray).
2. Road transportation between the nearest railway terminal and
the stuffing place.
Synonym: Connecting Road Haulage
Drop-off Charge
Charge made by terminal operators for delivery of a container into
depot stock. The drop-off charge may be a combination of actual
handling and storage charges with surcharges.
Dry Bulk Container
Container consisting of a cargo-carrying structure, firmly secured
within a framework, for the carriage of dry solids in bulk without
packaging. Containers of this type have type codes 80 and 81.
Dry Cargo Container
Shipping container which is designed for the carriage of goods other
than liquids.
Due Diligence
The care that a prudent person might be expected to exercise in
the examination and evaluation of risks affecting a business transaction.
Stowage material, mainly timber or board, used to prevent damage
to cargo during carriage.
Pressure that is used to make a company or an individual do something
which they do not want to do.
1. Ad valorem duty means an assessed amount at a certain percentage
rate on the monetary value of an import.
2. Specific duty: an assessment on the weight or quantity of an
article without preference to its monetary value or market price.
3. Drawback: a recovery in whole or in part of duty paid on imported
merchandise at the time of exportation, in the same or different
Duty Free Zone
Area where goods or cargo can be stored without paying import customs
duties awaiting further transport or manufacturing.
Deadweight
European Article Numbering Association
Economic Speed
That speed of a means of transport which produces the best possible
financial result for the owner. Such speed should not be in excess
of the maximum or minimum output allowed for the engine(s).
Economy of Scale
Phenomenon which encourages the production of larger volumes of
a commodity to reduce its unit cost by distributing fixed costs
over a greater quantity.
Europe Combined Terminals (Rotterdam).
Electronic Data Interchange
Electronic Data Interchange for Administration, Commerce and Transport
Electronic Data Processing
Equipment Damage Report
Eight Freedoms (Air)
Freedom 1: The right to fly and carry traffic over the territory
of the grantor state.
Freedom 2: The right to fly and carry traffic over the grantor state
and to make one or more stops for non-traffic purposes (e.g. refueling).
Freedom 3: The right to fly into the territory of the grantor state
and set down traffic from the state of the carrier.
Freedom 4: The right to fly into the territory of the grantor state
and take on traffic for the state of the carrier.
Freedom 5: The right to fly into the territory of the grantor state
and take on or set down traffic to or from third states.
Freedom 6: The right to fly into the territory of the grantor state
and take on or set down traffic for the carrier’s state. Such traffic
being carried to a third state on a different service.
Freedom 7: The right for a flag-carrier operating entirely outside
the territory of this own state to take on or set down traffic in
the grantor state for carriage to or from a third state.
Freedom 8: The right of a carrier of another state to take (cabotage)
on or set down traffic from one point in the territory of the grantor
state to another point within the same state.
Five Freedoms (Air)
Equipment Interchange Receipt
Electronic Data Interchange
Abbreviation: EDI. Transfer of structured data, by agreed standards
from applications on the computer of one party to the applications
on the computer of another party by electronic means.
Electronic Data Interchange for Administration, Commerce and
Abbreviation: EDIFACT. ISO application level syntax rules for the
structuring of user data and of the associated service data in the
interchange of messages in an open environment.
Electronic Data Processing
Abbreviation: EDP. Computerized handling of information (e.g. business
Equipment used to discharge some bulk cargoes such as grain which
is removed from the hold by a continuous line of buckets or by suction
and carried on a conveyor belt to store.
Eligible Acceptance
Draft which meets requirements for discounting at a Federal Reserve
1. A government order prohibiting the entry or departure of
commercial vessels or goods at its ports.
2. The refusal by a carrier, for a limited period, to accept for
transport over any route or segment thereof, and to or from any
area or point, of a connecting carrier, any commodity, type of class
of cargo duly tendered.
Endorsement
Transfer of the right to obtain delivery of the goods of the carrier
by means of the consignee’s signature on the reverse side of a Bill
of Lading. If the name of the new consignee (transferee) is not
stated, the endorsement is an open one which means that every holder
of the document is entitled to obtain delivery of the goods.
Negotiable
Enhanced Remote Transit Shed
Abbreviation: ERTS. Term used in the UK: Warehouse where agents
can transfer incoming groupage/consolidations for customs clearance
Equipment Damage Report
Abbreviation: EDR. Written statement concerning damage to equipment,
based on a physical inspection.
Equipment Interchange Receipt
Abbreviation: EIR. Physical inspection and transfer receipt.
ERTS Facility
Enhanced Remote Transit Shed
Estimated Time of Arrival
Abbreviation: ETA. Expected date and time of arrival in a certain
(air)port.
Synonym: Expected Time of Arrival
Estimated Time of Departure
Abbreviation: ETD. Expected date and time when a certain (air)port
Synonym: Expected Time of Departure
Estimated Time of Arrival
Estimated Time of Departure
European Article Numbering Association
Abbreviation: EAN. International body responsible for administering
the European Article Numbering system. It has affiliates in many
countries such as: CCG in Germany, DCC in Japan, ANA in the United
Kingdom. Note: The North American body responsible for the Uniform
Product Code (UPC) coding is the Uniform Code Council (UPC is considered
a subset of EAN).
European Pallet Pool
Pool for the exchange of standard-sized pallets (the so-called Europallets)
in European cargo traffic, formed in 1961 by a number of European
rail administrators.
European Zone Charge
Abbreviation: EZC. Charge for inland haulage transport in case of
carrier haulage in Europe.
Ex “From”
When used in pricing terms such as “Ex Factory” or “Ex Dock”, it
signifies that the price quoted applies only at the point of origin
(e.g., at the seller’s factory or a dock at the import point). In
practice, this kind of quotation indicates that the seller agrees
to place the goods at the disposal of the buyer at the specified
place within a fixed period of time.
Seller owns goods until they are unloaded on dock
selling price includes all costs so far plus cost of unloading from
Ex Factory
Seller owns goods until they are picked selling
price is the cost of the goods.
Ex Quay means that the seller makes the goods available to the buyer
on the quay (wharf) at the place named in the sales contract. The
seller has to bear the full cost and risk involved in bringing the
goods there. There are two “Ex Quay” contracts in use: a) Ex Quay
“duty paid” and b) Ex Quay “duties on buyer’s account” in which
the liability to clear goods for import is to be met by the buyer
instead of by the seller.
Ex Works (... Named Place)
Abbreviation: EXW. Incoterm
Exceptions Clause
Exemption Clause
Excess Stock
That portion of stock on hand which is over and above the desired
stock level.
Cycle Stock
Exchange Permit
G